Resource Raising

Fundraising in tough times! May 20, 2009

Understanding fundraising

May 20, 2009

2

Understanding fundraising? • Door to door/ face to face donation drives – Helpage, CRY, Greenpeace • Donation boxes in shops • Disasters/ emergency fundraising • Musical nites/ food carnivals • Old clothes/ newspaper collection drives • Marathons • Internet donations 33

Income patterns in India • 51% of income is self generated through fees and charges for services • 29% of income is from grants; 13% from donations; 7% from loans • 7.4% is from foreign sources Source: Invisible, Yet Widespread: The Non-Profit Sector in India, PRIA, 2002

• The FCRA registration has increased from 30,321 in 2005 to 33,937 in 2007 • Of these, only 1659 received more than a Crore Source: Ministry of Home Affairs, Govt of India 4

Pattern of international aid • In 2007, global aid declined to 0.28% from 0.33% in 2005, against the UN guideline of 0.7% as a share of national income • Aid in constant dollars (adjusted for inflation and exchange rate changes) was no greater in 2007 (US$72.9 billion) than it was in 2004 (US$71.9 billion) • Overall, DAC donors are a long way from meeting their commitment to give 0.7% of their GNI as aid – only five countries now meet the target Source: The Reality of Aid, 2008

6

5

Limitations with aid • Given according to the donor country's political and economic interests, often with strings attached • Breeds dependency and is not sustainable • Does not build local support for causes • Competition for funds is increasing • Creates the perception that civil society organisations receive a lot of foreign funding and that they don't need local support 8

6

India is changing • We have reached the moon! • India wants to be seen as a donor country and not a recipient • Donors’ priorities change, south India particularly is witnessing donor withdrawal in favour of north and west India. • Of course, the recession will translate into reduced amounts being doled out for social work! Note: There is no readily available information on the long-term policies of the international aid community towards India; and no readily May available 20, 2009

information on the amounts and trends of aid.

7

Despite everything, Its business as usual for voluntary organisations! • Children need to be educated • Homes need to be built • Diseases have to treated • Poverty needs to be tackled • Rights should be defended • Life goes on… May 20, 2009

8

Income sources • Government 1 • Level Corporate • Level Grant2 making organisations 3 • Level Individuals • Self-generated Most organisations function with large sums of money coming in from major donor/s and are apprehensive to seek wider support! May 20, 2009

Simple beginnings Tribal Health Initiative, Tamil Nadu

Established in 1993 in a mud-and-thatch hut, Tribal Health Initiative(THI)

now serves 10,000 tribals in a remote area in Tamil Nadu

10

Getting support is easy! Jun 2001 Regi and his wife, Lalitha put together a contacts database, starting Aug 2001 Sep 2001

Sep 2001

Sep 2002

Oct 2005 May 2009

with 50 friends. THI started sending out newsletters and appeals. THI launched a website designed by a friend - www.tribalhealth.org - that gives details of all donations received till date and of how the money has been utilised. A visit by a journalist resulted in a cover story in The Reader's Digest. The story was picked up by other local language newspapers and magazines. THI started using copies of the article as a substitute for a brochure. THI brought out a simple, inexpensive annual report for public distribution, projecting achievements clearly, with an appeal. (Circulation 500) Donations have increased from 15% to 45% of total income. Friends of Sittilingi continues to be their major donors 11

Some lessons - A small remote rural organisation can achieve wonders if the head is committed to communicating and raising resources locally -Basic systems to record addresses, acknowledge donations and communicate with donors are essential - A simple message supported by clear statements of achievements is vital. Such as: - Newborn deaths have gone down by 50% - No woman has died in childbirth in the past year - Ante-natal check-up has risen from 11% to 85% in 2 years - Unexpected support emerges – donations totalling Rs 1 lakh following the Reader's Digest article; a donation of Rs 2 lakh from a single Indian donor in response to the first, very basic annual report 12

Growing confidence “I'm now totally convinced about our ability to raise funds from the general public.

The credibility and the sense of satisfaction it brings, is immense.” 13

Fundraising through a marathon

14

Board members and staff walk! A Board member (Chairperson) and staff team with families and friends, participated in the January 2007 walkathon organised by Motif India in Ahmadabad. They carried banners to create awareness about their organisation and cause. They raised Rs 3 lakh!

Sense International (India) works with deaf and blind children.

This year Sense has also participated in the Delhi half-marathon and Mumbai marathon 15

In India... • Stanchart Mumbai Marathon – 42 km • Started 2002; In 2008, raised Rs 8.05 cr compared to Rs 6.47 cr in 2007 • Dream a Dream, a Bangalore organisation, raised Rs 10 lakh at the Mumbai Marathon 2009, with 50 runners • The Banyan, a Chennai-based organisation, raised Rs 38.5 lakh in 2008 • Delhi Half Marathon • In 2007, the Delhi Marathon raised Rs 1.47 cr for 42 organisations 16

Why people give?

May 20, 2009

17

Fundraising in tough times 1. 2. 3. 4. 5. 6. 7. 8.

Promote your work Tap local resources Get government support Work at retaining your regular donors Involve local communities Partner with corporates Network with like-minded organisations Learn from larger organisations that continue to grow

May 20, 2009

18

Promote your work

19

Tap local resources Any contribution from the local community that helps the implementation of an activity, project or programme should be welcome. It includes financial and in-kind contributions from individuals, local community members within and outside the country, business houses, national trusts and foundations.

May 20, 2009

20

Community contribution Village women in South India have found their own way of helping people living with HIV/ AIDS. While preparing family meals, each woman puts a handful of rice into a bowl. These bowls are brought to the weekly meeting of the local self help group formed by Society for Rural Development and Protection of Environment (SRDPE) in Tamil Nadu. The organisation then distributes the rice to those who need it. Also, these women save one rupee a day to support children affected by HIV/ AIDS! 2121

Get government support

22

Work at retaining your regular donors Thank Properly

Frequent Communications Phone your top donors

23

Principles of fundraising • • •

• • • • • • •

People give to people Make it easy for the donor The 20:80 principle The 30-second rule Peer group pressure is a fact Ask for the right amount Tell the truth Plan Test and test again Say ‘thank you’ quickly and in different ways

The 20:80 principle: Be open to the idea that a few people in your community could donate huge sums of money and a large part of the community could give smaller donation that amount to a significant percentage of your donated income... 24

So.. Make a list of what you require support for

Judge what can be raised from your local community Explore different ways to approach people for support Develop a strategy for approaching individuals/ business establishments Get the support of your leadership and governing body Check legal and tax matters Establish an ethics policy Think about setting up a cell for communication Communicate effectively Plan and budget

2525

Thank you! [email protected] 2626