sustainable funding planning fundraising beyond grants 1

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Sustainable Funding

Planning fundraising beyond grants

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What is Fundraising?

Fundraising is not simply about generating the resources you need to survive this year. It is about helping to create a viable and strong organisation which is able to sustain itself into the future.

If at all possible a mix of funding streams will help lead to this sustainability

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Today

Spend this session looking at how we might develop a plan with a mix of funding streams• Where to start?• How to decide which types of fundraising

might work for your organisation

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Establish the Case for Support

Research and Segment

Develop the Plan

Implement the Plan

Monitor and Evaluate

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Case for support

You can’t start to look at potential funding sources until you know:• What you need the money for and why?• How much you need?• When you need it ?

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Case StatementMission and valuesImportance and urgencySpecific objectivesHistory and credibilityWhat would happen if the appeal failedAmount required and timescaleHow the donor can helpMonitoring and evaluation

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Elevator Pitch

Should include: What difference does your work make? Why is that important? What would happen if you didn’t exist?

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Research & Segmentation

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Sources

Grant-making Trusts and Foundations Corporate Sector Individuals Groups eg Churches, WI, Rotary Earned Income eg Trading Public Sector: UK and Europe

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How do individual donations compare to charities’ other sources of income?

Charitable donations and fundraising

£9.8bnLegacies £1.7bn

Fees for services

£5bn

Government grants and contracts

£14.2bn

Grants from & trading

with other charities £3.2bn

Investment income

£2.3bn

Private sector £1.7bn

National Lottery

£0.4bn

Individuals£16.5bn

Total income: £38.3bn

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What do we need to consider?

• Past experience• Scale of need• Appeal of the case of support to funders• Style of your organisation• Type of organisation you want to be• Short term and long term (lead time)• Geography/available funders in area• Resources and skills• Equipment• Return on investment and set up costs

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A word about your donors/supporters

Before you look at the different possibilities you need to know who your supporters are and what they think about you – don’t make assumptions.

Knowing this you can then get them to recruit more like them or you can identify categories of people you haven’t yet reached.

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Corporate

Trusts

Legacies

Major Donor Programmes

Competitions/Lotteries

Special Events

Direct Marketing

Committed Giving/Membership

Local fundraising

Total Voluntary income

£4.43

£7.00

£25.50

£3.17

£1.73

£1.94

£1.67

£3.54

£1.75

£4.24

Fundratios 2011Median Return on Investment per £1

invested

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Start up costs

1-5%: donor mailings, trusts, corporate appeals, social media

5-15%: house to house, lotteries, collection boxes

15-40%: temporary shops, events, radio/TV appeals

40-70%: permanent shops

70%-100%: advertising

100%+: cold mailings

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Exercise

Match the statements with the funding streams:

Characteristics of this type of fundraising

What make this kind of fundraising work/what might you need?

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Grant Making Trusts/Foundations• Are 8800 in the UK• Can give large amounts of money• Mostly restricted income, mostly time limited• Majority need charitable status• Lead time 6 months• Direct set up costs low (research tool), staff time

How to make it work• Need a research tool• Need to be very systematic, or miss deadlines• Need a strong case for support with evidence for need/outcomes etc• Need someone who can write

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Companies

Complex:• Direct donations

• Shares• Sponsorship• Challenge events• GAYE• Employee

fundraising/matched• Gifts in kind/pro-bono• Cause related marketing

• Tends to be a win/win relationship

• Can often be unrestricted income

• Set up costs can be low• Unlikely to give large

amounts of money• Needs a mix of skills• Can often need

ambassadors• Lead time 6 months

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How to make it work

• What is their CSR policy: charity of the year etc?• What links do you have with the company: staff, trustees,

volunteers, family, stakeholders……..?• Put yourself in their shoes: what do they need that you can help

with: increased sales, improved image, new customer groups, team building…………..

• Suggest something specific they can fundraise for/help with – start with employee volunteering for example, can a senior member of staff become your advisor/trustee?

• Who should make the approach – e.g other businesses • Be creative e.g. set up a networking group, challenge events,

team events etc

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Individuals

They can be/give• Major donors• Committed/Regular givers• Members• Legators• One off donors• Volunteers• Employees• Service users

They can be reached• Direct marketing: mail,

phone, text• Social media• Collections: street/private• Face to face• Adverts• Events• Payroll giving• Raffles/lotteries

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Individuals

• Tends to be unrestricted – unless a specific appeal

• Works well with a community based charity

• Works well with a ‘popular appeal’

• Can be very labour intensive• Needs volunteer support• Needs good PR• Skill base: people person• Needs a good data-base

• Excellent for long term support and people giving time and time again

• Lead time from 1 month (collection) to 10 years (legacies)

• Set up costs can be high: direct mail for example

• Tends to be lots of small amounts

• Many need professional help e.g. direct mail/payroll

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How to make it work

• People give to people – be passionate, be compelling, build relationships

• Express the need in human terms – give examples, tell stories• Ask for what you want in terms of donation – give a shopping

list• Remember individuals donors are motivated by a whole

range of things – respond to these• Respond to the audience e.g. contact young people through

face-book, others via post, e-mail• Thank, thank, and thank again

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Community/Groups

• Local branches• Schools• Clubs and Organisations• Pubs and clubs

• Tends to be unrestricted – unless a specific appeal

• Works well with a community based charity

• Can be very labour intensive e.g. volunteer management

• Needs good PR• Skill base: people person• Needs a good data-base

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How to make it work

Same techniques as with individuals

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Earned Income

Can include:• Retail outlets• Training/consultancy• Room hire• Related services e.g.

nursery• Shared back-office

systems

• Can be unrestricted (unless under contract) and long term

• Can develop new services• Consider if fits with the

culture of the organisation

• May need additional skills• May have complex

financial and legal reporting requirements

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How to make it work

• Approach it as a business, with the same planning processes: market research etc

• Relate it to your core business• Seek professional help if required• Check trading rules etc.

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Develop the Plan

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Fundraising Plan

• What is the aim of your organisation• What are you wanting to raise money for: your cases for

support• How much will this cost – what is the income gap• When do I need the money?• How am I going to raise it: all the income sources?• Resources planning:

method → manpower→ machinery→ materials→ money• Review mechanisms

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Evaluate What worked? Profit & Return on Investment (RoI) What didn’t work? Why? What impact did it have for your

beneficiaries? Would you repeat it?

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What has worked for me?

• Being passionate about the cause• Building relationships• Being honest with potential funders• Taking calculated risks, trying new things• Pulling things which weren’t working• Learning from others• Monitoring the true costs/doing the maths• Not being an expert at everything

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Me

Clare Thomas

clarecthomas@btinternet.com

07976722286

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Networking event

Dave Tristram and I are organising a free networking event for anyone involved in fundraising

on December 9th at 6pm At West Mercia Women’s Aid, Berrows Business

Centre It is the 2nd one we have organised and we are hoping to establish it as a regular event – to explore fundraising in more detail.