virgin money foundation diversifying your income ......top tips: grants • grant your mission is...

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Virgin Money Foundation Diversifying Your Income Masterclass Notes

Table of Contents

1. What would your ideal income mix, investment and risk appetite look like? ................................................ 3

2. Why diversify your income? ....................................................................................................................... 4

3. Donations and sponsorship ........................................................................................................................ 4

4. Grants ....................................................................................................................................................... 5

5. Social Investment ...................................................................................................................................... 6

6. Trading ..................................................................................................................................................... 7

7. Key points from St Oswald’s Hospice Presentation ...................................................................................... 8

Why diversify your income? ......................................................................................................................................... 8

How do you decide what to do? ................................................................................................................................... 8

What could you do? ..................................................................................................................................................... 8

Community fundraising ................................................................................................................................................ 8

Regular givers ............................................................................................................................................................... 8

Corporate engagement ................................................................................................................................................ 8

Trusts and grants ......................................................................................................................................................... 9

Legacies ........................................................................................................................................................................ 9

Trading ......................................................................................................................................................................... 9

Mitigate your risk ......................................................................................................................................................... 9

Data analysis and donor pathway ............................................................................................................................. 10

Online presence .......................................................................................................................................................... 10

Summary .................................................................................................................................................................... 10

8. Table Discussion Reflections .................................................................................................................... 11

Types of income diversification .................................................................................................................................. 11

Donations ................................................................................................................................................................... 11

Strategy/delivery ........................................................................................................................................................ 11

Partnership/collaboration .......................................................................................................................................... 12

Governance ................................................................................................................................................................ 12

9. In summary ............................................................................................................................................. 13

10. Q & A.................................................................................................................................................. 13

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What potential impact will Brexit have on fundraising? ........................................................................................... 13

Is there a data resource model that shows the performance of different fundraising approaches i.e. community fundraising. ................................................................................................................................................................ 13

What’s your experience of delivering statutory contracts and how do you mitigate the risk? ................................. 14

How do we raise the subject of fundraising i.e. legacies when you work directly with vulnerable people? ............. 14

How do you decide whether to ethically accept a donation? .................................................................................... 14

What is the optimum combination of earned income and grants/donation?........................................................... 15

What is the CAMPARI business plan model? ............................................................................................................. 15

How can we engage trustees effectively in fundraising?........................................................................................... 15

Funders are always asking for new projects to fund but I just need core funding for staff and rent. How does diversifying my income help this? .............................................................................................................................. 15

At what point in a person’s life are legacies made? .................................................................................................. 15

Donations – relationships are key – what are the hooks to keep bringing people back? ......................................... 16

Corporate Sponsorship – where to start? .................................................................................................................. 16

When is the right time to approach people? ............................................................................................................. 16

What are the main Online Giving, Donation, Text and Payroll Giving platforms? .................................................... 17

Can you tell us more about using social media to sell product? ................................................................................ 17

How can we collect donations by contactless or card ............................................................................................... 17

How can we engage trustees effectively in fundraising?........................................................................................... 18

How much of my time do I really need to spend on fundraising when I’m also running my charity? ....................... 18

How do Quickbooks, Sage and Xero compare when staff and trustees want to track the success of several income streams from which they want to choose? ................................................................................................................ 19

Adrian, what’s the first step to getting started in securing social investment? ........................................................ 19

Nancy, any top tips on successfully accessing VMF grants? ...................................................................................... 19

From a funders point of view, how important is a diverse income portfolio when deciding on awarding funding to a charity? ....................................................................................................................................................................... 19

How can you earn money from partnership working – not just management fees? ................................................ 20

11. Useful Fundraising Contacts:................................................................................................................ 20

12. Recommended books .......................................................................................................................... 20




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1. What would your ideal income mix, investment and risk appetite look like?

