Project Formulation There can be no management of fundraising without planning. Do you know what you are asking for? Do you have a development plan? Does it fit with your organisation’s vision and mission? Is the leadership on board? Do you have a fundraising plan?
Proposal Development A proposal is part of a larger process (inc research, cultivation and solicitation) The proposal is part of the cultivation of a donor/investor The proposal can come before any other contact is made or at the end of the fundraising cycle (after the ask)...or anywhere in between.
Prospect Research Prospect research, is also known as development research or fundraising research. It is a process in fundraising wherein a researcher identifies and provides relevant information about potential donors to an organisation.
What is required for Prospect Research? Competent staff Print resources Internet facilities and resources Databases – Devman; Foundation Centre Online;
Types of Prospect Research A) Proactive – Socio Political and Broad Data collection; increased donor pool; donor community trends; national grant making trends; paradigmatic shifts in development B) Reactive – Specific Searching existing donor pool; profiles and matching
The Prospect Research Cycle 2. Internal Stakeholders Brainstorm 3. Sift existing data pool 4. Broad Prospect List 7. Prospect Profiles 6. Create short prospect list 5. Specific research (in-depth) 1. Understand project
List of Resources International philanthropic and other websites often used in prospect research www.chapel-york.com www.philanthropyineurope.comphilanthropyineurope.com www.onphilanthropy.com www.corporatephilanthropy.com Comtemporary Africa Database: people.africadatasbase.org General search engines South African philanthropic and other websites often used in prospect research www.papillonpress.co.zawww.papillonpress.co.za - FREE donor directories of org's and ind's with breakdown of focus areas www.thefundingsite.co.zawww.thefundingsite.co.za - subscription site of prospective donor profiles (nice if struggling to find the information or simply don't have the time - R750 for 12 months) www.Mbendi.co.zawww.Mbendi.co.za – profiles corporates, business and political executives, organisations, etc. http://foundationcenter.org/http://foundationcenter.org/ - subscription site of USA and Canadian (i think) Foundations - gives nice breakdown of focus areas, financials, grants to other org's, etc... I think not cheap but a MUST in a development office http://foundationcenter.org/pnd/http://foundationcenter.org/pnd/ - Philanthropy News Digest - FREE weekly newsletter with updates on Foundations and grants made. www.satimes.co.ukwww.satimes.co.uk - UK online newpaper that profiles an SA moving and shaking in the UK. www.whoownswhom.co.zawww.whoownswhom.co.za - book on companies (listed and not) and their structure (Directors, Subsidiaries, etc..) some find this useful, others not. www.whoswhosa.co.zawww.whoswhosa.co.za - subscription (get hard copy and CD-ROM) - very good resource profiling Who's Who in Southern Africa. A MUST in a development office. www.forbes.comwww.forbes.com - FREE lists of people by gender, wealth, age, etc.... just need to sign up http://business.timesonline.co.uk/section/0,,20589,00.htmlhttp://business.timesonline.co.uk/section/0,,20589,00.html - UK Rich list 2006 broken down into newcomers, new and old money, the full list etc... nice little profiles on ppl www.busrep.co.za/index.php?fSetId=261&fSectionId=2509www.busrep.co.za/index.php?fSetId=261&fSectionId=2509 - SA Director's Dealings - updated weekly with new articles. Good way of starting to assessing individual's wealth. www.fin24.comwww.fin24.com latest director's dealings from the JSE - additional list Top Women in Business & Government 2005/6 - published by Top 300 Publishing & Events Keep eyes open for lists that hit the newspapers, for instance, the Sunday Times Top 500 Wealthiest South Africans; the M&G Yellow Book of Prominent South African Women; Sunday Times Top 10 Most Powerful Black Directors & Top 10 Most Influential Black Directors; Sunday Times Top Brands; Financial Mail 2004 Annual CEO Packages; Sunday Times 2006 Companies of the Future; Sunday Times Top 100 Companies.
Ideal Prospect Data Organisational details International funders Capacity to give Giving guidelines Previous giving Relationship with institution Deadlines Submission process
Matching Prospects Using proposal and prospect research to link the needs of the donor to the needs of the project Matching prospects will lead to stronger relationship Give the donor an opportunity to give to something they are passionate about
Cultivation It is rare for a new contact to become a donor. Relationship building is key to long-term sustainable support On average it takes nine meaningful interactions for a donation
Cultivation – Why? The more donor/investors are involved in the activities of the organisation, the greater their financial commitments
Cultivation Process Awareness Interest Trust Commitment
Cultivation Activities Events Open day, invite to open even Personal Interaction Discussion with staff and volunteers Meetings AGM, round table discussions Lunches/dinner (e.g end of year) Invitation to join advisory board or trustees
Solicitation THE ASK Once you have established the relationship the asking is the easy part!
Stewardship Is the new relationship that follows an investment Is about making the investor’s experience as pleasant as possible
Stewardship Courtesy: Good manners It is the right thing to do A donation requires a response – people do not buy a response THANKS Develop a culture of thanking Install thanking systems Thankathon
Why a StewardshipPlan? To increase donor investment in your organisation To increase the number of repeat donors To increase the amounts given by existing donors To maintain long-term support Donors bring other donors
Stewardship of the gift Stewardship is also about stewardship of the gift Ensure good financial reporting Ensure narrative reporting Ensure funds are used as indicated in the proposal.
Why Report back? Part of stewardship is reporting Essential part of maintaining good relationships. Contractual condition.
What donors want to know? Project success/problems Personnel changes Awards for your work Evaluations of your work Other funders in the project New funding requirements Gilchrist, Karen, Looking After Your Donors, Directory of Social Change, London, 2000
Practical Stewardship Quick turnaround time for Thank you letters Receipting Personalised thank you letter from VC. Donor recognition for large contributions, long-term donors Events Programme launches Publications – newspaper reports Meetings with beneficiaries Email progress reports Invitations to general events Follow up on pledges politely
Building loyalty through Recognition Donors like to be recognised by: Thank you letters Plaques Mention in annual report Special events Naming Certificates
Common Mistakes Expectations of immediate results Focus on marginal projects Public criticism of the university Avoiding prospect clearance Accepting funds that are not in line with priorities Wild-cat fundraising
Conclusion Our donor base can be grown with long-term vision and commitment. Raising funds involves the following principles : Relationship building Confidence in vision, mission and leadership Attracted to success Key functionality required is: Good prospect research Prospect clearance system Cultivation plan Stewardship plan Underpinned by data base and communications and marketing
Questions for discussion & way forward Thank you