Guidelines
and suggestions for methods and principles of fund raising aimed at the
financing of community based projects.
Fund raising is a valuable part of the strengthening of CBOs, NGOs and
communities; cash (and non cash) contributions are needed by them to carry out
their desired and planned activities. The obtaining of resources is therefore a
desired and honourable task; fund raisers should be acknowledged and praised.
Fund raising is a job to which all should contribute, and for which all should
be responsible.
Many of the techniques and skills of fund raising (some of which are included
here) can be or have been adapted from the commercial profession of “marketing”
(in fact, fund raising is referred to as “marketing” by many NGOs). While
marketing and sales skills can be valuable, they must always be applied in an
ethical manner. Every fund raiser (paid or volunteer) must first and foremost
be completely convinced of the value, integrity and benefits of the
organization, and the activities for which the raised funds will be used.
These guidelines, must be modified in each community so as to be adapted to the
differences that characterize every community
1. Principles of Fund Raising:
Principles of fund raising
Techniques of fund raising.
1.1 The Profession of Marketing:
Many of the skills and techniques of fund raising used by NGOs and some UN
agencies have been developed by, and adapted from the commercial profession of
marketing. Some people (often those outside or unsuccessful at the profession
of sales and marketing) see this as a cynical and insincere activity. Maybe
that is so as it is practised by some, but it does not have to be, and often is
not. If a sales or marketing professional sincerely believes in the value of
the product, sales can be effected honestly and ethically.
The principles of sincerity and ethical integrity especially apply to fund
raising. Fund raising should be the responsibility of all members of the
organization, although they may participate in different ways. It should not be
simply left to the professionals. All of us/you, therefore, should know about
principles as well as techniques of fund raising. The fund raiser, first and
foremost, must be honestly convinced in the integrity of the organization, and
in the benefit and value of the activity or project of the organization.
Potential and past donors very quickly spot insincerity, dishonesty, and
diversion of “their” donated resources.
1.2 Acknowledgement of Donations:
Acknowledgement is a must. Many donors use their donations to gain prestige and
honour in their communities. It is a small price to praise every donor. Ensure
that communities we assist are aware of the need to acknowledge all donations,
and praise the donors for their loyalty to the community and their much needed
and appreciated donation (cash and kind).
1.3 Thank You!
The most important two words in obtaining funds, and running a successful NGO,
CBO or community project, are the words, “Thank you!”
Many NGO staff have wondered why enthusiasm for their activities has dried up,
and funds cease to roll in; and the simple cause is often found to be that the
NGO forgot to acknowledge and thank the donors.
1.4 Progress Reports:
Further to a simple “thank you,” donors want to know what was achieved with
their donated money. The most effective form of thank you is a progress report.
Donors are less interested in your activities; they are more interested in the
results of your activities; have you reached, or partially reached, the
objectives you stated when you asked for the donation? CMP has prepared other
documents about report writing; use them and integrate report writing with
obtaining resources. Fund raising and report writing are not independent
activities.
1.5 Integrity:
A high level of integrity must be maintained at all times. This applies to the
set up and activities of the organization in general, and specifically to its
fund raising activities. An important aspect of that integrity is full
accountability.
All actions must be accountable; all funds must be accountable. This means
accurate, complete, understandable and honest narrative reports and financial
reports, available at any time to any member of the public.
Along with accountability is transparency. The group must not have any secret
agenda, and must be public and honest about all its activities and all its
expenditures. Account records must be open, that is available to any member of
the public to inspect at any time. Honesty can not be compromised. The good
ends (goals or objectives) of the organization must not be compromised by
questionable means used to get to those ends.
Those people responsible for implementing the activities of the group,
including the activity of obtaining funds, must be honestly and totally
convinced of the goodness of the group and its objectives, and the worth while
values and benefits of the project. This level of integrity is essential for
the sustainability of the group, the completion of the project, and the benefit
of the community.
1.6 The Importance of a Positive
Attitude:
Not everybody is a donor. Some of the people, agencies or groups can or will
not give to your community or organization. If you do not recognize that
failure to obtain a donation from one source does not imply that you or your
organization is a failure, you may be tempted to be discouraged and give up.
Do not give up. You can not allow yourself to be discouraged; it is a luxury
that you, your organization and your community can not afford. You may experience
eight rejections; do not give up because the ninth and tenth may bring the
needed donation.
1.7 Calculating and Recording
Project Inputs:
It is important to maintain accurate records of all resources used in a
community project.
Too often some donations (especially communal labour and gifts in kind) are
forgotten or under-valued, and the correct amount of the community contribution
is higher than what is recorded and reported. This under valuation is
detrimental for several reasons: (a) the community members have a lower
estimate of self worth and this lowers confidence, (b) the outside donors have
a lower estimate of community contribution and will be more reluctant to
contribute more or (c) will not recognize the worth of the community inputs.
You/we must ensure that the CBO or the executive committee of the community
that is planning to undertake a community based project, recognizes the value
of hidden community resources. An accurate estimate of the cash value of
donated resources ─ eg communal labour for construction, donated skilled
labour, time spent by community members and leaders in meetings for planning,
or non cash physical donations ─ must be made by the community. You/we should
encourage the community to identify and record these. These financial estimates
should be included in the cost estimates of the project proposal, and should be
recorded during the actual construction activities.
