Fundraising for Success

 
 
 
A Guide for Small and Diaspora NGOs
 
 
 
 
 
 
 
 
 
 
 
 
Ajay Mehta

INTRAC
 

 
 
PEER LEARNING PROGRAMME 
 
 
Introduction
 
Fundraising is one of the most important
pieces of the organisational jigsaw. Quite
clearly, without funds, an organisation will
cease to exist or at least not be able to
effectively serve the communities that it has
been set up to serve. In what is now a
crowded and competitive charity
marketplace, fundraising can feel like ‘catch
22’ for small and diaspora organisations:
without funds our capacity is limited, but we
often lack the time, resources and skills to
fundraise effectively.

This guide aims to share information, tools and tips to help small and diaspora
organisations strengthen their fundraising. Fundraising is a broad topic and there is a
lot of material out there tailored to organisations of all different shapes and sizes.
This guide will highlight some key points, but we encourage you to delve deeper by
following links to other sources, for example the Institute of Fundraising or NCVO
(see ‘Further Resources’), which provide a range of useful information and guidance.

To consider fundraising in isolation and outside of the wider organisational context

can often be the downfall of even the best fundraising campaigns and initiatives.
Successful fundraising is closely related to effective governance, leadership, and
strategic planning. This guide can also be used in conjunction with the toolkits in the
same series on ‘Effective Governance’ and ‘Strategic Planning’.

The toolkit will look at:

1. Principles behind effective fundraising

2. Developing a fundraising strategy
3. Implementing and monitoring a fundraising strategy

1. Principles behind effective fundraising

A. A Holistic Approach

Fundraising and a clear overall strategy are inextricably linked. Unless an

organisation is clear about why it exists and what it focuses on, it is very hard to raise
money from funders. To fundraise effectively, the organisation needs to first be clear
about its mission and strategy.

The diagram below provides an overview of the broad context within which
fundraising sits – from internal factors, such as leadership and governance, to
external factors, such as effective stakeholder engagement. Whilst starting a
discussion of fundraising by looking at all these things may seem idealistic, it is
necessary for long-term sustainability. A clear mission, focus on beneficiaries, and a
culture of innovation will bear fruit in the realm of fundraising. It is also the reality
where organisations are under pressure to demonstrate viability in a challenging
economic climate and where the market is saturated.

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A holistic view to developing your organisation will:

• Support future fundraising activities

• Provide increased confidence to prospective funders
• Engage all your stakeholders in your mission, and
• Provide competitive advantage to stand out in the busy marketplace
 

Figure 1: Fundraising Dependencies

 

B. The Importance of Planning

The goal of fundraising should be to secure sufficient resources for the organisation
to achieve its objectives in the long term – to be ‘sustainable’. This requires a
planned and structured approach that will enable the organisation to operate
effectively and achieve its mission. Chasing funding indiscriminately is poor practice
and can result in an organisation drifting from its mission and objectives in order to
obtain income. This can be called strategic delinquency or mission drift.

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The importance of planning in the
context of a holistic approach is
illustrated by the diagram to the
right, which shows some important
foundations for fundraising. It is
evident that those organisations
with strong direction, leadership,
and infrastructure (governance
and management systems and
processes) will have a clearer,
more attractive and engaging
case for donors and funders to
support them.

Good leadership and strong

infrastructure are particularly
critical in an economic climate in
which voluntary organisations are
expected to survive or grow.
Figure 2: Foundations for fundraising

C. ‘Friend Raising’

Fundraising is not first and foremost about raising money; it is about raising friends.

Over the years, techniques for raising funds

might have changed, but fundamentally, the
key questions you should ask when thinking
about fundraising remain the same:

• What motivates people to give?

• To whom?
• How do people connect emotionally with a
cause?

There are some basic and important points to bear in mind:

• Organisations are not entitled to support; they must earn it. In other
words, no one ‘owes’ us a gift just because our mission is worthy.

• Diversify your fundraising approaches. Diversifying will help to reduce

your risks and help to increase your supporter base. Many small and diaspora
organisations depend on one or two major sources of funding, such as Comic
Relief. This is not necessarily sustainable and can be high risk. Strategic
collaborations and innovative practices may help attract funders.

• People give to people: invest in developing a personal approach that is

effective and relevant. Your passion and commitment to your beneficiaries
has to be matched with commitment to donors also. This may mean ensuring
that your fundraising lead is well connected externally, in tune with the latest
trends in the fundraising arena, deploy a range of fundraising approaches,
and can truly understand the wider organisational context. Fundraising is an

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 art as well as a science – to get people to part with their hard earned money
willingly is about knowing who, when, where and how to ask.

