1. Resource Mobilization and Fundraising Training Bureau of Addis Ababa Women, Children and Youth Presented by : Chalchisa Tolesa 28 Dec/2011-02Jan/2012 Addis Ababa 1

2. This presentation: Explains what is resource mobilization and fundraising all about Discusses why resource fundraising is important Outlines main skills required in fundraising Highlights on who should do the fundraising Provides main types of donor sources of funding 2 Resource Mobilization and Fundraising

3. What is resource mobilization all about? The process and procedures used by organizations or group of people for activating all resource that have been requested to respond to or support 3

4. What is fundraising all about Raising Resources Fundraising is selling an idea to someone who has the means to make it happen. It is marketing. 4

5. What is fundraising all about Raising Resources If you are successful you will get what you want, e.g. money, sponsorship, support in kind or commercial service that you need. You have to make the donor interested in your ideas, and if they are interested enough, then they will want to help you by giving support. 5

6. What is fundraising all about Gaining numbers of supporters It should be made clear right from the start that, fundraising is not just about money, it is also about numbers of supporters. Each supporter is important to you. 6

7. What is fundraising all about Gaining numbers of supporters They can all be persuaded to give again and to give even more generously. They may be able to volunteer or to find friends who are willing to support you. They are an indication of the level of support that your project is attracting, and therefore can add strength to your lobbying and campaigning work. 7

8. What is fundraising all about Creating a viable and strong organization In addition, fundraising entails also about helping create a viable and strong project, which is able to sustain itself into the future. This is partly achieved by building a substantial and active donor base, that is, getting people to support you, who feel involved and important to the project, and, who will continue to give their support over a long period of time. 8

9. What is fundraising all about Creating a viable and strong organization Other ways include, organizing successful fundraising events, which can create a regular and continuing source of income. Since many projects address to long term needs, e.g. community development issues which will not yield immediate results, or looking at disables or elderly people where there is continuing need to provide care, it is important that you create an project that is financially strong and positive 9

10. Why Resource Mobilization and Fundraising is Important? Survival Every project needs money to survive. To meet project costs and developed programs for the future. To pay the salaries of its staff and all the office overheads that is needed. 10

11. Why Resource Mobilization and Fundraising is Important? Survival To keep buildings and vehicles in a good state of repair, and to pay for new equipment etc. The truth is that if the money is not raised, the project will not be able to do the work, and, if the work is not done, then all those pressing needs will remain unmet. 11

12. Why Resource Mobilization and Fundraising is Important? Reduce dependency Many project are funded with one or perhaps several major donors providing most of the funds that they require. This can put the organization into a state of dependency. 12

13. Why Resource Mobilization and Fundraising is Important? Reduce dependency If one of the grants is withdrawn, this could create a financial crisis. Broadening the fundraising base by bringing in other donors and by generating other sources of money can reduce this dependency. 13

14. Why Resource Mobilization and Fundraising is Important? Expansion and development If the project is to meet challenges of the future, it may need to expand and develop its work to improve its service, extend its work into other regions, undertake research, campaigning and advocacy alongside its basic service delivery work, experiment and be innovative 14

15. Why Resource Mobilization and Fundraising is Important? Expansion and development All this requires money, more money that will need to be raised. In this particular case, a business plan or a long-term sketch budget is necessary. Always remember fundraising takes longer than you think, the more you plan ahead the more successful you will be in getting the resources. “Failing to plan is planning to fail”. 15

16. Organization Review Before looking into more detail of the skills required in fundraising it is of vital importance to re-examine your project to seek whether it has a clear mission or not. A mission is a brief statement indicating what an organization intends to achieve. 16

17. Organization Review The mission is dependent on the vision which is a long- term direction of the organization. A single organization cannot achieve a vision of its own. Clarifying the mission will enable the project set clear objectives and strategies in the fundraising exercise. 17

18. Organization Review Internal Review One of the powerful tools in assessing an organization is SWOT analysis. SWOT analysis identifies the strengths, the weakness, the opportunities and the threats in it’s fundraising. By doing this you will be able right from the beginning to develop: 18

19. Organization Review… Fundraising approaches which will build on your strengths. Avoid those areas of weakness or find ways of compensating for them. Seize the opportunities that present themselves. Develop ways of dealing with the threats that appear on the horizon. 19

20. Organization Review External review External review is best done through PEST analysis and stakeholder analysis. PEST analysis examines the political, economic, social and technological environment, which is used to explore the environment in which the fundraising takes place e.g. Political changes: Will the change in government have an impact on the project?. Will the project bill currently going through the parliament make fundraising easier? Or more difficult? 20

21. Organization Review Economic changes: What effect will next round of structural adjustment program have on our fundraising? Social changes: What impact will the predicted growth in tourism have on our country and on our fundraising? What impact will the growth in the urban population have? Technological change: What opportunities will arise when the bank introduces electronic cash transfer systems? What opportunities will the expansion of satellite television and local radio in rural areas have? All these factors will affect the organization in one-way or the other and its fundraising strategy. 21

22. Organization Review Stakeholder analysis Stakeholder analysis attempts to identify those funders and agencies with an interest in your project’s work and explore reasons why they might be interested in assisting with funding or through the provision of other resources or through some form of partnership Identifying stakeholders and understanding the reasons for and strength of their interest is a good starting point for developing some form of relationship. This knowledge seeks to answer two key questions: 1. Who do you think should be funding you? 2. What is their interest in doing so? 22

