Donor Partnership Guide
Donor Partnership Guide
Donor Partnership Guide
Mobilization
A Practical Guide
for Research and
Community-Based
Organizations
October 2010
Resource Mobilization:
A Practical Guide for Research and
Community-Based Organizations
2nd edition
Copyright 2009 Venture for Fund Raising, Inc. All rights reserved.
For non-commercial and academic uses only, this publication may be copied and redistributed provided
suitable credit and reference is given to Venture as the original source publication. Venture for Fund
Raising and IDRC are eager to learn how this publication is being used. If you intend to copy and
redistribute any content within this publication for non-commercial or academic use, please send an email
to info@idrc.ca and venture@venture-asia.org. For any commercial use of this publication, permission is
required from Venture for Fund Raising. Mention of any proprietary name in the publication does not
constitute endorsement of the product and is given only for information.
Table of Contents
Foreword ......................................................................................................... v
List of Acronyms.............................................................................................. vi
Introduction..................................................................................................... 1
In Closing ........................................................................................................ 44
The International Development Research Centre (IDRC)’s mandate is to Since 2004, IDRC worked in close collaboration with Venture for Fund
"initiate, encourage, support, and conduct research into the problems of Raising, a non-profit organization based in the Philippines, to design and
the developing regions of the world". The Centre is concerned with funding deliver several workshops throughout Asia. IDRC is proud to support the
flows to research for development and the financial sustainability of its publication of the Resource Mobilization: A Practical Guide for Research
research partners. Both remain a challenge for developing country and Community-Based Organizations. The book is the result of several
partners, and dependence on project funding can undermine an years of field-testing and incorporates feedback, and ideas from IDRC
organization's ability to pursue strategic research priorities and weaken partners and colleagues. It complements training material, cases studies,
overall organizational capacities. For these reasons, IDRC has encouraged and other resources produced under the CBRM Program
the implementation of the Capacity Building in Resource Mobilization (www.idrc.ca/pbdd).
(CBRM) program that helps research partners plan strategically for their
Special thanks to Vivien Chiam and Katherine Hay from the IDRC regional
sustainability.
offices in Asia, who co-developed and led the Asia CBRM program, through
Following pilot workshops in Thailand and Peru in 2003 the program was which this toolkit was developed. We would like to thank IDRC's senior
officially launched in 2004. The objectives of the program were to provide management for their vision and continuous support, and Lisa Burley and
training and advisory services on resource mobilization based on the Nicole Généreux for their work as the Program's coordinators.
needs of IDRC research partners and networks; to develop and test
We hope that the Resource Mobilization Guide will also be useful to the
training tools; to link organizational strategic planning to resource
many research and development organizations around the world striving to
mobilization; and to promote the development of Southern expertise in
attract the resources they need and to establish financial sustainability.
resource mobilization.
Between 2004 and 2009, some 480 individuals from over 370 partner
organizations and networks based in Asia, Africa and Latin America have Danièle St-Pierre
participated in the CBRM program. Through training, mini-grants, advisory Director, Donor Partnership Division
services and mentoring, many researchers have developed resource International Development Research Centre (IDRC)
mobilization strategies and tools that have helped improve their partnering
Ottawa, September 2010
and management practices.
