Fund raising

[Constancio Rodrigues]

Fundraising or fund raising (also development or advancement) is the
process of soliciting and gathering contributions as money or other
resources, by requesting donations from individuals, businesses,
charitable foundations, or governmental agencies. ...
en.wikipedia.org/wiki/Fundraising
What your nonprofit does--your programs--is the highest priority for
any nonprofit manager. Fundraising is the second.
New fundraising techniques come into existence every year, but where
those funds come from stays pretty much the same year after year.
There is also a basic inventory of methods that should form the
backbone of your fundraising efforts. These are, literally, your
"bread and butter."
So, where does the money come from?
Individuals are the largest source of funding for nonprofit
organizations. According to Giving USA, total charitable giving in the
U.S. reached more than $303 billion in 2009. Of that amount 75% came
from individuals.
Corporations give in order to get...exposure, publicity, community
respect, market share. Their funding is more episodic, revolving
around particular campaigns, events, and projects. Corporate funding
can be a good source of support for new initiatives, special programs,
and special events. Look for opportunities to form partnerships for
sponsorships and cause-related marketing.
Federal, State and Local Governments. Many nonprofit institutions
benefit from all levels of government. Obvious examples are public
education, higher education, and the public media. Federal, state, and
local government grants fund many programs provided by nonprofits,
especially in areas such as urban human service nonprofits, and
healthcare. Grants.gov provides up-to-date information and a directory
of federal grants.
Federated Funds such as United Ways, United Arts, etc., can be steady
sources of relatively large amounts of money. Available only to well
established nonprofit organizations.
Grantmaking Public Charities. These organizations are a cross between
a private foundation and a charity. They typically receive funding
from the general public, government and private foundations. They may
do public service, but primarily raise funds and provide grants to
charitable nonprofits that provide direct service. You can find many
such grantmaking public charities in your local area. Some are
associated with an overarching national organization (the Junior
League is one such example). Grantmaking public charities file IRS
Form 990 so information about them can be found in many databases,
such as at the Foundation Center and GuideStar.
Foundations come in various sizes and types but their grants can be
important and substantial.
Private Foundations include:
1.Corporate Foundations are private foundations, but their boards are
often made up of corporate officers. Their endowment funds are
separate from the corporation and they have their own professional
staff.
2.Family Foundations receive endowments from individuals or families.
Many large, iconic foundations are family foundations. Think of the
Gates Foundation, the Rockefeller Foundation, and the Ford Foundation.
These family foundations have endowments in the billions, but most
family foundations are much smaller, tend to fund locally, and often
have little to no professional staff.
Community Foundations are public foundations and pool the assets of
many donors. They work to improve their local communities through
grant-making, awarding scholarships, and providing services to donors.
Community Foundations have become very active in providing donor-
advised funds for donors who want to become more purposeful in their
giving but don't want to set up their own private foundations.
Ongoing Vs Episodic Funding
Besides seeking support from a variety of sources, your fundraising
program should seek both ongoing financial support and episodic
support.
Ongoing support is usually gained through:
The Annual Fund. An annual fund means just that, annual (or more
frequent) appeals to a core group of constituents. Such funds are
usually unrestricted (available for any use) and may represent a large
percentage of your annual income.
Sales of Products and Services. Some non-profits own stores or provide
services that can represent a substantial income stream. The Girl
Scouts is one obvious example with its annual sale of Girl Scout
cookies, and Goodwill Industries is probably the largest nonprofit
retailer. A symphony or theater earns income through the sale of
tickets. Earned income must be related to the mission of the
organization or it can be taxed as unrelated business income.
Multi-Year Grants. A grant-giving organization such as a foundation
may provide restricted funding for a particular project or program, or
unrestricted funding to help cover the overhead costs of running the
organization.
Endowment Income. Many large nonprofits, particularly higher education
institutions and healthcare organizations build up large endowment
funds that produce interest that is used to support the organization.
Episodic funding can come from foundation or corporate grants; special
events; or a bequest. These funds may be restricted to one purpose or
devoted to unrestricted use by the nonprofit.
Two Special Types of Fundraising
Two types of funding fall outside the scope of ongoing and episodic
methods and include a wide range of sources.
The Capital Campaign. A capital campaign is a multi-year fundraising
campaign with a particular goal such as:
funding a new building.
raising funds for a particular project, such as cancer research.
increasing a particular asset such as an endowment.
Planned Giving. Most nonprofits now have planned giving programs which
enable a donor to confer a gift at the time of his/her death; or to
give a large gift immediately while receiving income during the
donor's life.
A good fundraising plan will include a balance of these techniques and
sources. Establishing unrestricted, ongoing funding is the most
important, followed by other funding that will grow the organization
and ensure its future.
Use this Chart of Income for a Nonprofit to track your organization's
income by amount, type, and percentage of total income.

