| Fund Raising
Introduction
Almost every voluntary or non-profit organization requires money
either to support its existing activities or to expand and improve
it services. Fund raising has no option other than hard work, but
if the voluntary agencies have a cause or programmes that deserve
support and it is willing to really work at it, it can raise considerable
awareness, goodwill and money.
We have been seen that all the traditional methods of fund raising
can not produce satisfactory results in the modern era. Though we
prefer traditional techniques of fund raising, such as raising funds
from government, trusts etc, now we need to more concentrate on
various new methods and techniques of fund raising that ensure an
efficient and effective process of fund collection and produce the
better result that lead to sustainability as well. Following are
the diverse methods and techniques of fund raising that explains
you about how to do it. Here, we also share some case examples of
reputed NGOs who have adapted these techniques in their fund raising
activities and achieved a great success.
Methods of Fund Raising
(1) Through Funding Agencies
There are many funding agencies in India to whom NGO can approach
easily. Bilateral agencies in 2009-10 have invested 2.5 billion
dollars in India. Before preparing a proposal for any funding agency,
it is important for the voluntary agency to have a clear written
vision and mission statement (for examples of vision and mission
statements see another module of “How to construct Vision
& Misssion statements”)
o NGOs need to be fit in to the criterion given by funding agencies.
Each funding agency has their own thematic area for which they fund.
Voluntary organizations should first understand these areas for
which funding can be sought.
o Organizations should prepare & submit concept note. If Agency
is satisfied with the design of project proposed, then only you
can submit detailed project proposal (Refer the Module of Proposal
Writing).
You need to present your idea very specifically and clearly. Funding
agency will ask for objectives and outcome expected.
o NGO should also abide to some conditionalities laid by FA about
evaluation, documentation and reporting, budget etc.
o Funding agencies assess basically the impact of work done by NGO,
what kind of expertise does NGO have, what is the objective that
you posses to work in community. Also they will look for how innovative
your project is. (said by Rati Misra – Resource Alliance)
(2) Through Individuals
o Most of the time this is directly face to face solicitation. This
is, by far, the best method of fund raising.
o Before meeting the prospective donor, send him / her written letter
or appeal giving necessary information about the activity for which
you intend to raise the funds.
o Try to gather all possible information about him/her. If necessary,
take a colleague along with you. Having someone with you may make
you feel more comfortable and confidant.
o Do not rush into the solicitation – interested try to steer
the conversation to the need that requires to be addressed.
o When requesting a specific sum of money, do not think in terms
of what the donor may give. Think in terms of what the donor could
be or is, capable of giving.
A technique of Direct Appeal:
It also includes sending public appeal through post / courier. In
such case, you usually require a cause that has a broad appeal.
It is also important to select the target group with the utmost
care.
o Prepare the list of names and addresses of potential individual
donors. Since it involves the expenditure of posting, you need to
do careful scrutiny of available contacts.
o The stationary, including the envelope, should be of good quality.
o You should send additional printed return envelop stating name
and address and contact number of your executive office attached
with the appeal so that it will be easy for donor to send a Cheque
/ DD directly at you address.
o If you get such donations, you must need to acknowledge the donor
immediately through proper correspondence.
o The appeal should be short and must tell a good success story.
o It should not only attract the reader’s attention and interest,
but also stir within him the desire to act. Therefore it is needed
to communicate the need in human terms.
(3) Government Departments
Receiving Government support may bring a degree of recognition and
credibility to the organization. Government funding is substantial
in terms of volume and it is a great source of fund. However, dependence
on Government could also make the organization vulnerable to government
control or political pressure. The Central and the State Governments,
however, 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 As Rati
Misra (Resource Alliance) said NGOs should realize that government
funding will add value to the profile of their NGO and they should
put their focus in communicating their work to concerned government
department. In the year 2008-09, Government has spent 2.5 billion
dollars in social sector.
(4) Corpus or endowments
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
Through Cause Related Marketing:
o The process involves allowing a small percentage of the profit
on any consumer item to be designated towards a charity.
o This system has a three-pronged effect, benefiting the manufacturer,
the consumer and the charity.
o The consumer feels inclined to buy the product because he has
the added advantage of buying a good (cause-related) product and
being philanthropic at the same time. This naturally boots the sale
of any cause related product and the manufacturer is able to make
more profit in spite of being philanthropic.
o And last, but not the least, the charity earns the valuable income
without much effort.
o Search the companies which would like to tie-up with NGOs that
are sync with their CSR objectives matching with the objectives
of the NGO.
(3) E- Fund Raising:
o An online Payment System allows you to be open 24 hours a day,
7 days a week and 365 days a year.
o Not only is this is an important convenience for your donors and
individuals; it also means more revenue for you.
o An online system also helps you to reduce your overhead costs.
o The most important part of online is accepting donations from
your donors ranging from a single transaction to a series of transactions
from a donor.
o Online payment processing offers a donor the convenience of submitting
their credit card or other forms of payment on your Web site, and
for you to actually receive the money from this transaction.
o You can also go for e- marketing of your products which finally
aims at raising funds through selling the products online.