1. Assessing your funding mix

• Fully understand your current fundraising/income mix. Being clear about your

organisation’s vision, mission and aims; how well you are achieving these; what level of

ambition you have for the future and how risky either your current or future reality looks

like will determine how sustainable your current income strategy. If you need a reality

checker look at NCVO’s Sustainable Sun tool to help you identify issues and discuss these

with your colleagues. When you are clear – then look at your income streams. Consider

using a tool such as NCVO’s Income spectrum tool which gets you to analyse your income

streams, the risks attached to these and helps you to consider how you can minimise

these risks and introduce new income areas. Look at your income source and trends

within this i.e. does all your money come from a few individuals? Engage your staff team

and Board in this discussion. When asking for project funding, do you take all costs into

account (full cost recovery), do you serially underestimate the project costs when

applying for funding?

• Look at what others are doing What are other similar organisations in your field doing?

Look at their annual reports, websites, accounts and evaluations. Are you all competing in

a diminishing field? Is it necessary to do everything yourself? Can you join forces with

other charities to run larger scale promotions and activities?



https://www.fundingcentral.org.uk/Page.aspx?SD=1484

https://www.ncvo.org.uk/images/documents/practical_support/funding/sustainable-funding/NCVO%20Income%20Spectrum.pdf


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• Assess the potential from your networks What type of contacts does your organisation

have? Could you do more to tap into this? What are the pros and cons of approaching

each group? Diversifying income may require changes to operating models, strategic

focus and governance. Will it detract from your core purpose?

• Be realistic about how long it will take.

2. Why diversify your income?

• Increased competition – less money around particularly from statutory sources.

• Lack of core funding – constantly applying for grants.

• Need to become more resilient – be ready for anything.

• Do you want to do more to meet your mission?

3. Donations and sponsorship

Top Tips: Donations

• Understand your Unique Selling Proposition, your ask and

why people might donate to you. Use personal stories and

your success to inspire people to give.

• Research your potential donor base – and tailor activity to

their interests.

• Make your online presence shine!

Top Tips: Corporate Sponsorship

• Embed yourself in your community – use your connections

– be visible.

• Start appropriately – and build up regular support.

• Build relationships. Understand what they want from you.

Don’t over promise.

Key points from presentation:

• ‘Shy bairns get nought.’

• Don’t be afraid to ask – the worst that can happen is they say no.

• Get your elevator pitch right - be able to answer what, where, when, why, how.

• Research – research – research.

• Be visible.

• Don’t expect a quick return.

• Relationships are key.

• A good online presence is vital.




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4. Grants

Top Tips: Grants

• Your mission is king.

• Know your funder – and get them to know you. Read and

follow the guidance.

• Know your project beneficiaries, budget) e.g. full cost

recovery) data and outcomes.

• Know your market including stakeholders and competitors.

Fit with criteria Good planning, budget

and ability to manage funds

Clear evidence of

need with good user engagement

How will you

manage the project and

measure progress

Explain the impact

and difference you make

Successful track record of delivery

Good

understanding of risk

Equality and

diversity across your organisation

Sustainability – what happens when the

project ends?


• Mission is king.

• Read the criteria and guidance.

• Planning, planning, planning - & budgeting properly.

• Have a clear understanding of your social impact and be able to evidence this.

• If you haven’t applied – give it a go, it’s not as hard as you think.

• Try and build a relationship with your funder – invite them to events once or twice a year/send them info. Even if they don’t attend, you’ll be on their radar.

• Make sure you explore how you will fund the project/activity after the grant ends.

• Be able to answer what, where, when, why, how.




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5. Social Investment

Top Tips: Social Investors

• Don’t just look at interest rates – they don’t make a lot of

difference over the long term.

• Social investors – they’re all different – pick one that suits

you.

• Some investors invest in people – make sure your Board

and SMT have the right skills.

• Expect questions and scrutiny – have the answers ready.

PROS FOOD FOR THOUGHT

Social investors often offer additional support Social investment is not for every organisation

Can help increase efficiency/effectiveness Consider how you will repay the money

Enables less reliance on grants, good income diversification, especially when the funds have

been repaid

Do you have the right powers, leadership, skills and experience to manage the finances?

Borrowing

• A loan which you repay over a set period of time (with or without interest).

