CHAPTER 1: WHAT IS FUNDRAISING?
The goal of fundraising is to secure enough resources to
forward your organization’s mission.
To develop a good fundraising strategy, you must
understand how much money you need, what kinds
of resources are available, and which ones you can
realistically access. You also need to think about where
your organization is going over the next year or longer
so you can develop plans to meet future needs as well as
your needs today.
Fundraising is not something separate from the work
you do – raising money is an important way you can
build a network of people to support your work. If your
supporters think highly enough of your organization to
give their money to sustain it, they are endorsing your
work and showing their commitment to its success.
Building a strong network of donors increases the
credibility of your organization because it shows that you
can mobilize people and resources toward your goals.
This is very powerful!
Funding models are often closely related to the type
of organization. A network that promotes women in
business may rely on membership dues for most of its
budget, while a research institution that studies women’s
role in the economy may get most of its funding from
government grants. It makes sense to raise money from
the people and organizations whose interests are most
closely aligned with your mission.
DEVELOPING A FUNDING STRATEGY
Before you start asking people for money, you need to
define your organization’s needs and the best places to
look for resources. It is important to have a strategy for
raising money that makes sense for your organization.
What works for another group in your field or region
may not work for you.
Many organizations, especially in the beginning, rely on
one source for all their funding. As they grow, they realize
that they need to find other sources to survive. They
try to diversify by finding additional supporters. This
can mean reaching out to other donors of the same type
(such as other foundations) or developing a new source of
financial support (such as corporate gifts or membership
fees). A second source of funding may provide a small but
steady source of support to supplement other funding
and help cover basic expenses – or it may boost revenue
so that the organization can start a new program.
First, ask yourself a few questions:
What is your budget – how much money does your
organization need to pay its bills for this year?
Where do you get the money you raise now? How
many donors and income sources do you have?
Sometimes, community-based organizations (CBOs)
or nongovernmental organizations (NGOs) believe
that if they could just get a grant from a European- or a
U.S.-based foundation, their financial problems would
be solved. Unfortunately, this is seldom the case. Most
international funders are reluctant to provide grants
that cover an organization’s entire budget, unless they
are just starting up. Many foundations will not fund
community-based groups unless they can demonstrate
a solid base of local support for their work. Others have
restrictions that will not allow them to fund more than
a certain percentage of the organization’s total budget.
Many foundations will not guarantee more than one year
of funding at a time and will, after a few years of grants,
stop their support altogether, no matter how well the
organization performs.
What is the average size contribution you receive?
What will you do with th