(6) Through events
Special events include organizing a film premier or a dance/musical
programme or a fashion show or a gala dinner or a carnival.
o Special brochures or souvenirs can be brought out on such occasions
and advertisements solicited for inclusion in the same.
o Banners and other forms of display advertisements bring in good
revenue as well.
o Special events require a lot of hard work, planning, teamwork
and organizing.
o Often, organizations spend months in preparing for just an evening’s
programme. General experience indicates a low return from such events
in terms of money. However, in terms of launching the organization,
awareness-building about the cause and general goodwill and visibility,
the returns are high.
o It requires corporate sponsorships to cover the fixed costs.
o If your organization decides to organize such events with specific
frequency (once in two years), you should have a permanent good
planning team. You should acknowledge all you funders at this occasion.
o NGO may organize any event where all the beneficiaries are invited
and also arrange any celebrity, so that credibility of your project
or work will be demonstrated to society.
(7) Pay roll giving
Pay roll giving is nothing but deduction of certain percentage
of amount of total salary of employee. This is the strategy which
is decided at board level and directly implemented in organization.
Many IT companies and corporates adapt these strategies of donating
certain amount especially in the time of certain natural or manmade
disasters. Philanthropic organizations with a broad and visible
cause should first approach the chairman of Managing Director of
a company and get him sufficiently interested in the cause. Payroll
giving is not the easiest way to raise money. Personal solicitation
is a must.
(8) Corporates
As an NGO we have to realize that the funds are required for what
our programs stand for. They are the product we sell. In the year
2008-09, corporates have contributed approximately 6 billion dollars
(nearly 30,000 crores) in social sector. (ref: Pooranchandra Pandey,
Times Foundation)
o It is important to understand what a company focuses on as part
of its CSR, or might have product synergies towards owing to their
business.
o It is important to research well and make a more focused approach
in identifying corporates.
o A corporate in most cases is open to funding various aspects as
long as your program matches the broad outline with their CSR focus.
As long as the need can be justified, the output well defined -
funding from corporate will always be easier to click.
o Corporates expect reports, tax exemptions and their own visibility
in NGO programmes.
o Confirm the pattern of documentation, reporting and monitoring
and adhere to those formats with less flexibility.
(Inputs given by Lalita Sachdeva, UNICEF)
(9) In kind donations
o An in-kind donation is also very important way of raising funds.
o Many people / companies wish to write off their furniture and
equipments after some period or they may prefer to donate brand
new equipments to NGO instead of donating plain amount.
o NGO should respect these donors also as they play very important
role in giving something useful to NGOs.
o NGO should maintain relationships with these people who always
like to donate in kind.
o Many people donate brand new laptop, fax machine, telephone instruments,
printer, some stationary etc.
(10) Fund Raising at local level
Direct Mailing Application:
Direct mailing application process (DMA) is a very vital aspect
of fund raising techniques available for NGO sector. It is a direct
marketing activity by which you take your appeal to the people &
individualizing your appeal to your target Population. To make donation
easy, a donor should be given following facilities
(1) Business Reply Envelope (BRE)
(2) Modes of payment i.e Cheque/ DD/ Cash/ Credit Card/ Bank transfer/Swift
Code etc.
Donation Boxes:
NGO can place donation boxes at various profitable locations. A
Donation Box not only creates visibility of the NGO but also generate
some money.
School Awareness cum sponsorship Programme:
School fundraising is one of the wide spectrum of fundraising methods
by which the funds are raised from the community through the medium
of school students by educating them about the cause.”
Normally an event is organized in the school with the two pronged
objective of creating awareness and raising funds.
Useful tips for fund raising:
1. Write / speak accurately, factually, convincingly and cheerfully.
2. Avoid jargon – it may be viewed a pretentious.
3. Your appeal should be addressed to the right person with proper
designation and correct spelling
4. Avoid making your appeal look mass-produced.
5. Write to the individual, keeping his / her special interests
and concerns in mind.
6. Try to be realistic in presenting in your case. In your enthusiasm
you may end up overstating the need, the projected outcomes or the
basic facts about your organization.
7. Avoid very small fonts and very close-spaced types.
8. Focus on inspiring and not just impressing the reader / listener.
9. Use photographs, tables, graphics and animation if possible.
10. Create a good slogan and use it (e.g. “Together we will
overcome poverty / illiteracy…….”)
11. A well-produced brochure or a powerful poster can present a
positive image of your organization.
12. Tell a story (how someone’s life changed because……….).
A good story brings your message to life.
13. Long reports and letters are seldom read. Be brief and to the
point.
14. Your stationary need not be very fancy, but it should be of
reasonably good quality.
15. Mean what you say and say what you mean.
16. Be assertive (decide what your organization or cause really
needs and ask for it clearly and confidently) but never aggressively.
17. Never suggest that money should be given because your organization
deserves help. An organization has no needs. It is the community
that has needs. Society has problems to solve and your organization
has the solution.
18. If media coverage is important to you, then time and resources
must be spent planning and executing media strategies.
19. The success of your media strategy will largely depend on your
contacts with reporters, assignment desk editors and other media
representatives.
20. Press conference should be called only when you have breaking
news or you wish to announce a major event.
21. Mass media campaigns are a calculated risk because of the high
probability of misquotes and distortions by reporters.
22. Be passionate
23. Do it with Confidence
24. Have a “Can do” attitude
25. Fund-raising is an art, not a science. Bring your own creativity
to it and remain flexible.
26. Recruit staff with commitment first, techniques second
Say what you mean; mean what you say.
27. Make the donor feel he is an insider - that he owns the organization.
He will defend and support his institution.