• E.g. Unsecured and secured loans (against an asset e.g. building), bonds, quasi equity.

Shares

• Equity, where you sell a part of your organisation and a share of your profits to one or more investors.

• E.g. Community shares.

Blended

• Relatively new.

• A mix of Grant (non repayable) and Loan (repayable).

More in depth than grant applications

Realistic and

sustainable income

generating model

Clear,

comprehensive business plan clear, comprehensive e.g.

Campari

Good quality research including market research

Solid financial

information with clear

Assumptions

Social impact results

Explain the

impact and difference you

make

Strong

leadership –both from your

Board and Senior

management

Good track

record, experience,

knowledge and understanding

of the risks


• Find the right social investor that suits you.

• You will need to have a good business plan – which includes well costed income generating models and financial information.

• You must be able to demonstrate that you will be able to generate a profit and pay back any loan due.

• They will take more notice of your leadership team and governance.

• Be prepared to answer more in-depth questions they’ll want to see the whites of your eyes!

• The right investor will support you on your journey.




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6. Trading

Top Tips: Trading

• Put your customer at the heart of everything.

• Make what sells rather than sell what you make.

• Do your market research – don’t self-reference.

• Develop or hire skills e.g. sales or finance.

Idea and

strategy Research and help

Project team/plan

budget/ risks

Product spec/price/prototype/investment

Launch

Monitoringfurther

development


• Make what sells – don’t sell what you make.

• Fully cost your delivery.

• Beware mission drift.

• Be clear about why you are doing this.

• To make money – you normally have to produce/sell in volume.

• Do you have the right skills to do this? Consider hiring them in if you don’t.

• Be realistic.




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7. Key points from St Oswald’s Hospice Presentation

Why diversify your income?

• Don’t do it because you’re bored – be clear about what you are trying to achieve.

• Consider collaborating with like-minded organisations and ones that work in your field.

• St Oswald’s started as a very small organisation – and built up to where they are now – we are more similar than you may think. If we can do it, so can you.

• Make sure you have a good picture of your founder – they will thank you for it in the future.

• Diverse income streams create a synergy that can complement each other.

How do you decide what to do?

Be clear:

• what do you want to do?

• Why do you want to do it?

• What difference will it make and to whom?

• What will happen if you don’t do it?

• How much will it cost?

What could you do?

Community fundraising

• Understand who events are targeted at. Offer a personalised approach.

• How do you build on their engagement – think through asks (remember donor pyramid approach).

• Fully cost out activities – don’t forget to ask.

Regular givers

• Engage with them.

• It’s important to follow up leads and make supporters feel that they are ‘part of something’. They care about you – show that you care about them. You can’t just take from them – you have to give too.

• Slow growers – but need very little ongoing maintenance when established. Over time can be a big earner.

• Consider lotteries or other entry steps – potential to collaborate with other charities?

Corporate engagement

• Understand why they will support you – what’s in it for them? Is it CSR – or personal interest? Staff development or just having fun?

• Look within your own community for contacts.




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• Its ok to say no sometimes – make sure what they’re offering will be appropriate and useful. Ask them for something that will actually help you.

Trusts and grants

• Cost effective form of income.

• You’re not convincing them to give – there’s plenty of money available. You’re convincing them to give to you.

• Do your research – read the criteria.

Legacies

• Get over being uncomfortable and ask.

• Mostly older people and ladies.

• It’s a sensitive ask – a drip process.

• Don’t assume that donors will have considered this.

• Can be tricky to budget as you don’t know what to expect or when.

• Consider trying legacy promotion activity i.e. will month.

• Engage with local solicitors.

• Make sure you include legacy giving in your literature and on your website.

• Keep at it – and don’t expect instant results.

Trading

• Expensive and highly regulated.

• Scale is everything - it’s a volume business – you can make more from bulk sales and waste recycling credits than from selling in shops. You won’t make money legally from a one or two shops.

• Having premises is like throwing money off a bridge.

• You need a good team of dedicated volunteers.

• You need someone to manage them with retail experience.

Mitigate your risk

• Get good staff – look for internal career development or possible secondment.

