Fundraising & Financial Sustainability,

identifying funding opportunities, proposal

writing key requirements & other

related issues

• Fund raising is key to non-governmental organizations’ financial sustainability and is valuable in strengthening their operations.

• Fund raising is a job to which all should contribute, and for which all should be responsible.

• Organizations that want to be serious contenders for securing institutional funding need to focus on organizational development first prior to seeking funds by making sure that they have good corporate governance systems and operational procedures in place.

Identifying funding opportunities

• Identifying and accessing funding is fundamentally a matter of staying abreast of upcoming funding opportunities by conducting regular research while staying connected with key partners to learn about funding opportunities.

• To identify as many potential grant-funding sources as possible for your organization, you need to carefully research various sources of funding.

• After narrowing down the categories of donors you would like to contact, the next step is to find out as much as possible on their programmatic & geographical priorities as well as application procedures.

• Review each funder’s initial approach preference to find what initial contact or approach document it requires.

• Focus on finding open or current grant-funding opportunities first, then later you can look out for expired notices and contact the grant-making agency to see whether the funding will be available again in the future.

How to know if the funder is a good match for your project

• Go to the funder’s website and read their grant-making philosophy.

• Review the projects/proposals they have recently funded. Notice the deadline for proposals.

• Download or request the proposal guidelines from the funder.

• Read (and reread) the guidelines carefully, highlighting key words and phrases.

• Notice whether the initial submission is a letter of intent (LOI), pre-proposal, application, or full proposal.

What to do when you find the agency is a good match

• After reading the guidelines, develop a checklist for all the proposal components you will need to assemble including whatever forms the grant maker requests.

• Develop a concept paper which can be an informal document or outline that answers the basic questions that will be fleshed out in your proposal.

• You will want to answer most if not all of the following questions in your concept paper:

• What is the idea or problem I want to examine/address?• Why is it important? To whom? What related project has

been done before and why is this different/needed?• Why are we the ideal organization to address this topic or

do this project?• Why now?• How long will it take?• What will be known/understood as a result of this project?• What resources do I need to do this project (time, money,

access, collaborators, travel, materials, equipment, space, etc)?

• What activities will take place?• Why will this project succeed?• What will success look like and how will it be measured?

• How will results be disseminated?• Can this project be replicated or furthered?• Will the project continue once grant funding ends?• Identify if matching is a requirement of the grant• Discuss your ideas and decide in house whether it makes

sense to contact the funding agency• If it is allowed call the funding agency to discuss your idea.

Often they will ask you to send your concept paper in advance of the conversation.

• Develop a timeline backing up from the deadline for proposal preparation and submission.

• If letters of support or commitment are needed, contact appropriate colleagues to make arrangements. You may want to send them your concept paper as well.

• Begin to create a budget for your project. The funding agency may have a required budget form that you can use as a template to draft your budget.

Types of Funding Resources• There are several types of funding resources that

include government grants, foundation funds, corporate sponsorships, and service organization grants.

• Some organizations provide grants on a national or state level while others provide to particular projects within specific communities.

• In the UK alone there are about 8,800 grant-making trusts and foundations, giving in total about £2.1 billion in grants to charitable causes each year though some of it is funding for academic research.

• The amounts they offer vary from a few hundred pounds to multi-million pound grants.

• Federal and State Governments. Federal or state governmental agencies often put out calls for proposals on specific topic areas.

• They usually have a timeframe during which they accept proposals and make funding decisions.

• It is important to be aware of the timing for different grant opportunities.

• Where possible, you may want to sign up for email alerts to receive notices about new calls for proposals.

• Foundations. Foundations can be a great source for funding projects, and finding the right foundation for your project is a critical first step in the application process.

• There are several types of foundations including community, family, and public foundations.

• Some are small and serve a specific community, while others may give millions of dollars to fund projects all over the country.

• There are several websites that can help you find a foundation that matches your initiative.

• Corporations. Many corporations offer grants through a foundation or philanthropic division – take a look at their website to see what types of programs and initiatives they typically fund.

• Companies tend to invest in the communities where they are located so investigating which corporations have headquarters or other corporate facilities in or near your community is a good place to start.

• Service Organizations. Civic and service clubs, like the Lions Club, and the Rotary may also have monetary or in-kind resources available.

• Members of service organizations represent many sectors (e.g. business, education, government, human services, or health) so engaging with them can create great synergy with these sectors.

• There are a number of helpful resources for staying well-informed of upcoming funding opportunities which you can look up on the internet and these include the following:

• The Grantsmanship Center provides state-specific information about the top grant making foundations, community foundations, and corporate giving programs, as well as links to state government homepages.

• The Foundation Center is a leading source on philanthropy worldwide and is supported by more than 550 foundations. They have library or learning centers and also maintain an online database of the more than 100,000 foundations, corporate donors and grant making public charities. However, searching the directory requires a subscription, the most basic of which costs $19.95/month.

• Grants.gov includes grant opportunities from 26 federal grantmaking agencies.