28. Write copy as if from one person to another person; not from
an organization to a donor.
29. Make sure you see and read mail from donors. It is the way
to know what they are thinking about you.
30. In every piece of mail and all publications, including Annual
Reports - always provide the opportunity to give.
31. The person answering your phone represents your organization.
32. Please do not fund raise if your organization is unable to
cope with opening the mail and answering it properly!
33. Tell the truth and facts always - credibility is important
in fund-raising.
34. Tell your donors how their money helped to make a difference.
35. Emotion, rather than reason, leads to charity.
36. Induce action; always use a reply envelope.
37. Be specific; speak of specific cases or individuals - avoid
generalities.
38. Long words put donors to sleep and sleepy people cannot write
cheques.
39. Use more photographs – one picture is worth a thousand
words.
40. Do not write about a huge problem, which an individual cannot
solve through his donation.
41. Aim for something within the reach of an individual.
42. Talk about sponsoring a child and not 10,000 children.
Refer the technical details of various Income tax provisions such
as 80 G, 35 AC, Section 12, FCRA in the module of Registration Formalities
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Following are some key inputs given by National and International
Funding Agencies, corporates as well as NGOs.
Inputs by Gagan Sethi, Managing Trustee, Janvikas, Ehmadabad on
Government Funding
o Janvikas works for training and organizational development of
NGOs and also implementing various projects of Human Resource Ministry,
Women and Child Welfare Ministry and many others.
o Under HR Ministry, organization has Youth Empowerment Projects,
Youth Centers for Vocational Training etc. These projects are being
implemented since last several years.
o When organization submits the proposal, some gaps prevails between
the written proposal of organization and given format by relevant
government department. Therefore Organization should always take
care of it.
o Any NGO can obtain government funding only after showing their
last three year’s record of their work which includes documentation,
photographs of various programmes, accounting records for last three
years etc.
o Time distance between approval of funds and actual allotment
of installment is too large. Sometimes funds are made available
after completion of financial year in which approval was given.
Therefore you should have some advance system which is useful for
actual implementation as well as useful for maintaining books of
accounts.
o Do not depend totally on government funding since the process
is very lengthy. Government might be a part funder. It may give
some additional value to your existing funding.
o If organization applies for any larger project e.g. watershed
project for entire habitation or district, a separate committee
of government will first scrutinize the organization’s work
which has been done in last few years. Some projects have guideline
based applications which should be considered carefully by NGO.
o There are two types of government funding as follows.
1. Funding to local self government (monitoring is much stronger
in these cases)
2. Funding to individual organization (monitoring is not that strong
since many times these funds are given on the basis of some unethical
practices)
o Organization should always remember that somebody is listening
to them from very high level. Therefore NGO should fulfill all the
formalities in time which has been asked for.
o Organization should always remember that when they get funding
from government, they will be accessible to only 80% of total amount
of funding. They should consider that 20% of funding will not be
available in their hands.
Inputs by Lalitha Sachdeva, Fund Raising Specialist, UNICEF on Corporate
fund raising
Establishing Relationships with Corporate:
o Relationships have to be managed at various levels. In every company
you should have more than 2 contacts.
o People you can drop by to have coffee with to know what they are
up to and the decision makers.
o Remember; if the proposal does not get funded once don't let that
affect the relationship.
o Keep them posted of nice stories from your programs, keep meeting
them. And always be cautious of ensuring you know more and more
people from related functions.
o You will not only be on top of their mind when they have fresh
budgets but will also ensure that the relationship your NGO has
with the corporate is not dependant on one person. That is true
for the NGO too.
o Every large potential or existing partner should be handled by
one person but managed by more than one.
Inputs given by Mathew Cherian, Chief Executive, Helpage India on
fund raising through funding / bilateral agencies
o NGOs can overcome by specifically investing time in fundraising
and also delegating responsibility to these people. They also need
to keep those staff focused on fundraising and not to divert attention
on other areas.
o Funding agencies expect detailed reports and also case studies.
o HelpAge India’s positive practices is in accountability
by way of timely receipts, submission of tax receipts and also reports
to donors within a fixed time period and full accounts to every
donor irrespective of size of donation.
o Train your staff for fund raising activities so that next batch
of organization can be made ready to handle these functions. Give
In-house training also.
o The focus shall be on keeping the proposal simple so that the
donor understands it fully and also written in simple English. However
Institutional donors may require log frames which if needed should
be provided.
o NGOs need to write personal diaries and record it with a key
person, who may be the Communication person. In NGO’s with
small staff a monthly report or a coordination meeting to record
experiences will help.
Sangeeta Banginwar, Trustee, Doorstep on Building good relationship
with funders
o Having prospective funding organizations list with the organization
o Study their area of interest, which projects they are keen to
donate
o Make a good proposal which explains the project thoroughly
o Make a realistic budget with detailed project heads
o Have a good organization overall presentation which is useful
in initial discussion
o Explain all details about the project while doing presentation
and give time for question and answer session during initial discussion
o Have regular follow up with concern person after submitting the
budget
o Once grant is received, make your that one nice thank you letter
and project initiated report is shared with funding partner
o Have regular feedback mails to concern person so that they are
aware of progress
o Call volunteers from their agency/organization to visit time to
time for the project
o Share quarterly activity/physical report along with financial
status of the grant. Always reports should brief version along with
detailed version. Try and ask formats from funding agency if they
have any, so that they get information in the format they wish to
be.
o In activity reports, share the statistical data along with events,
special mentions, impact analysis (very important for funding people)
and future plans. Also one can put some comparison with previous
statistical data (even with charts and graph)
o Funding agencies normally expect the tax benefit for grant given.
