Financial Sustainability of participating NGOs

Mission Possible 1NGOs in Georgia Well FinancedIN KEY ROLES: LEAD NGOS IN GEORGIA

KEY TARGET: FINANCIAL SUSTAINABILITY OF PARTICIPATING NGOS

DEADLINE: ASAP – LATEST BEFORE WESTERN DONORS START EXITING

Resource mobilization by the cat of Simon

Preconditions of NGOs becoming sustainable in Eastern Europe

Sustainable NGO Institutional Sustainability: capacity to provide for the strategic framework, effective leadership and efficient organizational background for the NGO

Program Sustainability: capacity to provide for the best possible services and programs, making an impact, improve the lives of beneficiaries with the resources available

Financial Sustainability: capacity to generate the resources necessary to achieve institutional and programme sustainability

Building a strategy

What is our current situationWhat is our current situation??

• Financial structure• Fundraising budget• Financial needs• All of these in three years?

Building a strategy

What is our cause that we are asking support forWhat is our cause that we are asking support for??

• Is it understandable for people?• Is it valuable? How will it be valuable?• How can we communicate the cause?

Building a strategy

What is our causeWhat is our cause??

„Our mission is to assist persons with limb-deficiency in integration and social acceptance, improving their quality of life and preserving their dignity.”

„Our hands are essential parts of our bodies. They feed, they care and caress. We give back their hands to people who lost them in bad fortune.”

Building a strategy

How will we measure successHow will we measure success??

SustainabilitySustainability – can the program be repeated each year without starting over? Will past lessons make it easier?

ScalabilityScalability – can the program be improved upon and easily increased in size based on past results?

Cash FlowCash Flow – does the program require substantial outlays or delays between the time money is invested and returned?

Build FoundationBuild Foundation – does the program build a base upon which other fundraising can take place?

Geoffrey W. Peters

Fundraising from Corporate Donors

Corporate Partnerships I.

The Partnership

Theyhave

?

We need

?

Support

Funding

Corporate Partnerships II.

The Partnership

Theyneed

?

We can offer

?

(Image building)

(Good cause)

Philanthropic Marketingentrance entrance

Forms of Corporate Partnerships

Monetary In-kind Time & HR

Donation / grant Goods and services (free or discounted)

Employee volunteering

Sponsorship Furniture, cars, computers & equipment

Secondment

Workplace fundraising Promotional goods (e.g., bags, samples)

Participation in community fundraising

Payroll giving Office supplies, access to copying, internet etc.

Advising, consulting

Cause related marketing Access to facilities (e.g., conference room,

transportation)

Help in fundraising (e.g., access to network

“circles”, contacts)

Strategic partnership (long-term support)

Advertisement space, promotion

Getting involved in the life of the NGO

(e.g., board member)

...and many more ... CSDF Hungary

Checking our premises Do you believe that the profit motive is evil?

◦ “Companies only care for the profit”

Do you believe that companies do not really have values?◦ “Companies do not care for clean environment”

Do you believe that they hold the upper hand?◦ “Companies look down on NGOs”

Do you believe that businessmen are bad people?◦ “Businessmen only care for their cars and yachts”

Fundraising from individuals

Direct MarketingDirect Mail (on-offline), telephone, email, sms, personal

AdvertisingBillboards, citylight, newspapers, magazines, DRTV

(„teleshop”), online/internet advertising

Below the line (BTL) - indirectCollection boxes, leaflets (strategically placed), newsletters,

own webpageFace-to-face

Street fundraising – Direct Dialogue, attending mass-events(e.g. festivals), door-to-door

EventsAuctions, concerts, gala events, walks, running & other

sports events, festivals, fairs, telethon

Fundraising techniques

Donor pyramid

Legacy

First gifts

Repeat gifts

Regular gifts

Major gifts

Donor database What is our typical donor like?

◦ Place of living◦ Gender & age◦ Profession, occupation◦ Income level◦ Interests, habits◦ Life-situation, state of mind ◦ …etc.

Some basic terms

Cold list Address list of people with whom the organization had no previous contact

House list or house file The organization’s own list of people with whom it has communicated before

Prospect mailing Letter to potential donors

Repeat gift mailing Letter to those who have already given once

Donor acquisition Getting a donor to give to you

Donor retention Ensuring that the donor stays with you

Donor upgrade Assigning the donor to a higher status in the database (e.g. when s/he gives more or more often)

Strategic Fundraising Self-Test

1. What is the current situation?

2. What is our cause?

3. Who will support us?

4. Which strategic direction? Whom to target?

5. What methods? What case for support?

6. How to measure success?

Good luck! Dream big but dont forget to keep your stability