tools to start and sustain an ngo

8/6/2019 Tools to Start and Sustain an NGO

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FUNDRAISING

Tools to start and sustainan NGO

By : Munish DograStart Innovation

http://www.sankalp4india.blogspot.com/


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Questions to ask Sponsors / Donors

y How do we apply for assistance?y What are the deadlines for proposals?y Is there a specific format for the proposal?y What other documents do we need to submit?y How long does it take to review a proposal?

y Can we set up an appointment to discuss our project idea?y What are your program areas?y What is the maximum / minimum amounts that you fund?y How are funds released?y Can any organization access funds?y Ten Basic Questions to ask sponsors /Donors so as to have a clear picture

of the funds and its usage .


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Possible revenue sources for nonprofits

-Government Schemes

- Donations - corporates, foreign funding agencies, charitable trusts, individuals

- Fund-Raising Drives - on own or with "channel partners" e.g. schools, associations, ladies clubs.

- Selling Products - made by self, made by others (obtained free or at a discount), old / new goods, jumblesales

- Events e.g. dramas

-Weekend Activities for families - in or by a nonprofit

- Providing Volunteers to other organizations - ongoing or event-based

- Rendering Services e.g. making clothes for a shop; keeping an area clean; tending a garden; distributingflyers

- Teaching Skills e.g. folk-dance to kids group; how to provide support

- Training e.g. for corporate personnel e.g. team-building skills

- Getting "Adopted" e.g. by a corporate, Rotary

- Publishing Newsletters or doing research in some form

Website Advertisements e.g. banner ads by corporates, advts by Google


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Guidelines to understand the requirements andprocess of getting a grant


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PROJECT PROPOSAL

Please write the project proposal in a narrative form, keeping the givenheadings. The bullet points under each heading should not be used asquestions to be answered directly but are meant as guidelines to make sure allthe required information is included.

y

y Profile of Implementing Organization (not more than 300 words)

y Nature of implementing organization (NGO or community group) seekingan award

y Previous relevant experience for the proposed activity

y Track record in community based work/experience with participatory

approaches.y Details of the organization: history, governance and funding of the lead

organization, i.e. when established, how structured and organized, number ofstaff (Male /Female) and their expertise, membership, and total annual budget.

y Capacity to carry out the proposed activity (other ongoing projects, staffcapacity etc.).

y


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y Justification for Support - Linkages with (not more than 300 words)

y What are the principal reasons why the project activity is needed?

y Clearly identify the problem the project aims to solve

y How is the proposed activity linked to the objectives of the donor's areas ofsupport?

y What are the global and local significance of the proposed projects intervention

y Explain how the donor's resources would be used towards achieving the solutionto the problem

y

y Context/Baseline (not more than 300 words)

y Context of the activity, location, background, duration. Please include photocopyof map of the project area.

y Describe how the problem was identified (consultations/case study/survey?)

y Assess and describe existing conditions of the project area.

y Give reference to other studies if available.


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y 4. Project Objective and Proposed Activity (not more than 600 words)y Nature of the proposed activityy Immediate objectivesy Expected project deliverablesy Description of the proposed activities required in order to realize the projects objective,

clearly indicating the sequence of activity (with time frame, responsible party etc.)y Target beneficiaries in terms of socio-economics, geography and gender, should be elaboratedy Strategy for development of indicators to assess project progress and achievements. The

indicators should be specific, measurable, attainable, reliable ad time bound (SMART).y Project work-plan matrix with indicators and monitoring scheduley

y Project Strategy(not more than 600 words)y The strategy of how the proposed activity will be carried out should include:y Institutional mapping/identification of stakeholders (such as government departments,

academia, consultants, private sector, local communities)y Consultation with key stakeholders during project implementationy Role of recipient organizationy Role of partner organizationy Provision for dialogue and networking with NGOs and community groupsy Relationship, if any, to other development projects.y

Relationship to other NGO or private sector activities.y Gender perspective (how are women included)y How will the project be sustainable after grant funding is ended /post project strategy/exit

strategy .


