Successful Fund Raising
By Noshir H. Dadrawala
Centre for Advancement of
Philanthropy
A Good Fund Raiser:
·
Must
Believe in the cause
·
Should
be Innovative
·
Should
be an Effective Communicator
·
Should
be Persistent and Determined
Income Of Voluntary Organizations:
·
Donations:
-Individuals,
-Companies,
-Trusts/foundations,
-Government,
-Foreign agencies,
-Charity cash box, etc.;
-Internet
· Other
Forms of Income
-Interest/Dividends:
On short/long-term investments;
-
Sale
of products: usually prepared by beneficiaries of the organization
-Rent: If the organization leases
out its property like office space, hall, etc.
-Membership fees/subscriptions
(Entrance fee being in the nature of capital receipt, is not to be
treated as “income”.)
Types of Donations/Grants
·
Corpus
·
General
·
Earmarked
·
Matching
·
Returnable
Corpus/Endowment
It is a “capital receipt” and therefore not treated as income.
Donor must express the intent in writing that the donation is
towards corpus.
Corpus donation should preferably be invested in long-term deposit
and only the interest used.
General Purpose
For general activities of the organization, including
establishment expenses, programming, etc.
Earmarked
For specific programs/projects only.
It could be earmarked by the donor as corpus or otherwise
Matching or Challenge Grant
Donor agrees to give 50% of the amount required for a programme/project
provided the organization raises the balance
Mr. Carnegie’s challenge?
Returnable Grant
It is like a loan for two or three years to be returned after the
program becomes self-sustaining.
Sources of Funding
1.
Individuals
2.
Foundations,
Trusts and Donor Agencies
3.
Corporations
4.
Government
5.
Religious
institutions
1. Individuals
According to ‘Giving USA 2005’
(The Annual Report on Philanthropy
for the year 2004),
-Americans contributed
$ 248.52 billion to charity,
-Individuals donated an estimated
$ 187.92 billion (75.6%).
-Bequest giving was estimated at 19.80 billion (8%)
-Foundations contributed $ 28.80 billion (11.6%) and
-Corporations $ 12 billion (4.8%).
Indian Survey:
According to a national survey covering around 28 percent of
urban
India
and concluded in August 2001 by Sampradaan:
-96% of upper and middle class
households in urban
India
donate to a charitable cause. The total amount donated is Rs.
16.16 billion.
Other
Findings of the Survey:
-In terms of average annual
donation, Christians in
India
take the lead, followed by Hindus/Jains;
Sikhs; and Muslims.
-Christians also give the highest average annual donations to other
(non-religious) organizations (Rs. 301 per year).
The most popular purpose
for which money is donated is to relieve distress of victims of
calamity,
21% donating for this
purpose.
Important Reasons for Giving (According to the Survey):
1) Feeling of compassion (68%).
2) Feels good (48%).
3) Religious beliefs and practices (46%)
4) Believed in the cause or the organization (29%).
2. Foundations, Trusts & Funding Agencies
-According to a study by Charities
Aid Foundation (
India
) and Voluntary Action Network of India, it is estimated that an
aggregate Rs. 25,717 million (1997-98 data) comes into
India
by way of foreign funds to the voluntary sector.
-The study also revealed that, out
of 18,700 organizations registered under the Foreign Contribution
(Regulation) Act, 12,000 filed “nil” returns in 1998.
In other words, only 6,700 organizations are recipients of foreign
funds.
-The same study estimates funds
from government sources to voluntary organizations to be around Rs.
2,000 million.
-The bulk of foreign funds from
bilateral and multilateral agencies are channeled through government
and are, to that extent, indistinguishable from government funds.
-Only the funds of foreign funding agencies like Oxfam, Ford
Foundation etc., flow directly to private voluntary efforts, albeit
with government permission.
-In the year 2000,
India
received foreign contributions aggregating Rs. 4,000 crores.
3. Corporations
-Corporate giving in
India
during the year 2000 was estimated to be Rs. 2000 crores.
-ActionAid & IMRB Study:
According to a study of Indian
companies with stated and unstated policies on philanthropic
activity, conducted by the Indian Market Research Bureau &
commissioned by ActionAid
India
, 83% of the survey companies saw themselves as major players in
everything from rural community development to running projects for
the disabled to upgrading infrastructure facilities for the
underprivileged.
Reasons for Adopting a
Philanthropic Policy:
-70% believe they have an obligation towards society upon whose
resources they are drawing;
-50% felt concern for a specific group;
-40% felt concerned for the
underprivileged;
-23% cited benefits to the organization.
-“Benefits” Perceived by the
Surveyed Companies
-Satisfaction (in fulfilling
social obligations) 45%
-Improved credibility (with general public and the Government) 28%
-Builds confidence and pride in staff 19%
-Tax benefits 09%
-Factors
Influencing Corporate Giving/Partnerships:
-Is the project for the community in which the industry operates?
-Is there scope for the company in projecting a “caring-sharing”
image about itself?
-Is there any tax benefit?