• The European Commission makes direct financial contributions in the form of grants in support of projects or organisations which further the interests of the EU or contribute to the implementation of an EU programme or policy. Interested parties can apply by responding to calls for proposals. http://ec.europa.eu/contracts_grants/grants_en.htm

Key Tips on Accessing Funds• Most successful fundraising is carried out through

networking and the building of relationships with funders.

• Fundraising success relies on superb marketing- Make use of social media as there has been 4 straight years of double-digit growth in online donations overseas.

• Plan ahead and know your specific needs – Clearly define resources you need to accomplish your initiative.

• Clearly understand funding goals and guidelines – Customize your proposal with the funders’ goals and objectives. Follow all technical guidelines as requested by the specific funder.

• Have a clear picture of success – What are the funders purchasing with their money? How will you deliver your product? How will you measure your progress toward reaching your goals?

• Have measurable outcomes – Who will benefit and how? How will your initiative be evaluated?

• Plan for sustainability – Funders want projects that will continue once the grant period is over. How will you sustain the program?

Approaching potential Donors 

• Always try to establish contact with a potential funder first and if possible try to meet with them.

• Introduce your organization and the programme you wish to undertake, but also ask the donor about their priorities and interests.

• Listen for clues as to how you can make your programme more attractive to the donor and what elements of your proposal would interest them most and explore additional features you could build in to make the proposal stronger.

• Submitting a formal proposal should be the last stage of the process, and by this point you should be fairly confident that you have strong chances of get funding.

• Establish contact wherever possible with the local programme officers of funding organizations as establishing personal contact can make all the difference to whether you succeed or not.

• Make sure you have done your homework first though and that the organizations you plan to visit are appropriate.

• Give the donor information about your organization, which is clear and professionally produced.

• An annual report with a summary of major achievements for the year, and summary accounts, is an invaluable tool.

• Provide prospective donors with information about your existing donors.

• If you are already receiving funds from international donors this will enhance your credibility.

• Annual reports of other NGOs - often contain information on principal funders.

• Local media (newspapers, magazines, and portals) - often carry stories about fundraising events and sponsorships, a good source for information on local corporate donors.

Major donor expectations on fundraising 

• Donors’ expectations today are higher than they used to be before as a poor economy and rising unemployment have meant that donors have had to rein in their expenditure and are more discerning about any spending.

• They expect charities to have strong ethical principles, that fundraising will always be good, honest and accountable.

• But they also want to know what charities have done with their money.

• They want to see clear reporting and many still expect it all to come without a price tag on administration and fundraising costs.

• All organizations must be open and impact reporting is key.

• There is also a growing expectation that people simply have a ‘right to know’ and if they can’t find out what they want to know relatively easily, they become suspicious.

• Deeply understand why the donor would want to support you and deliver on that.

• Speak the donors’ language • Thank and communicate with your current

donors well and promptly as research has shown that sharing the stories of how your donors support is making a difference will increase their giving by 70%

• Truly understand your donor’s motivations in giving.

• Build a relationship with your donors starting with initially engaging them in a thoughtful and meaningful way and then progressing by telling them frequently how they are making a difference.

How to develop winning proposals • A project proposal is a detailed description of a

series of activities aimed at solving a certain problem.

• Talk to the relevant donors as often as necessary. • Don’t get behind in developing your proposal.

Don’t procrastinate.• Make sure you stay on top of deadlines so that

you have time to put the writing down days before submission.

• Revise, rewrite and repeat; after you’ve left the proposal alone for a few days, come back and make the language more concise; rewrite sentences that are unclear.

• Make the proposal interesting to read. Let your enthusiasm for the project show through the writing.

• Use action verbs. Spark the reader’s interest, regardless of his or her area of expertise.

• Begin paragraphs with topic sentences, making sure that even someone skimming your proposal will clearly understand what you’re setting out to do.

• Set deadlines for your proposal development, and include your proposal deadlines on your main calendar so you stay on schedule.

• Read successful proposals that have received funding so you can identify key aspects that each one included, and design your own list of tips to keep in mind as you write.

• Check out resources which can aid you during the development process.

• Don’t use jargon that reviewers may not understand. If you do, explain it in the first reference. The people reading your proposal may not be familiar with the specific area.

• Pay attention to the donor’s guidelines before, during and after developing the proposal to ensure that you have followed every guideline.

• Make appointments with the donor agencies as far ahead as possible, to allow plenty of time to use the advice and information you receive to improve your proposal.

• Call or email to schedule a meeting whenever possible and usually before a call for proposals is released.

• Write persuasively to sell your concept.• Remember the reader, above all and write so the

reader, any reader, from any profession, can read your proposal.

• Be careful not to write sentences that sound pretty but don't say anything. Do re-enforce a concept. Give a different example.

• Develop the timeline thoroughly. Make goals tangible and quantifiable.

• Allow plenty of time to prepare your proposal carefully and thoughtfully. Do not rush through the process.

• Read the application package in its entirety before starting to write. Be sure you are an eligible applicant and your proposed project addresses the funding priorities.

• Follow the formatting guidelines carefully and precisely. For example, if guidelines request a font size of 12-point or larger, do not use 10-point size. Also, if page limitation is set at 25 pages, do not exceed this number.