• If you understand your donor’s motivation, then you are more likely to
succeed. People give for different reasons, and people give depending on
their personal drivers, motivations, capacities and circumstances. Funders
have priorities and criteria that may be unique to them and you should
familiarise yourself with before making any approach to them.

2. Developing a fundraising strategy

A. Getting Everything in Place

There are several things to get in place before putting together the fundraising
strategy, outlined on the table following page. Getting these things together can be
done with different levels of intensity- in a very systematic way or with more of a ‘light
touch’. Whichever way you go, you should aim to cover the areas outlined in the
table on the following page to ‘get your ducks in order’.

The ultimate purposes of the strategy will be to:

• Provide a critical internal tool for maintaining financial stability and strategic
direction that is aligned with the mission

• Save time and resources in the future through a long-term approach

• Set priorities to help secure unrestricted as well as restricted funding

• Engage stakeholders and encourage dialogue within the organisation that

builds teamwork and promotes a shared vision

• Give confidence to potential funders, reassure existing ones, and support

future grant applications

• Assist trustees to consider risks associated with any fundraising actions and
protect the organisation

• Help you to diversify the fundraising sources and find new ways of raising
money by looking at the bigger picture.

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 Making sure your ‘ducks are in order’ before putting together your fundraising strategy 

Organisation’s  A strong organisational mission, vision and values helps to pave the way for 
Mission, Vision  developing clear fundraising goals and methods, and to be mission‐focussed’ rather 
and Values  than ‘funder‐led’. 
   
Strategic  The strategic objectives for your organisation need to align with your mission, which 
Planning and  should also inform your fundraising objectives and associated tactical plans for 
Objectives  raising the required income. For more see the PLP strategic planning toolkit. 
 
Fundraising audit  Typically, this is a comprehensive and structured process to: 
• Analyse the context for your fundraising  to assess internal capacities 
(SWOT) and external collaboration or competition opportunities (PEST) 
• Identify areas of untapped potential or gaps that need to be addressed 
• Identify the ‘best practice benchmarks’ in the area you operate in 
• Measure aspects of your current fundraising, such as the attrition rate (% of 
donors that are lost in a given period), response rates–(e.g. on Christmas 
appeals)and return on investment – the ‘fundraising ratio’ between what 
you spend on fundraising efforts (in different forms, such as grant 
applications vs. events) and how much goes towards the cause 
• Evaluate the current fundraising activities and how effective they are. 
 
Case for support  This answers the question: ‘why should anyone support our cause?’ You should 
consult internal stakeholders and donors, and use information gathered in your 
fundraising audit. A convincing case for support clearly articulates: 
• What does the organisation do? 
• What is its purpose for existence? 
• What is unique about it? 
• What is it trying to accomplish? 
• How will the fundraising activity help it to accomplish that? 
• How is the donor going to be involved? 
• Why should the donor give their money, time, or energy?1 
 
Develop a set of priorities for the funds to be spent on. Some different areas are: 
• General Funds – to cover your running costs 
• Project funding – to start new projects or maintain existing ones 
• ‘Pump priming’ – to stimulate existing projects and explore new avenues 
 
Controls  This is about being clear about systems, processes and policies you need to have in 
place as ‘controls’ to manage risks and provide confidence to funders, e.g. a risk 
management process, addressing potential risks, their likelihood, and a plan for 
mitigating those risks. Often, small organisations that rely on a single source of 
funding, or who lack an exit strategy, face a crisis when a project reaches an end.  
 
Resource input  With constantly changing external forces your organisation should be able to adapt 
through learning, innovation and flexibility. The right kind of resources should be in 
place to support this, including individual and collective knowledge, commitment 
and time, a can‐do attitude, as well as financial investment (e.g. for new technology). 

                                                        
Case for Support: List adapted from the Association of Fundraising Professionals (2008) 
1

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B. Assembling your Fundraising Strategy
 
Having made sure that things are in place as outlined above, perhaps by having
undertaken a fundraising audit, reviewing your case for support and ensuring the
right controls are in place, you can start to produce your fundraising strategy.

There is a table outlining

suggested elements of a
strategy document on the
following page, but it’s worth
starting the planning process
by asking some ‘big picture’
questions: What should the
purpose be for the
fundraising strategy? To
raise income? To raise
profile? To recruit
supporters? To build
something? Try to take a
‘360 degree’ view on the
need to fundraise in your
organisation.

