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Fund RaisingFund Raising

Chapter 8

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Fundraising is the gentle Fundraising is the gentle art of teaching the joy of art of teaching the joy of

giving.giving.- Hank Rosso

3Adapted from: Investing in Ourselves: Giving and Fund Raising in Asia (2002) ,Manila: Asian Development Bank, p. 49.

People Are PrimaryPeople Are Primary

• Fundraising is FRIEND raising

• People don’t give money to causes; they give to PEOPLE with causes

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Donor Recipient

New Thinking NeededNew Thinking Needed

• CHARITY is no longer an accurate term– Denotes 1-way, powerful-to-powerless interaction– Infers inadequacy of those asking

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Donor Recipient

Contemporary ConceptContemporary Concept

• PUBLIC BENEFIT ORGANISATION– Fulfills a community need– Creates a mutually beneficial relationship

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Community

Constituents

A donor’s gift is really a gift to the community through the NGOAdapted from: Grace, KS (2005) Beyond Fundraising, 2nd ed., Hoboken, NJ: Wiley, p.xiii.

Community

Donors

Constituents NGO

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Definition of GivingDefinition of Giving

• Philanthropy: based on general concept of “love of humankind”

• Values-based philanthropy: based on belief in specific mission of an organisation

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Important InterImportant Inter--relationshipsrelationships

FundraisingOffers chance to

act on values

DevelopmentDiscovers

shared values

PhilanthropyBased in values

Adapted from Grace, KS (2004)Beyond Fundraising, Hoboken, NJ: Wiley, p. 5

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You Can Do It!You Can Do It!

• Fundraising is not magic or mystery• Although fundraising is now a profession as

well as an academic discipline, advanced degrees are not required for success in raising money– Grassroots Fundraising Journal– Master of Science in Fundraising

Management, Columbia University– Institute of Fundraising, UK

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Barriers to FundraisingBarriers to Fundraising

• Societal problems• Systems problems• Image problems• Perception problems• Logistical problems

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Societal ProblemsSocietal Problems

• Wars, civil unrest• Disasters• Politics• Poverty

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Systems ProblemsSystems Problems

• Lack of means to register an NGO• Gratuities expected by officials• Donations being diverted • History of state control and/or neglect of

public sector

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Logistical ProblemsLogistical Problems

• Group lacks experience in establishing & running an organisation

• Group members lack time to devote to work of organisation

• Lack of infrastructure resources

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Image ProblemsImage Problems

• Distrust of NGOs by the public• Wrong doing of a few NGOs & their

officials reflects on all groups due to track record:– Misappropriation of funds– Creating an NGO for personal gain or as front

for political purpose

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Perception ProblemsPerception Problems

• Cause-related: Childhood cancer not regarded as an important issue

• Patients and survivors not seen as stakeholders in health care system

• Thus, less incentive to support cancer programs

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Many things can wait.ChildrenChildren cannot.Today their bones are being formed,their blood is being made,their senses are being developed.To them we cannot say “tomorrow.”Their name is todaytoday.

Gabriela MistralChilean poet, 1889-1957

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Barriers Specific to FundraisingBarriers Specific to Fundraising

• Fear of failure • Lack of experience• Discomfort asking for money• Viewing fundraising as unrelated to

organisation’s operations

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Klein, K.(2001). Fundraising for Social Change, Oakland, CA: Chardon Press, pp. 6-7, 283.

Lessons Learned from US Lessons Learned from US ExperiencesExperiences

• About 75% of donations to NGOs are from individuals

• Lower-income people donate more money as a percentage of income than do higher-income people

• Small businesses often make in-kind donations to local NGOs

• Foundations & corporations are over-rated as source of funds for nonprofits

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Adapted from Klein, K. (2001) Fundraising for Social Change, 4th ed. Oakland, CA: Chardon Press, p. 16.

3 Traits of a Good Fundraiser3 Traits of a Good Fundraiser

• Common sense• Commitment to a

cause• Genuine like of

people

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The Basics of Raising Money for The Basics of Raising Money for Your CauseYour Cause

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How Do You Get Started? How Do You Get Started?

• With an idea– What you hope to accomplish

• With people– Committed volunteers (and possibly staff)– Carefully selected board of directors– Supporters and consultants

• With a planning process– For the organisation– For raising the money that you need

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Make the Case for Your Make the Case for Your OrganisationOrganisation

• Before starting to raising funds, your group needs to create an organisational plan

• Planning is a group process that occurs in organised steps over a set time period

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The Case Statement Will Speak for The Case Statement Will Speak for Your Group Your Group

• Your planning effort will result in a written document that clearly explains why the group/organisation exists and what it does, which is called the “case statement”

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Adapted from: Klein, K. (2001). Fundraising for Social Change, 4th, ed., Oakland, CA: Chardon Press, p.32

What the Case Statement ExplainsWhat the Case Statement Explains

• Mission: why group exists• Goals: what it will do about its mission• Objectives: how goals will be accomplished• History: track record of accomplished objectives• Structure: explanation of its governance and how it

will function to meet stated goals• Fundraising plan, financial statement, and budget:

showing present & future plans, wise money management, realistic expenses

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Donors Look to Give Money to Donors Look to Give Money to Reliable NGOs that:Reliable NGOs that:

• Have a plan created by the group, not by a single individual

• Work as a team to achieve goals• Operate in an efficient, professional, and

business-like manner• Promote transparency and accountability

in their work

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Transparency means thatTransparency means that……..