A Good Fund Raiser:
         Must Believe in the cause
         Should be Innovative 
         Should be an Effective Communicator 
         Should be Persistent and Determined
 

Income Of Voluntary Organizations:
         Donations:
 
-Individuals,
-Companies,
-Trusts/foundations,
-Government,
-Foreign agencies,
-Charity cash box, etc.;
-Internet
 
 
         Other Forms of Income
-Interest/Dividends: On short/long-term investments;
- Sale of products: usually prepared by beneficiaries of the
organization
-Rent: If the organization leases out its property like office space,
hall, etc.
-Membership fees/subscriptions
(Entrance fee being in the nature of capital receipt, is not to be
treated as “income”.)
 
Types of Donations/Grants



         Corpus
         General
         Earmarked
         Matching
         Returnable
 
Corpus/Endowment
It 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.
 
General Purpose
For general activities of the organization, including
establishment expenses, programming, etc.
 
Earmarked
For specific programs/projects only.
It could be earmarked by the donor as corpus or otherwise
 
Matching or Challenge Grant
Donor agrees to give 50% of the amount required for a programme/
project provided the organization raises the balance
Mr. Carnegie’s challenge?
 
Returnable Grant
It is like a loan for two or three years to be returned after the
 program becomes self-sustaining.
 
Sources of Funding
1.      Individuals
2.      Foundations, Trusts and Donor Agencies
3.      Corporations
4.      Government
5.      Religious institutions

1. Individuals
According to ‘Giving USA 2005’ (The Annual Report on
Philanthropy              for the year 2004),
-Americans contributed $ 248.52 billion to charity,  
-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%).
 
Indian Survey:
According to a national survey covering around 28 percent of urban
India and concluded in August 2001 by Sampradaan:
-96% of upper and middle class households in urban India donate to a
charitable cause.  The total amount donated is Rs. 16.16 billion.



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 to relieve
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%).

2. Foundations, Trusts & Funding Agencies
-According to a study by Charities Aid Foundation ( India ) and
Voluntary Action Network of India, it is estimated that an aggregate
Rs. 25,717 million (1997-98 data) comes into India by way of foreign
funds to the voluntary sector.
 
-The study also revealed that, out of 18,700 organizations registered
under the Foreign Contribution (Regulation) Act, 12,000 filed “nil”
returns in 1998. 
In other words, only 6,700 organizations are recipients of foreign
funds.
 
-The same study estimates funds from government sources to voluntary
organizations to be around Rs. 2,000 million.
 
-The bulk of foreign funds from bilateral and multilateral agencies
are channeled through government and are, to that extent,
indistinguishable from government funds. 
-Only the funds of foreign funding agencies like Oxfam, Ford
Foundation etc., flow directly to private voluntary efforts, albeit
with government permission.
 
-In the year 2000, India received foreign contributions aggregating
Rs. 4,000 crores.



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 by ActionAid India , 83% of the survey
companies saw themselves as major players in everything from rural
community development to running projects for 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 are drawing;
-50% felt concern for a specific group;
-40% felt concerned for the underprivileged;
-23% cited benefits to the organization.
 
-“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%
 
-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? 
-Is it a long-term investment for the company?
(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 the company)
-Is there a possible link between the company’s philosophy and goal
and the project?
 (E.g., pharmaceutical company supporting a community health program
or a housing development corporation supporting a project for low-
cost housing).
 
-The Right Approach:

-Never approach a company CEO with a “begging bowl”.
-Approach the CEO with a business proposal - a “social investment
strategy” in areas where there is a major societal concern.
-Appeal to the Bottom Line
-The fund raiser has to appeal to the CEO’s “business sense” that his
business is more likely to thrive in a healthy society and environment
and it would make “good business sense” for the company to adopt a
philanthropic policy.
 
 
 
4. Government
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
to voluntary agencies in areas of Human Resource Development, Welfare
of Women, Children and marginalized communities, Health, Family
Welfare, etc.
 
