1 Understanding and applying an effective resource mobilisation & fundraising strategy A workshop presentation to Stop AIDS Now Zimbabwe Partners @ Cresta Lodge 12-13 May 2011 Dr Vhumani Magezi DEvalResC Solutions 1
2 Enhance resource mobilisation and/or fundraising skills to ensure that efforts result in increased inflow of resource/funds to the organisation Enhancement (strengthening) of skills – already present..... Efforts result in increased inflow – already involved but need for improvement DEvalRescC Solutions2 Note key words & phrases
3 Identify ways/approaches of resource mobilisation/fundraising Understand donor retention and management as a foundation for fundraising that achieves results Explore ways of identifying potential donors to pursue for funding Outline and discuss principles of resource mobilisation/fundraising Expose/refreshing on proposal writing skills Apply proposal writing skills Develop action plan for joint proposal development and submission (leader, focal area and support needed) DEvalRescC Solutions3 Soft objectives Hard objectives Planning objective
4 Ways/approaches of resource mobilisation/fundraising... what we need to know DEvalRescC Solutions4
5 Resource mobilisation and fundraising – are they the same? Why is important to differentiate these two concepts? Resource mobilization is not the same as fundraising; fundraising is an essential part of resource mobilization DEvalRescC Solutions5 fundaraising Resource mobilisation
6 List the differences in pairs! What does resource mobilisation entail? What does fundraising entail? DEvalRescC Solutions6
7 What does resource mobilisation entail? Any resource that contributes the running of organisational activities cash or kind What does fundraising entail? Largely cash DEvalRescC Solutions7
8 Fundraising is the pillar of many organisations. Survival of organisations largely depend on the amount of funding available to meet organisation costs!!! DEvalRescC Solutions8
9 There are three basic types/categories of funding 1. General funds – these funds are at the total discretion of the NGO regarding how they are used. They are in effect the life blood of the NGO serving to pay salaries, overheads and often less popular parts of programmes that will not secure earmarked donations. Light restricted funds – these funds allow fundraisers to present theme area of programmes, geographic areas of work or other broad segmentations of the cause. This allows a degree of connection with a project, but is nowhere near as restrictive as the next traditional category of income. Restricted income/funds - is exactly ‘what it says’. It is restricted to a specific project or programme of work. This is dearly loved by donors for obvious reasons but increasingly not so popular with NGO for obvious reasons of restricting operations and putting pressure on funding general overheads and operations from elsewhere. DEvalRescC Solutions9
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11 1. Have existing donors make additional and/or more frequent gifts 2. Acquire new donors 3. Have both new or existing donors make larger gifts (give more than previous new donors or their own previous gift) DEvalRescC Solutions11
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14 Understanding donor retention and management as a foundation for effective fundraising DEvalRescC Solutions14
15 Why is donor retention and management foundational for fundraising that achieves results? Research has shown that: It takes 4 to 11 times harder to acquire than keep old friends. If you lose one donor - you are likely to lose more.......donors discuss NGOs and their projects during their meetings. If you lose a donor you are likely to find it difficult to attract new donors because of negative reference.... donors conduct research about organisations before committing to fund. It’s easier to build on existing relationships and negotiate for funding increase... trust and friendship has been established. 5. Cheaper to keep a donor than get a new one 6. Better return on long-term donors The cumulative value of some of your longterm donors will astonish you DEvalRescC Solutions15
16 Some reasons for donor quitting 1. No longer able to afford support 2. Still supporting by other means 3. Feeling that other causes are more deserving 4. X no longer needs my support 5. Relocated 6. Not reminded to give again 7. X did not inform me how my monies were used 8. Xs communications were inappropriate 9. X asked for inappropriate sums DEvalRescC Solutions16
17 50 Ways To Lose Your Lover Ignore Them Lie To Them Fail To Return Calls or Answer Letters Fail To Deliver On Promises Be Uncivil Increase Prices Don’t Turn Up On Time Etc. What other things annoy you??? DEvalRescC Solutions17
18 Demonstrate role competence Demonstrate good judgement Quality programme and reporting Be honest when things go wrong Follow standards of professional conduct Develop and promote complaints Follow procedure DEvalRescC Solutions18
19 Donor events Communications materials Personal visits and phone calls Little gifts Donor research Your ideas – keep sharing? DEvalRescC Solutions19
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21 Ways of identifying potential donors to pursue for funding DEvalRescC Solutions21
22 Look within your own country first... who is funding similar projects Identify key competitors and look at who they are funded by Network – ask questions … Websites and guides … Make a ‘hit list’ and dig deeper = use a prospect worksheet Start making approaches! DEvalRescC Solutions22
