This factsheet is
part of a series of three. The other factsheets are Factsheet
7: Funding Sources and Factsheet 8: Funding: Making
Applications
The aim of this factsheet is to give guidance on the whole
process of fundraising from deciding what you need funds for to
making the application. It is designed for groups that have not
yet begun fundraising, and as a useful tool for more experienced
fundraisers.
Fundraising is a vital part of your organisation. It involves
getting the resources - money, equipment, premises etc. - that
your organisation needs to carry out its work. Fundraising should
therefore be an organised, planned activity. There are a number
of stages:
Stage 1:
Appoint a fundraiser or fundraising group
Stage 2: Make
sure you’re ready to be funded
Stage 3: Decide
what you need funds for
Stage 4: Make
a budget
Stage 5: Locate
funders
Stage 6: Make
applications
Stage 7: Follow
up
These guidelines
go through each of these areas one by one. You may want to follow
this process step-by-step, or refer to one section that interests
you.
The time from
when you decide you need funds to when you get them paid into
your account is likely to be a few months. As a guideline allow
6 months (it might be less,
it could be
more).
1: Appoint a
Fundraiser or Fundraising Group
It is essential
that a person, or group of people, see fundraising as their
responsibility. Fundraising requires time and effort to be
successful, so a person or team should commit themselves to it.
Fundraising doesn’t have to be full-time (most fundraisers
have other tasks in the organisation) but it should be seen as an
important and separate piece of work. This person or group should
oversee all the following steps:
2: Make sure
you’re ready to be funded
All funders
require a minimum level of organisation on your part, so that
they can feel that their money will be properly spent and
managed. They usually require that:
·
You are a non-profit organisation with charitable or benevolent
aims
·
You have a set of rules or constitution, stating your aims and
how you operate
·
You have a bank account and keep financial records.
You should also
be sure that you are ready to manage the amount of money you will
request, and that you will successfully complete the work or
project that the funding is for.
Certain things you might want to fund - a worker, a building, a
vehicle - give you legal obligations. You need to understand
these rules, and take steps to comply with them.
3: Decide what
you need funds for
Decide whether
you want to cover your organisations general running costs, or
have a particular project, with costs of its own. Make a list of all
the items that you could need to pay for, for your organisation
or project.
Divide the list into two categories - capital and revenue. Capital
means items of equipment that you usually pay a fixed one-off
amount for - a building, a computer, a vehicle, for example. Revenue
is on-going costs like wages, expenses, bills, core funding.
Decide when you need the money for, and how long it has to last.
For a project, there will usually be a start and finish date, or
at least an idea how long it will last. If you are looking for
general running costs, you should include all your expenditure
for 1 year, or 2 or 3 years. It is up to you how far ahead you
can accurately plan,
but 1 year is a
usual minimum.
4: Make a
budget
Budgeting is
simply putting amounts to all the things you’ll need to
spend money on. Budgets should not be guesswork - get as near as
you can to the actual amounts you will have to pay. For example:
get quotes for building work, get exact prices for equipment, ask
how much rent people pay for similar offices to yours, find out
how much people get paid for the kind of posts you want to fund.
Don’t forget to include in your budget realistic amounts for
contingencies and reserves.
Funders will know if your budget is not accurate - your figures
will be too rounded, or unrealistic. A properly worked out
budget is one of the most important elements of successful
fundraising.
5: Locate
funders
Once you have
made a budget you can start to look for funders. All the options
are covered on the separate factsheet Fundraising 2 : Funding
Sources.
6: Make
applications
After finding
appropriate funders, the next stage is to make a good
application. This important area is covered in a separate
factsheet Fundraising 3 : Funding Applications.
7: Follow up
You should think
of fundraising as a long-term, ongoing process, not a one-off.
How you treat your funders is therefore important. You might want
to go back to funders in future, or may need to show new funders
that you have a good track record of managing funds.
So once you have succeeded in getting your funds, there is a
vital first step - say thank you! Many beneficiaries simply
accept the money without acknowledging it. Funders are human
beings too, and will respond well to gratitude for the help they
have given. A phonecall may suffice, a letter will be much
appreciated, or you could invite them to come along and see the
project they have funded in progress.
Make sure that you do all that the funder requests in terms of
monitoring your work, reporting and accounting. You may need to
fill in a form or forms to show how you have spent the money, or
how the project or organisation is progressing.
If there are no particular forms to fill, it is a good idea to
send a report to your funders. This will build a stronger
relationship with them, which could lead to more support in
future. This could be not just facts and figures but also photos
of your work, to show how the money is being used bring your work
to life.
8: Further
Help
Telephone 0161
236 3206 or www.green-fish.org.uk
© The Green
Fish Partnership Ltd 2001