basics of fundraising ma

8/8/2019 Basics of Fundraising MA

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Successful Fundraising

Presented by

Mohamed Aboud

Business Development Consultant

IEEE GOLD Egypt


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People Are Primary

Fundraising is FRIEND

raising

Fund-raising: Creating

long-term relationships withpeople interested in your

organization and letting them

invest in it.

People dont give money tocauses; they give to

PEOPLE with causes


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New Thinking Needed

CHARITY is no longer an accurate term

Denotes 1-way, powerful-to-powerless

interaction

Infers inadequacy of those asking


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Contemporary Concept

PUBLIC BENEFIT ORGANIZATION

Fulfills a community need

Creates a mutually beneficial relationship


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A donors gift is really a gift to the community through the NGO

Community

Donors

Constituents NGO

Adapted from: Grace, KS (2005)Beyond Fundraising, 2nd ed., Hoboken, NJ: Wiley, p.xiii.


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Lessons Learned from US

Experiences About 75% of donations to NGOs are from

individuals

Lower-income people donate more money as apercentage of income than do higher-income

people

Small businesses often make in-kind donations

to local NGOs

Foundations & corporations are over-rated as

source of funds for nonprofits


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Barriers Specific to Fundraising

Fear of failure

Lack of experience

Discomfort asking for money

Viewing fundraising as unrelated to

organizations operations


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You Can Do It!

Fundraising is not magic or mystery

If you dont ask for money, you wont get it.

Dont feel embarrassed or shy about askingyour friends or family for money. Most peoplewant to help, they just need to be asked first.

Although fundraising is now a profession aswell as an academic discipline, advanceddegrees are not required for success in raisingmoney


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Barriers to Fundraising

Societal problems

Systems problems

Image problems

Perception problems

Logistical problems


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3 Traits of a Good Fundraiser

Common sense Commitment to a cause

Genuine like of people


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Putting it All Together


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How Do You Get Started?

With an idea

What you hope to accomplish

With people Committed volunteers (and possibly staff)

Carefully selected board of directors

Supporters and consultants

With a planning process

For the organization

For raising the money that you need


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Make the Case for Your

Organization

Before starting to raising funds, your

group needs to create an organizationalplan

Planning is a group process that occurs

in methodical steps over a set time

period


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The Case Statement Will Speak

for Your Group

Your planning effort will result in a written

document that clearly explains why the groupexists and what it does, which is called the

case statement


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What the Case Statement

Explains Mission: why group exists

Goals: what it will do about its mission

Objectives: how goals will be accomplished History: track record of accomplished objectives

Structure: explanation of its governance and how it

will function to meet stated goals

Fundraising plan, financial statement, andbudget: showing present & future plans, wise money

management, realistic expenses


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Donors Look to Give Money to

Reliable NGOs that:

Have a plan created by the group, not by a

single individual

Work as a team to achieve goals

Operate in an efficient, professional, and

business-like manner

Promote transparency and accountability intheir work


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Two Basic Types of

Fundraising

Efforts undertaken solely by your group

(grassroots efforts) Grants requested from government,

businesses and foundations


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The Planning Process Will

Generate Ideas for YourFundraising Decisions


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Types of Grassroots Fundraising

Special events: all types and sizes

Direct solicitations: in person, by phone,

mail, Internet, pledges Periodic giving: weekly, monthly, annual

Sale of goods or services: by or for group

Capital campaign: for building needs Endowment: beneficiary of will or estate


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Fundraising via Grants, Type 1

NGO researches companies, foundations,

government agenciesdomestic and

internationalto learn if they: fund NGO projects in their specific

community

fund NGO projects in specific field of

interest NGO then submits request for funds OR

responds to donors RFP (Request for

Proposal)


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Fundraising via Grants, Type 2

Certain companies and foundations, and

possibly public agencies, offer financial

support to NGOs that carry out programs ofspecial interest to the potential donor

These entities do NOT accept inquiries or

applications, but instead offer funds to NGOs

deemed appropriate


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Sorry, money doesnt fall from the sky

Fundraising Depends on a

Careful Plan and Hard Work


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What Do the Different Types of

Funding Streams Mean for You?

As part of planning process, group needs to

decide which or both, to pursue, and when

Grassroots approach is excellent way to start

fundraising work

Pursuing grant funding requires NGO track

record, and excellent organization


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Pros & Cons of Grassroots

Fundraising

Ability to try out new ideas on small scale,

with little money

Anyone can participate

Builds community connections & goodwill

More sustainable

May not bring in enough income for majorprojects


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Pros & Cons of Grant Funding

Much larger amounts of money may be

available

NGO may gain visibility, enhance cause

Almost all grants are time-limited, thus

funding not stable or sustainable

Donor may have requirements thatcompromise or change original mission of

NGO


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Fundraising Documents Examples

MIA 2007 fundraising document

5th SRO fundraising document


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Never doubt that a small group of thoughtful,committed citizens can change the world.Indeed, it is the only thing thatever has.

Margaret Mead

US Anthropologist, 1901-1978