• Collaborate with bigger partners with shared cause – can offer you guidance and expertise.

• Buy in expertise – private sector consultancy, if you need it and can afford it.

• Have a clear, costed strategy.

• If you are collaborating, get a strategic agreement upfront.




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Data analysis and donor pathway

• Do you know who your donors are?

• Have you got the software and/or ability to look at donor retention strategies and move them up the donor pyramid?

• Do you have products/events in place to move them on to? E.g. one-off event participants need clear and easy pathways open to become regular givers/lottery players, sign up to your e-supported networks, or consider leaving a legacy.

Online presence

• It’s an easy way to spend your money – but for anyone under 40 it’s how they will relate to you. Don’t regard it as a separate overhead – factor it into your income generation costs.

• Use it as a tool to drive supporters to your fundraising activity.

• Have a strategy.

• Consider your target donors – what age are they? Is your activity geared towards their needs i.e. 20 year olds don’t carry cash, or write cheques.

• It’s a steep learning curve – and will take time to build up.

Summary

• Overall – don’t be afraid to ask. Shy bairns get nought!

• Be entrepreneurial – forward looking and be willing to take calculated risks – but know the financial implications.

• Look for new ways to make money – and build relationships.

• You will need to invest money to succeed.

• You won’t always succeed – prepare for failure and learn from it.

• Get good advice – for free or cost.

• Look for ways to mitigate your risk.

• ‘Heaven help us from enthusiastic Trustees’. ‘Getting Ant or Dec there would be good.’ Bring Trustees with you on your journey.

• Re-clarify your mission (the ‘who’ and the ‘what’)

• Quantify your gaps into a business plan

• Seek advice – growing income is not an impossible dream – just difficult.

• Dare to (prudently) invest in people and systems.

• Do one new thing right.

• Dare to do it – or it won’t happen.




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8. Table Discussion Reflections

Types of income diversification

• As a small charity avoid retail/charity shop – don’t open a shop!

• How to make a successful grant application. Improve communication and relationships with existing funders.

• Community fundraising – can we form partnerships?

• Use of social media – tapping into universities/provider to employ an expert

• Legacies – not something we thought about promoting/doing. Legacies are not for everyone. At what point in a person’s life are legacies made?

• Social Investment an option?

• Trading - make what sells – not sell what you make. Understand the market – do your research.

• Sponsorship – where to start. Business partnership arrangements – remind them of what they get from the relationship.

• Diverse income sources start complementing each other. The realisation that diverse income streams creates synergy that you can develop as an organisation.

• Diversifying your income diversifies risk.

Donations

• Regular gifts are slow growers – don’t expect quick returns

• Be brave!

• If you don’t ask, you don’t get

• We don’t have donations – but we’ve never asked!

• Donations – relationships are key – what are the hooks to keep bringing people back?

• When is the right time to approach people?

• Cashless society – how young people give.

• Develop positive relationships with donors. Nurture them.

• Online presence v important.

• Supporter journey – donation pyramid.

Strategy/delivery

• Analyse your data.

• Importance of having your elevator pitch right – for both staff and trustees. You need a pocketful of these already prepared to deal with various circumstances. Different donor types and organisations need different asks – one size does not fit all.

• Fundraising strategies – where do you start? There is only me.

• It’s refreshed the memories of other income streams we should consider

• Consider RIO: cost everything.




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• Don’t try to do everything at once – pick one thing and focus. Don’t be a busy fool!

• Find the people who ‘can’.

• Bring in skills and expertise – invest in the right people with the right skills. Buy in from private sector. Investing in professionalism.

• Importance of fit with mission. Avoid temptation to chase funding.

• What are the resource/infrastructure implications of particular funding streams?

• Test approaches. How do we measure return?

• Clarity - What do you want to do/achieve? Fundraising or marketing? Who’s your target audience? What difference are you trying to make? What will be the intended impact? How much will this cost? What are you doing? Why? How?

• Capacity – what is required to deliver the service/product? Do you have this?