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y Technical Feasibility (not more than 300 words)

y Description of technical details and requirements

y Experience from similar projects

y Technical expertise with the NGO

y Technical assistance required from the donor's programme

y Identification of local expertise; NGO, Govt. departments and academia etc. and how it willbe utilized by the project

y Anticipated Results (not more than 300 words)

y Indicate impacts on participants/beneficiaries:

y -Related to human such as health, social, economic and financial impacts

y - Related to environment such as land, water, air

y Demonstration value, value as a learning experience, any other anticipated results

y Potential risks/bottlenecks and how to address these

y Reporting, Monitoring and Evaluation (not more than 300 words)

y The mechanisms that will be used to monitor and evaluate the project, the schedule forwhen these monitoring actions have to be carried out and who is responsible, the resourcesallocated for substantive review meetings among stakeholders, how the work plan andbudget will be updated.

y Reporting: assess capacity to prepare narrative and financial reports

y Evaluation: plan for project evaluation, how are the stakeholders included inM&E?


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y Communication and Visibility Strategy(not more than 300 words)y What type of communication material and reports will be preparedy What are the strategy for communication lessons learnedy How will the project work with the media

y Budget (narrative description not more than 600 words)y Projected total project costs and proposed sources of fundingy What the community and/or NGO will contribute to the project, in cash, in

kind and/or in services.y Funds already obtained from or committed by other sources (if any) and the

names of those sources.y Amount requested from the donory Balance to be sought from other sources (if any) and the names of potential

sources.y Baseline, national investment into local area; schools, health infrastructure,

type of road, govt., budget for specific activity, allocations in annual

development plan (P&D/PSDP)y Opening of separate bank account & maintaining financial record.

Project budget itemized in table form including budget line for audit costs


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In-kind donations for nonprofits

y By closely managing corporate partnerships, non-profit organizations canensure that they receive the goods and services they need.

y Ragnar Hellenius and Sofia Rudbecky The McKinsey Quarterly, 2003 Number 4

y Corporations are usually more willing to donate products and services than hard cashto non-profit organizations. Nonprofits, however, are generally less keen to receive

their donations in kind, because they fear getting the wrong products at the wrongtimes (Exhibit 1). Yet our research suggests that carefully managed in-kind donationscan do a lot to help nonprofitsespecially international relief organizationsnarrowthe gap between their aims and their resources. The trick is to create long-termpartnerships between nonprofits and donor companies and to make the

benefits for both sides explicit. This approach gives nonprofits more control overwhat they receive and when they receive itin effect, allowing them to look a gift horsein the mouth.

y An in-kind gifts market value can be more than double the value of a cash donationfrom the same donor, since the gifts cost to the donor is only the products marginalcost, which might be only half of its market price. Moreover, many corporationshave spare capacity that they could put to use for nonprofits at a negligibleextra cost to themselves; for example, transportation or shipping companies mayhave spare container space; IT consultancies, temporarily underutilizedcommunications engineers.


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Why should a corporation use its resources in these ways to benefit a nonprofit? Is itpossible to change the basic fact that the recipient of a gift usually isnt in a positionto discuss, let alone dictate, the terms of the donation? To build a more equal and

businesslike partnership in which donors assume the role of suppliers and nonprofitsthe role of customers, nonprofits must offer the donors something valuablein return. One important benefit that corporations can derive from their in-kindgifts is the ability to meetand be seen to meettheir corporate socialresponsibilities: donations in kind can easily (and more creatively than cash) becommunicated externally for the purposes of public relations. Companies can also

benefit internally because employees take satisfaction in working for good causes.The first step in creating mutual value of this kind is to determine the benefits of anin-kind donation for the non-profit and the corporate donor. Atimber company, forexample, might at the same time support both a social and an environmental causeby providing construction materials to help repatriated or resettled refugees buildnew homes for themselves and by donating timber grown outside the area of

settlement to ensure that scarce local vegetation wasnt cleared. The donors rewardmight be positive publicity triggered by press releases from the non-profitorganization. Similarly, an automotive company could gain valuable exposure for anew product line by donating vehicles to a relief agency working under the mediaspotlight.


