In today's volatile financial climate charities need to continually reassess their ability to generate funding – adapting current strategies and introducing new income streams when needed.
For many organisations, particularly those once reliant upon government grants, this means venturing into a brave new world of fundraising. This is no mean feat – the fundraising climate is tough and looks set to remain that way into the future.
Whatever the economy is doing, key to successful fundraising is a strong strategy. While training and conferences can provide the detailed insight needed to deliver high impact fundraising, there are a number of steps all strategies should contain, and can be applied to any sort of organisation or cause.
Step 1 – create a case for support
At the heart of all good fundraising is an effective case for support – a powerful and engaging argument as to why a donor should support your work. It may sounds easy but in practice many organisations, whether new to fundraising or not, fall at this first step. Charities need to explain:
what the problem is
what your organisation's solution is to the problem
the difference you will make if you succeed
what will happen if you fail
why your organisation is uniquely qualified to tackle the problem
Most importantly you need to explain this in a simple, externally focused way that is memorable and emotionally engaging.
Step 2 – analyse and plan
This step is about deciding which sources of funds you will focus on. Ideally you want a mixed portfolio so you are not dependent on any single source.
Each source has distinct characteristics – they require different levels of resource to exploit them and have different timeframes to deliver a result. You need to decide which make most sense for you, matching your ambition to available resources. Some of the options are:
Trusts and foundations – organisations new to fundraising often start here, seeking grants from organisations that exist specifically to give grants
Companies – businesses contribute in a variety of ways from cash to goods and services, but you need resources to proactively manage relationships and create win-win situations
Individuals – large and small, one-off and regular personal contributions
Local – in every community there are a wide range of organisations – such as churches, schools and groups – which may raise money, sometimes for you, sometimes alongside you
Step 3 – structure
When you know which sources to approach, you can then structure your fundraising. You might choose to create a volunteer fundraising committee, employ a fundraiser or outsource to a consultant. If you are planning to fundraise in the long term, you need to begin to build your fundraising capacity as early as possible.
Step 4 – research
This step takes choices from step 2 a stage further and identifies the specific donors you plan to target. The key here is to find people and organisations that will have a reason to support you and the ability to give at the level you need. You also need to establish how to reach each supporter. It is easier to start with close contacts; identify if your board, senior staff and others can help you reach potential donors by mapping their connections.
Step 5 – create a proposition
You need to shape your needs and match them to donor interests. For example, if you are planning to approach individuals in your local community you will need to explain what their £20 will do and what difference it will make.
Step 6 – ask for money
Fundraising only works if you actually ask for support. Trusts and foundations typically require a written proposal. Corporates may require you to pitch. There are many ways to ask individuals from organising a special event, to writing to them, to asking in a face to face setting. All need careful preparation but the more tailored and personal, the greater the chance of success.
Step 7 – build relationships for the long term
An ongoing relationship is possible to achieve, but requires you to effectively thank the donor, continue to involve them in your organisation – and most of all – report back on the difference their contribution has made.
Angela Cluff is a director at the Management Centre. She will be delivering a session on fundraising strategy at the Resource Alliance's International Fundraising Congress in The Netherlands between 14 and 17 October.
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