NGO MANAGEMENTSession 3: Seeking Donor SupportMariam MemarsadeghiTuesday, 15 July 2014

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Quiz

1. A mission statement2. Bylaws…3. A Board of Directors… 4. Financial management…5. An audit…

6. Internal controls…7. Sustainability…

A. Is an NGO’s governing bodyB. Help to prevent fraud

C. Involves organizing, controlling, and reporting on spending to achieve objectivesD. Are rules that establish how an organization defines itself and operatesE. Expresses the reason for the

existence of an organizationF. Refers to the long-term

viability and survival of an organization

G. Is an independent examination of finances, policies, and

procedures of an organization

EDACGBF

Class overviewIn this session, we will address the following questions:

What funding opportunities exist for Iranian NGO initiatives?

How can you research these and stay up to date with them?

How should you make your initial “pitch” to donors?

What successes have you had?

What challenges have you faced?

Let’s Discuss

What are some types of NGOs that need support, and where/how could they find it?

Types of funders

Government

International organizations

Foundations

Corporate

Individuals

Government

Advantages:

• Often have large amounts of funding available

• Big funding can mean deep, lasting impact

• May fund for the long term

• Tend to fund broadly, across sectors

Disadvantages:

• Application process is often lengthy, bureaucratic, and complex

• A decision can take months and even longer than one year

• Reporting requirements are stringent and can include major audits

• Possibility that government funding could compromise impression of independence

International organizations

Advantages:

• May mean special credibility and access to networks

• May fund for the long term

• Big funding can mean deep, lasting impact

Disadvantages:

• Application process can be lengthy and complex

• Some may not take unsolicited proposals

• Funding priorities may change

• For international aid organizations, may not fund small-scale projects

International organizations include UN agencies, the World Bank, and the EU, among others

Foundations

Advantages:

• Motivated by a particular mission or well-defined cause, and have deep understanding of the issue

• Clear guidelines on what is being funded and the process for getting funding

• May be more flexible than government funding, providing “core funding”

• Funding can come quickly

Disadvantages:

• Funding tends to be much smaller than government donors, but reporting requirements may be just as stringent

• Competition may not be as open, fair and transparent as government donors

A foundation is an entity established for the purpose of giving money to promote a social good.

Corporate

Advantages:

• Often have large sums of money

• Professional and accessible staff

• Usually clear agenda

• May provide good exposure for your NGO

Disadvantages:

• Funding priorities may change often

• Sensitive to alienating government stakeholders

• Priorities may not be consistent with values or vision of your NGO

Corporate funding includes funding from national and international corporations, provided through a foundation or contributions programs.

Individuals

Advantages:• Can be a major source of support

• Can lead to other contributions from individuals

• Allows individuals and communities to feel closely involved with your NGO’s work

• Less funding restrictions

Disadvantages:• Individual fundraising is difficult, time

consuming, and requires high levels of organization and personal commitment

• NGO needs to be well-known and trusted in the community

• Often small amounts of funding per donor

• Large contributions from individuals could mean control and/or unhealthy dependencies

• Individuals can compromise the credibility of your NGO if they are found to be corrupt

• Individuals can compromise your vision or neutrality because of their own positions or actions

What do you think?

How do these opportunities apply to the

Iranian context?

How do you find donors?• Websites like FoundationCenter compile funding

opportunities• Directory of Human Rights Funders – ihrfg.org• Funds for NGOS – fundsforNGOS.org• Individual foundations often present funding opportunities

on their websites. (A list of funders is available in this lesson’s readings.)

• Word of mouth - use your networks!

