fundraising plan

The most important step in successful fundraising is to have a plan. You need to take time to think through strategies for achieving that plan. Also set a timeline and break down tasks into manageable pieces.

Producing a fundraising plan involves the following 3 steps:

1. First Steps

• Identify the purpose of obtaining funds.
• Check whether fundraising is really necessary — consider what's available now and whether there are other ways of achieving what you want e.g. does another group have the equipment that you could use? Rather than money, could you get a donation of a service or item instead?
• Think about who will gain from the fundraising e.g. will your target group benefit?

2. Once you've decided to raise funds

• Establish a fundraising committee — build a team of people who will help you raise money and provide you with support in the planning process.
• Describe the exact purpose for raising funds — it's much easier to raise funds for a particular project than it is for operating costs.
• Set a budget — work out how much it will cost you to raise the funds e.g. running expenses such as salaries for professional help, rent, phone, power, printing, cleaning, stationery, transport, auditing, equipment etc.
• Set goals — work out how much money you need to raise and by when. Then break that down into manageable pieces e.g. $100 for stationery and $200 for travel etc. Make sure the goals are meaningful and varied — raising funds for the same thing year after year can be demoralising.
• Build a fundraising pyramid (see picture) — this is a tried and true formula for working out how many of a certain type of donation (small, medium or major) you need to raise for a particular amount of money. This is based on the fact that people give at varying levels, depending on their capacity, motivation and, most importantly, on how much they're asked for. In most successful campaigns, one third to half of income comes from large gifts and legacies, another third comes from medium-sized gifts, and the final third comes from smaller gifts. The trick to meeting your fundraising target is to decide what amount constitutes major, medium and small gifts, and how many gifts you need at each level of the pyramid.

Fundraising pyramid

(From So You Want to Do Fundraising, ICBL).

• List the other (non-monetary) resources needed — check these against the resources already available: people, equipment, transport, facilities etc.
• Build a fundraising team — it's good to create a network of people who will join you in raising funds. Have those people who enjoy this type of work. Those who dislike it are better off working for the organisation in some other way.
• Consult — decide who will need to be consulted before any decisions about the fundraising venture are made. This is likely to mean getting the backing of your board.
• Evaluate (and choose) your funding options (see "Funding Options" below).
• Know how to account for any funding you might receive — this includes tax implications, keeping accurate records for your own organisation and for the funding organisation and/or donor (see Section 6 — Financial Management).
• Develop your strategies (including a timeline) to put your final plan into action. Make sure these strategies fit into your overall income plan.

3. Now you're ready to ask for the money

funding options

Local FundRaising Activities

• Food and entertainment e.g. balls, socials or shows, wine and cheese parties, fancy dress or hat parties, picnics.
• Sales e.g. t-shirts, bumper stickers, fridge-magnets, ballpoints, tea towels (these can also promote your organisation), puppets, art works, auctions, garage sales, cake stalls, sausage sizzles (many supermarkets encourage them and even provide a barbecue), market days, calendars, cookbooks, published histories of the organisation.
• Money for labour e.g. working bees, gardening, painting, labouring, section clearing, home delivery.
• Sponsored activities e.g. swims, walks, triathlons, games.
• Exhibitions or demonstrations e.g. a celebrity match, pottery demonstration and "have a go".
• Community services e.g. rubbish collections, bottle drives (where there isn't a regular recycling service), information pamphlets, community directories.
• Competitions e.g. sports days; "top town" team events, quizzes, beach games, treasure hunts.

Raising Money through Membership

• Membership fees — charge a membership fee for your organisation. Some organisations have a "sliding scale" of fees according to whether the member is unemployed, on a low income, a student, employed, or a corporate or government organisation.
• Having patrons — patrons can be selected for the status they bring to the organisation or in acknowledgement of their financial support (in this case you could consider setting a patron subscription).
• Friends of the organisation" membership — "friends" are usually people interested in the organisation but not directly involved with it. It's a good idea to offer something to your "friends" (e.g. open days, newsletters, cheaper entrance fees, preferential booking) in return for their paying a subscription or a donation (you can suggest the amount) to the organisation.
• Business membership — this is similar to "friends" but is directed at commercial organisations.
• Local authority or government agency membership — where this is appropriate you could charge a higher membership fee.
• Major sponsors — similar to business sponsors but the contribution to the organisation might be substantially higher. For more information about sponsorship refer to the "Business Sponsorships" section below).

(From Seizing the Moment II: Turning Community Ideas into Action).

Donations

Someone giving something is called a donor and the recipient of that donation is called a donee. Donations can be given by corporations, foundations and individuals. Donations also come in different forms including cash donations, donations of income (e.g. from interest or rent) and donations in kind (e.g. provision of free services or donated goods). Donors can be involved to varying degrees from little or no involvement, to active management on how the gift is used.

Donor-donee relationship

If a donor wishes ongoing involvement in the management of their donation, they may have little formal control but considerable informal influence over the donee. The donor may or may not have expertise related to the application of the gift, but the donee may feel unable to raise any concerns as the donor has given the money and may give more in the future. This means the donor-donee relationship can start on an unequal footing. To make the relationship work there needs to be an open relationship between the donor and donee. Expectations from both parties need to be very clear from the start and may require renegotiation at a later date.

Business Sponsorships

Sponsorship is a two-way agreement in which a company will offer cash, product or service for an association with your organisation or a particular activity.

In order to gain sponsorship you will need to clearly state what the benefits are from this association. These benefits may include company or brand exposure, potential for increased sales and /or logo placement. Your task is to highlight an opportunity for this association to occur such as a project, event or activity that is seen as attractive to the potential sponsor. It's your organisation's responsibility to follow through and deliver what you have promised.

While money is the most obvious benefit of a sponsorship, voluntary groups can also gain much from gifts in kind such as printing, transport and equipment; space for offices; payment for publicity; and volunteer work paid for by companies that have corporate volunteering programmes.

Sponsorship strategy

A sponsorship strategy involves:

• identifying activities suitable for sponsorship
• writing a clear summary of and budget for the proposed activity
• identifying potential benefits for the sponsors
• establishing the value to the sponsor
• identifying potential sponsors and selecting who you will approach
• writing the sponsorship proposal
• approaching the sponsor
• follow up with the sponsor.

Ways of recognising sponsors

You could put the sponsor's name on:

• clothing
• all stationery, which can be done cheaply with a self-inking stamp
• all promotional material such as entry or registration forms, posters, tickets
• notice boards at clubrooms
• cups, medals and ribbons
• a display by the sponsor in the clubrooms
• the club banner.

You could also:

• advertise the sponsor's wares or activity in programmes and club newsletters
• promote and foster the sponsor's name and products at, or during, an event, in your annual report, or at the AGM
• have the organisation or its members become involved in promotional activities for the sponsor
• give the sponsor the opportunity to market products at the venue or to the participants
• distribute the sponsor's advertising material at clubrooms or to all participants
• have the sponsor's advertising on your venue
• have the sponsor use photos of events for their own promotions.

Professional Fundraising Consultant

Consultants advise, plan and organise events and activities with the support of, and from, the organisation. It pays to ask around other similar organisations that have used them and get a referral. The Fundraising Institute of NZ (FINZ) can help with advice on consultants specialising in particular areas. You may want to receive their bi-monthly magazine FINZ on Fundraising, or join one of the FINZ regional networks.

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