SW/SW&DA/Paper 6/Module28/Quadrant 1

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Module 22
Fund Raising
Quadrant 1

1. Introduction
It is important for each one to understand the evolution of Non Government organisations and the need
for funds for their sustainable development. It is equally important to understand the significance of fund
raising and the strategies to adopt in raising funds.

2. Objective and learning outcome

 To understand the need for funds to run a social welfare organization
 To realize the significance of fund raising.
 To understand the steps and techniques involved in fund raising
 To be conversant with the skills and strategies needed for fund raising

3. Birth of the Development Sector

Ever since the renaissance, the rebirth that spread across the European continent through the next two
centuries, human civilization has looked for better standards of living. In other words, through the
evolution of civilization, human beings have always dreamed of a better quality of life. It was hoped that
a system of Governance would make this dream a reality for people.

Governance is an ancient concept that enabled a structured form of functioning of a society. Different
forms of governance have been in existence over the years. However, there always have been some
shortcomings in every system. This is when the need for voluntary organizations that would partner with
the government become obvious. In this context the role of various organizations working in the
development sector assumed significance.

The development sector is an offshoot of varied permutations and combinations that society has witnessed
in its quest for a holistic approach to meet the needs of people particularly the most disadvantaged
communities. The Governments that came to power, found it difficult to deliver all that is needed to its
citizens. Natural disasters, wars and certain unprecedented turn of events added to the woes of the
Government. Hence there was a need for a parallel structure that would meet the requirements of people
at large. This societal phenomenon can be attributed to the birth of organizations that were later called
Non Governmental Organizations (NGOs) or organizations in the development sector.

4. Need for Funds in Development Sector

There are different resources that need to be mobilsed in view of sustaining any organization. This
includes funds, human resources and other material resources. Funds are the backbone of an organization.
It is evident that organizations have to be funded by certain sections of society or they have to raise their
own funds to sustain themselves in striving to achieve the cause for which they have been founded.

Organizations in the development sector generally work for different causes as an alternative to
Government.. Thus these organizations will need funds to work for society. Funding, individually or
grants through foundations play a key role in sustaining an organization.

5. Branding and Projection of an organization

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One of the most important fundamentals of fund raising is to build a brand of the organization not just
through its concepts, projects and programmes which reach out to the needy, but also through effective
strategies that reach out to potential donors. Donors are quite meticulous and that it is natural that they
would donate to projects that are close to their hearts and are purpose - driven.
It is thus important that the NGO defines its vision, mission, values, goals and objectives with clarity. It is
important to project who the target community of the organization is and why it is important to reach out
to this particular community. This helps donors to understand the genesis of the organization and the
purpose for which it stands. This will thus be a marketing tool to impress upon the funders the reason for
which they need to support the organization.

6. The Legal Profile of an Organization

It is not enough if the organization has a solid value based foundation and has conceptualized its vision
and mission in the most definitive manner. Most Funding agencies look for their personal benefits in
terms of returns to their sponsorship which they may even consider as an investment. Some modalities
have to be taken care of with regard to the registration of the organization. For e.g., in India if an NGO is
established, it is necessary to make sure that it is registered under the Trust or Society’s Registration Act
so that they have legal sanctity and recognition. Further, Income Tax Exemption certification adds
credibility to the organization. If the organization has a 12 (A) or 80 (G) certification, it will help the
funding agency to donate for a cause along with personal Income Tax benefits. Different exemption
clauses have proportional advantage. In case an organization can provide exemption up to 100 per cent of
total donation (Under 35AC of Income Tax Act), the chances of the organization getting greater funding
increases automatically. However, the organization has to fulfill certain requisites to acquire these
exemption benefits.

7. Approaches to Fund Raising

Most commonly witnessed practices of fund raising could be classified mainly into three categories
7.1 Individual Funding which may include donation collection drives through personal contacts.
7.2 Funding through public events.
7.3 Approaching the Government, large Charity Foundations or Companies which allocate funds under
their CSR (Corporate Social Responsibility) activities.

The extent of funding, the labour involved, the time required and the outcome varies in each of the said
categories. An organization may need a multi-pronged approach to ensure maximum inflow of funds so as
to ensure its sustainability in the long run.

