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8/8/2019 Basics of Fundraising MA
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Successful Fundraising
Presented by
Mohamed Aboud
Business Development Consultant
IEEE GOLD Egypt
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People Are Primary
Fundraising is FRIEND
raising
Fund-raising: Creating
long-term relationships withpeople interested in your
organization and letting them
invest in it.
People dont give money tocauses; they give to
PEOPLE with causes
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New Thinking Needed
CHARITY is no longer an accurate term
Denotes 1-way, powerful-to-powerless
interaction
Infers inadequacy of those asking
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Contemporary Concept
PUBLIC BENEFIT ORGANIZATION
Fulfills a community need
Creates a mutually beneficial relationship
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A donors gift is really a gift to the community through the NGO
Community
Donors
Constituents NGO
Adapted from: Grace, KS (2005)Beyond Fundraising, 2nd ed., Hoboken, NJ: Wiley, p.xiii.
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Lessons Learned from US
Experiences About 75% of donations to NGOs are from
individuals
Lower-income people donate more money as apercentage of income than do higher-income
people
Small businesses often make in-kind donations
to local NGOs
Foundations & corporations are over-rated as
source of funds for nonprofits
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Barriers Specific to Fundraising
Fear of failure
Lack of experience
Discomfort asking for money
Viewing fundraising as unrelated to
organizations operations
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You Can Do It!
Fundraising is not magic or mystery
If you dont ask for money, you wont get it.
Dont feel embarrassed or shy about askingyour friends or family for money. Most peoplewant to help, they just need to be asked first.
Although fundraising is now a profession aswell as an academic discipline, advanceddegrees are not required for success in raisingmoney
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Barriers to Fundraising
Societal problems
Systems problems
Image problems
Perception problems
Logistical problems
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3 Traits of a Good Fundraiser
Common sense Commitment to a cause
Genuine like of people
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Putting it All Together
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How Do You Get Started?
With an idea
What you hope to accomplish
With people Committed volunteers (and possibly staff)
Carefully selected board of directors
Supporters and consultants
With a planning process
For the organization
For raising the money that you need
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Make the Case for Your
Organization
Before starting to raising funds, your
group needs to create an organizationalplan
Planning is a group process that occurs
in methodical steps over a set time
period
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The Case Statement Will Speak
for Your Group
Your planning effort will result in a written
document that clearly explains why the groupexists and what it does, which is called the
case statement
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What the Case Statement
Explains Mission: why group exists
Goals: what it will do about its mission
Objectives: how goals will be accomplished History: track record of accomplished objectives
Structure: explanation of its governance and how it
will function to meet stated goals
Fundraising plan, financial statement, andbudget: showing present & future plans, wise money
management, realistic expenses
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Donors Look to Give Money to
Reliable NGOs that:
Have a plan created by the group, not by a
single individual
Work as a team to achieve goals
Operate in an efficient, professional, and
business-like manner
Promote transparency and accountability intheir work
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Two Basic Types of
Fundraising
Efforts undertaken solely by your group
(grassroots efforts) Grants requested from government,
businesses and foundations
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The Planning Process Will
Generate Ideas for YourFundraising Decisions
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Types of Grassroots Fundraising
Special events: all types and sizes
Direct solicitations: in person, by phone,
mail, Internet, pledges Periodic giving: weekly, monthly, annual
Sale of goods or services: by or for group
Capital campaign: for building needs Endowment: beneficiary of will or estate
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Fundraising via Grants, Type 1
NGO researches companies, foundations,
government agenciesdomestic and
internationalto learn if they: fund NGO projects in their specific
community
fund NGO projects in specific field of
interest NGO then submits request for funds OR
responds to donors RFP (Request for
Proposal)
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Fundraising via Grants, Type 2
Certain companies and foundations, and
possibly public agencies, offer financial
support to NGOs that carry out programs ofspecial interest to the potential donor
These entities do NOT accept inquiries or
applications, but instead offer funds to NGOs
deemed appropriate
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Sorry, money doesnt fall from the sky
Fundraising Depends on a
Careful Plan and Hard Work
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What Do the Different Types of
Funding Streams Mean for You?
As part of planning process, group needs to
decide which or both, to pursue, and when
Grassroots approach is excellent way to start
fundraising work
Pursuing grant funding requires NGO track
record, and excellent organization
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Pros & Cons of Grassroots
Fundraising
Ability to try out new ideas on small scale,
with little money
Anyone can participate
Builds community connections & goodwill
More sustainable
May not bring in enough income for majorprojects
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Pros & Cons of Grant Funding
Much larger amounts of money may be
available
NGO may gain visibility, enhance cause
Almost all grants are time-limited, thus
funding not stable or sustainable
Donor may have requirements thatcompromise or change original mission of
NGO
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Fundraising Documents Examples
MIA 2007 fundraising document
5th SRO fundraising document
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Never doubt that a small group of thoughtful,committed citizens can change the world.Indeed, it is the only thing thatever has.
Margaret Mead
US Anthropologist, 1901-1978