When the total costs of a community based project are calculated, they should
therefore include the actual cash contributions of donors, international and
local, Governmental and non-Governmental, and others, plus the cost estimates
of all non-monetary donations, whether in the form of non-cash physical items
or services, or human time and energy.
2. Types and Sources of Donations:
Donations from a wide range of potential donors, except those from donor
agencies which require formal proposals. (Those are discussed in the document,
Resource Acquisition).
That wide range of potential donors means there is a wide range of specific
techniques that can be applied to the process of (a) identifying donors, (b)
getting a message to them, and (c) collecting the donations. Don’t forget the
(d): thanking them.
A good workshop handout to accompany this section is: Internal Resources
Checklist.
2.1 Urban Versus Rural Communities:
There are several differences in emphasis in techniques of raising project
resources, based on the different characteristics of communities. Urban
communities, for example, are usually larger, and therefore more full of
factions and schisms. Small rural communities are more easy to organize and
unite, but there is no guarantee.
Urban communities have more social schisms (divisions/factions), and are harder
to organize than rural ones, although within urban areas slums are easier to
organize than rich neighbourhoods. Donations in cash are easier to obtain in
urban than rural communities, donations of food and agricultural products are
more common in rural communities.
2.2 Public Fund Raising Events:
These take many forms. Large community fund raising events can be quite
elaborate, with high profile officials making speeches, and rich persons making
ostentatious donations. There may be several bands, drummers, dance groups,
including singers and dances from the community schools.
In East Africa, the word “harambee” is used to describe such a fund raising
event. (2)
Footnote (2): A harambee is not always necessarily a community event; nowadays
it is often used by a single family to raise money for a student’s school fees
or a medical bill.
In West Africa, especially in rural towns, the town chief may preside, and the
entertainment may include dancing, drumming and spirit possession from the
local gods or cults.
Such events may draw urban migrants back to their rural home towns and, like
funerals, also serve purposes other than fund raising, notably for the migrated
and extended community members to keep in touch with each other and to maintain
their identity as community members even though residing outside the community.
Many liaisons are made on these occasions, for example, that may later lead to
marriages or business partnerships.
2.3 Urban Donors to Rural
Communities:
Urban migrants maintain links to their home communities. This can be exploited
by rural CBOs. A small percentage of the urban migrants make fortunes in the
cities, and can be persuaded to contribute to their home community development.
A feeling of guilt at not being home, or of loyalty in spite of absence, may
result in some very large donations from rich urban migrants.
2.4 Commercial Donations:
Commercial donations include gifts from firms and businesses that want to
advertise their good will and support of the community. (They should be
acknowledged and thanked in public meetings). The community should be
encouraged to identify ways they can convince the commercial donors that it is
in the interest of the commercial donor to assist the project (increased
publicity and good will for the commercial donor, for example).
2.5 Communal Labour:
This is an important internal resource (sometimes includes labour of volunteers
from outside). Communal labour involves time and labour donated by community
members, some unskilled (like clearing grass, laying bricks), some skilled
(carpentry, masonry), management, leadership, meetings, planning, supervision.
It is important that you/we encourage the planners and designers of community
based projects that they should carefully evaluate the cash value of donated
communal labour. Too often that contribution is undervalued, because of
ignorance of its worth or, more importantly, an indication of a low level of
confidence and a low self evaluation of the worth of the community by the
community members.
Sometimes some community members wish to hide their resources on the mistaken
assumption that we or others will only bring outside resources if we believe
that the community is very poor, and that we or other donors may withhold funds
if the community is thought to have too many of its own resources. You/we must
ensure that all community members understand that they are more likely to
obtain outside resources if they demonstrate that they are committing internal
resources.
2.6 Agricultural Donations:
Farmers may donate food for the project: (a) to communal workers who are
working on the project, or (b) to the executive committee to sell to raise cash
for the project. They may also donate other resources off their farms (eg
timber, sand, limestone, non-food crops) which may be used directly or indirectly
for the project.
2.7 Donated Food Preparation:
While a farmer may donate food to the project, it still needs to be prepared
for eating. Other donors may include people who donate the preparing of food
and refreshments to the community members on communal working days. Do not
forget to thank the people who cook and prepare food for communal labourers.
2.8 Contributions and Pledges:
Contributions and pledges may be made at public community fund raising events.
Participants make their decisions to donate in a public meeting or event.
2.9 Raffles and Lotteries:
Raffles and lotteries, gambling-based fund raising techniques. are better
suited to well organized, sophisticated urban NGOs, rather than new, rural,
small CBOs.
2.10 Anonymous Donors:
Anonymous donors are benefactors who remain unknown. They often have private
ideological or religious reasons, but wish to remain un-publicized.
Conclusion:
Whatever our actions in encouraging and assisting communities to plan and
implement their own community based projects (including the calculation of
financial resources) you/we must keep the following in mind at all times and to
guide all our actions:
- Remember and work towards the general goal (reducing dependency);
- Guide, suggest, train, encourage, praise, inform; and
- Do not promise, do not provide and do not dictate.
The calculation of costs of
financing community based projects must be fair and accurate, and estimates
must not undervalue non-cash community donations. When mobilizing a community
to undertake a community based project, we should encourage them to identify a
variety of outside resources (reducing dependency on any one donor), and to
identify and mobilize many (often hidden) of their own internal resources.
Obtaining resources for a community project is an honourable and valuable
responsibility; do it with enthusiasm, integrity and confidence.