• Structure your narrative according to the selection criteria. This helps to ensure that you cover all required information and also makes it easier for reviewers to evaluate your proposal.

• Be clear, concise, and specific in your responses to the selection criteria.

• Justify your funding request in accordance with project activities keeping in mind that all costs must be reasonable and necessary to carry out your project.

• Be specific about how the funds will be used and link them to items in your proposal narrative.

• If there is a limitation on the award amount noted in the application package, do not request funds in excess of that amount. Do not request funds for unclear purposes.

• Do not request funds for anything that is not directly related to the program you described in the narrative portion of your application.

• Check your budget figures for consistency. The amounts on the application, the Budget and in the narrative justification for your budget request must be identical.

• Proofread your proposal. Ask a colleague who has not been involved in its development to read the proposal. Reviewers will not give your proposal the benefit of the doubt if information is missing, spelling errors change the meaning of sentences, or information is presented in a confusing manner.

• Use the checklist printed in the application package to ensure that all required information is included.

• Make sure that your agency's authorized representative signs all required forms.

• Submit your proposal by the deadline date. Extensions for individual applications failing to meet the deadline will usually not be granted.

• If you have any questions, or need additional information, about the grant competition, contact the funding agency through the contact details listed in the application package for clarification.

• Reviewers are often very busy and must often read a number of applications in great detail and form an opinion about each of them.

• Proposals that are able to express their arguments persuasively and concisely win grants and get funded.

• So many worthwhile ideas get put into the unfunded category in reviews because the proposals are not written clearly and don’t present the importance of the project forcefully enough.

• Your application has a better chance at succeeding if it is easy to read and follows the required format.

• Reviewers are accustomed to finding information in specific sections of the application, so you must organize your application to effortlessly guide reviewers through it.

• This creates an efficient evaluation process and saves reviewers from hunting for critical information.

• Before you start writing the application, think about the budget as well and remember that everything in the budget must be justified by the work you've proposed to do.

• Be realistic. Don't propose more work than can be reasonably done during the proposed project period.

• Include enough background information to enable an intelligent reader to understand your proposed work.

• Organize your thinking; start with an outline following the suggested organization of the application.

• Write one sentence summarizing the topic sentence of each main section. Do the same for each main point in the outline.

• Make the case; capture the reviewers' attention by making the case for why they should fund your proposal.

• Tell reviewers why testing your hypothesis is worth their money, why you are the one to do it.

• Spell out all acronyms on first reference. • Be consistent with terms, references, and

writing style.• Create a compelling title for your proposal.• Decide upon and prepare any attachments

that are permitted.

If there are no submission guidelines, what format should I use?

• Most proposals include:• Executive summary• Background of the institution and project• Discussion of why the project is important• Methodology – what activities and steps you will

undertake to address the issue or need• Description of what will be done and who will do it• Expectations and how they will be evaluated• Dissemination of results• Sustainability after the grant• Timeline and budget

• Mercilessly edit the whole document.• Appearance is as important as content.• There should be no obvious grammatical

errors and an absolute minimum of typographical errors

• Outshine Your Competitors. A proposal is a sales document, designed to persuade the donor to fund you instead of a competitor.

• So make certain your proposal reinforces your strengths and addresses any potential reservations the donor may have.

• If your competition is much larger than you, then you've got to show your strengths

• To properly present your strengths, you must know how you stack up against the competition. So wherever possible you need to know your competitors and their abilities.

• Building credibility goes a long way in getting that grant. Use your board members and advisors to 'advertise' your organization and your work.

• Funding organizations work in grant cycles, disbursing grants one to three times a year. So, if you fail for the current grant, you can always apply for the next round.

• It is important that the requested budget is within the limits of the funding organization's limits.

• No funding organization want to see a dependency on external funds for the success of a project.

• Clearly outline how self-sufficiency will be built using a long-term strategy, which goes beyond the time frames of the proposal being made.

• Community support for most proposals is essential. Look for individuals or groups representing academic, political, professional, and lay organizations which may be willing to support the proposal in writing.

• The type and caliber of community support is critical in the initial and subsequent review phases as letters of support can be persuasive to a grantor agency.

• Do not overlook support from local government agencies and public officials.

• Seek outside inputs early and chase them• If you need to get prices or information from

other parties, plan this and ask for their input as soon as possible.

• Give a firm deadline for their responses that gives you enough time to adequately assess their contribution.

• If the response has not come in by the deadline, follow up and make it clear that you need the information right away.

• Weight the sections and allocate space appropriately

• Some Requests for Proposals tell you the evaluation weightings that will be applied – others leave it open.

• If you know or can guess the relative weightings of the components of your proposal, then make sure you apply a proportionate amount of energy (and space) to those sections which are heavily weighted.

• Use your best available information to develop your profile

Conclusion

• Fundraising is all about marketing and donor expectations are constantly changing.

• Take time to evaluate what’s working for you, why and where you should go next.

• Whenever developing proposals always remember to put yourself in the reviewer’s frame of mind