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Ming-ai (London) Institute Capacity Building programme 2004

This project has been part funded by the European Union through the European Social Fund [ESF].

Good Practice Guide.03 - Core Funding & Fundraising

The lifeblood of all voluntary Organisations is an adequate level of funding. Without it the aims, objectives and vision of an organisation are unlikely to materialise and its long term survival is in jeopardy. It is therefore no wonder that successful fundraising is the heart of all voluntary Organisations Fundraising is not a one off activity. It is an activity that is continual and never ending. All successes in fundraising are likely to be accompanied by failed attempts. Indeed in their early years most Organisations are likely to experience more failures at fundraising than successes. This is unlikely to be a reflection on the value or intrinsic worth of an organisation and its services; rather it is more likely to be related to the specific funding proposal. Nevertheless failure in fundraising is something that can be minimised with training and practice

1. Funding Types Technically there are traditionally there are three elements to fundraising

1. Core or Strategic Funding – This is the funding required for an Organisations management and administration costs which are necessary in order to function efficiently and effectively. Its importance in the operation is significant but as will all funding it cannot be guaranteed. Therefore even when Core Funding has been secured it is important for Organisations to have policies and contingencies in place in order to deal with the eventually should the funding cease.

2. Development Funding - Organisations may face times in their existence were there is a

need or opportunity to grow and develop. It could be that potential exists to provide a service that is known to exist but the Organisation does not currently have the capacity necessary to deliver it. Development funding will usually be provided for this eventuality and for an agreed period,. It will have usually have attached to it specific outcomes and a process for monitoring and evaluating those outcomes.

3. Project Funding – This funding will be made to meet the costs of a specific project or

activity. The funding is usually for a limited time period. Project Funding often requires that the Organisation has detailed plans on how the funds will be used, in particular how much if any of the undoing requested will be necessary for core costs. Monitoring and evaluation of the project’s outputs and outcomes will naturally be a requirement from those giving Organisations project funding.

It is important to make sure that the funding body you are applying to for funding, is the right funder for what the funding is needed for.

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2. Fundraising Strategies

In order that there is a continual flow of funding coming in to the Organisation it is important to have a Fundraising Strategy. This will require that the financial requirements of the Organization are assessed. The Funding strategy should take into account the total income required for management, administration and all costs of delivering the full range of services the Organisation offers. Ideally the strategy will cover a pre-defined period e.g. 1 – 2 years. The first stage in constructing a fundraising strategy is therefore to list all the services the Organisation provides. To each service a specific cost must be allocated. The cost for the individual services needs to be accurate and realistic. Once this has been done the Core costs of running the organization should be calculated and added. The figure calculated will be the amount of funding the organisation needs. With is figure in mind appropriate sources or bodies providing funding will need to be identified.

3. Funding Sources It is important to target only those Funders whose remit includes support for Organisations such as yours and the projects and services you intend to undertake. All Funders will provide clear details of the types of Organisations and projects they do and do not fund. Make sure you are aware of the Funders eligibility criteria before you start the process of writing the proposal. There are many different bodies and funding organisations offering funding to voluntary and community organisations. Although each will have their own set of procedures, and criteria for eligibility the processes involved in apply for funding are broadly similar. Thus the principles of applying for funding will be the same regardless of the Funding Organisation. However do not assume once you have written one [successful or otherwise] proposal you can use the same one or format for every application for funding you submit. Every funding proposal you write will have to take into account the specifics of your need and the requirements of the Funders.

4. Writing the Proposal for funding Much thought and preparation will be necessary when writing a proposal for funding. Therefore when the process of writing it begins set a realistic timescale and stick to time that has been allocated to complete it. Do not become distracted by other matters; do not reschedule the aside unless absolutely necessary.

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The following are documents that your organisation should have and you may need access to in order to help in the process of submitting a proposal for funding, they are,

• Memorandum and Articles [if you Organisation is registered with Companies House] • Company registration and charitable status • A Business Plan [including Objectives, Mission Strategic plans, Future funding plans • etc.] • Budget summary [detailing the current financial status of the Organisation. This document

will usually have been produced or authenticated by an accountant. It could be your Organisations end of year accounts]

• Annual report It will be necessary in every funding submission to include the following

• A clear and concise description of your organization • A description of the need you are aiming to address • Information on your past achievements in tackling the need identified • Evidence that your activities make a real difference to the need • Summary of your organization’s financial position and strategy • The amount that is being sought • An accurate budget for the funding you are seeking [how it will be spent] • Information on the long term benefit of the funding • A description of how the Organisation and project will monitor performance and outcomes

If you have the opportunity get someone outside you Organisation to read the proposal, it might prove helpful to do this. Company/Organisation Websites: Barrow Cadbury Trust http://www.barrowcadbury.org.uk Community Fund http://www.community-fund.org.uk The Roald Dahl Foundation http://www.roalddahl.org The Diana, Princess of Wales Memorial Fund http://www.theworkcontinues.org The John Ellerman Foundation http://www.ncvo-vol.org.uk/jef.html The Esmee Fairbairn Charitable Trust http://www.efct.org.uk The Gatsby Charitable Foundation http://www.gatsby.org.uk The Great Britain Sasakawa Foundation http://www.gbsf.org.uk Greater Bristol Foundation http://www.gbf.org.uk The Housing Associations Charitable Trust http://www.hact.org.uk The Paul Hamlyn Foundation http://www.phf.org.uk Peter Harrison Foundation http://www.peterharrisonfoundation.org Help a London Child http://www.capitalfm.com Help the Aged http://www.helptheaged.org.uk Hospital Saving Association Charitable Trust http://www.hsa.co.uk Isle of Dogs Community Foundation http://www.idcf.org The Joseph Rowntree Foundation http://www.jrf.org.uk The Jerwood Charitable Foundation http://www.jerwood.org.uk The Elton John AIDS Foundation http://www.eltonjohn.com The King's Fund http://www.kingsfund.org.uk Landfill Tax Credit Scheme and ENTRUST http://www.entrust.org.uk The Allen Lane Foundation http://www.allenlane.demon.co.uk The Leverhulme Trust http://www.leverhulme.org.uk Lloyds TSB Foundations http://www.lloydstsbfoundations.org.uk The Lord's Taverners http://www.lordstaverners.org The Mental Health Foundation http://www.mentalhealth.org.uk END.