Most important is visibility for them as it’s a PR activity
for them. They also want to see impact of the program (qualitative
and quantitative).
Inputs from Mr. Surnedranath Nishanimut, Founder Secretary, Samveda
on Local Fund Raising on Local Fund Raising
o Your work must be known by general public.
o They must know that you are very transparent.
o They must also know that you are highly dedicated not through
your words but through your deeds.
o You must be a focused organization, that means do not change your
mission now and then to suit the needs of government funding.
o Work for a cause continuously and not only when there are funds.
Many NGOs can not work throughout the year as they do not have sufficient
funds. If you sustain for long then people will recognize you and
support you. In fact, general public seldom give us donations. But,
some come forward to donate after they understand our dedication,
spirit and seriousness. Major donations come from parents, relatives
and friends of children who are getting trained at your organization
o We need to talk to people in the local area without expecting
any donations from them. But, they must be made to understand that
we need a lot of donations for our activities. Once in three or
four months we should thank the donors in the local news papers,
preferably with their photos.
o Along with a printed receipt, organization should send their profile
in local language and a thanking letter in local language. Donors
should be there on the mailing list of NGO and without fail annual
report of organization should be sent to them every year. Annual
report should contain the list of individual donors of that financial
year.
Yogita Verma, Director, CRY on Cause Related Marketing (CRM)
Case example of CRM
In the case of the TATA Salt CRM - ' Desh Ko Arpan Campaign' 10
paise from the sale of every pack of TATA Salt during a specific
time period was donated to CRY to ensure the right to education
of underprivileged children. It increased public awareness on the
situation of education of children and also provided CRY with valuable
resources to fund its projects. TATA Chemicals benefited from an
improvement in brand image and an increase in sales during that
period.
Strategy to approach corporates for CRM
CRM is an effective way for the company to improve both brand image
as well as sales while achieving their CSR objectives. Therefore
NGO should induce corporate to support for these mutual benefits.
It enables the company to reach out to its large consumer base and
reward them in a more meaningful manner than a regular product promotion
like a price off or a free gift. The NGO also get benefits because
the issue gets large public visibility over and above the direct
impact the donation has on the cause it supports.
How to convince corporates for CRM
NGOs should illustrate corporates the dual benefits of improving
sales and brand image while meeting their CSR objectives.
How CRM is useful for NGO
Such Campaigns raise valuable resource of money and also a powerful
tool to raise awareness on issues.
Useful guidelines for NGOs who want to implement CRM
Choose companies that have large consumer bases and that do regular
promotions on their products.
Always check the background of the company for track record on human
rights/ environment etc. since these partnerships get a large amount
of media coverage and the NGO can get a negative image rub off if
the company has any history of violations
It is critical to craft the messaging of the CRM with care so that
the issue based awareness meets the NGO's requirements.
A case of E- Marketing of CRY products aims at fund raising. Following
is an e-advertisement given by CRY at Ebay.com on E-Fund Raising
Stand up for what is right!
There are millions of voiceless and faceless underprivileged children
leading marginalised lives, deprived of basic human rights and unable
to realise their potential, and there are many Indians who believe
that ALL children are equal and these children deserve more opportunities
to enjoy a childhood.. So does CRY - Child Rights and You, India's
leading advocate for Child Rights.
CRY gives you the opportunity to support the basic rights of underprivileged
children through the CRY Shop. It is the perfect medium for you
to join the peoples' movement for Child Rights and ensure more children
have a brighter future. You can make a purchase from a wide range
of products available at the CRY Shop.
Who is CRY?
At CRY, we do not believe in charity. Nor do we run schools or
orphanages. Instead we partner NGOs in the field, working with children,
their parents and communities. At CRY, we focus on the 4 basic rights
of children - to survival, development, protection and participation.
Over 27 years of working for children, in over 2500 villages and
slums across 18 States, we have seen irreversible change take place.
And this has been possible only when communities have become aware
of their rights and have come together to ensure them, for themselves
and for their children. To know more about CRY visit www.cry.org.
Our efforts
CRY, in its 27 years of existence has worked together with NGOs,
communities, donors, volunteers, government and the media to help
over 1.4 million children to follow their dreams and live lives
of dignity. Even so, we have barely scratched the surface. Today,
1 of every 6 girl children dies before their 15th birthday,
50% of children between 6-14 yrs do not have access to school,
Millions of children work to survive.
But together, we can change this. Join us in creating a world in
which child rights for ALL children are non-negotiable!
Raising funds from corporates – inputs given by Vianney Katakam,
Assist
Project that has Corporate funding:
Girl Child Project in Avanigadda area in Krishna District of Andhra
Pradesh and it is funded by AVON/CAF (Charities Aid Foundation)
Amount of Corporate funding:
During 2007 – 2008 is INR.38,59,400/- and 2008 – 2009
is INR.19,03,844/-.
Strategy to approach Corporates:
Through friends, well wishers of the organization, websites and
some donors who are working with organization. Board Members of
organization are from various stratas and they have contacts in
corporates therefore it is easy for organization to approach CSR
departments.