Mapping Your Network

YOU

Finding government donors

• For United States government funding WWW.GRANTS.GOV

Navigate through the site to choose a funding agency

• For Swedish government funding: WWW.SIDA.SE

• For Dutch government funding: WWW.GOVERNMENT.NL

• For Canadian government funding: WWW.INTERNATIONAL.GC.CA

• For British government funding: WWW.GOV.UK

Finding international organizations

• European Instrument for Democracy and Human Rights (EIDHR)

WWW.EIDHR.EU

• United Nations Democracy Fund (UNDEF) WWW.UN.ORG/DEMOCRACYFUND

• UN Women Fund for Gender Equality WWW.UNWOMEN.ORG

• UN Voluntary Fund for Victims of Torture & Voluntary Trust Fund on Contemporary Forms of Slavery

WWW.OHCHR.ORG

Finding foundations• National Endowment for Democracy WWW.NED.ORG

• Ford Foundation WWW.FORDFOUNDATION.ORG

• Oak Foundation WWW.OAKFND.ORG

• Blaustein Foundation WWW.BLAUFUND.ORG

• Open Society Foundations WWW.OPENSOCIETYFOUNDATIONS.ORG

• Hivos WWW.HIVOS.ORG

Before approaching a potential funder…

What should you do?

Before approaching a potential funder

• Know Them• What is the donor’s mission

and how can you help fulfill it?• Why should they be interested

in you?

• Know Yourself• What is the unique purpose of

your organization?• What problem are you trying to

solve, and how can your project help? Why and how can you do it better than others?

• Who is interested in the project? Who will benefit from your program? Who is your target group?

Before donor contact…You need to be able to answer the following questions:• What is your overall mission and your project goal

and objectives, and how do they align with the donor’s priorities?

• Why is there a need for your project? How does your project address that need, and what is your comparative advantage in this field?

• What are your past successes and donors? What collaborative partnerships, networks, awards, and recognition do you have?

You will present this information in different formats throughout your donor outreach.

Your elevator pitch• An elevator pitch is a short (30

seconds), compelling summary of your NGO and its work.• What do you do?• What impact does your

work have?

Your elevator pitch will be useful at/with:• Conferences• Events• Parties• Workshops• University• Community

gatherings• Family get

togethersLet’s practice!

Writing letters of interest (LOIs)• What is a letter of interest/inquiry?• An introduction to your project and organization, which

addresses how your organization can meet the funder’s priorities

• The goal is to grab the donor’s interest so that they invite you to submit a concept note/proposal

A LOI should... Make a great first impression Be void of errors Be concisely, beautifully written Show your integrity and professionalism

Writing letters of interest (LOIs)A LOI should include….

An introduction to your organization A description of your project and the need for it The project’s goals and objectives Past successes (past donors, too) Collaborative partnerships, networks, awards,

recognition Mutual funding interests and amount of requested

funds Contact information

Let’s Discuss

What is your experience with emailing donors?

Concept notes• What is a concept note?• A brief description of a potential

project, submitted prior to a full proposal

• The goal is to convince the donor to invite you to submit a proposal

• They are usually solicited by the donor

Make sure to abide by specific requirements of individual donors (page limits, budget format, etc.)

Concept notesA concept note should include….The same elements as the LOI but more strategy and detail, such as:

• More on impact• Monitoring and evaluation (M&E)• Sustainability• More on project budget• More compelling arguments for why you are better

Approaching donorsWhat to do if a donor doesn’t accept unsolicited proposals?

After making sure the donor is a good prospect…

• Use your network to get an introduction to a donor board member/staff

• Or send a letter of introduction asking to meet with the donor and provide more information on your organization (without requesting funding)

In short, do your best to create a personal connection.Recommendations and referrals can be very useful.

Persistence pays off.

Also, try getting to know multiple people at the same donor institution.

Try, try again!

Approaching donorsIf a donor is accepting proposals…

• Give them a call or set up an in-person meeting in order to establish a relationship before submitting your proposal.

• Keep in mind the donor’s priorities.

• Make sure you adhere to all requirements!

Approaching donors

Develop your instinctsabout donors.

Assignment

• Read materials for Session 4: Proposal Writing • How to Build a Good

Small NGO – Chapter 4

• Discuss on the discussion forum:

1) How can you improve the LOI you wrote, based on what you learned today?

2) What suggestions can you offer your classmates on finding and appealing to donors?

Any questions?