Figure 3: 360° view of the need to fundraise

 
Be realistic, practical and specific. By the end of the planning process your
organisation should have an action plan for how it will achieve the fundraising target
for the year (or longer), setting out who will do what and by when.

 
Figure 4: Ask practical and specific questions

As part of being realistic, you should ensure that your discussions and the final
strategy document address different timescales, both the long term; the medium
term, for instance developing a 3-year plan which identifies the resources (financial,
human and capital) needed to implement it and sets out robust monitoring and
evaluation processes; and the short term, where you should take a closer look at
your operations and provide a breakdown of the individual initiatives that require
funding and the tactical plans to achieve that.

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 Suggested Elements of a Fundraising Strategy Document 
 
Mission,  These statements should be reiterated at the beginning of your plan as a reminder to 
Vision, Values  keep the contents in line with the organisational purpose.  
 
Strategic  Organisational objectives should also be listed here. Your projects, services and  
Objectives ‐  funding sources can change, but the ‘big picture’ of mission, vision and strategic 
Organisational  objectives should remain constant 
 
Strategic  These should link in with the organisational objectives. Ensure that your fundraising 
Objectives ‐  targets are based on thorough analysis, realistic and achievable (i.e. SMART 
Fundraising  objectives).  Otherwise you set yourself up to fail. As a minimum, they should address: 
• The amount of funds that will be raised 
• For what purpose (general funds or specific projects, restricted/unrestricted) 
• The categories of donors, funders and activities that will supply these funds 
• The acceptable costs of raising these funds 
 
Priorities  This lists your key priorities for fundraising, considering both your core and project 
funding requirements. 
 
Assessment  This is an overview of the current position, identifying both internal (SWOT) and 
and Context  external (PESTLE) factors that may influence the fundraising plan both positively and 
negatively.  
 
Case for  Your case for support is an expression of your cause ‐ why you exist and to make what 
funding and  difference ‐ and why it warrants support. See above for more detail.  
leadership   
Controls and  This outlines what resources will be needed, the length and cost of each project, and 
resources  the controls in place. Resources may include a list of people involved in the process, 
time required, and level of commitment. Controls may be marketing strategies, 
training and support for staff and volunteers, strong governance, and technological 
systems.  
 
Budget  The budget outlines the projected expenditure and the amount of income expected to 
be raised and from whom. Ideally, this will list a diverse range of fundraising sources, 
which will help to spread risks and ensure that fundraising will consider both 
restricted and unrestricted income 
 
Tactical Plans  This section outlines an action plan or schedule that lists your Key Performance 
Indicators (KPIs) or measures of success and your exit strategies. Typically, exit 
strategies outline what you intend to do at the end of the project or initiative and how 
you will keep it sustainable. This should always be one of the first things to consider. 
 
Monitoring  Monitoring and Evaluation will help you determine the success or failure of an 
and review  initiative. It should be an ongoing process, rather than left until the end of the project. 
process  Your strategy should detail how you will keep records, demonstrate learning from 
aspects of your fundraising initiatives that didn’t work, and improve on your 
successes. 

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3. Implementing and monitoring the fundraising plan
 
A. Implementing your plan

A strategy is only as good or worth having if it is implemented and then monitored to

determine its effectiveness. Implementation will of course differ depending on your
particular plans. However, some top tips for doing fundraising include:

• Always demonstrate the demand for your project or cause. This could be in the
form of a detailed and carefully planned ‘needs analysis’ and providing evidence
for the demand.

• Establish leadership on fundraising. Active involvement and commitment from

trustees, and their access to networks, is a big part of successful fundraising,
especially in small organisations. For example, with major gifts, trustees can take
the lead in developing relationships with prospective donors.

• Remember the five ‘I’s:

a. Identify – your ‘prospects’
from your pool of ‘suspects’,
be they individual or
institutional. Then cultivate
relationships with them, and
look after them as well as ask
for money, as portrayed in the
‘donor cycle’, on the right.
b.
c. Inform – your donors and
supporters with regular
updates on your organisation’s
activities, new initiatives and
achievements. Figure 5: The Donor Cycle

d. Interested – seek feedback, ideas and suggestions from your supporters.

This will help to make them feel valued, keep them interested in your work
and cultivate longer-term relationships.

e. Involve – your supporters by inviting them to your social events, visit

projects, or asking them to host events for you.

f. Investment – especially financial, will mostly materialise from your

prospective supporters when they have demonstrated commitment.

• Develop an understanding of processes, such as recruitment and segmenting

of donors, donor development planning, and managing attrition.

• Continually review, monitor and evaluate your projects, demonstrating that your
work is outcome focused and report on the outputs.