• An organisation harbors no secrets• It readily shares information about

– Why it exists (clear mission statement)– What it does (specifics of programs)– Who does it (staff names, functions, how to

contact)– How it does it (exactly how programs are carried

out)– What it spends (amounts spent on what)– How funds are used (proof of fiscal responsibility)

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Accountability means thatAccountability means that……

• An organisation ensures that it deserves the trust of its clients, its donors, and its community

• It makes sure that it carries out its mission, spends its money carefully, and monitors its spending

• It provides proof of its actions

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Unrestricted Income Through EventsUnrestricted Income Through Events• Set a dollar goal early in the planning process and stick to it.• Remember, the secret to success is net income not gross

income.• Plan an event that people will enjoy.• Establish a committee to work on the event.• Exaggerate the number of volunteers and dollars you will

need in order to make the event a success.• Allow plenty of planning time.• Build in plenty of ancillary ways to pick up money in

conjunction with the event.• Involve local merchants.• Attempt to find a type of event that works for the organisation

and stick to it for several years.

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FundraisingFundraising

Writing Proposal for Foundations Writing Proposal for Foundations and Public Agenciesand Public Agencies

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AA typical proposal outline might have typical proposal outline might have the following sections: the following sections:

• Introduction/abstract– Typically the proposal begins with an

introduction that contains all the pertinent and critical information.

– E.g., The [name of applicant] seeks [amount requested] from [name of funder] for [purpose of grant]. Funds are sought for the fiscal period beginning on [begin date] and ending on [end date]…

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• Problem/needs statement – Some description of the problems and needs

that the applicant organisation will be addressing and the constituencies being served needs to be in the proposal.

– It is often appropriate to follow the introduction with this section.

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CCont.ont.

• Goals and objectives– The proposal should go on to describe what is

to be accomplished in general terms as well as the specific quantitative objectives and targets to be achieved by the proposed project.

– E.g., the goal of the project is drug prevention and it will be accomplished through educational programs for junior high schoolers. Specifically, in the course of one year, five certified drug counsellors will meet with thirty-two junior-high classrooms in…

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• Programme description– This section of the proposal addresses the

basic logistical questions of how the program will be carried out and by whom.

– Timelines and program details are appropriate for this section and a description of the qualifications and backgrounds of the individuals who will have primary responsibility for the project.

– In some cases, the resume of the project head may be included as an appendix to the proposal.

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• Capability statement– Provide a rationale for why the applicant

deserve to be funded.– Some proposal writers like to put capability

statements near the beginning of a proposal (after the abstract); others like to place it later (after the project description).

– Either format is acceptable.

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CCont.ont.

• Evaluation strategy– Accountability is extremely important to

funders and they want to know that the applicant organisation intends to evaluate the success of the activity in which they are being asked to invest.

– At the very least, the proposal should specify how the applicant organisation intends to measure whether the objectives and targets were met and how the funder will be informed. On larger-scale projects, outside professional program evaluation may also be appropriate.

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• Budget– The budget should show that project expenses will

be met by income from all sources (including the requested amount from the funder).

– One the income side, it is understood that not all contributions and grants will have been firmed up and anticipated amounts cab be used.

– On the expense side, most funders do not like to see high overhead figures; program-related expenses, which may include the salaries of program personnel, should not fall below 80% of the total.

– Some grant seekers like to build in-kind contributions into their budgets. The preferred method of presenting a budget is to include only cash income and expense in the budget itself and to list the value of in-kind contributions separately.

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The Planning Process Will The Planning Process Will Generate Ideas for Your Generate Ideas for Your Fundraising Decisions Fundraising Decisions

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Types of Grassroots Fundraising Types of Grassroots Fundraising

• Special events: all types and sizes• Direct solicitations: in person, by phone,

mail, Internet, pledges • Periodic giving: weekly, monthly, annual• Sale of goods or services: by or for group • Capital campaign: for building needs• Endowment: beneficiary of will or estate

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Fundraising via Grants, Type 1Fundraising via Grants, Type 1

• NGO researches companies, foundations, government agencies–domestic and international–to learn if they:– fund NGO projects in their specific community– fund NGO projects in specific field of interest

• NGO then submits request for funds OR responds to donor’s RFP (Request for Proposal)

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Fundraising via Grants, Type 2Fundraising via Grants, Type 2

• Certain companies and foundations, and possibly public agencies, offer financial support to NGOs that carry out programs of special interest to the potential donor

• These entities do NOT accept inquiries or applications, but instead offer funds to NGOs deemed appropriate

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Sorry, money doesn’t fall from the sky…

Fundraising Depends on a Careful Fundraising Depends on a Careful Plan and Hard WorkPlan and Hard Work

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Resources and Strategies for Resources and Strategies for FundraisingFundraising

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Where Can You Get Help? Where Can You Get Help?