-Is
it a long-term investment for the company?
(e.g., economic growth of the
community leading to increased consumerism or a better
educated or technically skilled community leading to a better
workforce for the company)
-Is there a possible link between
the company’s philosophy and goal and the project?
(E.g., pharmaceutical company supporting a community health
program or a housing development corporation supporting a project
for low- cost housing).
-The
Right Approach:
-Never approach a company CEO with a “begging bowl”.
-Approach the CEO with a business proposal - a “social investment
strategy” in areas where there is a major societal concern.
-Appeal to the Bottom Line
-The fund raiser has to appeal to the CEO’s “business sense”
that his business is more likely to thrive in a healthy society and
environment and it would make “good business sense” for the
company to adopt a philanthropic policy.
4. Government
There is no reliable information
available on the volume or the specific areas in which Government
disburses funds for welfare or development purposes.
Government Schemes:
The Central and State Governments, have several schemes for
assistance to voluntary agencies in areas of Human Resource
Development, Welfare of Women, Children and marginalized
communities, Health, Family Welfare, etc.
-Ministry of Human Resource
Development
Shastri Bhavan
New Delhi
110 001
Ministry of Welfare
Shastri Bhavan
New Delhi
110 001
-Central Social Welfare Board
Jeevandeep,
Parliament Street
New Delhi
110 001
Ministry of Health & Family Welfare
Nariman Bhavan
New Delhi
110 001
-Ministry of Agriculture
Co-operative and Rural Development
Krishna Bhavan
New
Delhi
110 001
Ministry of Science & Technology
Technology Bhavan, New
Mehrauli Road
,
New Delhi
110 016
-Voluntary
Action Co-ordination Cell (Planning Commission)
Yojana Bhavan
Parliament Street
New Delhi
110 001
5. Religious Institutions
Some temple trusts in the city of
Mumbai
are parting with some of their funds for educational purposes.
Example:
-Mahalaxmi Temple Trust,
-Mumbadevi
Temple
Trust
and
-Siddhi Vinayak Trust.
-In
South India
, Tirupati Devasthanam has also devoted some of its funds to secular
activities like establishing colleges and hospitals.
Methods of Fund Raising:
·
Face-to-Face
Solicitation
·
Direct
Mail
·
Legacies
& Bequests
·
Special
Events
·
Payroll
Deductions
·
Cause-related
Marketing
USEFUL TIPS
·
Fund-raising
is an art, not a science. Bring your own creativity to it and remain
flexible.
·
Recruit
staff with commitment first, techniques second.
Say what you mean; mean what you say.
·
Make
the donor feel he is an insider - that he owns the organization. He
will defend and support his institution.
·
Write
copy as if from one person to another person; not from an
organization to a donor.
·
Make
sure you see and read mail from donors. It is the way to know what
they are thinking about you.
·
In
every piece of mail and all publications, including Annual Reports -
always provide the opportunity to give.
·
The
person answering your phone represents your organization.
·
Please
do not fund raise if your organization is unable to cope with
opening the mail and answering it properly!
·
Tell
the truth and facts always - credibility is important in
fund-raising.
·
Tell
your donors how their money helped to make a difference.
·
Emotion,
rather than reason, leads to charity.
·
Induce
action; always use a reply envelope.
·
Be
specific; speak of specific cases or individuals - avoid
generalities.
·
Long
words put donors to sleep and sleepy people cannot write cheques.
·
Use
more photographs – one picture is worth a thousand words.
·
Do
not write about a huge problem, which an individual cannot solve
through his donation.
·
Aim
for something within the reach of an individual.
·
Talk
about sponsoring a child and not 10,000 children.
A fund-raising communication should be one that:
- Catches the eye
- Warms the heart, and
- Stirs the mind.
Directory of Donor Organizations
Published By: Sampradaan (Indian Centre for Philanthropy)-
It consists of 4 types of data:
-Indian Trusts and Foundations
-Foreign Donor Organizations
-Organizations giving Scholarships/Fellowships
-CSR- Corporate Social Responsibility Organizations
To Order Directory of Donor
Organizations-
Price Rs. 300/- Plus Rs. 50/-
postage
Sampradaan
Sector - C, Pocket - 8 / 8704 Vasant Kunj,
New Delhi
- 110 070
Tel: 91-011-26899368,
Telefax: 91-011-26121917
Email: icp@ndb.vsnl.net.in
Web: www.sampradaan.org
Useful websites:
South Asian Fundraising Group
www.safrg.org
Resource Alliance (
U.K.
&
India
)
www.resource-alliance.org
Mal Warwick (Fundraising expert)
www.malwarwick.com
Good Luck!
In Fund Raising -You Need Lots of Luck.The Harder You Work-The Luckier
You Get.
For Further Assistance Contact:
Centre for Advancement of
Philanthropy
Mulla House, 4th Floor,
51 M.G. Road
Flora Fountain
Mumbai 400 001
Tel: (022) 22846534
E mail: centphil@vsnl.com
Web: www.capindia.org
Thank You!
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