• Obtain testimonials from your beneficiaries, demonstrating the continual

improvement to the quality of your services.

• Always prepare applications ahead of deadlines and submit timely reports.

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 • Familiarise your organisation with the legal and ethical guidelines such as the
Institute of Fundraising’s Codes of Practice.

• Create a culture of innovation. Open up to working with partners, whether other

NGOs, social enterprises or commercial organisations that share your values.
Innovation may be in techniques or the way you engage. See below for a list of
innovative ideas emerging from the PLP Fundraising Workshop on October 2011.

15 Opportunities and Innovative Ideas 
 
1. Raise funds for 'thematic' areas:  'targeted' giving that's more flexible than restricted funds. 
2. Capitalise on key dates e.g. World Aids Day and public events e.g. the Olympics.  
3. Attend the National Fundraising Convention. 
4. Ask beneficiaries to share their story – 'the human touch' at events or via video e.g. the film 'A 
Small Act'. 
5. Use social media – a cheap way for marketing and building awareness? Does it work? 
6. Use bright graduates for work experience and internships – there are lots! Ideally skilled 
volunteers should stay for longer periods and have a clear job description and goals.  
7. Build relationships with 'high net worth individuals' and communicate to their interests. 
8. Do presentations and events in schools – reaches 'next generation ambassadors' and parents. 
9. Explore income generation in‐country – e.g. project expansion with existing partners. 
10. Try to develop: legacy giving through trustees’ contacts, gifts‐in‐kind and payroll giving. 
11. Build credibility through sustainability certification and environmental audits. 
12. Develop relationships with corporations – not just as donors, but for influencing support, or for 
volunteers via 'corporate social responsibility' schemes (e.g. GSK's 6‐12 month CSR scheme) 
13. Get a good overview: dedicate time to research and keep up‐to‐date with calls for proposals 
from small trusts, and use Google analytics to track traffic on your website.  
14. Link in with networks that match your NGOs work e.g. faith, diaspora, or environmental 
groups. 
15. Partner with other NGOs.  
 

B. Monitoring your plan

Monitoring the delivery of your strategy means that both successful and unsuccessful
strategies can be meaningfully reviewed and modifications or amendments made.
Monitoring your plan should consider the measurement of:

• The actual donations and grants received The Raiser's Edge (Blackbaud) – there is a 

against the budget new version of this for small charities.  
• The costs actually incurred against those http://www.blackbaud.com 
mentioned in the budget  
• The fundraising ratio for each of the different Sales Force – has a charity version.  
fundraising methods or activities https://www.salesforce.com/uk/  
 
There are several pieces of software designed to
Giftworks ‐ a USA programme that can be 
help charities to monitor their fundraising and
spending. Some of these are detailed in the box to accessed online wherever you are in the 
the right. world. http://www.giftworksconnect.com/ 
 
 

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The strategy or tactics can be assessed
in line with the agreed key performance
indicators (KPIs), with an indication of
the internal or external factors that may
have had an impact.

People from all levels of the

organisation should be involved in the
monitoring process. Clear leadership
will help to ensure that action plans
reflect the measures of success
outlined in the plan. It is the role of the
Chief Executive to drive the
enthusiasm, to ‘walk the talk’, provide
regular updates and reports on the
progress, and develop a process for
reviewing and updating the plan as
necessary.

Further Resources
Become a member of the Institute of Fundraising (IoF) to gain full access to their
online and offline resources. They also run accredited course in fundraising.
http://www.institute-of-fundraising.org.uk/

The National Council for Voluntary Organisations (NCVO) also has advice and
support on sustainable funding and finance.
http://www.ncvo-vol.org.uk/advice-support/funding-finance

BOND’s ‘How To Guide’ on Fundraising from Institutions.

http://www.bond.org.uk/data/files/Fundraising_from_institutions_How_To_guide_Dec
ember_2010.pdf

BOND’s ‘How To Guide’ on Fundraising from Trusts, Foundations and Companies.

http://www.bond.org.uk/data/files/microsoft_word__trusts_foundations_and_compani
es_how_to_guide_july_2010.pdf

The Directory of Social Change runs courses on fundraising techniques.

http://www.dsc.org.uk/Training/Fundraisingtechniques

The Directory of Social Change also has subscription-based directories of trusts,

companies and government funding sources.
http://www.dsc.org.uk/FundingWebsites

KnowHow NonProfit’s Resources Hub on Fundraising.

http://www.knowhownonprofit.org/funding/fundraising/fundraising

These links and more can be found on the PLP website at:
www.cgi-africa.org/resources

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