MOVE YOUR ORGANISATION TO THE NEXT LEVEL

Raising funds successfully from institutions

Bisi Adeleye-Fayemi

RAISING FUNDS FROM INSTITUTIONS: SESSION OBJECTIVES

• Identify six key steps to successful fundraising from institutions

• Address some key challenges organisations face raising money from institutions

• Develop a strategy for fundraising from institutions

• Learn how to manage relationships with institutional funders

• Find out how to avoid costly mistakes

WHAT FUNDING INSTITUTIONS LOOK FOR……..

• A good fit with their funding priorities

• A clear sense of the applicant’s mission and role

• Reasonable institutional capacity

• Strategic programs/interventions

• Sound project management strategies

• Value for money

• Innovation

WHAT INSTITUTIONS LOOK FOR……..

•Opportunities to make a fundamental difference

• Strategies to strengthen civil society as a whole

• Co-funding opportunities with other donors

• Proven understanding of the need/problem

WHAT FUNDING INSTITUTIONS LOOK FOR

•Good track record/reputation

• Evidence of good financial management

•Minimised risks

• Investments in credible leadership

• Reliable allies they can trust

SIX STEPS TO SUCCESSFUL FUNDRAISING FROM INSTITUTIONS

Step 1: Putting your house in order:

Institutional Assessment

Step 2: Researching prospects

Step 3: Making the approach

SIX STEPS TO SUCCESSFUL FUNDRAISING FROM INSTITUTIONS

Step 4: Developing a proposal

Step 5: Managing the assessment process

Step 6: Managing the funding relationship

PREPARING FOR FUNDRAISING: INSTITUTIONAL ASSESSMENT

• Vision, Mission, Values

• Strategic thinking and planning

• Strategic positioning

• Governance and management

• Skilled and committed staff

PREPARING FOR FUNDRAISING: INSTITUTIONAL ASSESSMENT

•Operational systems and structures

• Financial management

• Commendable track record

• Investments in marketing and public relations

• Friend-raising and nurturing contacts

STEP 2: RESEARCHING FUNDING PROSPECTS

• Know the different kinds of institutional donors in your area, i.e. private independent foundations, family foundations, public foundations/agencies, etc

•What do they fund? What is their scope?

STEP 2: RESEARCHING FUNDING PROSPECTS

• How much do they give?

•Who have they funded?

• Do they have restrictions on who/what they

fund? How are decisions made? Do they have

deadlines?

STEP 3: MAKING AN APPROACH

• Board contacts

• Letter of Inquiry

• Arranging a meeting

• Seeking an introduction

• Inviting program staff to events

• Friend-raising and nurturing contacts

STEP 4: DEVELOPING THE PROPOSAL: SUGGESTED STEPS

• Cover letter

• Contents page

• Executive summary

• Brief context

• Clear, concise description of your organisation’sobjectives

• Identification of problem

STEP 4: DEVELOPING THE PROPOSAL: SUGGESTED STEPS

• Proposed solution/intervention

• Needs assessment/feasibility (if applicable)

•Why are you best qualified to do this work?

DEVELOPING THE PROPOSAL: SUGGESTED STEPS

• Name any collaborations/partnerships with other organisations

• State amount required for the project

• State amount requested from the funder

• State amount already raised or expected (name sources if you can)

• Input of applying organisation (where applicable)

DEVELOPING THE PROPOSAL: SUGGESTED STEPS

• Project workplan

• Project budget and organisational budget

• Summary of project outputs

• Monitoring and evaluation strategies, including responsible parties

• Foreseeable barriers & solutions

• Sustainability of the project beyond donor funding (if applicable)

• One paragraph to summarise proposal

• Appendices

DEVELOPING THE PROPOSAL: APPENDICES

Appendices should be numbered and

kept to a minimum, and can include the following:

�Names of Board Members and qualifications

�Names of key project staff and qualifications

�Any relevant feasibility studies/reports

�Literature on your organisation and signed financial statements/audited accounts.

STEP 5: MANAGING THE PROPOSAL ASSESSMENT PROCESS

• You might get a Proposal Clarification Letter – respond as comprehensively as you can

• Prepare for a site visit if it is part of the process – make a good impression!

• Respond to all enquiries yourself – even if you are working with a team

• Send any relevant documents you didn’t send the first time if it will help your assessment. Check with the officer first before you do so.

STEP 6: MANAGING THE RELATIONSHIP

• Keep all copies of the grants agreement in a safe, accessible place

•Make sure you know who your contact person will be, and let them know who is responsible at your end

• Send your reports on time. If there will be a delay let them know when to expect it.

• Take the time to write clear, credible reports

STEP 6: MANAGING THE RELATIONSHIP

• Be prepared to host a site visit – involve your team.

• Send updates to the donor such as newsletters or annual reports

• Leverage additional support from the donor such as technical assistance, introductions to other funders, endorsement of campaigns, etc

• Make sure that your relationships are institutionalised rather than personalised.

WHAT MAKES A GOOD FUNDRAISER?

• Integrity

• Passion

• A thorough understanding of the organisation, it’s culture and values

•Good contacts

• Understanding of the funding climate

• Track record and reputation for professionalism

• Effective networking

•Good writing skills

WHAT MAKES A GOOD FUNDRAISER?

• Confidence

•Maturity and tact

• Patience

•Good public relations and social skills

• Imagination

• Clarity of purpose

•Good presentation skills

• Sound negotiation skills

• Effective organiser

FUNDRAISING DON’TS

• Don’t send `unsolicited’ proposals

• Don’t send a shopping list and ask the donor to

`choose’

• Don’t run down your competitors

• Don’t make claims you can’t substantiate

FUNDRAISING DON’TS

• Don’t request for more than the donor’s stated maximum grant

• Don’t stalk the funder!

• Don’t submit your reports late, if you do, provide an explanation and apology

FUNDRAISING DON’TS

• Don’t submit audited accounts that have been qualified by auditors without a detailed explanation

• Don’t ask a junior officer to sign grant agreements on your behalf

• Don’t send off proposals or reports without proof reading them

• Don’t work alone – teamwork is vital