The document provides an overview of fundamentals and strategies for fundraising for non-governmental organizations (NGOs). It discusses available sources of funds including individuals, corporates, institutions, events, and earned incomes. It defines fundraising and resource mobilization. It outlines what can be donated to NGOs including manpower, materials, money, and time. It explains why NGOs need money and how they differ from corporates. The document also discusses preparing organizations for fundraising, elements of effective fundraising proposals, and the future of fundraising moving increasingly online.
2. • What all can be given to an NGO?
• Why do you need money?
• Why should donors give you money?
• How much money can you take?
• How does an NGO or CSO differ from corporates in fundraising?
• How can you prepare your organization for fundraising?
Agenda
3. What are the available sources of funds?
•Individuals
•Corporates
•Institutions (government, multilaterals, bilaterals, trusts
and foundations)
•Events
•Earned incomes (enterprises)
4. What is fundraising?
• Fundraising is the gentle art of seeking financial support for a charity
or a cause.
• Resource mobilization implies acquiring all required resources in a
timely and cost-effective manner. Resource mobilization involves
having the right type of resources, at the right time and at the right
price by making the right use of acquired resources, thus ensuring
optimum utilization.
4
5. What all can be given to a CSO/ NGO?
M3T
• Man : Manpower, volunteers and skills
• Materials : Gifts in kind
• Money : Any financial support
• Time : The most precious gift. Cannot be
compensated or returned
5
6. Why do CSOs need money?
• They are the third pillar of democracy- Government, Corporates and
the civil society.
• CSOs serve the unique space left untouched by corporates and the
government
• To help the most marginalized, the excluded and the poorest of the
poor
• They help preserve the democratic space, local culture and social
wellbeing
6
7. CSO Vs. Corporates
7
CSO
• Principles: Equity-based values
• Purpose: Larger social good
• Space: Pluralistic and democratic
• Nature: Participatory and sharing
CORPORATES
• Principles: Success in maximization
• Purpose: Augmenting shareholder
value
• Space: Mostly autocratic & top-
driven
• Nature: Driven by profit, conspicuous
consumption
8. Why should someone give you the money?
• You undertake the work (socially relevant) of their choice.
• The donors feel privileged to help others not so gifted.
• You present the donors with an opportunity to make the change.
• Their sacrifice is small for the big change their money will bring about.
• They believe in your work, but don’t get the opportunity (time).
• Companies are obligated to make donations under CSR law.
8
9. How much money should you ask for?
• “We need lots” or “ we have huge needs” is not a good answer.
• Deliberate on..
• Requirements
• Timeline for delivery
• Geography
• Number of units
• Budgets
• Narrations
* Involve the finance person
9
10. Preparing your organization for fundraising
• Involve everyone
• Mindset
• Cause
• Manage expectations
• Investment
• Leader
• Communication
10
11. Exploring various sources of funds
What are the
available
sources of
funds?
01
Can you
accept money
from all of the
sources?
02
Reasons why
you won’t
accept funds?
03
Nature of
funding for
sustainable
NGOs
04
11
Exploring various sources of funds
12. What are the available sources of funds?
• INDIVIDUALS
• CORPORATES
• INSTITUTIONS (Government, Multilaterals, Bi-laterals, Trusts and
foundations)
• Events
• Earned incomes (enterprises)
12
13. Formula for sustainable organization
• Diversify your funding sources.
• Don’t depend upon one organization or one particular source.
• Large nos of donors, giving small amount.
• Involve everybody.. Board, staff, vendors, corporates and local
authorities.
• When a donor says “No”, interpret it as “Not Now”.
13
14. What propels giving?
• Acknowledgements
• Assurance
• Confidence
• If these conditions are met
• 87% would give again
• 64% would give more
• 74% would continue to give indefinitely
14
15. Can you accept money from all sources?
Some cases that need rethink:
• Individuals: liquor baron, arms dealer, etc.
• Corporates: manufacturers of tobacco, fast food or products that can cause obesity
or cancer
• Institutions: suspected terrorist links or anti-nationals.
• Events: A marathon for healthy living sponsored by a aerated drinks maker or a walk
for saving water bodies supported by a bottled water maker
• Earned income: A coffee grower association in default of paying equitable wages to
its labor or a social enterprise employing child labour.
15
16. 7 elements of an effective fundraising proposal
Problem
01
Solution
02
Cost
03
Urgency
04
Context
05
Donor
benefits
06
Emotions
07
16
17. Element 1: Problem
• Naming the problem; Getting the problem right
• Helping donors see the problem as real
Challenges faced by fundraisers
• They downplays the problem
• Too technical (describing the problem in the professional language,
and not the donors’)
• It’s about process, not outcomes
• Too abstract (someone is starving. If you say “he needs hope” it may
not affect the donor)
17
18. Element 2: Solution
• Every compelling problem needs a solution
• Most elusive thing in fundraising - sell the solution, not the process
that produces the solution
• Make it interesting for the donor
• Involve the donor
18
19. Element 3: Cost
• An effective fundraising offer connects a problem and its solution to the donor’s
pocket
WE NEED TO GET THE DONOR GIVE MONEY.
• Be specific
• Ask for tangibles
• Offer a good deal
• The best offer gives “value for money” to the donors. The strongest offer seems
amazingly inexpensive for what they accomplish.
19
20. Element 4: Urgency
Delay = Death
• Fundraising proposal/ offer should have time sensitivity built into it
• If you have described the problem well, there will be a sense of urgency
• Give a deadline for response
• The season or a reason to respond on time
• Consequences
20
21. Element 5: Donor context (1)
• Programs > Delivery, accomplishments
• Fundraising > Needs, urgent
• Program unit may feel that their clients (the target
group being supported) were portrayed as
• Too simplistic
• Too paternalistic
• Too sensational
Program may want to show happy images, joyful children.
