Sustainable Funding Planning fundraising beyond grants 1

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 2

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 3

Establish the Case for Support Research and Segment Develop the Plan Implement the Plan Monitor and Evaluate 4

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 ? 5

Case Statement Mission and values Importance and urgency Specific objectives History and credibility What would happen if the appeal failed Amount required and timescale How the donor can help Monitoring and evaluation 6

Elevator Pitch Should include:  What difference does your work make?  Why is that important?  What would happen if you didn’t exist? 7

Research & Segmentation 8

Sources  Grant-making Trusts and Foundations  Corporate Sector  Individuals  Groups eg Churches, WI, Rotary  Earned Income eg Trading  Public Sector: UK and Europe 9

How do individual donations compare to charities’ other sources of income? Charitable donations and fundraising £9.8bn Legacies £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 10

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 11

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. 12

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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 14

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? 15

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 16

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 17

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 18

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 19

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 20

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, Thank, thank, and thank again 21

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 22

How to make it work Same techniques as with individuals 23

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 24

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. 25

Develop the Plan 26

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 27

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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? 29

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 30

Me Clare Thomas

Networking event Dave Tristram and I are organising a free networking event for anyone involved in fundraising on December 9 th at 6pm At West Mercia Women’s Aid, Berrows Business Centre It is the 2 nd one we have organised and we are hoping to establish it as a regular event – to explore fundraising in more detail. 32