Common
Fundraising Strategies
It would be impossible to
provide a conclusive list of all of the fundraising strategies used by not-for-profit
organisations, but those listed below are commonly covered by professional fundraisers
operating within in Australia.
Major
Gifts
'Major gift' fundraising at a
grassroots level refers to gathering donations of $500 or more.
Some tips on developing major
gift fundraising strategies are included in 'The First
Fundraising Campaign'.
Direct
Mail
‘Direct Mail’ in the
modern fundraising context usually refers to personalised letters sent to prospects and
donors, requesting their support - and (because it is relatively cost-efficient) this is
the most common method of communication used by professional fundraisers.
Tips on developing a direct mail
program are given in 'Maintaining Support'.
Regular
Donation Programs
Regular donation programs have
sprung to popularity as credit cards and direct debits become more prevalent as a means of
paying accounts.
In a ‘regular donor
scheme’, the supporter supplies a credit card or bank account number with a signed
letter, note or form stating that s/he agrees to have donations of a specified amount
deducted at frequent intervals (usually at the end of each month). Procedures for
transactions are as for any other and the management of the system must undertaken by the
group receiving the funds. (Contact your bank for details.)
The availability of a program of
this kind can be emphasised by giving it a special name. Often a 'donor club' format is
used - this can help build a sense of involvement by providing an internal forum for
social interaction (i.e., through 'club events' - supporters' picnics, Christmas
gatherings, etc).
Special
Events
There are many types of special
event used in raising funds – from rock concerts and gala dinners to badge days,
school 'Trivia' nights and camel races in the desert.
Often, these are high risk
ventures, and costs are relatively high (see Code of
Practice) though the income gain can be considerable. Some (usually the smaller events
conducted at a community level) minimise risk by being run at minimum expense with low
income goals, and repeated through the year.
However, there is one feature of
fundraising special events which rarely changes – all require a substantial
contribution of volunteer time. For that reason, this area is best left to members of
‘the auxiliary’ – supporters who offer to take part in that kind of
activity as a means of involvement, rather than those who have other areas to cover. (See
'Volunteer Role
Descriptions'.)
The exception to this rule is
where the cause you are pursuing is unlikely to attract donations. If that is the
case, special events provide an acceptable 'second choice' as a key fundraising strategy.
There are many event formats
which can be used. Collect ideas by watching schools and service clubs and other community
organisations. Where possible, choose a type of activity which is already popular in
your area.
Your goal is find ways to
motivate people to spend their entertainment budget on an event which is 'fun for a good
cause'. (This is an easier way to elicit a positive response than asking for a donation.)
Use the event as an opportunity
to tell participants about your work and try, wherever possible, to get people to
list their names and addresses for newsletters, etc.. This will allow you to follow-up
with an appeal letter.
If participants respond to the
appeal letter, you can assume that donor income is possible! If not, you
may find that they will gladly buy quality merchandise when it's for a good cause.
(Some volunteer, some donate, others buy - individuals differ in the ways they wish to
support community activities, but your special event participants have already shown
themselves to be willing buyers!)
Corporate
Sponsorship
Many major companies
support not-for-profit causes but, usually, those chosen are high profile and have an
unquestionable reputation in the public eye.
For the smaller group, the
attention of large corporations is hard to attract – unless there is a close
connection with either the group or the work performed.
Senior staff of businesses known
to be involved in philanthropic giving often find their way onto Boards and Fundraising
committees and, generally speaking, it is through personal contacts of this kind that cash
can be obtained from the commercial sector.
Other types of sponsorship are
easier to find – provided that the activity has the potential to attract public
attention, many local businesses will be happy to contribute ‘gifts in kind’ and
today, many organisations are also pursuing cause-related marketing programs.
‘Cause-related
marketing’ can refer to a wide variety of combined ventures between not-for-profit
and commercial operators. However, its most common application is in a proportion of the
profits from the sale of a product or service being donated to a ‘good cause’.
Where the geographical reach of
the project is limited, promotional opportunities are insufficient for the larger
operators, but local businesses are worth pursuing, both for contributions of goods and
services and cause-related marketing programs.
(Note: Should the name or
logo of the group come to be seen as a form of endorsement, it is wise to apply for
trademark registration. Click on 'IP Australia Trademark search' in the right column
of the 'TIPS' page
for further information.)
Trusts
and Foundations
There are many philanthropic
trusts and foundations operating in Australia which offer funding to applicants on the
basis of the relevance of the work proposed to their established guidelines. (Check the
'grant links' on the'TIPS'
page.)
Applications are made to
trustees at an appointed time (usually once a year) for allocation of a portion of the
funds to be disbursed.
Contacts with Trust and
Foundations operating in your area of interest should be sought wherever possible, through
some can be difficult to track. There are some directories available to help you (click
here to go to ‘Philanthropy Australia’ and 'Grants Online').
Applications to Trusts and
Foundations should be no more than a few pages - a simple case statement (based on the
specific project to be funded) with an itemised budget is all that is required. Some
Managers prefer to use a standard form.
Call the Trust Manager to
discuss your project– it is worth making contact every time you submit an
application. (Do not make the mistake of compiling an extensively detailed
application of the type which is customarily required for scientific research or
government funding applications – several Trust managers I have encountered claim
they throw these in the bin!)
Bequests
Bequest giving is the single
largest area of income generation in the fundraising sector in Australia today, but this
is the domain of the larger, well-established organisations whose cause is never likely to
terminate.
Bequests should not be
discouraged, but this is not an area of fundraising activity in which a new group would
naturally expect to spend its time.
Should a bequest be offered, it
is wise to get legal advice on the wording included in the Will. Legal challenges caused
by obscure wording – or the dedication of funds to a project which is no longer
relevant - can lead to years in court!
Beware, also of accepting
bequests for items which have costs associated with their upkeep (yachts are a famous
example) since you may not be able to capitalise on their value.
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USEFUL
LINKS
Directories
Telephone
Directories (International)
Street
Directory (Australia)
Services
Australia
Post (Post Direct)
Australian
Libraries Gateway
Australian Legal
Information Institute(AUSTLII)
ASIC
Business Name Search
Grants Online
IP
Australia Trademark Search
Philanthropy
Australia
Rehamé (Media Monitoring)
Government
Australian Government Entry Point
Australian Tax
Office
Commonwealth Grants
Professional
Bodies Advertising
Federation of Australia
Australian Direct
Marketing Association
Fundraising Institute of
Australia
Media, Arts and
Entertainment Alliance
Philanthropy
Australia
Social
Enterprise Partnerships
General
Reference
Australian Charities Site
Cambridge
Dictionary
ProBono Online
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