• Technical assistance on organizational development and fundraising is increasingly available to groups around the world

• Customized resource list will be available for workshops attendees

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Example: The Resource AllianceExample: The Resource Alliance

• “The Resource Alliance is an international network working to build the capacity of not-for-profit organisations to mobilise funds and local resources for their causes. We achieve this through training, knowledge sharing and networking activities worldwide.”

Website http://www.resource-alliance.org/

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Types of Help OfferedTypes of Help Offered

• Organisational development for your NGO via web & offices in the UK, Kenya, India, Philippines

• Actual & virtual training in technical process of fundraising, finding funders, preparing written requests, etc.

• National, regional & international meetings and networking

• Resources & publications

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Be Creative in Seeking FundsBe Creative in Seeking Funds

• Approach naturally-occurring affinity groups in your country & abroad

• Seek ways to fill a community need• Tap in to tourism sector• Expand your contacts beyond the cancer

community

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Cultivate Media Contacts Cultivate Media Contacts

• Mutually beneficial relationship • Can your group be subject of story, public

service announcement? • All types of media are important

– Radio– Television– Print– Internet

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More Challenges More Challenges and New Opportunitiesand New Opportunities

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Challenge with No Easy AnswerChallenge with No Easy Answer

• Should your group accept donations from drug companies?

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Examine the IssuesExamine the Issues

• NGOs have many support needs & pharmasoffer to help them

• Drug companies seek out (or create) disease-specific consumer groups with offers of financial & technical support

• Part of a documented strategy to promote brand loyalty and sales

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Points to ConsiderPoints to Consider

• If an offer sounds too good to be true, it probably is

• Various intentions often behind industry gifts• What would be expected in return for such a

gift?

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Why Does This Matter? Why Does This Matter?

• Cost of drugs for cancer treatment is a major barrier to care

• Drug companies know that those who feel supported will be less likely to complain about prices

• Don’t Forget:– #1 responsibility of pharmaceutical companies is to

their shareholders

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Ten Commandments of Fund RaisingTen Commandments of Fund Raising

1. Remember, only prospectors find gold• Good fundraisers spend more time assembling lists of

prospects and researching funding sources than actually ask for money.

• Knowing whom to ask is more important than knowing how to ask.

2. Be sure that courtship precedes the proposal– Never asking someone to marry you before you get

acquainted and find out your were compatible. – Preferable to ask for money after you have had a

chance to find out areas of compatibility and his/her approach to philanthropy.

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Cont.Cont.

3. Personalise the pitch• Every request for money should be tailored to the

predilections of the giver. • Obviously, not always practical to customise every request.• Different type of small giver deserves a special approach

and every prospective large donor deserves a specially tailored request (knowing about his/her likes and dislikes)

• Blanket fundraising is rarely as successful as targeted requests.

4. If you want bread, your need dough• True for the baker is equally true for the fundraiser; need to

prime the pump.• Likely to give money when there is a long list of donors.• Public agencies require matching funds; corporations wish

to see substantial earned income.

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Cont.Cont.

5. When asking for money, assure consent• replace ‘if you have this policy’ with ‘when you buy

this policy’.• Avoid being tentative and give one no opportunity to

say ‘no’ without being rude. 6. Fun-raising letters short and sweet

• Legible and easy to read at a glance.• Should have plenty of headings, bulleted lists,

under-linings and other scanning devices.• Brevity is the greatest of all virtues.• The success of proposals being funded is in inverse

relation to their length and weight

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Cont.Cont.

7. In designing budgets, use the old math• Double check and make sure figures add up

correctly. • Poor impression if a budget is incorrect.

8. When in doubt, communicate in English– Clear and short sentence, composed of words of

one syllable or less. – A large number of adjectives and adverbs is

usually the mark of a weak request.– When you claim that your organisation is wonderful,

the funder is unimpressed– after all, what else you are going to say? If you want to include such value judgments, at least have the good taste to quote someone else.

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CCont.ont.

9. Don’t take a No personally– Hard on people who are sensitive. Even good fundraisers

hear the word no more than yes. Take a no answer as a challenge– no this year, will be yes the next time around. Convert the word no to the words come back.

– Persistence usually pays especially in fundraising.10. No matter how many times you said thank you, say it

again• The secret is not in getting the donor’s first donation, but

the second and third; developing an ongoing loyal supporters is essential.

• For large donors, regular correspondence updating them on the progress of the organisations’ activities; for small donors, occasional newsletter may be appreciated; thank-you party.

• Never take your donors for granted and never miss the chance to say thanks!

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SummarySummary

• Make a well-thought out plan • Work as a team, and ask for help• Start small & slowly• Keep careful records• Always thank donors personally• Review & evaluate your progress• Take pride in each step forward

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Never doubt that a small group of thoughtful, committed citizens can

change the world. Indeed, it is the only thing that ever has.

Margaret MeadUS Anthropologist, 1901-1978