Designing of project matching with CSR of any corporate
Assist designs the projects in whatever sector the corporate is
interested and submits to them. Proposal is formed as per the needs
of corporates. Organization asks corporates about the areas which
they want to focus more and accordingly.
Corporate Expectations after providing funds:
They look at the capacities of the organization, project implementing
area / issue or sector, need of the project, organization budget
outlay and previous experience. Corporates have their own process
to study and verify the work of organization. Corporates look for
credible and transparent organizations. They also expect good branding
that should be maintained by organization. Branding is reflected
through various projects and programmes of organization. And invariably
corporate which is funding the project is also held responsible
for the image of particular project or programme.
How to raise funds from corporates – Inputs by Deepti Ameta,
Sevamandir
Sevamandir do three year planning of their activities and locate
the donors for that time period. These donors are institutions or
funding agencies who work with them as an official partner in project
implementation. Rest of the fund is generated through corporates
and individual donors. The percentage of individual donations is
only around 4 to 5 % of the entire amount of donations. Sevamandir
has corporate donations from CAF, Yes Bank, Global Partners, and
Hindustan Zink etc.
NGOs can send two or three different proposals for the focus areas
highlighted by any corporate. Any one proposal amongst them can
be finalized. NGOs should not put boundaries around them because
otherwise corporate funding will not be available for an organization.
Corporate always look for the transformation of amount invested
in to number of beneficiaries. Give them a programme which is easily
reachable to people. Corporates are more interested in some tangible
output.
Inputs from Sanyukta Narvekar, ICMH on fund raising
Sources of funding for ICMH
o Trusts and Foundations
o Individuals
o Corporates
Fund Raising through individuals:
Fund raising from individuals needs face to face conversation.
ICMH has its own volunteers who go for raising funds with the special
focus on individual donations. Data base of individual donors is
also built up through this activity. Approximately 20% amount of
total funds collected comes from the individuals.
A donation from individuals is small time money. Therefore if we
want to tie up them in to long-term relationship, then we must ensure
transparency in informing them all kinds of achievements and activities
in an organization. ICMH tries to engage individual donors in day
to day activities of organization.
ICMH also organizes events through which they try to invite individual
donors and volunteers so that they can discuss the issues among
themselves also.
ICMH ensures that at least four times in a year the information
is given to their donors. They take every opportunity to invite
people at their place.
One should not insist individual to give donation in initial stages.
ICMH encourage individuals / prospective donors to get involved
somehow in the activities of organization. Once people get passionate
about the work, they will start giving money without any request.
Keeping the data base ready and updated is most important thing
before going to raise funds. Maintain an excel sheet containing
the contact information. Have the categorized information so that
you will know what the audience you are not looking for and looking
for.
In order to start fund raising through individuals, organization
should start first from maintaining the list of volunteers who come
in contact with NGO. Develop this excel sheet of contacts and keep
them updated regularly.
When you meet people for funding (face to face), out of that your
conversion ratio can be even 80% of that.
Try to involve everybody from organization in fund raising activities.
Fund Raising through Coporates
Fund raising from corporates needs a lot of study on the CSR pattern
of corporates. ICMH focus on building a relationship and sustaining
it rather than just taking money and leaving it.
40 to 50 % of total amount has been raised through trusts, foundations
and corporates. (HDFC, Central Bank of India, Aditya Birla Group,
Wochhardt Foundation
ICMH also gives dispersement report to whom those who have paid
more than Rs. 20, 000. Public Relation department should take this
responsibility to update their donors. Dispersement report includes
figures related to achievement, case study, success stories etc.
Do not give any proposal to any corporate unless and until you
have talked to them. First you need to understand their need, pattern
of giving funds, find out their expectations. Organization can have
certain standard things ready but it is not necessary that same
standard will be applicable to other corporate also. So, try to
be a flexible and present the things in a format which they want.
You should have costing ready with you well in advance before presenting
a proposal.
The team of people who can do fund raising is evolved throughout
the period of time. Because fund raisers are not readily available
and nobody likes to go and ask for money therefore we can not have
such professionals ready but we have to develop such skills and
expertise among the people working in an organization.
You should maintain your records correctly and give it to corporates
before they ask you. Make your own analysis out of your efforts
and state your findings very clearly and give some supportive data
for this. Face to face conversation is very much required in the
cases of corporates.
Have separate person for building up the relationships and another
for sustaining this relationship.
Inputs from Kunal Verma – Oxfam India on fund raising
o Oxfam India fund in four thematic areas such as Essential services,
Economic justice, Gender justice and the humanitarian work. They
support the work which leads finally towards policy change.
o Oxfam encourages the organization to submit a concept paper which
is then internally discussed during a monthly meeting.
o If everything is fine then they ask NGOs to submit a detailed
proposal.
o Projects are regularly visited by the respective regional managers,
program managers, program officers who are directly responsible
for that project.
o Partners of Oxfam are always there for long term.
o The basic criterion of selection of NGO is what they are doing
on ground level.
o Every NGO should start their own fund raising arm.
o When any NGO is putting up a proposal to any funding agency, they
should make a small component to say that in order to make this
program sustainable. Funding agency would be very happy to help
NGO with the small investment for fund raising.
Inputs from Harsha Parekh – Bombay Community Public Trust
o BCPT funds for NGOs falling in MMRDA region.
o Education, health and senior citizens are the priorities for funding.
o BCPT would like to encourage new NGOs to come to us.
o First, NGOs need to prove themselves.