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y But non-profit organizations must solve the problems associated with in-kinddonations. In some cases, companies use nonprofits to dump inadequate, second-rate productssay, a shipment of tents that couldnt withstand high humidity in arefugee camp. Sometimes the cost of transporting and maintaining in-kind

donations is too high. Whats more, the timing and size of the donations are oftenhard to control; if donated field kitchens, for example, dont arrive on time, therelief organization must spend hard cash to buy substitutes.

y For in-kind donations to work, a non-profit organization must adopt an integratedapproach involving not only its donations and fund-raising unit but also thedepartments that oversee its operations and manage its resources (Exhibit 2).First, the operations unit needs to specify its requirements for the products andservices it needs. Next, the resource-management and fund-raising units shouldtogether break down the operational budget into categories suitable for in-kinddonations and provide minimum product specifications and the like. These unitsshould then rank potential target companies, which ought to beapproached with a business idea that spells out exactly what benefits the

non-profit organization has to offer them. (Local information about human-rightsand business issues could help a company act in a socially responsible way, forinstance, or the non-profit might offer courses in handling problems that arisewhen the companys people work in unfamiliar cultures. It could also help get themedia interested in the joint project.)


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In one example of the kind of partnership we recommend, a telecom companyprovides equipment and expertise for an international aid organizations fieldoperations; among other things, the company installs telecom equipment inemergency warehouses. For the aid organization, the value is substantial, sincetelecommunications invariably presents a problem in such conditions. For thetelecom company, the project helps to keep up the spirits of employees in aneconomic downturn.It is important to draw up a business contract, which should includedetails about the resources required and what both parties areexpected to deliver. The non-profit's resource-management unit should

estimate the total cost of using the donationadministration, transport,maintenance, and repairsto see if it is truly worthwhile for the organization(Exhibit 3), as well as coordinate the logistics and procure any needed items thatare not being donated. Finally, most donors understandably want feedback on theprogress of a project and their involvement in it. Such informationprovided, forexample, through field visitsmust be delivered in cooperation with the people

who run operations.


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Successful Fund Raising

y A Good Fund Raiser:

y Must Believe in the cause

y Should be Innovative

y Should be an

Effective Communicator

y Should be Persistent and Determined

Income Of Voluntary Organizations: Donations:

y -Individuals,-Companies,

-Trusts/foundations,-Government,-Foreign agencies,-Charity cash box, etc.;-Internet


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y Other Forms of Income

y -Interest/Dividends: On short/long-term investments;

y - Sale of products: usually prepared by beneficiaries of the organization

y

-Rent: If the organization leases out its property like office space, hall, etc.y -Membership fees/subscriptions

(Entrance fee being in the nature of capital receipt, is not to be treated asincome.)

y Types of Donations/Grants

y Corpus

y General

y Earmarked

y Matching

y Returnable


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y Corpus/EndowmentIt is a capital receipt and therefore not treated as income.Donor must express the intent in writing that the donation is towards corpus.Corpus donation should preferably be invested in long-term deposit and only the interest used.

y

GeneralPurposeFor general activities of the organization, includingestablishment expenses, programming, etc.

y EarmarkedFor specific programs/projects only.It could be earmarked by the donor as corpus or otherwise

y Matching or Challenge GrantDonor agrees to give 50% of the amount required for a programme/project provided theorganization raises the balanceMr. Carnegies challenge?

y Returnable GrantIt is like a loan for two or three years to be returned after the program becomes self-sustaining.

y Sources of Fundingy 1. Individualsy 2. Foundations, Trusts and Donor Agenciesy 3. Corporationsy 4. Governmenty 5. Religious institutions


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1. Individualsy According to Giving USA2005 (The Annual Report on Philanthropy for

the year 2004),y -Americans contributed $ 248.52 billion to charity,

y -Individuals donated an estimated $ 187.92 billion (75.6%).-Bequest giving was estimated at 19.80 billion (8%)-Foundations contributed $ 28.80 billion (11.6%) and-

Corporations $ 12 billion (4.8%).

y Indian Survey:According to a national survey covering around 28 percent ofurban India and concluded in August 2001 by Sampradaan:

y -96% of upper and middle class households in urban India donate to acharitable cause. The total amount donated is Rs. 16.16 billion.


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Other Findings of the Survey:-In terms of average annual donation, Christians in India take the lead,followed by Hindus/Jains; Sikhs; and Muslims.-

Christians also give the highest average annual donations to other (non-

religious) organizations (Rs. 301 per year).

The most popular purpose for which money is donated is torelieve distress of victims of calamity,21% donating for this purpose.

