Fundraising Strategies. Different Sources of Funding can include:

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Fundraising Strategies

Different Sources of Funding can include: Government Funds European Funds Trusts Lottery Foundations Individual Donors Fundraising Events Companies

Trading and Social Enterprise Initiatives Contracting

1) It’s important to realise that not every way of fundraising will be right for your group. But it is still important to have a variety of income and funds from different sources and not to be reliant on one source of funding only. I’m sure some of you have met groups who are

scrabbling for funds as for the last few years they’ve relied on receiving a grant from one particular source only, but who have received a lot less this year or none at all, due to cuts in funding? This is why it’s important to have a fundraising strategy/projection in place. 2) You can use the different methods of fundraising as a basis for

developing a fundraising strategy. This can become part of your business plan as your group develops as well. In a fundraising strategy/projection it is important to look backwards and see what’s worked for your group in the past as well as looking forwards to see where you can develop from here. There are some models you can use to help get started when thinking about a funding strategy and seeing which fundraising methods work best for your group: The SWOT analysis involves identifying your organisations’

Strengths/weaknesses/opportunities and Threats. (See page 2 of this factsheet – Developing a Fundraising Strategy - for more info on these models.)

3) Even though after researching all these different fundraising methods, it may seem like there is plenty of funding available, it’s important that you don’t just apply for any funding available because you need the money – you must stick to the aims and objectives of the group and the needs you want to meet, rather than the money you think you can raise. If you begin applying for absolutely anything just because it is

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Developing a Fundraising Strategy

Example Headings for a Fundraising Strategy Review of the current Position

- Current Strengths and Weaknesses - Past Fundraising Experience

- Existing fundraising strengths and resources Projection of fundraising needs

Overall fundraising Strategy Proposed new sources of income

Suggested methods to meet fundraising targets Resources needed to do this

Model to explore your fundraising environment

A commonly used tool is the SWOT analysis – to identify your organisation’s: Strengths

Weaknesses Opportunities Threats

An example of a SWOT analysis for a small organisation:

Positive Negative Internal Factors Strengths

Established Team Experienced Management Good relations with Local Authority Good reputation

Weaknesses

Limited contact with funders

Existing grants running out

No evaluation undertaken External Factors Opportunities

Public Attention on your issue

New Company in the area

Threats

Change in benefit regulations

Local agency expanding aggressively

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A Useful Table to Assess Possible Funding Sources (Source: The Complete Fundraising Handbook, Botting & Norton) Source Past

Experience Competitors’ experience Relevance to Cause Resources Needed Rating Central Gov Local Gov Trusts Companies Big Givers Members and Supporters Fundraising Events

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• How long do you want to plan for ie one project/12 months/5 years? For each project, you should put together a funding strategy but these can be built into a longer-term strategy and is then an integral part of the group's business plan.

• Be clear about the aims of your group and making the whole

organisation clear. Being aware that any projects you apply for funding for must be to achieve your aims.

• Budgeting - what do you want to apply for - remember to include indirect costs. Don't leave one person to sort out the budget - what if they are ill/on holiday? Take Full Cost Recovery (FCR) into

consideration. Will funders accept a bid with FCR included?

• The funding options you have? Explore what's worked for your group in the past or other similar groups to yours. Research what's available from funders.

• Alternative sources of funding - consider what's right for your group and the project. You could consider trading, contracts, loans, community fundraising, approaching major donors etc

• Think about targets/goals and outcomes - what will come out of the project you're planning for - what benefits? Will these outcomes help achieve the aims of the group?

• Duplication and need - what exists already in the area, could you work in partnership? What's the need/demand for the project?

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Main problems arising from these elements which the group need to be aware of could include:

Duplication of work – is another group already delivering this project? Is someone else within your group already working on a similar project? You need to be aware of similar external groups and their work but also what’s happening within your own group – what are your colleagues working on? Lack of available funding – sometimes there just aren’t the funds available for your project.

Do your aims allow you to do this project? – Does your governing document allow you to do your project? Consider the implications of this and whether your group feels so strongly about the project that it’s worth revisiting your aims?

Capacity of the group to deliver this project? Is the group ready to embark on this project? What policies do you need? Who will manage it?

For more information on Fundraising Methods, please contact Louise Brown, Groups Development Worker, Wigan & Leigh CVS by telephone on 01942 514 234 or email lbrown@cvswl.org.

This factsheet was put together with help from ‘The Complete Fundraising Handbook’ by Botting and Norton, and The Big Lottery Fund.