1. Philip Lee Chief Executive Epilepsy Action, U.K.
FUNDRAISING
Philip Lee
Chief Executive
Epilepsy Action, U.K.

2. Objectives of the session
To provoke thought and discussion.
To share experiences, skills and knowledge.
To provide a broader understanding of fundraising.
To increase practical knowledge.
These are the objectives of this session on fundraising.

3. Content of the session
An overview of fundraising by IBE members, (source: IBE members’ survey, March 2005)
Basic principles of fundraising strategy: -
Research
Planning
Design
Implementation
Monitoring
Evaluation
This is what we will look at.
Firstly, to give us some context, we will look at some data on fundraising provided by IBE members last year.
Then we will look at the basic principles of fundraising strategy.

4. IBE Full members’ income (n = 29)
36% have an income of US$50,000 a year or less
18% have an income of more than US$1 million a year
Conclusions:
Wide range of experience
Some large, some small
So, to begin with, let’s look at some background data on IBE members and fundraising.
This slide shows the income range of 29 IBE Full members.
10 members (36%) have an income of US$ 50,000 a year or less.
5 members 18%) have an income of more than US$1 million a year.
Conclusions: -
There is a wide range of experience among IBE members.
Some are financially very large, others are quite small.
This would suggest that the development of effective fundraising varies from member to member and from country to country.

5. Where does the money come from? IBE Full Members (n = 18)
Analysing 18 IBE Full members.
31% of their income comes from Government – as grants
20% comes from legacies
9% from personal donations
9% from membership dues
Overall, 69% of income comes from just 4 sources.
This does not indicate a very balanced mix of income sources. This represents a potential danger.

6. Who does the fundraising?
24 out of 32 (75%) IBE members employ fundraising staff.
32 out of 42 (76%) IBE members use volunteer fundraisers.
Most fundraising activity is carried out by volunteers.
24 out of 32 (75%) IBE members employ fundraising staff.
32 out of 42 (76%) IBE members use volunteer fundraisers.
Conclusion:
Most fundraising activity by IBE Full members is carried out by volunteers.

7. The relative importance of fundraising (n =48)
These are the activities that 48 IBE members reported they were active in.
72% of them said they were actively engaged in fundraising. This pretty much corresponds to the number of members that employ either fundraising staff (75%) or volunteers (76%).
Relatively speaking however, fundraising ranks only 9th in the list of activities carried out by IBE members.
Does this reflect how important IBE members think that fundraising is relative to the other things that they do?
% of IBE Members active

8. Priorities for next 3-5 years (n =45)
RAISING PUBLIC AWARENESS (C.I. = 36)
RAISING MORE MONEY (C.I. = 18)
Here you see the priorities that 45 IBE members identified over the next 3 to 5 year period.
This seems to confirm what the last slide told us about the relative importance of fundraising.
The critical index is a measurement of how important IBE members’ believe something is.
Raising public awareness has a critical index of 36 and is therefore seen as the top priority.
In contrast, raising more money has a critical index of 18 (half that of raising public awareness).
Raising more money is ranked with two others as the equal 6th priority.
Raising money is clearly not seen to be the most important thing for IBE members to be doing over the next 3 to 5 years.

9. The most critical obstacles (n =48)
88% of IBE members say that lack of money is an obstacle preventing them from achieving their goals.
However, this slide is important because it offers a contradictory view.
Here we see that ‘Lack of money’ is clearly identified by IBE members as being the most critical obstacle that can prevent them from achieving their goals.
48 IBE members give lack of money a critical index of 84.
That is almost three times higher than the next most critical obstacle which is a lack of active members (C.I. = 32).
In fact 42 out of 48 IBE members (88%) say that lack of money is an obstacle that prevents them from achieving their goals.

10. Interim conclusions Most IBE members do fundraising.
Money comes from a wide range of sources but 69% of income comes from just 4 sources – that’s narrow.
Fundraising activity is carried out by employed staff but most of it is carried out by volunteers.
Fundraising is important to us but it is not the most important thing we do.

11. Interim conclusions
We exist to help people with epilepsy and their families.
To do this we need money.
Not having enough money will prevent us from achieving our goals.
To get money we need to be good at fundraising.
Being good at fundraising is therefore critical to our success.