Important Reasons for Giving (According to the Survey):1) Feeling of compassion (68%).2) Feels good (48%).3) Religious beliefs and practices (46%)4) Believed in the cause or the organization (29%).


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y 2. Foundations, Trusts & Funding Agencies

y -According to a study by Charities Aid Foundation ( India ) and VoluntaryActionNetwork of India, it is estimated that an aggregate Rs. 25,717 million (1997-98data) comes into India by way of foreign funds to the voluntary sector.

y

y -The study also revealed that, out of 18,700 organizations registered under theForeign Contribution (Regulation) Act, 12,000 filed nil returns in 1998.In other words, only 6,700 organizations are recipients of foreign funds.

y

y -The same study estimates funds from government sources to voluntaryorganizations to be around Rs. 2,000 million.

y

y -The bulk of foreign funds from bilateral and multilateral agencies are channeledthrough government and are, to that extent, indistinguishable from governmentfunds.

-Only the funds of foreign funding agencies like Oxfam, Ford Foundation etc., flowdirectly to private voluntary efforts, albeit with government permission.

y

y -In the year 2000, India received foreign contributions aggregating Rs. 4,000crores.


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3. Corporations-Corporate giving in India during the year 2000 was estimated to be Rs. 2000 crores.-ActionAid & IMRB Study:

According to a study of Indian companies with stated and unstated policies on

philanthropic activity, conducted by the Indian Market Research Bureau &commissioned byActionAid India , 83% of the survey companies saw themselves asmajor players in everything from rural community development to running projectsfor the disabled to upgrading infrastructure facilities for the underprivileged.

Reasons for Adopting a Philanthropic Policy:-70% believe they have an obligation towards society upon whose resources they aredrawing;-50% felt concern for a specific group;-40% felt concerned for the underprivileged;

-23% cited benefits to the organization.


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y Benefits Perceived by the Surveyed Companies-Satisfaction (in fulfilling social obligations) 45%-Improved credibility (with general public and the Government) 28%-Builds confidence and pride in staff 19%-Tax benefits 09%

y -Factors Influencing Corporate Giving/Partnerships:-Is the project for the community in which the industry operates?-Is there scope for the company in projecting a caring-sharing image about itself?-Is there any tax benefit?

y -Is it a long-term investment for the company?y (e.g., economic growth of the community leading to increased consumerism or a better

educated or technically skilled community leading to a better workforce for thecompany)y -Is there a possible link between the companys philosophy and goal and the project?

(E.g., pharmaceutical company supporting a community health program or a housingdevelopment corporation supporting a project for low- cost housing).

y -The Right Approach:-N

ever approach a company CEO

with a begging bowl.-Approach the CEO with a business proposal - a social investment strategy in areaswhere there is a major societal concern.-Appeal to the Bottom Line-The fund raiser has to appeal to the CEOs business sense that his business is morelikely to thrive in a healthy society and environment and it would make good businesssense for the company to adopt a philanthropic policy.


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y 4. Governmenty There is no reliable information available on the volume or the specific areas

in which Government disburses funds for welfare or development purposes.

Government Schemes:The Central and State Governments, have several schemes for assistance tovoluntary agencies in areas ofHuman Resource Development, Welfare ofWomen, Children and marginalized communities, Health, Family Welfare,etc.

y -Ministry of Human Resource Development

Shastri BhavanNew Delhi 110 001Ministry of WelfareShastri BhavanNew Delhi 110 001

y -Central Social Welfare Board

Jeevandeep, Parliament StreetNew Delhi 110 001

Ministry ofHealth & Family WelfareNariman BhavanNew Delhi 110 001


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-Ministry of Agriculture Co-operative and Rural DevelopmentKrishna BhavanNew Delhi 110 001Ministry of Science & TechnologyTechnology Bhavan, New Mehrauli Road , New Delhi 110 016

-Voluntary Action Co-ordination Cell (Planning Commission)Yojana BhavanParliament StreetNew Delhi 110 001

5. Religious InstitutionsSome temple trusts in the city of Mumbai are parting with some of their funds foreducational purposes. Example:-Mahalaxmi Temple Trust,-Mumbadevi Temple Trust and

-Siddhi Vinayak Trust.

