PM1: Developing a

funding strategy

Richard Sved, NCVO Associate

PM1: Developing a

funding strategy

Richard Sved• NCVO Consultant

• Interim head of fundraising

• Director, 3rd Sector Mission

Control

• Help you to identify how to plan a

fundraising strategy

• Introduce you to key tools to monitor

progress

Aim of this workshop

• @richardsved

• 20+ years in charity sector

• Have led the fundraising function of three national charities

• Fundraising experience includes Corp., Events, Govt., Lottery, Major donors, Trusts

• Serial volunteer and Trustee

• Freelance consultant and interim manager (NCVO, 3rd Sector Mission Control)

About me

• What are the key issues for you in

developing your organisation’s fundraising

strategy?

or

• Why did you book to attend this session?

What is strategy?

Just part of the process

How fundraising fits in

• Be clear about the need

• What will you change?

• Think about why people give

• Get buy-in

• With Trustees

• Within organisation

What do you need to do first?

• Nature of problem/issue

• How can you change things?

• Why is it important? Why this area?

• What if nothing was done?

• Will problem increase?

• Who will be helped?

• How can the donor help you?

Do first: be clear about the need

Do first: what will you change?

Cause

Conscience

Prestige

Personal experience

Tax

Guilt

PR

Social contacts

To feel good

Peer pressure

Spur of the moment

Because asked

Knighthood etc.

Market needs

Benefit community

Increase sales

Employees

Recruitment

Do first: think about why people give

• From trustees

• Within the organisation

Get buy-in

• The gear, the brake and the steering

wheel

The role of Trustees

• SWOT

• PESTLE

• Stakeholder analysis

• Sustainable funding kite

• Evaluating your funding mix

• Ansoff matrix

• The Sun tool

Planning tools

Planning tool: SWOT analysis

• Political

• Economic

• Social

• Technological

• Legal

• Environmental

Planning tool: PESTLE

Planning tool: stakeholder analysis

Planning tool:

Sustainable

funding

kite

Planning tool: Sustainable

funding kite

• Where are we?

• Where do we want to be?

• How do we get there?

1. Split your income into categories: e.g. gifts/donations, grants, contracts, traded income

2. Broadly analyse these income streams

• How many separate funders/donors do you have?

• How much of your total income are they?

• How risky is your portfolio ?

3. What risk factors underlie your funding?

• Are there any risks that could impact on a large proportion of your income?

• Which areas are impacted by government policy?

• What about your ability to deliver outcomes?

Evaluate your funding mix

Planning tool: Ansoff’s matrix

Planning tool: The Sun tool

Planning tool: The Sun tool

A. Strategic approach

B. Income diversity

C. Financial management

D. Communicating success

E. External positioning and marketing

F. Relationships

Planning tool: The Sun tool

A. Strategic approach

B. Income diversity

C. Financial management

D. Communicating success

E. External positioning and marketing

F. Relationships

• Recency bias

• Misunderstanding averages

• Sunk cost fallacy

• Copycat tendencies

But beware of:

• You just rolled a six

Beware: recency bias

• What’s the difference between the mean

and the median

and

• Which one is more important?

Beware: misunderstanding averages

“We’ve always done it this way”

Beware: the sunk-cost fallacy

“Look at what they’re doing!”

Beware: copycat tendencies

• Not a book on the shelf – return to it!

• Tracking your pipeline

• Use of milestones

• Internal reporting

• Reporting to trustees

• The dashboard

Monitoring progress

Tracking your pipeline

Internal reporting

• Mitigating risk

Risk register

• This week’s gifts

• Month so far?

• Last month?

• Year to date?

• Targets?

• To-do list?

What do you need on your dashboard?

• What are the key issues for you in

developing your organisation’s fundraising

strategy?

or

• Why did you book to attend this session?

Did I answer your questions?

• What you do is great

• You are not begging

• Convey your passion

And remember: Do not be afraid

• Funders don’t support organisations, they

support people you help or work that you

do

And also remember: people give to people

• Funders will back organisations that ‘sell’

their strategy to them well

But having said that: