INSIGHT: THE PRINCIPLES OF FUNDRAISING

Whilst when times were good it was perhaps possible to take short cuts, save money and still be reasonably confident in securing the funds needed, now is the time to get back to basics.  At Tarnside we have done just that to ensure that we miss nothing and harness every opportunity.  You might like to do the same.  We have tried to help by summarising below the areas that you might want to consider.  These include some of the fundamental Principles of Fundraising that shouldn't be forgotten.  We hope they will help you remain agile through these challenging times.

1. Take control

It is important not to bury your head in the sand.  How robust is your fundraising appeal and what steps need to be taken to prepare for potential challenges?

  • Do not rely on past business plans or strategies to carry your appeal forward.
  • Be prepared to think carefully about the needs of both your organisation and your appeal.

  • Be ready to tailor fundraising strategies to suit your appeal's current and/or ongoing circumstances.

2. Step back and really think about your cause

The amount of money available to charities has decreased and the level of competition therefore continues to rise - how robust are your plans?

Revisit your appeal's Case for Support (CfS) - make sure that it is as strong as it could be:

  • An effective CfS should highlight the strengths and impact of your organisation and project - it should motivate a prospective donor to support your cause.
  • Ideally a CfS should be prepared at the start of a project so, if this process hasn't been thoroughly thought through within your organisation, be prepared to do so now.
  • Look closely at your project's fundraising appeal - take the time to really research and evidence your cause and appeal.
  • Think about your project's 'Unique Selling Points\' and why a donor should support it.

Good groundwork really will pay off in the long term.

3. Set realistic budgets and forecasts

The current unstable fundraising climate clearly highlights the need to be realistic when setting budgets and fundraising targets:

  • Take a good look at your budget and decide whether there are areas that could be streamlined.
  • Review the length of your appeal, taking into account increased fundraising time and costs.
  • Review budgets regularly and reforecast when necessary.
  • Manage fundraising costs carefully.
  • Be up-front and honest about how your appeal is progressing.

  • Keep all key stakeholders abreast of potential gaps in income well in advance to enable collective corrective action to be taken in a timely and positive manner.

4. Be prepared to adapt your fundraising strategy

Establishing a robust Case for Support allows your organisation to be more flexible with its fundraising strategy.  Traditionally, many fundraising appeals have relied heavily on one source of income to achieve targets, usually trusts and foundations.  Fundraising departments are also often dependent on a small number of specific funding areas.  Now times are different:

  • Analyse your project and appeal and plan to target a diverse selection of relevant funding streams.
  • Revisit your fundraising strategy regularly.
  • Be prepared and ready to make adaptations - or even change direction - if necessary.
  • Stay aware of the impact of the recession on sources of funds - a school of thought holds that government funding is likely to be vastly reduced in 3 years time as the time-lagged impact of the downturn bites even harder.
  • During these uncertain times regular reviews, assessment of risk and constant communication within your appeal management team (and key stakeholders), will enable the appeal to adapt and respond confidently to alternative fundraising prospects.

  • Don't stop fundraising or abandon relationships that have been initiated - cement your cause and give future donors the confidence to give to your appeal.

5. Think about your donors

Make sure that there is a proper donor management programme in place for all donors, including trusts and foundations. Existing relationships are the key to sustaining future income. Work hard to maintain these partnerships:

  • Ensure that all reports and communications are submitted on time.
  • Always portray your cause in a good light.
  • And last but by no means least, remember to say THANK YOU!