8. Fundraising Activities
Persistency and Patience play a significant role in fund raising activities. Listed below are varied forms of
fundraising:

8.1 Letter Writing

While asking for funds, the personal touch matters. Thus, writing a letter could be one of the best and
very effective ways of fundraising. A common letter specifying the vision, objectives, goals and the
projects undertaken could become the content for a letter campaign to be posted to as many relatives,
friends, former teachers and professors, former co-workers as possible.

8.1.1 The letter should be personally addressed i.e., Addressed in personal names and not in the
name of a particular post. For eg: Address a letter to Mr. …………… rather than addressing
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it to the General Manager… Even when you are addressing a letter to the General Manager of
a company, make sure that you check his or her name and send it personally.
8.1.2 Make a list of people who could be approached. It could be someone whom you know
personally or you just happened to know through others. There is no harm in writing a letter
to unknown people as well. After all, the organization may lose the amount spent on the
stationary and postage, but if it clicks, it will only be a bonus.
8.1.3 Format of the letter could vary according to the situation. Organizations may either detail on
the programmes undertaken so far or the projects to be undertaken in future. The letter may
even be regarding one specific project that the organization wishes to take up in the near
future.

Here is a format of a letter written by an NGO which is interesting in more than one way. Go through it as
we later analyze the same.

Dear Friends,
 Would you like to see a smile on the face of the under-privileged?
 Would you wish to see the young empowered to face challenges in future?
 Would you like to support a girl child pursue her education?
 Would you like to facilitate the youth to participate in our Democratic process more effectively?
 Do you want to see a Change? ……
All these and more with Just Rs 1.00

Please read on.

I bring greetings to all of you as we complete two years of fruitful existence evolving new strategies and
interventions that can make a difference among the young. We, at Centre for Integrated Learning (CIL) are
convinced that each of the initiatives, projects, programmes, events and modules that we are executing
requires funding so as to enable the sustainability of the organization.

But, it does not take much if each one join hands to make it happen.

Inculcating a habit of keeping aside Rs 1.00 per day, each one of us can be of great help in developing CIL as
a catalyst for change in the time to come.
A simple calculation would mean that a rupee a day would only make it Rs 365 per year, Rs 1095 for three
years and Rs 1825 in five years.

Many of us may not even find it so huge to donate the said amount at one shot. But we would appreciate if you
would keep aside Rupee One each day and send the same after every month. This would then become a
routine habit and your belongingness and affinity towards the organization will definitely enhance, as you
think of CIL every night before going to bed. This will also mean that you are part of a good deed every day.

Centre for Integrated Learning, a not-for-profit organization has been actively involved in evolving
strategies and intervention that adds value to the present education system. Our flagship projects like
Campaign Patriotism, Change Mangalore Campaign, Sun Sea ‘n’ Sand camp among others, have been well
received by the Mangaloreans and all those who are aware of our activities. We have reached out to
thousands of students through our various initiatives and continue to be among the children and youth to
facilitate a change.

We are just two years old and are aware that there is a long way to go. I would like to take this opportunity at
this juncture to invite you all to be a part of the movement called CIL. Join hands and we can be catalysts of
change.

Together We Grow.
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In this format, we find some interesting aspects which an organization can use for raising funds. It starts
very personally addressing each of the recipients as friends. One can also leave space and fill it with
particular names, though this is a laborious process.

The letter also develops an interest among the recipients as they read along. Too much details of an
organization is likely to put the reader off and hence the letter needs to be precise and reader friendly.
In this approach of donation drive, make sure you do not raise unrealistic expectations. Let the fund that
your organization seeks, be modest with nominal lower cap and let the donor decide on the maximum
amount that one can donate. The more humble the organization is, the expected returns could be
appreciably higher.

It is also important to mention the post script regarding the availing of any kind of tax exemption benefits
on the donation given.

7.2 Specific Projects and its Funding

An organization may come up with a specific project and raise funds for the same. If there is a project in
hand that is being pursued, a catchy name could be given for the project and requests could be forwarded
to accomplish it.

