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DECISION MAKING IN NPO SECTORLECTURE 30
MPA 505
Riffat Abbas Rizvi
AGENDA Preview of last lecture Resource Benefits Resource mobilization Sociological theory (1970) Need for resources Characteristics of civil society organizations Why don’t just depend on foreign funding? Being business like in non profit organizations. Issues of non profit distributing Entrepreneurial thinking Social entrepreneurship Foundations Grass Root organizations Self Reliance Endowments
RESOURCE
A resource is a source or supply for which benefits are produced.
In Economics (Resources are scarce)
BENEFITS
Resources are transformed to produce benefits.
Benefits such as: Increasing wealth Meeting needs and wants Proper functioning of a system Enhanced well being
RESOURCES
Human resources Financial resources Technological resources
Best bet is to mobilize them
SOCIOLOGICAL THEORY (1970)
Resource acquire Mobilize people
NEED FOR RESOURCES
Resources are needed by all types of organizations and so as for the civil society organizations(CSOs).
The resources should be effective as well as should be able to inculcate sustainability in the overall systems.
While forming strategies at/by any level of the management resource considerations are always given due importance.
FUNDING REQUIREMENTS
However, it is obvious that funding requirement which are available in pakistan from the North america and europe based funding agencies have some underlying requirements which time to time surface out.
ALTERNATIVE SOURCES OF FUNDS
The result is to find out alternative sources of funds and the pressure on management is mounting day by day.
REASONS
The recent global economic downturn and geo-political events have also made the environment for CSOs more dynamic than ever as some of these traditional funding sources are drying out.
The availability of these traditional funding sources may not be guaranteed in coming years.
SOCIAL CHANGE
If we talk about any process, the end result is to come up with the social change in the society.
RESOURCE MOBILIZATION
Three integrated concepts Relationship Building Communication and prospecting Organizational management and
development
SOCIAL RELATIONSHIP
“People don’t give money to cause, they give to people with cause”
GRASS ROOT ORGANIZATIONS
Grass root organizations are also known as community based organizations formed at the community level to support a community level initiatives.
CHARACTERISTICS OF GROS
Ability to leverage Issue identification Problem identification Team NGO
FRIEND RAISING
Form of fund raising Involves be friendly with an organization or
individual for the purpose of fund raising.
FRIEND RAISING
1992-Ken Burnett Charitable organizations move towards
dealing with donor then look the donor from “individual perspective” as we look at the individual history.
Communication: 1. Communication leads to image building 2. Image building leads to brand 3. Sometimes we or donor get carried away.
FRIEND RAISING
Prospecting Major Donor Repeat Donor Donor(potential donors such as general
public)
WHY NATIONS PEOPLE PROVIDE RESOURCES?
International framework Political Regional Social Ideological Personal Reasons
WHAT DONORS LOOK FOR?
Legitimacy Transparency Accountability
RESOURCE MOBILIZATION ACTION PLAN
Step1: Organizational Situational Analysis Step2: Resource mobilization environment Step3: Constructing your statement of
funding needs. Step4: Prospecting and communicating with
potential donors and contributors. Step5:Monitoring and evaluation your
Resource mobilization efforts.
STEP 1: ORGANIZATIONAL SITUATIONAL ANALYSIS
Team Role clarity Lead / Focal Person SWOT Analysis
SWOT ANALYSIS
Strengths Good team Good governance Good reputation Network Presence Contacts Past performance Relationship with donors / stakeholders Celebrities Working group
WEAKNESSES
Lack of skill/training Less expertise Lack of will Poor scheduling
OPPORTUNITIES
Awareness Increasing trend Incidence Support from government Segment of untapped stakeholders Demand
THREATS
Economic downturn Political Social Stakeholder’s perception Competition Demographics Young earners
STEP 2: RESOURCE MOBILIZATION: ENVIRONMENT RESEARCH AND DONOR MAPPING International donor (RFPs) Local Donors Individual donors
TRENDS ARE HIGHLIGHTED ON THE BASIS OF RESEARCH
Gender Women experience Education Poverty reduction Child care Agricultural economics Energy AIDS Eradication Baseline surveys Impact/Assessment slides Funds delivery
DONOR RESEARCH AND MAPPING
Web search Broad category Sub category
FUND FLOW PATTERN
State to state State to people People to people People to state
RESOURCE MOBILIZATION PLAN
By this time Clear targets How much we need to raise When From whom Time line define
In which year In which quarter
STEP 3: CONSTRUCTING THE STATEMENT OF FUNDING NEEDS
Actual statement Targeted amount Resource timeline Current situation Target amount (when required).
STEP 4: PROSPECTING AND COMMUNICATING WITH INTERNATIONAL DONORS Brief summary of one or two pages about:
Organization Team Mission PlansDonors MapWho could be / who should be approached.
Statement of funding needs What needed and when needed.
Selecting the Right Mix
1.core donors / contributors
2.Repeat donors/ contributors3.First time
donors/contributors
STRATEGY
Acquisition strategy Nurturing Strategy
ACQUISITION STRATEGY
To bring in front first time donors / contributors raising awareness about your organization
Email/ Boucher Little / No contact Friends Supporters Volunteers
NURTURING / CULTIVATING STRATEGY
To maintain or promote the existing donors/contributors to the next level of the pyramid.
Grant competition Invitation to visit your organization News/ Letter Member card.
DEVELOPING A CASE STATEMENT
The needManageable Quantifiable Supporting a evidenceSurveysStatisticsYour quantificationWhy this fund you and why not others.
BENEFITS FOR YOU
Tangible results/targets What is in for you? What is in for them?Negative impactIf not done now what will happen in future
MEETING THE DONOR
Prior Research Name Designation Area of responsibility Supporting material Business Card Plans/Donors details/Map Proposal
BEFORE MEETING
Team Structure Team Leader Spokesperson Specialists
DURING MEETING
Present the card State the purpose clearly Introduce the team members Build rapport Proposal with material Listen Build with more material Close future action Remember friendship leads to funds
AFTER MEETING
Send a thanking letter /email Donot immediately bombarded Later send a letter with a news letter Observe and act
STEP 5:MONITOR AND EVALUATION
What to monitor When to monitor How and who will monitor Feedback
PERFORMANCE INDICATORS
Return on investment Acquisition cost Response Time Average Donation Attrition rate
DONOR RELATIONS AUDIT
Documentation Review Observation Survey Interview Focus group discussion
RESERVE FUND
Special funds Developed and maintained by the CSOs in
which the earnings or extra amounts are deposited for future funding needs.
These funds can be generated from any activity which can be the extra amounts from some completed projects or can be the money received as part of some alternative financial activity such as investments.
REPORTS CONCERNING SERVICES
There has been reported increase in services demand of non profit organizations and decline in the contributions/donations world wide.
As all NPOs are required to prepare surplus fund. Flat sum of money Fixed portion of annual revenue Percentage of annual budget Based on expense consideration.
ENDOWMENTS
A fund that is made up of gifts and bequests that are subject to a requirement that the principal be maintained intact and invested to create a source of income for an organization
Source About.com
THREE DISTINCT PHASES OF ENDOWMENT FUND
Creation Growth UseThe first phase is tapping funds related. The second phase marked by investments The last stage is the usage of income.
CONCLUSION
Plan resource mobilization in a strategic, mission-driven — as opposed to donor-driven — manner;
Build skills in proposal writing, handling face-to-face meetings, and communicating key messages;
Design, implement and monitor resource mobilization activities; and
Learn how other development research organizations in the region have
Addressed resource mobilization challenges.