Fundraising Guide (English) June 2014 - Page 7

Despite these challenges, pursuing foundation funding can be well worth the effort. This guide will help you understand some of the basic principles of fundraising and introduce you to a variety of donors and gift types. It will also provide you with some guidelines on how to determine if you qualify for funding and how to apply for grants. This knowledge will equip you to analyze your own situation and your local context, and figure out the best options available for your organization. you may build a relationship with a women’s giving circle that makes annual contributions to your organization and also introduces you to Fair Trade companies that feature your products. WHAT ARE “PROSPECTS”? Once you have identified how much money you need to raise, the next step is to find donors to fulfill those needs. Prospects are potential donors, organizations, or people who could give your organization money in the future. Developing a list of potential donors, known in fundraising terminology as a “prospect pipeline,” is crucial to developing a good fundraising plan. Don’t be intimidated or discouraged by the complex fundraising environment. Start by developing the most promising opportunities first. As you gain experience and build your networks, continue to look for new ones. Using this approach, you can build a solid funding base that will sustain your organization over time. Prospects are only as good as your research and rating of how much they are likely to give. A simple process can help you determine whether a person or organization is a good prospect for you. Here is how to do it: WHAT IS SUSTAINABLE FUNDING? Sustainable funding means that you have a variety of different types of funders so that your organization is not dependent on one big grant or donor. Making it sustainable means that you build relationships that continue to fund you over time, not just for one year or one project. 1. Capacity: Does the person or organization have the money to give you right now? How much? For foundations or corporate donors, you can use the Internet to research the size of other grants that they have made in the past. This is important to learn how to do; see Appendix 3A for some resources to help you get started. Here is an example breakdown of what a diverse and sustainable funding base might look like: 2. Passion: Does the person or organization have passion for your type of work? Make sure there is a “match” between what you do and what the prospect is passionate about. For example, if you work with a women’s farming cooperative in Ghana and the donor has a history of giving to projects involving agriculture, women, and Africa, it may be a match. However, if the donor has only invested in emergency food programs in Indonesia, the prospect probably won’t be interested. You can determine their passion by looking at their past giving online, any annual reports or other publications they may have issued, and by directly communicating with them.  One or two family foundations that fund specific projects, such as a well, training program, or irrigation project for a cooperative.  larger foundation grant that may fund a program A plus some capacity support for your organization.  One or more local businesses that “sponsor” some of your work or provide supplies in return for visibility or marketing for their business. Perhaps you serve children and a local business donates t-shirts with the company logo on them for the children to wear.  One or more contracts or sub-contracts with a large development organization to provide services that match your mission. Perhaps you are a rural cooperative for women farmers and have a contract or subcontract with a funder to provide specific training geared toward your members and nearby communities. 3. Managing prospects: Your prospect list is like a treasure. Keep track of your prospects on paper, a spreadsheet, or a chart on a computer. Your objective is to keep all your prospect information handy and easily usable – this is what makes it valuable. It is worth your time to set this up in whatever system works best for you so that you will be able to track information and stay in touch with people. Here is a sample of the information you should track:  Small amounts of funding from giving circles or affinity groups that “adopt” your organization’s work. These giving circles or affinity groups can also raise awareness for your group and make suitable connections for your organization. For example, 4