23 www.fundsnetservices.com – Useful international listing but no search facility. www.fundsnetservices.com www.fundersonline.org – Run by The European Foundations Centre. Includes useful guidance on grant seeking. www.fundersonline.org www.efc.be – European Foundation Centre, includes news on developments amongst European funders www.efc.be www.bond.org – UK network of NGOs working internationally. Members listed. Also provides information on UK and EU funding. www.bond.org www.fdncenter.org – The Foundation Center. Most comprehensive source of information on US foundations www.fdncenter.org DEvalRescC Solutions23
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25 Principles of resource mobilisation/ fundraising DEvalRescC Solutions25
26 Important points to note!! Fundraising is not just about writing proposals or collecting money. It is about winning hearts and minds. It is about building a constituency of supporters for a cause. Fundraising is both an art and a science – art: it requires imagination and flexibility; science: careful application of some tools and approaches. Fundraising is about influence – influencing donors to understand, accept and act on your point of view. DEvalRescC Solutions26
27 1. Assessing your organisations readiness …prepare your organisational pitch 2. Researching prospects and making the approach - tailor it to the prospect 3. Developing and writing a focused and compelling proposal 4. Managing the relationship and growing your income DEvalRescC Solutions27
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29 Proposal writing skills and skills application DEvalRescC Solutions29
30 Key steps in getting funding from institutions 1. Assessing your organisations readiness …prepare your organisational pitch 2. Researching prospects and making the approach - tailor it to the prospect 3. Developing and writing a focused and compelling proposal 4. Managing the relationship and growing your income DEvalRescC Solutions30
31 Institutions are looking for: A good fit with funding priorities -understand what they want A clear sense of the applicants mission and role Reasonable institutional capacity Sound management Value for money Innovation Good track record/reputation Evidence of good financial management Credible leadership and governance structures ****They want a partner they can trust who will deliver results **** DEvalRescC Solutions31
32 Vision Mission Key Facts Accomplishments Key competencies/what makes you different DEvalRescC Solutions32
33 You are looking for: $200000 to start an income generation project among women $5000 to conduct HIV operational research $½ million to start an OVC programme 1million to start a livelihoods project among rural people in semi-arid regions DEvalRescC Solutions33
34 Identify your Prospects … Look within your own country first Identify key competitors and look at who they are funded by Network – ask questions … Websites and guides … Make a ‘hit list’ and dig deeper = use a prospect worksheet Start making approaches! DEvalRescC Solutions34
35 www.fundsnetservices.com – Useful international listing but no search facility. www.fundsnetservices.com www.fundersonline.org – Run by The European Foundations Centre. Includes useful guidance on grant seeking. www.fundersonline.org www.efc.be – European Foundation Centre, includes news on developments amongst European funders www.efc.be www.bond.org – UK network of NGOs working internationally. Members listed. Also provides information on UK and EU funding. www.bond.org www.fdncenter.org – The Foundation Center. Most comprehensive source of information on US foundations www.fdncenter.org DEvalRescC Solutions35
36 11 Reasons why proposals fail 1. The problem being faced / need for the project has not been explained properly 2. The issue does not strike the reader as significant 3. End users (communities) have not been involved in the planning 4. The proposal is poorly written and hard to understand 5. The proposal’s outcomes do not reflect the donor's area of concern 6. The proposal asks for more funding than the donor can provide 7. The project has not been coordinated with other organisations 8. The donor is not assured of the organisation's capabilities 9. The project is too ambitious 10. The writer did not follow the guidelines 11. The evaluation procedure is inadequate DEvalRescC Solutions36
37 Successful proposals are focused on solving problems NOT Activities ***A proposal developed from a problem solving approach is convincing while a proposal developed to justify an activity will ‘ring false’ *** DEvalRescC Solutions37
38 Structure What is the problem How Am I going to address it What results will I get How much will it cost Logic…..If……then……. Clarity….. ….. Budgeting - Can I cover the full costs of the proposal? ***And always remember you will have to deliver it*** DEvalRescC Solutions38
39 Problem identification entails problem analysis Problem Analysis is a combination of two words – 'problem' and 'analysis’ What is the difference between the terms what we are expecting to identify (the problem) what we are going to do to make sense of it (the analysis). DEvalRescC Solutions39
40 a problem is an existing negative situation... proposal writers are problem solvers of negative situations first and implementers second we 'sell' the problem first, then the solution, and finally our ability to carry that out. By focusing only on the existing negative situation, we show ourselves to be neutral. DEvalRescC Solutions40
41 Analysis is ‘the process of breaking a complex topic into smaller parts to gain a better understanding of it’. The key problem analysis tool for proposal writers is the Problem Tree – which is a key stage in the Logical Framework Approach (LFA). DEvalRescC Solutions41
42 Tree diagrams are visual tools identifying and prioritising problems, objectives or decisions. The main issue is represented by the tree's trunk, and the relevant factors, influences and outcomes appear as systems of roots and branches. DEvalRescC Solutions42
