5There can be no management of fundraising without planning. Project FormulationThere 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?5
6Proposal DevelopmentA proposal is part of a larger process (inc research, cultivation and solicitation)The proposal is part of the cultivation of a donor/investorThe proposal can come before any other contact is made or at the end of the fundraising cycle (after the ask)...or anywhere in between.6
7Prospect ResearchProspect 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.7
8What is required for Prospect Research? Competent staffPrint resourcesInternet facilities and resourcesDatabases – Devman; Foundation Centre Online;8
9Types of Prospect Research A) Proactive – Socio Political and BroadData collection; increased donor pool; donor community trends; national grant making trends; paradigmatic shifts in developmentB) Reactive – SpecificSearching existing donor pool; profiles and matching9
10The Prospect Research Cycle 1. Understand project7. Prospect Profiles6. Create short prospect list2. Internal Stakeholders Brainstorm3. Sift existing data pool5. Specific research (in-depth)4. Broad Prospect List
11List of ResourcesInternational philanthropic and other websites often used in prospect researchComtemporary Africa Database: people.africadatasbase.orgGeneral search enginesSouth African philanthropic and other websites often used in prospect research- FREE donor directories of org's and ind's with breakdown of focus areas- subscription site of prospective donor profiles (nice if struggling to find the information or simply don't have the time - R750 for 12 months)– profiles corporates, business and political executives, organisations, etc.- 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- Philanthropy News Digest - FREE weekly newsletter with updates on Foundations and grants made.- UK online newpaper that profiles an SA moving and shaking in the UK.- book on companies (listed and not) and their structure (Directors, Subsidiaries, etc..) some find this useful, others not.- subscription (get hard copy and CD-ROM) - very good resource profiling Who's Who in Southern Africa. A MUST in a development office.- FREE lists of people by gender, wealth, age, etc.... just need to sign up- UK Rich list 2006 broken down into newcomers, new and old money, the full list etc... nice little profiles on ppl- SA Director's Dealings - updated weekly with new articles. Good way of starting to assessing individual's wealth.latest director's dealings from the JSE - additional listTop Women in Business & Government 2005/6 - published by Top 300 Publishing & EventsKeep 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.
12Ideal Prospect Data Organisational details International funders Capacity to giveGiving guidelinesPrevious givingRelationship with institutionDeadlinesSubmission process
13Matching ProspectsUsing proposal and prospect research to link the needs of the donor to the needs of the projectMatching prospects will lead to stronger relationshipGive the donor an opportunity to give to something they are passionate about13
14Cultivation It is rare for a new contact to become a donor. Relationship building is key to long-term sustainable supportOn average it takes nine meaningful interactions for a donation14
15Cultivation – Why?The more donor/investors are involved in the activities of the organisation, the greater their financial commitments15
17Cultivation Activities EventsOpen day, invite to open evenPersonal InteractionDiscussion with staff and volunteersMeetingsAGM, round table discussionsLunches/dinner (e.g end of year)Invitation to join advisory board or trustees17
18SolicitationTHE ASKOnce you have established the relationship the asking is the easy part!18
19Stewardship Is the new relationship that follows an investment Is about making the investor’s experience as pleasant as possible19
20Stewardship Courtesy: Good manners It is the right thing to do A donation requires a response – people do not buy a responseTHANKSDevelop a culture of thankingInstall thanking systemsThankathon20
21Why a Stewardship Plan?To increase donor investment in your organisationTo increase the number of repeat donorsTo increase the amounts given by existing donorsTo maintain long-term supportDonors bring other donors21
22Stewardship of the gift Stewardship is also about stewardship of the giftEnsure good financial reportingEnsure narrative reportingEnsure funds are used as indicated in the proposal.
23Why Report back? Part of stewardship is reporting Essential part of maintaining good relationships.Contractual condition.
24What donors want to know? Project success/problemsPersonnel changesAwards for your workEvaluations of your workOther funders in the projectNew funding requirementsGilchrist, Karen, Looking After Your Donors,Directory of Social Change, London, 2000
25Practical Stewardship Quick turnaround time forThank you lettersReceiptingPersonalised thank you letter from VC.Donor recognition for large contributions, long-term donorsEventsProgramme launchesPublications – newspaper reportsMeetings with beneficiariesprogress reportsInvitations to general eventsFollow up on pledges politely
26Building loyalty through Recognition Donors like to be recognised by:Thank you lettersPlaquesMention in annual reportSpecial eventsNamingCertificates
27Common Mistakes Expectations of immediate results Focus on marginal projectsPublic criticism of the universityAvoiding prospect clearanceAccepting funds that are not in line with prioritiesWild-cat fundraising
28ConclusionOur donor base can be grown with long-term vision and commitment.Raising funds involves the following principles :Relationship buildingConfidence in vision, mission and leadershipAttracted to successKey functionality required is:Good prospect researchProspect clearance systemCultivation planStewardship planUnderpinned by data base and communications and marketing
29Questions for discussion & way forward Thank you