12. HOW TO BE GOOD AT FUNDRAISING Start by thinking strategically
We know we need to be good at fundraising in order for our organisations to be successful.
So how can you ensure that your fundraising is as good as it needs to be?
Crucially, you need to start by thinking about fundraising strategically – that means approaching it in the widest context.
STRATEGY
Is about the long term (3 to 5 years)
Is about comprehensive planning – include everything
Is about integrated planning – linking things together
How can you do this?
By using the Fundraising Cycle

13. The Strategic Fundraising Cycle
We know we need to be good at fundraising in order for our organisations to be successful.
So how can we ensure that our fundraising is as good as it needs to be?
Crucially, you need to start by thinking about fundraising strategically – that means approaching it in the widest context.
How can you do this?
By using the Strategic Fundraising Cycle

14. CRITICAL SUCCESS FACTORS
IT ALL STARTS WITH RESEARCH
TYPES OF FUNDRAISING
MARKETS
CRITICAL SUCCESS FACTORS
MESSAGES
This is where it all starts – with research.
Time spent doing research is not wasted and indeed will pay you back in the long term.
This is where you find out about your target markets – where you are going to get your money from.
This is when you look at and maybe test different types of fundraising methods and techniques.
You can also test different fundraising messages.
And you should also look at what the competition is doing. What works well and who is doing it.
You need to look at your own organisation, its strengths, weaknesses, threats and opportunities.
You need to look outside your organisation at factors that might affect your plans such as the political and legal environment, economic, social and technological influences.
With this in mind you need to identify those things which are going to be critical to the success of your fundraising – the critical success factors. Do you have them? If not can you get them?
EXTERNAL ANALYSIS
INTERNAL ANALYSIS
COMPETITION

15. RESEARCH YOUR TARGET MARKETS
WHO OR WHAT ARE MY TARGET MARKETS?
HOW BIG ARE THE MARKETS?
WHAT IS THE MARKET PROFILE, ARE THERE SEGMENTS, GAPS OR NICHES?
ARE MARKETS GROWING, ARE THERE TRENDS, WHAT MOTIVATES THE MARKET?
Research your target markets
Who or what are your targets?
Size of markets?
Market characteristics?
(E.g. Is the market growing, what is the demographic profile, niches, gaps, segments, trends, what motivates the market?…)

16. POTENTIAL MARKETS General public Service users
Existing supporters – members, donors…
General public
Service users
Local branches, groups, affiliates
New supporters – members, donors…
Charitable Trusts and Foundations
These are just some of the potential markets you might identify.
Government and Statutory Agencies
Industry and Commerce generally
Pharmaceutical companies

17. TYPES OF FUNDRAISING DIRECT MARKETING LOTTERIES TRADING EVENTS FEES
SPONSORSHIP
You need to research different types of fundraising to determine which ones are best for you and best for the markets you are targeting.
These are just some examples of different types of fundraising
AFFINITY PRODUCTS
MEMBERSHIP DUES
GIFTS IN KIND

18. COMPETITION Number, Size, Profile? Who are your competitors?
What are their objectives?
COMPETITION
You need to know as much as you can about any potential competition.
Are they a threat? If so, how big?
What is their strategy?
Their strengths and weaknesses?

19. What is your fundraising message? WHAT ARE YOU RAISING MONEY FOR?
LINK THIS CLEARLY TO THE BENEFIT THAT WILL FLOW TO PEOPLE WITH EPILEPSY
‘SELL THE SIZZLE NOT THE SAUSAGE’ – BENEFITS NOT FEATURES
HELPLINES ARE NOT ABOUT TELEPHONES. THEY ARE ABOUT MAKING PEOPLE’S LIVES BETTER BY PROVIDING THEM WITH ADVICE AND INFORMATION
This is about making your fundraising case.
Not just explaining to people why they should support you, but also explaining how much money you need, how much they should give you, what you will do with their money and what’s in it for them.
WHAT ARE THE BENEFITS TO YOUR DONORS?
HOW MUCH SHOULD PEOPLE GIVE?

20. Strength - Clear and deserving case for support
Internal Analysis
What are you good at, what are you not good at, what opportunities are there, what can stop you?
Strength - Clear and deserving case for support
Weakness - low public profile.
Threat – strong competition
You need to look at your own organisation - SWOT
Opportunity - new AED coming to market.

21. Political – legislation and regulation
External Analysis
What is the environment like in which you will fundraise? What can help or hinder you?
Political – legislation and regulation
Economic – business cycles, economic forecasts
Technological – the internet
You need to look outside your organisation at things which might affect your fundraising.
Social – public generosity

22. Critical Success Factors
What do you absolutely have to have in order to be successful? Do you have these things? If not, can you get them?
Critical Success Factors might be: - people, time, money, expertise, contacts, material, reputation, information, profile…
In conclusion your research should help you to identify your critical success factors (CSFs).