-Ministry of Human Resource Development
 Shastri Bhavan
  New Delhi 110 001
Ministry of Welfare
 Shastri Bhavan
  New Delhi 110 001
 
-Central Social Welfare Board
Jeevandeep, Parliament Street
  New Delhi 110 001
Ministry of Health & Family Welfare
 Nariman Bhavan
  New Delhi 110 001
 
-Ministry of Agriculture Co-operative and Rural Development
Krishna Bhavan
New Delhi 110 001
Ministry of Science & Technology
 Technology Bhavan, New Mehrauli Road , New Delhi 110 016
 
-Voluntary Action Co-ordination Cell (Planning Commission)
  Yojana Bhavan
  Parliament Street
  New Delhi 110 001
 
5. Religious Institutions
Some temple trusts in the city of Mumbai are parting with some of
their funds for educational purposes. Example:
-Mahalaxmi Temple Trust,
-Mumbadevi Temple Trust and
-Siddhi Vinayak Trust.
 
-In South India , Tirupati Devasthanam has also devoted some of its
funds to secular activities like establishing colleges and hospitals.
 
 
Methods of Fund Raising:
         Face-to-Face Solicitation
         Direct Mail
         Legacies & Bequests
         Special Events
         Payroll Deductions
         Cause-related Marketing
 
USEFUL TIPS
         Fund-raising is an art, not a science. Bring your own
creativity to it and remain flexible.
         Recruit staff with commitment first, techniques second.
Say what you mean; mean what you say.
         Make the donor feel he is an insider - that he owns the
organization. He will defend and support his institution.
         Write copy as if from one person to another person; not from
an organization to a donor.
         Make sure you see and read mail from donors. It is the way
to know what they are thinking about you.
         In every piece of mail and all publications, including
Annual Reports - always provide the opportunity to give.
         The person answering your phone represents your
organization.
         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.
 
A fund-raising communication should be one that:
- Catches the eye
- Warms the heart, and
- Stirs the mind.

Directory of Donor Organizations
Published By: Sampradaan (Indian Centre for Philanthropy)-
 
It consists of 4 types of data:
-Indian Trusts and Foundations
-Foreign Donor Organizations
-Organizations giving Scholarships/Fellowships
-CSR- Corporate Social Responsibility Organizations








NGO Fundraising in India
Covering Nonrom Private Sector (Indian individuals and Corporations).
There are exceptions that do get their due mention later. In fact,
this post attempts to list some, who have been.

Of’ course there will be some that I don't know of. So if you are an
NGO who have a regular fundraising programme and don't feature in this
list, do write back. I plan to do an addendum in next 7 days, so your
name could feature there.

Before keying in the list, let me share the criterion for making the
distinction:

1) The NGO has at least one dedicated staff for fundraising
2) The NGO has some dedicated budget for investing in fundraising
3) There is a pre-agreed fundraising strategy besides the knack for
taking advantage of opportunities
4) The NGO has a regular fundraising programme that comprises at least
two of the following tools/strategies:

• Direct Mail
• Telephone fundraising
• Tele-facing
• Face to Face fundraising
• Web & New media (SMS, Widgets) based fundraising
• Events
• Corporate philanthropy
• Cause Related Marketing
• Payroll/Employee Group giving

Well now on to the list. I have grouped them in three categories viz.
National, International and Regional. As I delve deep in them the
categories get explained, themselves, so please be patient about it.

National NGOs is a very interesting segment. The grand daddy of Indian
fundraising and still the largest player CRY-Child Rights and You,
sits here. The only other NGO in this category with long standing is
Concern India Foundation. It may surprise you that this category
appears to be not very crowded. But this is a group you graduate to
and it is in fact difficult to start here. Two new entrants to this
list are Give India and Pratham India. Overall still very sparsely
populated category.

My pick of organizations that do have the potential to join this
category in future are Aadi, Akshay Patra, Blind Relief
Association(s), Cancer Patient Society of India, Development
Alternatives, Global Cancer Concern, Hemophilia Federation (India),
Naandi Foundation, Public Health Foundation of India and Smile
Foundation, but all of them have lots of catching up to do.

International NGOs is a category that is witnessing the action most.
The list here is long and a new player gets added every passing
month.

The leader in this category is HelpAge India, which for all practical
purposes is Indian but has an International lineage that many are not
even aware of. WWF India is another old but slow (could be steady
though) player with high levels of brand recognition. SOS Children
Villages of India enjoys good recognition and has shown some
aggression in fundraising lately. World Vision and GreenPeace have
been active in this category for at least 5-6 years and have some
advantage over the other new beginners. CAF-Charities Aid Foundation
India, part of the UK headquartered network, has been around for
around a decade in India but sill suffers from low levels of brand
awareness. A special mention here for Indian Red Cross, which has been
around for always and leads in fundraising for emergencies.