If an organization intends to build an activity centre, school or office building intended to serve society, it
may initiate a campaign to raise funds for this purpose. Here the general public is approached with all
details of this specific project. Apart from seeking help through financial donations, the project may be
accomplished with donations in kind such as providing construction materials for the purpose, taking care
of human resource required ...
After all, it is the `little drops of water that make a mighty ocean’.

A similar approach can be undertaken for a tree plantation programme where trees are sponsored by
individuals or establishing a library where a specific book is donated by an individual and so on. It can
also be made innovative by inviting people for a get together and auction the item in question. This will
enhance the transparency of the project, your organization’s seriousness and also bring you loads of
goodwill.

7.3 Institutional Funding

Universities and colleges have fund allocations for different activities that involve their students so as to
inculcate in them a sense of social service and social sensitization. Here, it is important to identify the
most appropriate project that the students could get involved in. For eg., the organization can mobilize
student support to organize a rally or a jatha (Campaign Marches) or a public programme on creating
awareness on specific issues.

The institution may not have the expertise or required human resource to mobilize support and organize
an event of this kind as most of the staff and faculty are involved in academic activities. These kind of
projects may generate some funds for the organization and also build a network with the institution for
future activities. In case an organization is associating with an institution, make sure the institution is
given its due recognition and projection.
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Through this approach of associating with institutions, it is not necessary that we only seek funding.
There could be a project envisaged by an organization that requires space such as the auditorium or any
other logistical requirements which are readily available with the institution. The requirements could be
listed out and the institution could be approached to associate with the project and thus save on funds
required to organize this programme. Funds saved are thus funds generated!

7.4 Grants

There are many charitable and corporate foundations which earmark a considerable chunk of money for
developmental activities. They are always looking for competent NGOs who can deliver goods and
effectively execute projects that they envisage. They are also open to new ideas and concepts.

One of the most common ways to raise money is through grant proposals. Though a grant proposal is very
simple to write, getting it accepted is extremely difficult. The Ford Foundation receives over 1,000
proposals each day requesting money.

7.4.1 Grant Proposal

Grants are often time sensitive in that foundations have deadlines and funding cycles. Local businesses
are far more likely to support you than large corporations. The key is to make a linkage between the
owner of the business and you or someone close to you. You may want to approach the businesses with a
letter first, enclosing all relevant material and a pledge form, then follow up with a phone call.

Here is a general format of applying for a grant.

Youth against Malaria

Youth Participation for Public Health
A Concept note

Applicant’s Name (and Title):

Job Title of Applicant:

Organization Name:
Telephone Number:
Address:
Email:
Project title:
Provide an approximate total budget required for the project in
INR
Date:
____________________________________________________
_________________________________
Your proposal should include all relevant aspects of the project.
Provide a brief summary of the proposed project that addresses the following points:
 Objective of the proposal.
 Outline the problems or unmet needs the proposed healthcare technology/innovation intends to
resolve, and its relevance to India.
 Who are the intended target populations?
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 Explain the proposed healthcare technology/innovation and level of proof of concept achieved to
date.
 State briefly your proposed work-plan in above mentioned milestones, the time required and
budget to achieve each milestone, and the total time period required for the project.
 Describe the route by which the proposed project innovation can be made available to or widely
adopted by the target population(s) for participation.
 Stake holder analysis.
 Key challenges
 Team Members

As it is evident, a grant request provides detailed information not just about your organization but also the
plan of executing the project in a time bound manner.
Once an organization is contracted with a project and is quite satisfactorily executed, the chances are
bright for extended funding for future projects. It is important to gain the goodwill of the funding agency
or the foundation to stake claim for their grants.

7.5 Service Clubs and voluntary organizations

Service clubs and voluntary organizations work with the objective of promoting the general good of
society. They mainly comprise of members who are professionals from different fields who come
together with a service motto, such as Rotary, Lions, Jaycee, Round Table ... They donate money for
public causes as they may not be able to personally engage in such activities. It is for your organization to
approach such clubs and voluntary organizations with concepts that can make a difference to society.
Contact as many clubs in the area as possible and request permission to give a presentation to their club.
Many clubs have breakfast, lunch, or dinner meetings which may last anywhere from 1 – 2 hours. If you
get accepted to speak at a club, be prepared to speak for 15 - 20 minutes. Visual aids such as slides and
videos help tremendously.

