“Fundraising is a science. But its rules are more like a rainbow than a formula. You need to paint with the most delicate shades of colours and moods. You will surely become a success if you paint with love and friendship” Ekaterina Ki

Fundraising is the life blood of any nonprofit organisation. But, where do you start? New fundraising techniques and methods come into existence every year, but the basic ones should be the backbone of your fundraising efforts. These are, literally, your "bread and butter."

Some Key Principles of Fundraising

i.   The whole purpose of fundraising is to raise money, and it is often forgotten that the call to action – the punch line asking people to give, is the essential piece of the message. Most importantly while fundraising, you must ask clearly what you want, having regard to the donor's ability and willingness to give when deciding what to ask for. 

ii.  The more personal is your approach, the more effective it is. A face-to-face meeting is always better than telephoning someone asking for support or writing a personal letter to someone.

iii. Donors do not fund organisations or abstract concepts, they will give to people who do something good for others. Hence, it is important to show through actual examples of people you have been able to help or case studies illustrating your work, showing the impact of your work. This way you can show donors how their money can make a difference. Also, it is essential to understand the donor's viewpoint and their area of interest, it could be a personal reason or a generic one.

iv. The organisation's credibility and public relations are extremely important. People would want to give to organisations they have heard of doing good work.

v.  Always ask for realistic amount, people do not want to give an enormous amount or give too little. Saying 'Thank You' is extremely vital as it recognises and values the donor's generosity.

vi. What you really want are people who will give you regularly and substantially. All the efforts to find a donor and persuade them to give will really bear fruit only if they continue to give over many years and possibly increase the level of giving. 

vii.You may be obliged to report back to the donor as a condition of the grant. But you will want to do this anyway to show them that you have used their money effectively. This is not only polite, it is a good fundraising practice  as an enthusiastic donor who has seen the money make a difference may consider becoming a more committed supporter.

So where does the money come from?

Individual Donors: There are a wide range of potential donors for various causes but it is important for the fundraiser to have a clear idea of who they plan to approach and how they propose to attract their support.

Government Grants: These include being funded nationally by central government or being funded regionally or locally by regional or local government. For some organisations government funding is the mainstay of their work, for others it is marginal or just one of several sources.

International Grant Aid and Development Funding includes support from overseas government. aid programmes such as USAID, DFID etc.; Support from international agencies such as the UN, World Bank etc.; Support from International development agencies such as ActionAid, Oxfam, World Vision etc.

Foundations: Foundations are independent grant making bodies. They can be important source of support, as they are set up with the express intention of giving their money away for charitable purposes and community development.

Company Giving: An important source, corporate companies give to create goodwill; to promote their products and services; to encourage employee volunteerism; to be associated with certain causes; because they are asked; because the Chairman or the Senior managers are interested; to receive tax benefits etc.

[Source: The Worldwide Fundraiser's Handbook by Michael Norton]

Barkha Henry, Programme Officer (Resource Development)