Mark Butcher
An MBA Fast Track Management Guide
Fundraising, income generation and sustainability Fast Track Management Guide Š MBA 2007
Contents Introduction
2
Different Strokes
5
Raising money from trusts
7
Raising support from business
14
Using your annual report to raise money
22
Raising money for core costs and revenue
24
Developing a fundraising strategy
27
Capital fundraising
38
Further reading
47
About the author
48
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Fundraising, income generation and sustainability Fast Track Management Guide © MBA 2007
Introduction About MBA
MBA, based in Newcastle upon Tyne, is one of the U.K.'s leading providers of training, consultancy and information to voluntary, community and statutory sector organisations. In the past 18 years we have worked with hundreds of organisations across Europe, Africa and the U.S.A. including the National Trust in London, the European Cultural Foundation in Amsterdam and the Carmichael Centre in Dublin. Our mission is to enable not-for-profit organisations and the individuals within them to exceed expectations and operate at a higher level.
About MBA Fast Track Management Guides Each Fast Track Guide is designed to give you a quick overview of a specific management issue, covering all of the points and issues.
Other titles in the series include:
21 Ways to Manage Your Time
The 10 Golden Rules of Not-for-Profit Marketing
An Introduction To Project Management
The Magic Circle – Strategic Planning for Nonprofits
Influencing and Negotiating Skills
High Impact Presentation Skills
Peak Performance-Becoming The Best You Can Be
Leadership
Did you know? By joining MBA’s online Gold Membership Scheme you would receive four Fast Track Management Guides for free, hundreds of other Knowledge Bank management resources and our bi-monthly fundraising bulletin. Visit our web-site for more information (www.mbaconsulting.co.uk).
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Fundraising, income generation and sustainability Fast Track Management Guide Š MBA 2007
About this Management Guide There are two ways to benefit from this publication. You can read it from cover to cover (we have kept it nice and short to help you). This will give you access to all of the key ideas, themes and issues related to the subject.
If you have more time though, you can work through the exercises, apply the learning to your own organisation and share your thinking with colleagues. Although this will demand more time, we strongly believe it will give you better results and real solutions to your specific challenges.
Taking your learning further
You can find full details of the publications, training, consultancy services and information resources available from MBA Consulting at www.mba-consulting.co.uk .
ŠMBA 2007. All rights reserved. No part of this document may be reproduced in any form whatsoever without permission. The contents must not be lent, re-sold, hired out or otherwise circulated in any form, by way of trade or otherwise. Please feel free however to print hard copies for internal use within your organisation or team. www.mba-consulting.co.uk. Tel: 0191 226 7304/6
page 4
Different strokes
Fundraising is a complex and technical business.
The key fundraising challenge is not a lack of
There are many different specialisms and skills
money. There is plenty of money out there.
involved. You might be a corporate fundraiser
Individuals give over £8 billion in the U.K. each
and yet know nothing of telephone fundraising.
year; trusts around £3 billion. Whether you need
A dedicated trust fundraiser is unlikely to know a
£1,000, £100,000, or £1,000,000, finding a donor
great deal about legacy promotion. An events
that can give in this range is relatively easy - the
management fundraiser could be entirely ignorant
challenge comes in gaining their commitment to
of the principles of high net worth recruitment or
your cause. To do this, your key arguments
payroll giving. Yet despite this level of complexity
should not be about your need for money, but
and the demands that this places on the
about how funding you will help them achieve
fundraising function of an organisation, most
their goals.
voluntary, community and charitable fundraising in the U.K. is not carried out by specialist
Different funders - different desires
fundraisers. Instead, most fundraising activity is carried out by the many thousands of Managers,
The first job of a successful fundraiser is to
Project Directors and Chief Executives who have
understand what these goals or interests may be,
never applied for a job called ‘Fundraiser’,
and this question is complicated of course by the
‘Sponsorship Officer’ or ‘Development Worker’ but
fact that there are different types of funders - each
who shoulder the burden because there is no one
with their own particular agenda. A charitable
else willing or able to do it.
trust might want you to help them change the lives of disadvantaged people or bring public art into
That’s why we want to offer a quick overview of a
the community. A business might want you to
range of fundraising methods and consider the
engage their staff in a morale boosting activity.
best way to approach different types of funders.
A government department will want you to deliver
This book is designed to get you started and to
the outcomes demanded by current government
signpost you to further information and advice.
policy.