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 there, you may find that the organisation loses direction and cannot keep going.

Developing a Fundraising Strategy

Example Headings for a Fundraising Strategy

Review of the current Position

1. Current Strengths and Weaknesses
2. Past Fundraising Experience
3. Existing fundraising strengths and resources
4. Projection of fundraising needs
5. Overall fundraising Strategy
6. Proposed new sources of income
7. Suggested methods to meet fundraising targets
8. Resources needed to do this

SUMMARY - The key elements of a funding strategy

• 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?
• Realistic - is what you want to do realistic and achievable?

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?

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