The new entrants include Bal Raksha Bharat (Save the Children
International’s Indian entity), Oxfam India, Plan India and UN
agencies like UNICEF, WFP and others. Interestingly, although all
these names are very big internationally they are currently small
specks in the high potential Indian fundraising sector. Action Aid
India started with a bang around five years back, but has started
afresh lately with a new fundraising strategy. Habitat for Humanity is
largely into corporate partnerships, although some of them very
interesting. United Way has also been around for a while but their
mainstay is Pay Roll Giving. Aide Et Action India (headquartered in
Paris) is amongst the newest entrants in this category.

Some years back Christian Aid also wanted to start fundraising in
India, I don’t know what became of that. CASA another Christian
organization has also shown some interest in fundraising. The Agha
Khan Foundation had also been scouting for resources to start their
fundraising operations some years back.

If you are an Indian fundraiser, don’t be surprised if you get a
friendly tap from a stranger at an International Fundraising
Conference. This could be from any of the International biggies
planning to start fundraising in India. In fact it will be interesting
to see when and how few other big names in fundraising in North
America and Europe namely, Amnesty International, Care and MSF
(Doctors without Borders) bite the fundraising bullet. All of them
have programmatic presence in India for ages.

Regional category is the most diverse and scary to list because there
are so many (although still countable), but at the same time so local
in operation that they may not make a blip on one’s radar.

New Delhi has two NGOs that now have been raising funds with some
success. These are Deepalaya and Prayas. Next in the pecking order are
NGOs like Udyan Care, Literacy India, Action for Autism,. Two
celebrities led NGOs, Action India and Khushi are more active in the
fundraising events sector.

From the Mumbai region the NGOs that hit my radar quiet often are
Dignity Foundation, Magic Bus and Akanksha Foundation. Although, I
don’t live in that city but do travel there often and get to read
about them in the local media, regularly.

Down South Akshara Foundation (Bangalore), Meenakshi Mission Hospital
(Madurai), India Foundation for Arts have been doing some steady
fundraising for some years now.

Up East Child in Need Institute or CINI for short is quiet prominent
both in terms of programming and now some private sector fundraising.

There are many others who are now interested but are kind of caught in
the chicken and egg loop. They need money from private sector but
don’t have investment funds for starting operations. Angel Investors
please help if you are reading this! The NGOs in India now need
investment to start fundraising on their own and that too quiet
urgently. The above are only a handful there are millions more.



















Fundraising Strategy - Presentation Transcript
1.Fundraising Strategy Actually making it!
2.Defining Strategy
A Strategy is a long term plan of action designed to achieve a
particular goal
3.Fundraising Strategy
Fundraising Strategy is a long term plan of action designed to achieve
a particular fundraising goal
4.Steps in Fundraising Strategy
Knowing the fundraising goal
Who all can give?
Broadly how can we reach them?
Who will fundraise?
What are the timelines?
5.1. Knowing the fundraising goal
Threats
Half the beneficiaries could die within next 5 years
Opportunities
5,000 beneficiaries need coverage
Weakness
Lack of additional resources (INR 15,00,000)
Strengths
Experienced Outreach team
6.2. Who all can give?
Government- bilateral, central, state, local
(INR 500,000)
Institutions- multilateral agencies, funding agencies, foundations,
other NGOs, networks, clubs, corporations
(INR 500,000)
Individuals- Major donors, Group of individuals, Small donors
(INR 500,000)
7.3.1 Broadly How Can We Reach Them?
Government & Institutional (INR 700,000)
Search request for proposals
Apply for grants
Presentation & Project Visit
Answer queries
Implementation
Reporting
8.3.2 Broadly How Can We Reach Them?
Corporations- Sponsorship & Cause Related Marketing options (INR
300,000)
Individuals
Direct Mail (INR100,000)
Telephone (INR100,000)
Face to Face (INR100,000)
Direct Response Advertising (INR 50,000)
New Media (INR 50,000) & Events (INR 100,000)
9.4. Who will fundraise?
Trustees (INR 300,000)
Top Management (INR 200,000)
Programme Staff (INR 100,000)
Fundraising Team (INR 500,000)
Consultants (INR 300,000)
Volunteers (INR 100,000)
10.5. What are the timelines?
INR 15,00,000 by end of year 5
INR 100,000 (Y1)
INR 400,000 (Y2)
INR 800,000 (Y3)
INR 12,00,000 (Y4)
Fundraising Core Group- first 2 months
Fundraising team in place- first 6 months
Institutional fundraising start - within first qtr
Individual fundraising- Year 2 beginning
Event- Mid term
11.Do we really need this paper?
Provides a long-term blue-print
Provides a monitoring frame work
Defines roles
Involves all stake-holders
A flexible plan that can be revisited
12.Fundraising Strategy Document Helps Write one soon!

[Consti]

Fund raising notes