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A
strong case for support is a must for effective fundraising
Many NGOs,
big and small, representing a variety of causes, seek financial
support from the public to operate and strengthen their services.
Some achieve great success, others fail miserably and many fall
some where in between with sporadic successes.
One of the reasons for such differences in results is that the successful
NGOs have thought through their "case" and are able to articulate
it clearly. They tell donors and prospective donors, orally and
in written appeals, what the organization does, how well it does
it, what human needs it meets, what it costs to meet those needs
and how a donor's financial contribution will help to serve their
clients more effectively. In other words, they tell donors why their
NGO needs and deserves their support. This justifies the NGO's request
for funds. It also educates and inspires people, wins their trust
and motivates them to make a financial contribution. The case always
relates to the cause the NGO serves be it reduction of poverty,
promoting adult literacy or preventing substance addiction.
It is easier to make the case to the external public if an NGO has
prepared a comprehensive internal document that centralizes all
information on the organization. This would serve as a database
from which a case for support of different programmes could be prepared.
This document may be of 10 to 30 pages depending on the size and
scope of the NGO. It can be computer-generated, nothing fancy or
colourful. It should contain the following important elements:
1. History
of the organization and its achievements in serving people over
the years. It should highlight the individual(s) who played a key
role in founding and shaping the organization and inspired others
to get involved.
2. A Mission
Statement that tells donors and prospective donors why the organization
exists. It must state the core values that guide it and how they
influence what services are offered by the NGO. When donors find
that the values of the organization are similar to their own, they
are more likely to give their support. A list of services does not
belong in the mission statement.
3. Goals of the organization: These are global statements stating
what the NGO seeks to accomplish as it works to meet the needs of
its constituency and fulfil its mission. They are broadly stated
and are not measurable. NGOs may have multiple goals for the organization
as a whole and for various service components. Even though they
are general statements, goals must be clear and precise so that
donors can understand what the NGO aims to do.
4. Objectives of the organization: Unlike goals, objectives are
quantifiable, specific, and measurable. They arise from goals and
give the expected outcome of the work to be done in a certain time
period - how many will be served through what specific services.
Donors can then understand what the NGO will achieve during a particular
period of time.
5. Programs and Services of the NGO: This will show how the mission
is fulfilled and goals and objectives are realized. Actual case
histories with names disguised in the interest of confidentiality
will bring out the human element. Donors can relate to the situation
of other human beings and can see how these programmes and services
help to improve the quality of life in their community. Quotes from
testimonials and letters commending the quality of the NGO's work
can be included in this section to add credibility.
6. Delivery of Services: This would include information on location
or locations from where services are offered, description of the
physical plants, the hours of operation, the extent of accessibility
by public transportation and for physically challenged people. During
visits to an NGO, donors note such things and appreciate the thoughtfulness
that underlies such planning. A welcoming and cheerful atmosphere
is always a plus. Any formal collaborative relationships with other
community agencies should also be mentioned here.
7. Staffing of the organization. It is important for donors to know
the level of expertise and competence of key personnel, paid or
volunteer who deliver the services. Their resumes should be attached
here along with a brief summary that could be used for grant proposals
and other communications, as appropriate. Any special recognition
that staff may have received for their work should also be included.
Staff should be encouraged to update their resumes annually to reflect
any continuing education or training they may have acquired. Additionally,
an organizational chart would be an effective way to show organizational
structure, and vertical and horizontal relationships among different
staff positions.
8. Board of trustees - how many, average tenure, occupations/expertise
represented, representation from service recipients, (for instance
if the NGO serves physically challenged persons, does it have any
physically challenged persons as trustees), frequency of meetings,
nature of trustees' involvement and participation in the affairs
of the NGO in addition to attending meetings, (attach a copy of
the bylaws and amendments if any), any special methods of trustee
recruitment, how many committees of the trustees and how often do
the committees meet. Answer questions such as: does the board of
trustees have a formal mechanism for evaluating their own performance,
is there a system for terminating trustees who are not fulfilling
their responsibilities or worse still, have shown dire conflict
of interest? A biodata of each of the trustees should be attached.
9. Advisory Boards. This section should give information on their
purposes and composition, how members are recruited, frequency of
meetings, and how they contribute to the betterment of the NGO.
10. Financial information. To be included here, perhaps in a graphic
form, are the sources of income in percentages of the budget: government,
charity trusts, foundations, businesses, civic organizations, religious
groups, individuals, foreign contributions, income generating projects,
fees for services provided, and any other sources. Also include
a list of these sources with total amounts of rupees from each.
If there are any discernible changing trends of giving by these
sources over the last few years, discuss them. For instance, income
from governmental agencies may be declining steadily but income
from corporations has been increasing. These changes are significant
and will give pointers for future expectations. Next, would come
information on expenses such as personnel, non-personnel and capital.
An itemized budget for the year showing exact income and expenses
should be attached. The purpose is to show the shortfall in meeting
expenses and how charitable gifts can close the gap and ensure continuation
of needed services. It addresses the requirement for transparency
and accountability. The same format should be followed to show income
from fundraising. Give the sources of income: direct mail, special
events, contributions from trustees, businesses, foundations etc.
and fundraising expenses by categories: direct mail, fundraising
events, grants etc.
11. Fundraising Plan: Based on the cost of programs and services
offered, an NGO needs to formulate its fundraising plan for a year
as well as for the next three to five years. The annual plan should
include how much needs to be raised, from what sources, and who
will be responsible for monitoring that fundraising is proceeding
as planned. Sometimes, a mid-course correction is needed because
some expected sources did not materialize. Long range planning may
indicate new needs foreseen in the next three to five years, what
additional funds will be required to meet them and what new sources
of funds could be tapped.
12. Evaluation of Fundraising: An evaluation of fundraising effectiveness
should be an integral component of this document. It should indicate
what parts of the fundraising plan in the previous year were successful
and which were not. Reasons for the latter should be analysed and
steps taken to rectify the situation in the future. Learning from
failures is very effective and constructive.
Obviously, preparing such a document takes time. The responsibility
for initiating and coordinating the process is that of the chief
fundraiser or the chief administrator. Assistance of other staff
should be enlisted in collection of background materials some of
which may be in the NGO's files and for development of those that
are missing, for instance, resumes of staff and trustees. Interviews
with past leaders and senior staff and review of previous annual
reports and newsletters can yield valuable information that could
breathe much life into the case document.
The writing of this internal case should be entrusted to someone
who has good writing skills or a writer may be hired for this specific
purpose. The first draft should be reviewed by all staff and trustees
as well as by other key volunteers. Certain components, such as
mission statement, goals, objectives, financial information and
fundraising plans, merit special attention of trustees who are the
ultimate policy makers and stewards of the NGO.
The internal case should be reviewed from time to time, at least
annually. Certain sections such as financial information will need
to be updated each year; others as needed. Therefore the document
should not be a bound copy but filed in a three or two ring loose-leaf
binder with each component in separate sections. This will make
it possible to make changes in one section without disrupting the
organization of the rest of the document.
Once the document is finalized, the material in it can be used to
prepare all kinds of external communication - grant proposals, fundraising
appeals, newsletters, annual reports, news releases, speeches and
presentations, and website materials. The internal case document
can be useful in orienting new trustees and senior staff. Because
staff, trustees and key volunteers have participated in its preparation,
all of them are likely to be better informed about the NGO, feel
a sense of pride and ownership and be more enthusiastic about their
involvement with it. They will speak to the public in one voice
and in an informed manner.
Zahida Noorani is a fundraising trainer and consultant. She can
be contacted by e-mail at zahida2000@indiatimes.com.
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