-In South India , Tirupati Devasthanam has also devoted some of its funds tosecular activities like establishing colleges and hospitals.


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y Methods of Fund Raising:y Face-to-Face Solicitationy Direct Maily Legacies & Bequestsy Special Eventsy Payroll Deductionsy Cause-related Marketingy

y USEFUL TIPSy Fund-raising is an art, not a science. Bring your own creativity to it and

remain flexible.y Recruit staff with commitment first, techniques second.

Say what you mean; mean what you say.y Make the donor feel he is an insider - that he owns the organization. He

will defend and support his institution.y Write copy as if from one person to another person; not from an

organization to a donor.y Make sure you see and read mail from donors. It is the way to know

what they are thinking about you.y In every piece of mail and all publications, including Annual Reports -

always provide the opportunity to give.y


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The person answering your phone represents yourorganization.

Please do not fund raise if your organization is unable to cope with opening

the mail and answering it properly! Tell the truth and facts always - credibility is important in fund-raising. Tell your donors how their money helped to make a difference. Emotion, rather than reason, leads to charity. Induce action; always use a reply envelope. Be specific; speak of specific cases or individuals - avoid generalities.

Long words put donors to sleep and sleepy people cannot write cheques. Use more photographs one picture is worth a thousand words. Do not write about a huge problem, which an individual cannot solve through

his donation. Aim for something within the reach of an individual. Talk about sponsoring a child and not 10,000 children.


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y A fund-raising communication should be one that:- Catches the eye-Warms the heart, and- Stirs the mind.

y

Directory of Donor OrganizationsPublished By: Sampradaan (Indian Centre for Philanthropy)-

y It consists of4 types of data:y -Indian Trusts and Foundations

-Foreign Donor Organizations-Organizations giving Scholarships/Fellowships-CSR- Corporate Social ResponsibilityOrganizations

y To Order Directory of Donor Organizations-y Price Rs. 300/- Plus Rs. 50/- postagey

y Sampradaan

Sector - C, Pocket - 8 / 8704 Vasant Kunj,New Delhi - 110 070Tel: 91-011-26899368,Telefax: 91-011-26121917Email: [email protected]:www.sampradaan.org


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y Useful websites:y South Asian Fundraising Group

www.safrg.orgResource Alliance ( U.K. & India )www.resource-alliance.orgMal Warwick (Fundraising expert)www.malwarwick.com

y

y

y Good Luck!y In Fund Raising -You Need Lots of Luck.The Harder You Work-The

Luckier You Get.y

y For Further Assistance Contact:y Centre for Advancement ofPhilanthropy

Mulla House, 4th Floor,51 M.G. Road

Flora FountainMumbai 400 001Tel: (022) 22846534E mail: [email protected]:www.capindia.org


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y The various types of donor - ngo relationshipsy

y The range of donor-recipient positions that exists includes thefollowing:

y Laissez-faire: Funded NGOs should be trusted to do as they say, andnot harassed by donors. This view is possibly less common than in thepast, and can be seen as a rationalisation of the minimalist positiongiven below. Some church donors, seem to take this position.

y Minimalist (defensive): Donor information demands can distract and

undermine the effectiveness ofNGOs in their work and thereforeshould be minimised. This view seems relatively widespread,especially amongst donor NGOs.

y Minimalist (self-interested): Donors are overwhelmed with thepractical tasks associated with funding (identification, appraisal,

approval, disbursement and documentation) and do not have enoughtime to read and make use of information about project activities andimpact so they do not bother asking for much more than they alreadyreceive. This implicit rationale seems to be very common.


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Apologetic/realist: Donors have obligations to their own donors and thus must askfor information from the NGOs they fund, though they feel/know that this can be aburden on the funded NGO. Again this seems to be fairly common rationale.

Facilitator: Information is needed from funded NGOs so that other NGOs can learnfrom their experiences. Arelated rationale is the need to support developmenteducation in the donors own country. This rationale, especially the former, is notwidely used.

Interventionist: The process of requesting information can have a positive impacton NGOs' institutional development (defined as above in terms of increasedresponsiveness). This is uncommon but a rationale that needs much moreattention.

Hard-line: Funded NGOs have signed a contract and therefore have an obligationto produce the goods, which in this case is information.


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Thank You..!!!!

tools to start and sustain an ngo

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