43 DEvalRescC Solutions43 Causes and influences Outcomes/Effects Main problem
44 Step 1: List all the problems that come to mind. The problems need to be carefully identified: they should be existing problems, not possible, imagined or future ones. Remember that the problem is an existing negative situation; it is not the absence of a solution – so try to avoid describing problems in terms of their solutions. Make sure that you express the problems as negative statements and NOT just titles or key words. For example, ‘Children have to walk two hours to reach the nearest school’ is OK; ‘Distance to school’ is not. DEvalRescC Solutions44
45 Step 2: Identify a Core Problem. This is the central problem to which everything else, either directly or indirectly, is connected. Such a problem can take considerable time to establish. Also, different groups will see the Core Problem differently. Those affected by the problem will see it in a different light to those trying to solve it. Step 3: Decide which problems are causes and which are effects. Step 4: Arrange the causes and effects in a hierarchy. Look at how do the causes relate to each other. Which leads to the other? DEvalRescC Solutions45
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47 Application of problem tree DEvalRescC Solutions47
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49 DEvalRescC Solutions49 Step 2: Identify the core problem Step 3: Separate the causes from the effects Based on information from step 1 do step 2 and 3
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52 To involve target groups in planning (and not just ‘consult’), you need to involve them in the problem analysis. To expand the four steps above for use with end-users / communities, you can use the following process: 1. Brainstorming: each group member contributes one or more problems drawn from personal experience. These can be collected on cards. 2. Cluster the problems identified during the brainstorming. 3. Identify the cause of each problem. 4. Identify the consequences if the problem is not solved. 5. Review the major problem orally. 6. Draw a tree trunk – put a word or a symbol that represents the core problem in the trunk. 7. Draw branches and leaves in several directions. 8. Participants suggest different effects of the problem, and each branch is used to represent a separate effect. 9. A root system, symbolising the causes of the problem, is drawn under the trunk. 10. The group suggests possible causes of the problem. Each root is marked with a picture or a phrase that represents a cause. Once the tree is completed, participants discuss the causes, deciding how much each one affects the major problem. DEvalRescC Solutions52
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54 Application of problem tree Write a proposal to apply for funding to strengthen capacity and collaboration of Stop AIDS Now Zimbabwe partners working in SRHR among youth to improve the RH status of youth. DEvalRescC Solutions54
55 Step 1: List all the problems that come to mind. The problems need to be carefully identified: ◦ they should be existing problems, not possible, imagined or future ones. ◦ remember that the problem is an existing negative situation; it is not the absence of a solution – so try to avoid describing problems in terms of their solutions. Make sure that you express the problems as negative statements and NOT just titles or key words. For example, ‘Children have to walk two hours to reach the nearest school’ is OK; ‘Distance to school’ is not. Step 2: Identify a Core Problem. This is the central problem to which everything else, either directly or indirectly, is connected. Such a problem can take considerable time to establish. Also, different groups will see the Core Problem differently. Those affected by the problem will see it in a different light to those trying to solve it. Step 3: Decide which problems are causes and which are effects. Step 4: Arrange the causes and effects in a hierarchy. Look at how do the causes relate to each other. Which leads to the other? DEvalRescC Solutions55
56 The Goal is the ultimate objective the project will contribute to - a general, long- term change - often or at national level or related to a specific sector. For example, types of change at goal level may include change in health behaviour, improved nutritional status or improved livelihoods, changes in public policy or reduced crime. DEvalRescC Solutions56
57 The Outcome (sometimes referred to as ‘Purpose’ or ‘Objective’) represents what your project will achieve by its end. Often the Outcome represents a behaviour change in the target group or a measurable change in circumstances affecting end-users. The Outcome is different to the Goal in that it should be complete by the end of the project. The Outcome is more specific than a Goal - it refers to a definite location, target group and time period and should be achievable and measurable within the lifespan of the project (SMART). DEvalRescC Solutions57
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60 Mind Mapping Brainstorm ideas Visualise concepts Structure our thinking Classify our ideas DEvalRescC Solutions60
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63 DEvalRescC Solutions63 Funnelling your facts from literature and context Problem/need 1.Why is the project necessary? 2.Describe the problem or need 3.Reasonable, brief, urgent 4.Statistics 5.Comments from experts 6.Who will benefit? 7.What are you going to change? 8.Why are you best organisation to do it
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69 DEvalRescC Solutions69 Key Personnel Who will work on the project? What responsibilities will they have? What percentage will they dedicate to project? What are their professional qualifications?