Inputs from Shahela Sajanlal, AcumenFund
o AcumenFund is social non profit venture capital fund. They make
investments in small and medium enterprises that serve low income
market.
o Investment focus is on five areas viz. health care, clean energy,
clean drinking water and sanitation, low cost housing and agriculture.
o The thing which they consider before making the investment is
about social impact. They carefully check that, how many people
are being served by this product or service of an enterprise.
o Secondly, they look whether the product or service is cost effective
and affordable for low income markets. AccumenFund look at their
balance sheets, what type of prior operations they have undertaken,
what are their challenges, what sort of capital requirements do
they need. So, this is all the part of their due diligence process
o When the initial diligence processes finishes, they undertake
SKW which is Shaitan Ka Wakil (Devil’s Advocate). The basic
aim of SKW is to verify whether the organization is using the amount
in the right direction and it is completely as per Accumen philosophy.
Inputs from P B Sajeev, Aide et Action.
o Education is the primary area where Aide et Action do funding.
o NGO should be working with marginalized community particularly
with SC, ST and other marginal communities, focusing on women &
children, persons with disability, children and youth with disability.
o Broadly they tries to understand from whatever NGO submits, Aide
et Action does study of NGO perspective on the issue and their perspective
on what they would intend to do.
o Many NGOs are funded through sponsorship mechanism which can
range from the period of 5 years of more
o Through internal activities Aide et Action is in partnership
with around 60 to 65 NGOs till the date.
Inputs given by Steve Solnick – Ford Foundation on fund raising
o The six initiatives identified by Ford Foundation are:
? Promoting transparent, effective and accountable government
? Advancing economic and social rights
? Expanding livelihood opportunities for poor households
? Expanding community rights over natural resources
? Advancing public services media
? Policies and programs for adolescent sexual and reproductive health
o Agency attends conferences, visit projects in the field. In order
to decide the funding Ford Foundation keep in constant touch with
the academicians & experts in the field.
o The project should be innovative and significant to the field
requirements
o As an approximate number Ford Foundation makes about 75 to 100
grants each year
Inputs given by Pooranchandra Pandey – Times Foundation on
fund raising
o Its very important for any NGO to approach a corporate with serious
note. NGO should do a research through various ways and study the
funding pattern of a particular corporate, their mandate their focus
areas etc.
o Corporate asks for registration of NGO under 12A, 80 G, FCRA
before providing funds
o NGO needs to submit last three year’s audited statement
of accounts, names of board members along with their PAN number.
o If all above things are accurate, then proposal is forwarded
to legal and finance personnel for further scrutiny.
o Sometimes, corporate may do untrue call to NGO to try and check
out the work of organization and their credibility before the sanction
of funds. Then, corporate decides the quantum of money to be given
to NGOs.
o In some cases, high amount of money is given even if the NGO
is small but doing a good job.
Criteria decided by Times Foundation to select the NGO are as follows.
o NGOs need to disclose their experience in the sector and give
some evidence for the same.
o If NGO asks money for health, the number of and nature of earlier
health projects are assessed on the basis of documentation, the
geographical area of project implementation is also evaluated. It
also checks whether they have done it independently or in collaboration
with other NGO. It also sees the pattern of funding that they have
got in last few years.
o Foundation importantly sees that what kind of impact they have
created in society.
o It also evaluates their track records in terms of completion of
their earlier projects.
o Times Foundation also sees the diversity of NGO board in terms
of gender, expertise etc.
o Foundation asks them for the timeline for the implementation,
process which they want to follow such as community participation,
policy advocacy etc.
o They also checks that whether the NGO is relevant to the community
needs or not.
o Foundation asks them to put all these things together and write
a detailed report or project proposal.
o Times Foundation also have a separate group of people who think
critically and find some lacunas if it exists in proposal
o Then NGO is called for final presentation
o Key focus is on providing funds to small organizations with the
motive of empowering them.
o Times Foundation focuses on entire country.
o Best time to submit the proposal is at the beginning of the financial
year. This proposal may get enacted in the next year.
o Focus areas of Times Foundation is Education, Health, Environment,
women empowerment and Disaster management and rehabilitation.
Some important guidelines for NGOs
o NGOs should do their homework very well. They should know the
functions and thematic areas of funding agency
o NGOs should not do copy, paste in their proposal writing.
o NGOs should do hard work before applying for funds. Its very easy
to find out to identify if they have not done hard work.
o NGOs should prepare themselves when they come for the presentation.
Many times whatever is rightly said in the proposal is not found
in their presentation. Many times NGOs give proposal to write to
some professional consultant and person who presents in front of
corporate house is different. It should not happen
o NGO needs to be very honest about the answering the questions
that could be raised.
o At presentation, NGO should speak about the impact and processes,
monitoring & evaluation, sustainability rather than money required
and its spending pattern.
o Times Foundation gives the funds for 3 to 4 years and not more
than that. We encourage that NGO to stand on their own feet. NGO
should plan for their sustainability. They have to explain how they
will take this project ahead after the completion of period of funding.
Inputs from Mr. Ravi Puranik, ACC Foundation on Fund raising from
corporates
Criteria for selection of NGOs for funding
Major focus is on thematic areas defined by ACC. Organizations
who work on these thematic areas are eligible for funding from ACC.