23. Skills Required In Fundraising Selling an idea Fundraising is more about selling an idea that the donor can make a difference than about asking for money. Fundraising is a two-stage process that is, showing the people that there is an important need, which you can do something useful about it and if you can show them how some extra support could be used to do even better. If they agree that need is important and if they agree that your organization is doing something significant to make a difference, then asking for money becomes easier 23

24. Skills Required In Fundraising Commitment to cause Commitment to cause is one of the most important attributes that a fundraiser can bring to the job. If the cause or need does not seem important to you, then how can you convey to others the importance and urgency of doing something about it? You must really believe in the cause you are addressing and in the work that your project is doing. 24

25. Skills Required In Fundraising Ability to ask Many people feel uncomfortable with the notion of actually asking for money. Anyone who has this difficulty will not be a natural fundraiser. Whether the task in hand is to write a four page letter, make a speech at a meeting, telephone, a business to ask for an in kind donation, organize a committee to run a fundraising event, or pay a personal visit to seek the support of a major donor. All this requires ability to ask effectively for what you need. 25

26. Skills Required In Fundraising Confidence, dealing with rejection When you are asking for resources, you need to show confidence. If you are apologetic or hesitant people will not give you. One of the biggest problems is maintaining your confidence in the face of rejection. Since many more people are likely to say no than say yes at first instance, it is very easy to get down hearted. A good fundraiser has to be able to cope with rejection, starting each fresh approach as if it were the first, and to be prepared to learn from experience. 26

27. Skills Required In Fundraising Truthfulness The fundraiser has to be truthful all the times. It is at times obvious that the need to persuade people creates a pressure to tell only partial truths and to claim more for your work than is the case; this is not a good approach. Always present a sensitive but truthful case, whilst making it powerful enough to persuade donors to give. 27

28. Skills Required In Fundraising Accountability and reporting When you take money from somebody you are responsible for seeing that the money is spent on the purposes for which it was raised. Failure to do this is a breach of trust. You may be obliged to report back to the donor as a condition of the grant. 28

29. Skills Required In Fundraising Accountability and reporting to show them that you have used their money effectively and efficiently. This is not only polite, but, it is a good fundraising practice. A good fundraiser should be accountable and who feels sense of reporting back. 29

30. Who Should Do The Fundraising Having discussed the qualities of a good fundraiser, who then should be actually doing the fundraising work? Should we use internal manpower resources or should we engage or recruit an external fundraiser? 30

31. Who Should Do The Fundraising From within we have a range of options from the Chief Executive Officer, Management Committee, Fundraising Committee, Professional fundraiser to a volunteer. External fundraisers include among others fundraising consultants, supporters and International agencies. 31

32. Who Should Do The Fundraising Whether you decide to use an internal or external fundraiser, you need to decide the right time to create this position. Ask yourself questions like, can we afford to? What effect will it have on the administrative costs of the project? Will not having a person to do the work mean that you will fail to raise the money you need? Or fail to develop the support you will need if your project is to expand? 32

33. Who Should Do The Fundraising External consultants are always costly, and sometimes they are not very familiar with environment you are operating in. However, if you are developing a major initiative, they can provide an extremely useful input of experience and knowledge, which can add value to your fundraising effort. Through experience you will get to know which is the best approach to use. The most important measure is the fundraising ratio(the income raised by a particular fundraising idea or method divided by the cost of doing it). 33

34. Who Should Do The Fundraising The costs include any direct expenditure on the fundraising, and the cost of your organizing time as well as an appropriate share of the organization’s overheads costs. This will give the best indication of the costs needed to raise a given amount of money. The higher the ratio the better the method. 34

35. Who Should Do The Fundraising Who should do Fund Raising Management Committee Fundraising Committee Professional fundraiser Volunteers Consultants Supporters International Agencies 35

36. Pre-requisites for effective fundraising A stable management Committed Leadership Organization Review Clarity of the Mission Lack of major crisis Thinking strategically - Where you are - Where you want to be - How you get there 36

37. Donor Sources of Funding There are many sources of funding ranging from individuals to International grant aid. From the donor point of view, there are different ways of giving and different reasons for giving. Therefore, for you to understand them, it will be easier to get their support. It is equally important for the fundraiser to have a clear idea of whom they plan to approach and how they propose to attract their support. 37

38. Why people give Concern Duty Personal experience They are asked Pear Pressure Need for recognition Political motive Economic motive 38

39. Why people give Different ways of giving Donation Continuous support Major gift Purchasing gift items (fundraising) Supporting fundraising events Volunteers (giving time service) 39

40. Why Companies give To create goodwill Association with cause e.g. environment Because they are asked Tax exemption 40

41. Ways of mobilizing resources Accessing existing wealth (from private and public sources); Generating new wealth (though market- based approach); Capitalizing on non –financial resources. 41

42. Ways of mobilizing resources approaches for accessing existing Wealth: Indigenous foundations Individual philanthropy/charity Grass-roots CSOs Government Business. 42

43. Ways of mobilizing resources approaches for generating new wealth : Conversion of foreign debt ; Establishing and operating existing micro-credit programmes; Tapping social investment; Building reserve funds; Using internet. 43

44. Ways of mobilizing resources ways of capitalizing on non-financial Resources: Volunteer time ; Volunteer skilled labour Goods and materials Experience Seconded professional personnel; Training; Assess to services provided for non-profit organisation; Champions. 44

45. Ways of mobilizing resources Role of Committee members in resource Mobilization Based on the approach adapted: Accessing existing wealth Generating new wealth Capitalising on non- financial resources 45

46. END OF PRESENTATION THANK YOU 46