21
22. Element 5: Donor context (2)
Simple makes sense
Fundraising offer in one sentence
• 1. Yes! I want to help local communities achieve food security through economic
development.
Won’t mean much outside the office of professionals
• 2. Yes! I want to help hungry families feed themselves.
Better, but….
• Yes! I want to help feed hungry families.
Yes, the simpler, the better.
*Don’t use fundraising offer/ proposal to educate the donors
22
23. Element 6: Donor benefits
• Some people think fundraisers have nothing to sell but a tax deduction
and some warm feelings.
• Giving is packed with benefits for the donor. They may be well aware
of the many benefits of giving. Even then, remind them.
23
24. Element 7: Emotion
• Emotions leads to decision
• Great offers are simple
• Situation should be realistic
• For Example :
• Food makes a better offer than food security
• Warm meals make better offer than food
• Warm chapatti and potato curry makes better offer than warm meal.
24
25. Recap : What’s a proposal?
• A PROPOSAL is a representation of your program. - “You never get a
second chance to make a first impression.” Accurate, crisp, clean.
• A PROPOSAL is a request. - Don't forget to ask for the money. Don't
beg. Don't be arrogant.
• A PROPOSAL is persuasion. - Be ready to negotiate.
• A PROPOSAL is a promise. - Don't promise what you cannot
deliver. Deliver more than you promised.
• A PROPOSAL is a plan. – Plan your work and work to that Plan
25
26. Success Mantra
• Know the institution you are going to approach
• Understand their key deliverables
• Go through the RFP (Request for Proposal)
• No vague requests or unsolicited proposals.
26
27. Quiz time
What’s the purpose of a
proposal? a proposal?
• A technical document
• A marketing document
• A sales document
• All of the above
27
28. Some tips for winning the grant
And don’t rush at the endPlan ahead
it a team effortMake
Realistic in your proposalBe
A learning organizationBe
On being factual and specificStress
Technical and organizational jargonLimit
The donor if you have questionsCall
CollaborationsConsider
28
29. Suggested proposal structure
• Executive summary
• Organization description
• Project background
• Problem statement
• Goal and objectives
• Beneficiaries
• Proposed methodology:
• Partners
• Project implementation
• Activities
• Risks and assumptions
• Means
• Budget
• Monitoring and evaluation
• Sustainability
• Annexes 29
31. The future of fundraising
• A source which is not dependent one organization
• Can give regular funds
• Give for various causes
• Can be personalized
• Is not affected by political boundaries
31
32. Online fundraising is
the future
No organization can overlook the vast scope of
online fundraising.
Online giving: it’s not just a fad. In fact, every
year, it plays a larger part in overall giving.
In 2016, online giving grew 7.9 percent,
whereas overall giving only grew 1.0 percent,
and online donations were 7.2 percent of all
fundraising, according to the 2016 Charitable
Giving Report.
33. Online Fundraising
Online fundraising
generally refers to using
the Internet to raise
money for your
organization. Web sites,
blogs, email marketing,
search engine
optimization, Facebook,
tweets, etc. are just some
ways to do this.
33
34. Five simple
ways to raise
money online.
• Make your website work harder
for you
• Reach donors on social media
• Ensure your information is up to
date and accurate
• Crowdsourcing and lead
generation
• Find your unique online voice
34
35. Make your website work harder for you
Make a good website, not just a website.
First places donors will go, so make it easy.
Try to think of how a first-time visitor would view your website
Make sure you have a payment gateway for donation & donors are viewing it.
Research shows 50% of mobile users have “ditched a brand” after poor experience.
36. Reach donors on social media
• “Meet your audience where they are.” It rings especially true for
donors on social media. Use as many platforms, as you could.
• Additionally, utilize the fundraising tools that social media
offers. Donate by facebook.
• These new fundraising tools also allow people to create a fundraiser
for your organization. By keeping your social media engaging and
providing necessary information through it, you can encourage
donors to learn and give to your organization.
36
37. Accurate, and
updated
• Ensure your information is up to date and
accurate
• Many fundraising tools verify non-profits
through aggregation websites. For
example, Facebook fundraisers use
information from GuideStar Nonprofit
Profiles to let donors learn more about the
organizations they are donating to.
• GuideStar allows you to update your
organization’s profile in one place.
• You can check the status of your profile
online and update it to make sure that
donors are getting the most accurate
information from any website that uses
this data
37
38. Ask to donate
Crowdsourcing is a way to engage with the
community for one common goal.
• Non-profits are able to harness the power of many
individuals to increase awareness, gain new donors
or volunteers, or gather information on a much
larger scale than relying on a few contributors.
• Change.org, for example uses crowdsourcing to
gather petition signatures and raise awareness
around social issues.
38
40. Show
uniqueness
• Find your unique online voice
• The vast amount of information on the internet gives
donors a new kind of freedom in choosing organizations
to support.
• Easy for donors to find so much information about an
organization in such a short amount of time.
• With one simple search and in a matter of seconds,
donors can find your website, your social media page,
news coverage, and multiple third-party aggregation
websites with information about your organization.
• In reality, it’s essential that your organization find its
unique online voice and share it across all platforms
with all potential donors.
• This unique voice, whether it’s expressed in blog posts
or social media pages, adds a personal touch to
everything your organization says and does and allows
potential donors to get a better idea of your culture,
work, and mission of your organization.
41. How will you succeed?
• Get a professional to develop your website.
• Expert help for your message and creatives.
• Unserved needs
• Local challenges, indigenous solutions
• Innovation and creativity
• Sourcing local talent