• Be brave – take a calculated risk and be prepared to fail. Low risk if looked at properly. Speculate to accumulate.

• Avoid stagnation or over asking.

• Have a ‘can do’ attitude – add innovation to the agenda!

• Be realistic.

• What’s best for a small team? Focus on what might work.

• Take the blinkers off! Be receptive to different thoughts and ideas. Seek help.

• Have a social media plan.

• Consider resource sharing i.e. vehicles/training. Barter basis?

• How do you promote unpopular causes?

Partnership/collaboration

• Don’t be afraid to approach other charities with a potential partnership opportunity.

• Sharing of good practice/skills/staff – offer good will.

• How can you earn money from partnership working – not just management fees?

Governance

• Board needs to speed up and accept income diversification. Need to manage Board’s enthusiasm and expectations of success. How do we do this?

• Do we need a moral/ethical policy for accepting donations? Do charities clean dirty money? Do/can we set rules with donors such as Ladbrooks?

• Need to work with our board to understand investment required/risk/capacity.




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9. In summary

• Always start with why …. always!

• Consider what’s right for you! Remain true to your mission.

• Take your Board with you.

• Have an evidence-based strategy and plan.

• Be realistic.

• Seek help and learn from others but remain authentic.

• You will need to invest to get started.

• Work on your brand, USP, elevator pitch, stories and golden thread.

• Accept you won’t always get it right.

• Without passion you will fail, but passion by itself is not enough.

10. Q & A The following is a summary of our response to questions raised on the day and posted on Slido/raised in the table discussions.

What potential impact will Brexit have on fundraising? No direct impact on VMF funding. There will inevitably be uncertainty from organisations that receive money from the EU and a lack of clarity on what might replace this i.e. Shared Prosperity Fund. This could, of course create more demand for more traditional funding sources i.e. grants. Some of Key Fund’s money comes from EU funding, but they’re not anticipating this to have a significant impact.

Is there a data resource model that shows the performance of different fundraising approaches i.e. community fundraising.

The panel were not aware of anything. There is not a one size model fits all. Start off event planning for a 10:1 return, but don’t assume you’re going to raise this. Make sure you cost everything, not just the direct event/activity costs. Additional post event comments: Make a realistic, calculated guess on what the income potential for your donor base is. Look at what other people have done for ideas and returns, but don’t assume that just copying them will get the same results.




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What’s your experience of delivering statutory contracts and how do you mitigate the risk?

• Read the tender guidance and criteria – understand what they are looking for and complete the tender documents from this perspective – not just explaining your service delivery.

• Attend any events they might hold – and make your presence known to them.

• Fully cost your service delivery – and understand the operational implications before you submit the tender. Make sure you can deliver what you promise.

• Avoid mission drift – if it’s not right for you, and you can’t cover your costs, don’t submit!

• Get professional expertise if you are not used to writing tenders.

• Don’t be phased by the H&S questions – consider going for Contracting Health And Safety (CHAS) – it’s not as difficult as you think – you can then just tick the box on tenders and know you will be compliant if you implement your policy and procedures in this area.

How do we raise the subject of fundraising i.e. legacies when you work directly with vulnerable people?

Very sensitively. St Oswalds operates under CQC regulation, which heavily scrutinises this area. They would never raise the subject of donations with people in their care, or who are vulnerable. Sometimes families of people in their care want to offer donations, they say no. Look at the Institute of Fundraising guidance for support (a link is included at the end of these notes).

How do you decide whether to ethically accept a donation?

St Oswalds discussed this at Board level – and have a clear, written policy on this area. They would, for example not accept donations from anything related to the tobacco industry.

Additional post event comments: You have to remember that your organisation is there to support your charity beneficiaries and act in their best interests at all times. Deciding whether to accept or return donations will include weighing up any issues around where the funds come from, how they were raised, which may include reputational concerns, against the financial impact on the charity of turning the donation down or returning it. The Trustee’s are responsible for this decision – and should document their evidence and thinking that led to their decision. They should not include their own personal ethical considerations unless this has a direct relevance to the charity.