It is necessary that the organization concerned should be rendered appropriate acknowledgement and
publicity. This is necessary because, these organizations have to report their involvement in socially
relevant projects. There are many kinds of donations that these organizations can provide. Some
international organizations like the Rotary or Lions clubs have matching grant schemes wherein a club in
India along with a club abroad jointly sponsor half the amount while the remaining half is sponsored by
their International Foundation. Such a grant amounts to a substantial amount which can be utilized for a
mega project of any organization.

Religious charitable trusts also donate funds for good causes. This may be community specific but is yet
another avenue to approach for raising funds.

7.6 Corporate Social Responsibility (CSR)

In today’s world when each one is talking about giving back to society, corporates have made it a matter
of policy to set aside a certain percentage of their profits towards the good of society. In India, the
Government of India has notified that corporate and public sector undertaking should set aside an amount
equivalent to two per cent of the yearly profit for such cause. In corporate terms, it is called Corporate
Social Responsibility. It is in fact an obligation on the part of a public or private sector undertaking to
society, which is done through donation of funds or services to create a better social environment.
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It is here that timely proposals have to be sent to the respective companies and provided with proper
documentation through effective presentations. Your organization may be invited for a presentation
session before the board of directors. Follow-up and professional rapport with the people who matter is
the key to raise an appreciable amount for an organization.

7.7 Events

Different kinds of events of varying magnitude can help raise funds for the organization. Right from a
Star Nite to a Theme Dinner or a Reality Show is often organized to raise huge funds. However, care
should be taken to ensure that the plan of action is chalked out well in advance, proposals kept ready,
sponsors contacted and assurance taken from them, before going ahead with the event or else, the whole
exercise of an event may be counter-productive.

Some of the conventional methods of raising funds include

7.7.1 Sale of items – There will be occasions like a fair, festivals or other functions which attracts large
number of people. This is an opportunity for an organization to put up stalls and raise funds
through the sales proceeds. An Ice Cream Stall or an eatery is a good idea to generate funds.
Leaflets regarding the stall specifying the purpose can be circulated in advance to prospective
visitors to such occasions. Even at the stall, the cause for which the funds are generated may be
prominently displayed. In such cases, people will enter the stall with the dual purpose of meeting
their personal need and also contributing for a cause.
7.7.2 Lottery or Lucky Draws – Lucky Dip Coupons with certain denominations can be printed with
announcement of prizes to lucky winners. Through this approach, an organization can generate
funds and at the same time some lucky ones will get returns on their investment. The coupons are
distributed among the members and well wishers of the organization and the same sold to their
respective contacts. People will often be willing to share small amounts towards such a lottery
ticket. Organizations may also approach sponsors to donate the prizes for the lottery so as to
enhance their generation of funds.
7.7.3 Entertainment Shows – Music, dance or parties are a few social events that bring people for
fellowship amidst their hectic routines. Organizations can conduct theme parties, music or
cultural events among other events to raise funds for a specific cause. The occasion can be
effectively used to project the image of the organization and thus contribute to its branding.
7.7.4 Concessions – At trade fairs or exhibitions, an organization may display products produced by
themselves or bought from others and sell these at concessional rates. It will be mutually
beneficial to the customers and the producers along with raising funds for the organization.

8. Media -- Media outlets are a potential fundraising source. A good article in a local paper or an
appearance on a local radio show can go a long way in generating support. A simple press release sent to
every newspaper, magazine, radio and TV station in your local area can make a difference. Keeping in
touch with the local reporters through periodical updates of the activities being undertaken by an
organization enhances the goodwill of the organization in the general public. Donors have sometimes
approached organizations directly through the coverage of a local newspaper or the electronic media.

9. Conclusion
Fund Raising is the lifeline of any organization in the social or development sector. The vision-mission of
the organization may be inspiring, the concepts may be out-of-the-box, the commitment of the members
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may be exemplary and the passion utmost, but without financial support, the growth of any organization
will be hindered to a great extent. Thus, though not the prime activity, fund raising is a significant activity
of any organization for its long-term sustainability.