This is the prime criteria for funding. These thematic areas are
education, livelihood, health, infrastructure and capability building
of rural communities. Thematic expertise is linked to the themes
which are put-forth by the communities in which ACC operates.
Another criteria is to verify the legal issues concerning to NGOs
like registration details of organization, 80G Certification, FCRA
etc.
Thirdly, ACC analyses the financial base of NGO. It includes a
study of their annual reports, budget statements, and audited financial
statements. ACC also sees the capability and competency of NGO whether
they can handle financial volume which ACC can give comparing with
their existing financial volume.
Another area is to evaluate manpower having with organization.
ACC checks whether organization has people who have expertise of
working with grassroots and also the kind of leadership which is
existing within an organization.
ACC also makes sure whether any corporate had funded that organization
earlier on the same thematic area. ACC takes overview of their past
achievements also.
ACC looks at development perspective with special focus on HDI
(Human Development Index) while funding any organization.
Geographical Focus
Across India wherever there are ACC plants. Currently ACC has fourteen
plants across the country. Therefore ACC Foundation funds for the
projects which could be implemented in those areas.
Certain useful tips for NGOs who aspire to raise funds on their
own feet
Do not look corporate only for funding. Organizations need to see
their own positioning.
Organization should build good relationship with the people working
in that corporate. They should be able to sustain the relationship
with company.
NGOs should possess an ability to absorb the systems at their place
and they should be accountable. Keep your donor updating about the
latest happenings.
Do not remain highly process oriented. Results and impact should
not be given a back seat. Results are very much important from corporates’
point of view.
Inputs by Mr. Akhil Paul – Sense International on Fund raising
In last three years, Sense International have obtained funds from
11 corporates within the rage of Rs. 4,00,000 to 12,00,000
Strategy of approaching corporates
They undertake continuous research for various companies and public
sector undertakings (who are government owned and have a policy
of contributing amounts of their profits to social causes). Once
identified, they try and locate the head of CSR or HR and initiate
dialogue with them for developing funding relationships.
Designing the project matching with the requirements of CSR
Over the past 3 years, Sense International have been concentrating
on raising unrestricted income from corporate houses as it gives
them flexibility to utilize the funds in needs-based projects and
activities. They also approach some corporate with a certain project
and location of the project depending upon their priority.
General expectations of corporates when they provide funding
- Proven financial transparency and integrity of the organization
- Registration under Income Tax Act- (80 G or 35 AC)
- Uniqueness of the project or cause being supported
- Clear agreement on providing publicity through Annual Report/
Newsletters and at website
- Regular and timely submission of progress as well as financial
report
- Possibility of exposure to the staff members
Some useful tips to access corporate fund
- Research in the corporate ways of spending towards social causes
- Develop a well thought concept note, detailed proposal, budget
with realistic objectives and timeframe
- Give Clear and non repetitive information
- Correct Information
- Simple presentation and even simpler style of writing
- Demonstrate success
- Match their criteria with your idea/concept
- Appropriate Details
- Corresponding Budget
- Covering letter- Address to the right person
- Check spellings and salutations while addressing people
Inputs from Veera Rao – Alert India on Fund Raising
o When NGO does fund raising, it provides independence to NGOs
for utilization of it and in right direction matching with their
objectives. The more you try to fund raise, the more expertise you
will gain.
o NGOs can raise PR through raising fund.
o NGOs should gain enough patience which is very much required
in fund raising.
o Whenever a large amount is donated you must give a utilization
certificate.
Inputs given by Ms. Vandana, Associate Vice President, HSBC - CSR
Thematic areas of HSBC to provide funds
1. Financial Inclusion
o Education of Underprivileged Children
o Youth for their vocational training and livelihood
o Women entrepreneurship and financial literacy
2. Environment
o Biodiversity conservation
o Climate Change
Geographical focus
Across India where there are branches of HSBC. It has to be at
a distance where HSBC staff can go and do volunteering.
General conditions for selecting NGOs for funding
o There should be separate plan for volunteering in the entire
project action plan
o NGO should be working in the field from last three years.
o NGO should have 80G certificate as well as FCRA approval (it is
mandatory)
o Annual report and audited statements for last three years
o Project should have an element of sustainability. NGOs need to
explain the strategies of sustaining themselves even if HSBC stops
funding on particular project. HSBC does not fund for the period
more than three years.
o If self sustainability for the project is not possible, NGOs need
to increase the scope of the project beyond their defined geographical
area. E.g. They should not work with same 250 children over the
period of three years
o E.g. To fund the project of Rain Water Harvesting, HSBC gives
the money in the form of revolving fund. Amount can be given as
a loan to any SHG on the basis of nominal interest rates or no interest
rates but for time bound period. There should be some economic participation
of villagers also. NGO can do further intervention like livelihood
programme on the basis of these returned amounts from villagers.
In this case we can provide them money for microfinance and not
as grants.
o HSBC has decided to work for 20 NGOs who are the members of PAN
India
Useful tips for NGOs
o NGO should give proper strategy and detailed plan of action in
the proposal.
o NGO should prepare the statement of financial utilization properly
stating, spending, income and resource clearly.
o NGO should parallely identify government schemes and projects
of bilateral agencies
o NGO should be able to think differently how they can use commercial
loans for social development
Inputs given by Vandana, HSBC Part – II
o NGO need to estimate and foresee the amount which they can put
as corpus every year.
o Every NGO should do fund raising activities. Not on ad-hoc basis,
but these activities should be well planned and implemented. It
should be undertaken at least twice in a year
o NGOs need to study funding pattern and focus areas of corporates.