Different charities may legitimately come to different decisions, and trustees can approach the Commission for advice if they are unsure about their approach. The Charity Commission has issued the following guidance in this area: https://www.gov.uk/government/news/returning-money-to-charities



https://www.gov.uk/government/news/returning-money-to-charities


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What is the optimum combination of earned income and grants/donation?

This varies from organisation to organisation. It depends on various factors including your mission, strategic plan and risk appetite. It would be worth exploring your current and desired combination using the NCVO’s Sustainable Sun tool.

What is the CAMPARI business plan model?

This model is used by investors as well as commercial banks to assess investment readiness. It helps if your business plan includes these elements. CAMPARI stands for: • Character • Ability • Means • Purpose • Amount • Repayments • Insurance

How can we engage trustees effectively in fundraising?

If approaching income diversification with existing trustees, consider using part of an away day to have this conversation. Consider inviting charities and social enterprises who have diversified their income to share their learning and experience. Ensure that the discussion includes the risks of diversifying and of NOT diversifying.

Funders are always asking for new projects to fund but I just need core funding for staff and rent. How does diversifying my income help this?

Income from donations, legacies and trading are unrestricted (donations can be restricted depending on what you’ve asked the donor to support). You can use this funding to support your core costs or build up unrestricted reserves. A number of grant funders will support core costs – read their guidance and criteria before you apply.

At what point in a person’s life are legacies made?

People normally consider leaving a legacy from their mid-late 50s onwards. They may have received a legacy themselves; their children may have left home, or they might have no children and are considering what to do with their estate; they may have reached the pinnacle of their career or are considering retirement plans. They may be making a will for the first time. Consider in memory or memoriam giving i.e. people giving a donation to a charity in memory of a friend or relative as a platform to raising legacies. These people are 3x more likely to leave a legacy than the general public.



https://www.fundingcentral.org.uk/Page.aspx?SD=1484


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Donations – relationships are key – what are the hooks to keep bringing people back?

Consider the donor pyramid approach (see below). Use personal stories and show what impact you are making. Ensure your communications have a call to action included – however small. Build relationships with people – show that you care. Say Thank You and show them what their donation has enabled you to do. Make it easy for people to donate.

Corporate Sponsorship – where to start?

Ask your staff/volunteers if they have any connections with local companies and would be willing to make an introduction to you. Have your elevator pitch ready – and a very clear ask. What do you want them to do for you? Be realistic in your ask – it’s not always about money. Build up the relationship over time. Invite them to an event/activity.

When is the right time to approach people?

When you know enough about them, and when you are ready. People give for a variety of reasons:

- they have a personal connection - it interests them - they are responding to an emergency or urgency - because people they respect/want to connect to have given - because they are looking for recognition - they want to ‘give back’ or make recompense for something - because they are asked - because you draw them in

You often won’t know when the right time is – but try to think through potential donors motivators before you make your approach.




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What are the main Online Giving, Donation, Text and Payroll Giving platforms?

Most sites (not all) do not charge charities an upfront fee now (Virgin Money Giving still does) but charge transaction fees. You need to carefully consider which option is best for you – the transaction fees will mount up. A number of sites give the donor the option to cover the processing costs or fees.

Can you tell us more about using social media to sell product?

We are going to be looking at social media marketing in the Marketing Masterclass on 2nd March. There are still a small number of spaces available, which you can book via our website on www.gltpartners.co.uk. If you can’t attend and would like the notes, please send me an email: [email protected]

How can we collect donations by contactless or card

There are a number of ways you can now collect donations via a donation point or contactless donation box. These give you the option of fixed or portable units – with specific value donations you decide on – they also include Gift Aid. Here are a few of the main ones for you to consider. They are not cheap – some you can rent monthly, others you need to buy outright. For smaller charities, you could explore the options of sharing a device. You’ll

Social media digital

platforms (investment

led or personal):

Localgiving, Chuffed, GoFundMe, CrowdfunderUK, Kickstarter,

Kindlink, Facebook Doners and Facebook Fundraise

Online matched donations:

The Big Give

Donation/sponsorship

platforms:

Just Giving, Virgin Money Giving, Wonderful, Golden Giving,

Charity checkout, Everyday Hero (Blackbaud Raisers Edge)

Chuffed, Givey, Wonderful.org, The Good Exchange

Text/SMS

Instagiv (SMS mobile), Donr (SMS mobile), Donate (multiple

platforms, good for events capture via SMS)

Donation payroll giving

collection points

Approved payroll giving collection agencies





https://localgiving.org/

https://chuffed.org/

https://www.gofundme.com/

https://www.crowdfunder.co.uk/

https://www.kickstarter.com/

https://www.kindlink.com/

https://www.thebiggive.org.uk/

https://www.justgiving.com/

https://uk.virginmoneygiving.com/giving/

https://www.wonderful.org/

https://www.goldengiving.com/home

https://www.charitycheckout.co.uk/

https://www.everydayhero.com/uk/

https://chuffed.org/uk

https://www.givey.com/

http://wonderful.org/

https://thegoodexchange.com/

https://instagiv.com/

https://donr.com/?url=https://donr.com/text-giving?ppc_keyword=donr&gclid=CjwKCAjwk7rmBRAaEiwAhDGhxNiYh6zvjeenn0GAZP2fjqg_2PCWWZ4hsDaXQ6ysTTGye4Zn0qXOKxoC9bIQAvD_BwE

https://www.nationalfundingscheme.org/sms-text-giving/

https://www.gov.uk/government/publications/payroll-giving-approved-agencies/list-of-approved-payroll-giving-agencies


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pay an upfront fee – and potentially a fee for processing transactions. Expect to pay up to £500 for a basic contactless portable system. Tap and Go Giving - https://www.datadevelopments.co.uk/contactless_donations/ Pay a Charity - https://www.payacharity.com Goodbox - https://www.goodbox.com Liberty Pay - https://www.libertypay.co.uk/contactless-donations2.html Most banks, PayPal etc offer portable card readers – but these won’t include Gift Aid. Contact your bank to discuss.

How can we engage trustees effectively in fundraising? It’s a good idea to let trustees know from the outset if fundraising is going to be part of their duties. Be prepared to train them, be very clear that they will be expected to make an introduction and that they will need to ensure that its clear you will be asking for money. If they’re going to make the ask – it’s a good idea to do it with a senior member of staff. Perhaps consider recruiting trustees with specific fundraising skills. Again, who you want to attract depends on what type of fundraising you wish to do. If it’s high net worth donors – someone who moves in the type of circles that know these type of people would be useful. Who do you know that’s a good networker? Ensure that – if they undertake a fundraising task that they have the skills and time to deliver this. Your job is not to run around and do all the heavy lifting. Be clear about what the staff team can deliver.

How much of my time do I really need to spend on fundraising when I’m also running my charity?

There’s no ready answer to this – every charity is different. You need to look at the RIO for your time. How focussed are you at work? Are there other activities that you could delegate/stop doing to enable you to start fundraising or try something new? Are you the right person to do this – not everyone has the right skills? Are there other people that could develop your online and social media presence? Could they respond to people raising money for you? Perhaps you should do the grant applications – in reality income generation is a significant proportion of most CEO’s time. Could you outsource this? Could you share a post or collaborate with another charity?



https://www.datadevelopments.co.uk/contactless_donations/

https://www.payacharity.com/

https://www.goodbox.com/

https://www.libertypay.co.uk/contactless-donations2.html


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How do Quickbooks, Sage and Xero compare when staff and trustees want to track the success of several income streams from which they want to choose?

We’re going to look at finance systems as part of the Finance Masterclass on March 30th. If you haven’t booked in – there’s still a small number of spaces left – book via our website www.gltpartners.co.uk . If you can’t attend and are interested in this, send me an email [email protected] and we’ll forward the notes to you.

Adrian, what’s the first step to getting started in securing social investment?