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71 DEvalRescC Solutions71 Budget Tips 1.Must reflect what has been developed in the proposal: You will have to report against it… 2.Follow guidelines… 3.Aim for full cost recovery.. 4.Divide into direct, indirect, staff costs - and make sure at least 70% goes to direct costs… 5.Charge maximum overhead - but don’t double count… 6.Use the appropriate currency – include inflation 7.At the end divide your cost by beneficiary 8.Ask: Am I sure I can deliver the results in the proposal for this $$ 9.Double check everything
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73 ‘Show me a good project proposal and I can tell someone can write we… Show me a budget … and I know what a project is actually going to achieve…’ DEvalRescC Solutions73
74 DEvalRescC Solutions74 Organisation Asking for Funding Capacity Statement…. 1.Accomplishments & Pending needs 2.How long has the organisation been in existence 3.Mission and Vision of your organisation 4.Experience of your organisation 5.Results achieved 6.Steps already taken
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76 Executive summary WHO is requesting the funds? WHY are funds being requested? WHAT problems will be addressed? WHAT are the expected results? HOW LONG will the project last? HOW MUCH money do you need? HOW MUCH do you have already? DEvalRescC Solutions76
77 1. Executive Summary - Statement of your case and summary of the entire proposal asking for - and $$ you are 2. Statement of need - why the project is necessary and why YOU can solve it 3. Project Description - Goals, objectives, results and activities 4. Work plan and Key Personnel 5. Monitoring and Evaluation 6. Organisational Information/capacity statement - history and governing structure; primary activities; audiences; services 7. Budget - with notes DEvalRescC Solutions77
78 1. Executive Summary = ½ page 2. Statement of need = 1 page 3. Project Description: Goals, objectives, results and activities = 3 pages 4. Work plan and Key Personnel = 1 page 5. Monitoring and Evaluation = ½ page 6. Organisational Information/capacity statement = 1 page 7. Budget - with notes = 1 page DEvalRescC Solutions78
79 “Getting in it in advance of the deadline …” “Clarity is very important - the proposal should explain the difference the project will make and to whom …” “Clarity and brevity…” “Give us information both from the financial perspective and the heart “ DEvalRescC Solutions79
80 Institutions are people too... Say Thank You Keep all copies of the grants agreement in a safe, accessible place Make sure you know who your contact person will be, and let them know who is responsible at your end If you have several foundation donors, develop a simple matrix to track reporting requirements DEvalRescC Solutions80
81 Institutions are people too... Send updates to the donor such as newsletters or annual reports – be proactive Leverage additional support from the donor such as technical assistance, introductions to other funders, endorsement of campaigns, etc Make sure that your relationships are institutionalised AND personalised Call them when things are going well AND when they are not – be open about problems DO well = more funding and more flexible funding DEvalRescC Solutions81
82 1. Do your research - decide - is this worthwhile? 2. Make a plan….. 3. Network - go where the donors are... 4. Raise your profile 5. Call people up 6. Work out your added value - and learn a 3 minute pitch 7. Write a good proposal tailored exactly to the funder’s priorities 8. Get to know your competitors 9. Deliver your projects and report well 10. Be open and honest 11. Remember your first relationship is the most difficult 12. Never give up… DEvalRescC Solutions82
83 “ It is critical to develop a relationship with the grant maker..” “ Innovation is going to be key …. Grant seekers need to be ahead of the game “ Good programme work and a credible reputation is more important than any written proposal” “ It is our job to give away money …. We want to be partners with you! … but remember we are human beings“ DEvalRescC Solutions83