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Weekly UpdatesThis checklist is a guide for managers handling corporate fund raising for the first time. The economic recession, cuts in government grants and, arguably, the National Lottery have placed enormous demands on corporate charitable funds.
Success in fund raising depends upon a subtle balance of negotiation skills, planning resources and budgets, PR and marketing. Above all it is about building positive relationships with potential funders and convincing them that your cause is the best investment. To be successful, a fund raising appeal must stand out from the crowd and make sound business sense.
Management Standards
This checklist has relevance for to the MSC National Occupational Standards for Management: Key Role B--Manage Resources.
Definition
Fund raising consists of persuading another party to support a requesting organisation by giving money, gifts in kind or other resources which enable the project to happen. The project could be an activity (eg supporting a hospice or a research programme), an item (eg funding equipment for a school or publication of a book) or an event (eg a fun run or a theatre performance).
There are two three main types of fund raising:
* Appeals for gifts--support is given freely and the donor receives no benefit (such as membership, tickets to events or advertising). A charity can often claim back tax on these gifts.
* Commercial support--such as sponsorship (eg major sporting events) or endorsements/promotions, where the requesting organisation receives a percentage or royalties from the sale of goods or services (eg RSPCA Freedom Foods), or is happy to "badge" the sponsor's name principally for advertising purposes (eg television programmes).
* The National Lottery--a wide range of funding is available for leisure, recreation, charitable and other activities. Responsibility for distribution of lottery funds is made through some 15 independent bodies, such as the four national Arts Councils and four national Sports Councils. Details of those bodies, how to apply for funding and a wide range of related links are on the Department for Culture, Media and Sports' website at www.culture.gov.uk/lottery. The DCMS itself does not distribute any funds.
Tax rules vary depending on the set-up, so get advice from an accountant or other financial authority.
Advantages
Fund raising:
* enables a requesting organisation to do something they otherwise couldn't
* has PR benefits--providing a positive public image, targeted at specific sectors if desired
* has marketing benefits--enhancing access to new/specific customers
* has tax benefits--talk to your accountant or finance department
* can boost staff morale through team fund raising or incentive schemes.
Disadvantages
* It takes time and requires resourcing to build contacts and find the right funding option
* It occasionally creates bad PR--but mostly only when the cause and funder are thoughtlessly matched.
Action Checklist
1. Define the need
Before doing anything it is important to consider whether fund raising is the best course of action. Is it imperative that the project requiring funds goes ahead? Is it the most important priority for funding? If the answer to these questions is "no", then fund raising may not be the best option.
2. What is the case for funding?
Gather together the most important information about the appeal subject to prove the case for funding. This includes:
* facts--summary explaining what the project is, why it is important and when it needs support
* figures--outline budget explaining funds required and (where possible) those already secured
* the USP (Unique Selling Point)--the factor which is likely to make this project uniquely important to those affected by it, including the potential funder.
3. Examine the funding options
What sort of corporate support will suit your needs? If you are looking to arrange sponsorships and events these often require a mix of skills and resources, for example:
* an event needs a venue, ticket administration and insurance
* an item needs specialist skills and equipment--publishing a book involves an author, editor, designer, printer, publisher etc.
* an activity needs target objectives, a plan, programme and costs
No matter how you intend to raise funds, think carefully about everything you want to do and what and whom you need to do it.
* Make a detailed plan--with a proposed programme, costs and objectives
* Think about the resources you will need--people, space and equipment as well as cash. Will you need outside help?
4. Find the right source
Fund raisers should take time to draw up a "hit list" of companies (or where appropriate) individuals who:
* might support the appeal
* should support the appeal--they have an interest in the project.
The corporate fund raising pot is not bottomless. Establish right at the start if your project fits the company's funding criteria (and vice versa). If it is company policy to support medical projects, an appeal for arts funding is unlikely to succeed.
Fund raisers and corporate donors will take time to decide who they are happy to link up with. Fund raising involves partnerships so both sides must be comfortable (even if they do sometimes disagree about things!)--for example, environmental charities might choose to avoid companies linked to pollution, and organisations sponsoring rural conservation may well be averse to funding claims from organisations related to genetic engineering.
5. Getting advice
Always ask for advice. This saves a great deal of time sending ill-conceived or unsuitable appeals. Many companies have corporate giving guides or a section in the Annual Report and Accounts which explains company policy and areas of interest. Alternatively, speak to whoever administers the charitable budget, often the Company Secretary. Companies with separate charitable trusts may have a dedicated administrator. Keep your enquiries brief--some administrators deal with hundreds of enquiries a week. Make a quick call to find out:
* areas of current interest (some companies always support specific causes, others support a charity for a set period and then move on)
* the date and basic details required to send the request in time for the relevant committee meeting
* whether funds may be available; some companies assign donation budgets 12 months or more in advance.
Speak to any relevant personal contacts--directors or senior managers at the company you are investigating who can be approached for friendly, informal advice--before submitting an appeal.
Company websites often give details of the company's charitable or sponsorship activities.
6. Putting together a proposal
By following steps 1 to 5 the correct information to include in the appeal proposal should be available. Keep it short and to the point--unless the company requests specific additional information.
A basic proposal should include a one-side executive summary, a brief budget, objectives and benefits, and elements such as equipment/facilities costs, running costs, salaries and administrative costs. Some companies don't fund salaries or administrative costs--check out the funding policy and make it clear how the project will cover these costs if the corporate donor won't.
7. Meeting the prospect
Invite prospective donors to visit; this provides the opportunity for refining, even improving the proposal. Any donor thinking of giving a significant sum would want to visit the requesting organisation first to make sure the project is viable.
This is a great chance for the requesting organisation to showcase its work. Then both parties can build up a picture to aid decision-making on the project.
A note of warning--charities should be very wary of agreeing to take on a new project simply because it fits in with the donor's wishes. Be flexible, tailor the project to the donor's interests, but fund the work you need to do.
8. Getting a decision
This is usually a case of waiting. Many companies state that if the requesting organisation hears nothing within a specified time they should assume no support will be given. Deciding whether to follow up the appeal with a single well timed call is up to you.
9. Review what happened and plan the future.
See what did and didn't work this time and put a plan in place to make things more effective next time. For example:
* was the project clear--does the summary or budget need developing?
* what is the next step with the prospective donor? Can you approach them again later or are they clearly not interested?
* can the prospective donor lead you to other prospects?
10. Make the most of the fund raising relationship
It is sensible to build on the relationship established with the donor organisation--in the future they may again be in a position to help. Simple ways to maintain the relationship include:
* keeping the donor informed of how the project is going
* involving them in this/other projects where possible
* making the most of the support with other potential supporters (giving funds is like joining a club).
Dos and don'ts for fund raising
Do
* Conform with the Charities Act. You can get advice on this complex law from the Charities Commission.
* Look for a partnership--even a gift deserves reporting back.
* Understand the benefits to the donor--tax, PR or whatever.
* Say thank you--many recipients don't.
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