Contact [email protected] or Brian Coghlan email [email protected] would be a good first step. Follow these links: https://www.socialenterprise.org.uk/practical-guides/social-investment-explained/ https://www.goodfinance.org.uk/latest/post/resources/beginners-guide-social-investment to read the SEUK Guide to Social Investment and the Good Finance Beginners Guide to Social Investment, which are good introductions and will outline what you need to consider. There’s also useful information on Key Fund’s website at https://thekeyfund.co.uk/.

Nancy, any top tips on successfully accessing VMF grants?

Read the top tips above! Look at our criteria on our website https://virginmoneyfoundation.org.uk and the list of organisations we have given grants to before, which will give you some idea of the type of projects we fund. Follow us on Twitter. Do your homework before you apply and feel free to give us a call if you have any questions.

From a funders point of view, how important is a diverse income portfolio when deciding on awarding funding to a charity?

It really depends on what you are applying for – and how many grants you may have had from that particular funder. It certainly helps if you can contribute towards the cost of your organisation or project – particularly if you are a community-based organisation as this can demonstrate community engagement. It’s better to be realistic – and succeed at your income diversification – rather than write flights of fiction – as Lyn outlined at the Masterclass. Some funders, if they’ve given you multiple grants over a number of years will expect you to have or be in the process of developing a more diverse income portfolio.

What’s more important is that you have a clear succession plan – are you looking to get statutory support, charge service users, develop your fundraising, buy your own building, reduce overheads by sharing services, looking for opportunities to cross sell what you’re good at i.e. training, HR, finance etc. .







https://www.socialenterprise.org.uk/practical-guides/social-investment-explained/

https://www.goodfinance.org.uk/latest/post/resources/beginners-guide-social-investment

https://thekeyfund.co.uk/

https://virginmoneyfoundation.org.uk/


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How can you earn money from partnership working – not just management fees?

For grants – this can sometime be difficult (but not always) – it’s easier for other types of income generation. You can earn money from partnership working by productising your service. To start, follow a full cost recovery model which will ensure that you cover all your actual costs, and not just the obvious ones. Decide what profit margin you’d like to make. What are the commercial/market rates for delivery of the service you are offering? Is this more or less than your suggested price? How can you differentiate yourself from both their offer and price point? When you are selling something – you don’t need to itemise what you are spending the money on – you make the decision on whether you are prepared to pay the price for the product – in exchange for what you receive. Make sure that you do not over provide or promise – and know what it is that your customers value in your service or want – it may not be what you think it is. Some trusts and foundations will accept this approach – social investors would expect you to do this.

Try to think of partnerships outside the traditional grant funded ones. You can raise funds through joint events. You could exchange staff and expertise – OK this is not actual money, but it will save you money and potentially enable you to generate more/open up new areas of activity.

11. Useful Fundraising Contacts:

The Fundraising Regulator

https://www.fundraisingregulator.org.uk

UK Fundraising https://fundraising.co.uk

CAF Fundraising Fundamentals:

https://www.cafonline.org/charities/fundraising/fundraising-fundamentals/multichannel-fundraising

The Charity Commission Charity Fundraising: a Guide to Trustees Duties

https://www.gov.uk/government/publications/charities-and-fundraising-cc20

The Institute of Fundraising:

https://www.institute-of-fundraising.org.uk/home/

NCVO Knowhow https://knowhow.ncvo.org.uk/funding

Civil Society – an Institute of Fundraising Partner

https://www.civilsociety.co.uk/fundraising.html

12. Recommended books



https://www.fundraisingregulator.org.uk/

https://fundraising.co.uk/

https://fundraising.co.uk/





https://www.institute-of-fundraising.org.uk/home/

https://knowhow.ncvo.org.uk/funding

https://www.civilsociety.co.uk/fundraising.html


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• The Complete Fundraising Handbook: Directory of Social Change Nina Botting Herbst 7th Edition £31.74 Amazon

• Fundraising Management: Adrian Sargeant and Elaine Jay £39.95 Amazon*

• Fundraising for Social Change: Kim Klein, Chardon Press £38.67 Amazon*

*American – more advanced.



virgin money foundation diversifying your income ......top tips: grants • grant your mission is...

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