Money matters
The funding culture has changed considerably over the last
few years. Greater competition for resources means that many
organisations are taking a more 'businesslike' approach. The
quality of funding applications has improved, setting a precedent
even for small organisations that may have few resources,
little time and little or no expertise in fundraising.
Fundraising can be daunting and time-consuming. Getting the
initial planning and funding mixture right will make the process
more efficient and productive.
The basics
In order to develop a fundraising
strategy you need to be clear about what your organisation
is delivering and why. Ask yourself, 'Are we delivering
a service because it's always been there, or is there
really a need? And are there other needs that should be addressed?'
Once your direction has been determined, bear in mind that
you will have to sell yourself. Most projects are undersold.
Examining your organisation's strengths, weaknesses,
opportunities and threats in a SWOT
analysis can help. Ask yourself what is good or special
about your organisation and your delivery, and consider what
external opportunities and threats there may be. You could
use this brainstorming process to compile a list of positive
words to use in your applications, and you will also be more
aware of weaknesses that you need to work on. Can your staff
deliver?
Funders look for a range of skills in an organisation -
they want to be sure that there are people who can manage
finance, people and projects. This does not mean having a
degree! Undertaking a simple skills audit of your organisation
will therefore be useful. Ask each person - management committee
members, staff and volunteers - what skills and experiences
they have, whether project specific skills or organisational
skills. These can then be incorporated into applications as
appropriate.
Proving viability is an essential part of fundraising. For
existing organisations this can be done by demonstrating existing
successes and achievements, as well as by using statistics
and trends, evaluation reports, quotations, case studies and
support letters. Newly established groups will have to rely
on a skills audit and individual achievements relevant to
a particular project.
Check out the competition
You have to make a strong case to funders. More often than
not there are other organisations that are similar to yours,
and funders may be aware of these - see the funder's
view case study. So you need to identify who they are
and what is different about your work and theirs. There is
usually a difference, whether it involves different age groups,
different genders or different methods of delivery. If there
really is not much difference, but one organisation could
not cope with all the demand, you still need to acknowledge
the existence of the other organisation or organisations to
funders and explain how you complement each other.
Individual projects or areas of delivery
Each area of delivery can be seen as an individual project.
For either you need to be very clear about:
- What it involves.
- How you know there is a need.
- Who the beneficiaries are.
- What the benefits are.
- How it is delivered.
- Whether or not volunteers are involved.
- How you address equal opportunities.
- How you monitor progress and success.
- The total budget for the project (not the organisation).
Budgets
To work out an accurate figure for funding you should compile
a full shopping-list for each project. This should include
all expenses, even if you are not going to request all the
costs from a funder. So consider such items as recruitment
costs, subscriptions and capital as well as a proportion of
core costs such as rent, telephone, stationery, post, management
costs and accountancy. Core costs should be allocated in proportion
to the space and resources used by each project. See the core
funds, community and communication case study.
Funders
At this stage potential funders can be identified. Good
research is crucial to make sure your application has a good
chance of success. You may find it useful to develop a database
of individual supporters and potential donors.
When identifying funders, always remember to look at a project
from every angle. When assessing funding opportunities think
about the investment
of time and resources you will need to make in relation
to the potential return. Be specific about how much you are
asking for from each funder and about what it will be used
for.
It's important to note current funders and expiry dates
to formulate a strategy for ongoing projects. The principle
that you constantly need to repackage work into new projects
is slowly losing currency. More and more funders are accepting
continuous work as long as you can prove or justify continuous
need, areas of change, development, emerging needs and even
expansion. It is very important that you use internal facts
and statistics for doing this.
When investigating commercial
funders, think about in-kind support and resources. See
the private sector
support case study.
Consider new sources and methods. For example, could you
raise money from your organisation's membership?
Could you use the internet
as a fundraising tool?
Expert view
Tebussum Rashid, funding expert, talks about funders and
building a relationship with them.
Select the play button to start the clip.
Video view: Asylum Aid
Asylum Aid fundraises from a wide range of sources including
trusts, statutory bodies, special events and their membership.
See how they explore new methods of fundraising including
the internet.
Select the play button to start the clip.
Communication
It is vital that the relevant people within an organisation
keep track of what funding is needed, who has already been
approached and what the outcomes were. This is one of the
basic elements of a fundraising strategy. A wall-chart monitoring
crucial details of applications - who, what, how much, date
sent, outcome and so on - can prevent embarrassing situations
and duplication.
Communicating and building a relationship with funders is
important, both before submitting your application and afterwards.
Most funders are very approachable and will give guidance.
Completing applications and proposals
Approaching funders may involve filling in an application
form or writing
a proposal. It's best if people involved in the
organisation - rather than an external fundraiser or consultant
- actually complete forms or write proposals. They will know
the organisation and its work better. At the same time, the
responsibility for fundraising should not fall on one person,
especially a paid officer. The management committee should
play a key role. Forming a sub-committee is one of the best
ways of organising this.
Video view: Greencastle
Women's Group
See how Greencastle Women's Group go about applying for funding
for a new purpose-built centre.
Select the play button to start the clip.
If you are not confident about getting the language right,
ask independent people to read the application or seek advice
from local voluntary sector support agencies. And always remember
to place your emphasis according to the funder's criteria
and priorities.
|