Do not give proposal with vague subject like Health
o NGOs should be well aware for the new reforms. E.g. now government
has allowed NGOs to invest their funds in mutual funds against which
they can get good tax benefits.
o NGOs should always keep contingent provisions of funds. If there
is late receipt of funds due to some reason, NGO can use these funds
for that period. They should not stop their activities in this situation.
o Fund raising is closely related with building and maintaining
the relationships
o NGOs should submit their reports well in time and without fail.
o NGO should invite all their donors to discuss on the social issues
and the impact made by organization.
Cause Related Marketing
o NGOs should approach marketing department and find out what is
the scope available for CRM
o CRM is useful not for raising money because the cost per product
is so less but high level of awareness is created about the issue
in society.
o HSBC has CRM with four NGOs. CRM is being done through their credit
card services and at ATM machines.
Pay roll giving
HSBC provides pay roll giving from employees’ salaries on
voluntary basis. HSBC gives these amounts to NGOs certified by Give
India Foundation.
Inputs given by Michael & Susan Dell Foundation (MSDF)
Strategy of MSDF to select the NGOs for funding
Only those NGOs are selected which attains the criteria defined
by MSDF. These NGOs have to involve in the mission of foundation.
Mission of Foundation is transforming the lives of urban poor who
are living in poverty. NGOs should be able to deliver the measurable
benefits in the thematic areas defined by MSDL. Thematic areas of
Foundation are as under…
o Education
o Community / Other
o Childhood Health
o Family Economic Stability
MSDF has supported 40 NGOs across the cities of India. MSDF set
up the targets for NGOs. MSDF evaluates NGOs in terms of their managerial
capability, financial management capability, track records, whether
NGOs have done such kind of work earlier, their results, strategies
adopted by them etc.
MSDF is operating at a large scale and on a sustainable manner;
hence MSDF expects same kind of approach from NGOs also.
Dos and Donts for New NGOs
o NGOs need to look at how new companies set up and attract funds
in the market
o NGOs should be able to show good documentation of their activities
so that funders / funding agencies should feel something to give
funds to such type of new NGOs. They have to demonstrate why they
are better suited to attract funding
o Initially NGOs should undertake fund raising efforts at a small
scale. They should be able to produce measurable impact before going
for fund raising
o NGOs need to operate in professional way and NGOs should posses
the required talent to convince any corporate or funding agency.
o NGOs should be confidant enough to deliver the activities in order
to achieve the goals determined.
o NGOs should leave a mindset that they have to work with limited
money.
o They should possess an ability to write good quality reports.
o Its not the only desire that they want to do something good which
will drive NGOs sustainable. How you can accomplish your desire
is also equally important.
To download all the essential forms go on following link of Income
Tax department of India
http://incometaxindia.gov.in/download_all.asp
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References:
1. A book- The Art of Successful Fund Raising written by –
Noshir H Dadrawala, Published by - Centre of Advancement of Philanthropy
2. Writing – a – proposal - Article written by Satish
Bhalla
3. Interviews held with country officers of
o UNICEF
o Oxfam India
o Ford Foundation
o Aide et Action
o Alert India
o AccumenFund
o Times Foundation
o Bombay Community Public Trust (BCPT)
o Doorstep
o HelpageIndia
o Resource Alliance
o Samveda
o Janvikas
o SAFRG
o ACC Foundation
o Sir Dorabji Tata Trust
o Sense International
o ICMH
o Sevamandir
o Assist
o CRY
o MSDF
o HSBC – CSR
Nisha, IFPAsia on Fund Raising
How and in what way do you help NGOs to enhance their fund
raising capacities?
We help organisations build skills in using various methods of fundraising
and producing related communication material. Our face to face workshops
are run at our office in Bangalore and are customised for networks
of organisations and run in their own locations. We have recently
launched a three-month online certificate course in 'communication
and fundraising' and will soon be launching a post-graduate Diploma
in Fundraising. How NGOs should approach you for the trainings
and other inputs?
For details on our courses, log on to www.ifpasia.org or email info@ifpasia.org
So far, how many NGOs have taken inputs from you and what
is your experience about their performance after the trainings?
More than 2000 individuals from over 1000 organisations have participated
in our courses.Here are a few testimonials -
‘In 2008-09, I have raised Rs 5.9 Lakh (including in-kind)
for different programmes of Association of People with Disability.
This includes contributions for mobility aids, mid-day meals, sponsorships,
surgeries, uniforms, etc. by contacting individuals and making presentations
to various clubs and companies...
The training course in 'Basics of Public Fundraising', taught me
some very important fundraising techniques and also gave me the
skills to make effective presentations. I learned how to speak with
confidence and above all, listen more effectively. Thank you!'
- Sha Nigar, Principal, Industrial Training Center
Association of People with Disability (APD), Bangalore‘The
Course on 'Prepare Annual Reports that people will actually read'
taught me that an Annual report can be concise yet comprehensive.
It can say a lot without saying too much. I was delighted when our
donors got back to us for the first time saying it was an interesting
Annual report!'
- Judith Smith, Senior executive - documentation cell
Indo-Global Social Service Society, New Delhi
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