23. Plan Set objectives Set targets Priorities Resource allocation Timing
Planning includes analysis and interpretation of your research.
This is where you decide what your objectives will be and what the targets are to meet those objectives.
In putting your plans together you need to decide on the most important things to do and the relevant order that things must happen. These are your priorities.
You need to allocate appropriate resources within your plan – people, materials, money, etc…
You need to decide time schedules so that everything you need for your fundraising is available when you need it. You also need to ensure that your fundraising happens at the most opportune moment.

24. Planning Set strategic fundraising objectives
Where does fundraising fit within your overall strategy – relative importance and priority?
What do you want your fundraising to contribute to the overall success of your organisation in the longer term (3-5 years)?
Define your ambitions as targets
Increase total income
Increase sustainable income – planned giving
More supporters – members, donors
Develop new sources of income
Apply new fundraising techniques
Build fundraising knowledge and expertise

25. Design Develop materials Making the fundraising case
Fundraising messages
Training
Document your plans
Set up monitoring and evaluation systems
Having made your plans, the next stage is to develop the material and other resources you will need to put your strategy into practice.
This is where you need to refer to those critical success factors – those things you absolutely must have in order to be successful.
If you haven’t yet got them yet, this is when you’re going to need them.
Crucial within the design phase is drafting the fundraising case. The fundraising case is simply an explanation of why you need to raise money, (why people should give you their money).
This is important because all your fundraising messages should relate to the fundraising case.
Part of the design process includes training people so they are equipped to carry out the tasks you set for them. If you don’t have the people – staff or volunteers – you’ll need to think about hiring agencies or consultants.
Very importantly do not forget to document your plans and designs.
This includes setting up your monitoring and evaluation systems.

26. Implementation Putting your fundraising plans into action.
Communicating your plans
You have now reached the exciting part – actually doing the fundraising.
By this stage you should have a thorough and precise knowledge of what you are going to do. You should have plans, materials, people, money, messages and everything else you need all in place and ready to go.
One of the key factors during this stage is communication.
Obviously communicating your fundraising messages to your donor targets.
But also communicating within your own organisation so that everyone knows what is going on and what their role is. Similarly, as results become known, share these with people especially if they are good.

27. Monitoring Use performance indicators Recording systems
Active learning, listen to feedback
Even before you start implementing, you should have set up your monitoring systems at the design stage.
You need to know what you’re going to monitor as well as how you are going to do it.
In other words, what do you want to know and how are you going to measure?
You need to have appropriate recording systems in place to capture the data you want.
Part of your monitoring system should include feedback loops so you can find out exactly what is happening from those doing the fundraising and also from your target donors.

28. Evaluation Measure actual performance against your intended outcome.
Did you achieve what you wanted to achieve?
Again at the planning and design stage, you should have established the outcomes you are looking to achieve.
With the results of your monitoring now in place, you can compare your actual results with what you hoped would happen.
Did you achieve/are you achieving what you wanted?

29. Review Research Plans Design Implementation Monitoring Evaluation
Respond to strategic changes
Adjust and adapt as necessary
The last stage in the cycle is the review phase.
How well did everything work?
Was the research accurate?
Were the plans effective?
Was the design okay?
Was the implementation well done?
Did you get the results you were looking for?
The results of your review might require you to make changes – for example if things are not working as well as you had expected.
Be prepared to change your plans if necessary.
At the conclusion of the review, you are ready to start the cycle all over again for the next time period.

30. The Strategic Fundraising Cycle
So here it is again, and in conclusion its worth repeating.
Be strategic in your fundraising.
That means: -
Research
Plan
Design
Implement
Monitor
Evaluate
Review
And then…do it all again.

31. Does it work? Epilepsy Action, UK 1996 - 2005 £1: euro1.44739
Epilepsy Action in the UK adopts strategic fundraising.
Here, the red line shows our total income for the 10 years between 1996 and 2005.
The blue line shows our total income net of our fundraising costs.
In 1996 we raised 2.1 million euro.
In 2005 we raised 5.2 million euro
148% increase over 10 years – Average of 14.8% increase per year.
The gap between the two lines therefore reflects what we spent on our fundraising.
Note that since 2002 –
We have been spending more on fundraising.
The return on our fundraising has not been as good as in previous years.
Despite this, our net and total income are both increasing.
Conclusion: The more we spend, the more we raise.
£1: euro