FOREWORD v
List of Acronyms
3C Connection, Capability and Concern
ADB Asian Development Bank
ANSAB Asia Network for Sustainable Agriculture and Bioresources
ASRO IDRC Regional office for Southeast Asia
AusAID Australian Agency for International Development
CBO community-based organizations
CBRM Capacity Building in Resource Mobilization
CIDA Canadian International Development Agency
CIP Centro Internacional de la Papa
DDEC Dambulla Dedicated Economic Center
DPD Donor Partnerships Division
FAO Food and Agriculture Organization
FRLHT Foundation for Revitalization of Local Health Tradition
GEF Global Environment Facility
GF GREEN Foundation
GGS Govi Gnana Seva
ICIMOD International Center for Integrated Mountain Development
ICT information and communications technologies
IDRC International Development Research Centre
IFAD International Fund for Agricultural Development
IPGRI International Plant Genetic Resources Institute
ITTO International Tropical Timber Organization
JICA Japan International Cooperation Agency
KADO Karakoram Area Development Organization
LEAD Leadership for Environment and Development
LI-BIRD Local Initiatives for Biodiversity, Research and Development
LRC-KSK Legal Rights and Natural Resources Center-Kasama sa Kalikasan
NABARD National Bank for Agriculture and Rural Development
NEN North East Network
NGO Non-governmental organization
NORAD Norwegian Agency for Development Cooperation
ODA official development assistance
PAA Rainforest Action Network’s Forest-an-Acre Fund
PARFUND Philippine Agrarian Reform Foundation for National Development, Inc
SARO IDRC Regional office for South Asia
SEARICE South East Asia Regional Institute for Community Empowerment
SGP-PTF Small Grant Program for Operations to Promote Tropical Forests
SHG self-help group
SIDBI Small Industries Development Bank of India
SWOT strengths, weaknesses, opportunities and threats
UNDP United Nations Development Programme
UNICEF United Nations Children’s Fund
UPWARD User’s Perspectives with Agricultural Research and Development
USAID United States Agency for International Development (USAID)
WHO World Health Organization
The development research community faces interesting times. The agendas, and as a result undermines efforts towards local
changing tides of Official Development Assistance leave some regions of empowerment; and
the developing world with less assistance, others with more. According to
◆ Lastly, and true for other non-profits as well, is the over-reliance on
Canada’s International Development Research Centre (IDRC), research
restricted project funding from grant making organizations. While not
partners put themselves in a precarious situation if they insist on relying
undesirable in itself, restricted grants usually leave too little room for
on one or two funders, since their accustomed sources are, or will no
funding organizational core costs such as staff development and
longer be reliable. Donor scoping studies commissioned by IDRC in 2004
marketing expenses.
and 2008 showed that multilateral and bilateral agencies are now more
focused on large-scale, sector-wide funding, awarding bigger grants to This guidebook shows that sustainable resource mobilization is a strategic
fewer organizations, with less money available for medium to small groups. process that is grounded in effective organizational management, brought
As IDRC observes, dependence on international funding is proving to be to life by creative communication, and maintained through nurturing
insufficient, and compromises financial sustainability. stakeholder relationships. This reinforces the assertion that resource
mobilization should be considered a core institutional function, rather
The viability, or survival of development research groups depends on the
than just a string of ad-hoc activities. The guidebook provides a collection
organization’s ability to adapt to changing donor trends, and the
of information and activities that can help development research non-
willingness to explore alternative sources of funding.
profits to:
This situation is not unique to the world of development research. Non-
◆ Plan resource mobilization in a strategic, mission-driven — as opposed
profits, non-governmental organizations, and foundations from all sectors
to donor-driven — manner;
that have long enjoyed the patronage of a few benefactors now find
themselves wondering where next year’s budget is going to come from, or ◆ Build skills in proposal writing, handling face-to-face meetings, and
how a particular program is to be sustained over the long haul, or how communicating key messages;
staff development can be funded when grant monies are restricted to
◆ Design, implement and monitor resource mobilization activities; and
programmatic work. Increasingly, non-profits and NGOs realize that they
need to wean themselves away from once-reliable sources, and learn how ◆ Learn how other development research organizations in the region have
to cast a wider net to draw in a bigger variety of donors. addressed resource mobilization challenges.
INTRODUCTION 1
This guidebook documents some of the training and capacity-building How to Use this Guidebook
activities supported by IDRC and implemented by Venture for Fund
This practical guidebook supports and promotes new and creative thinking
Raising, with the invaluable input of experts on topics such as
on resource mobilization for development research, and can be used by
negotiations, financial management, proposal-writing and
organizations with different levels of skills and experience.
communications. The seeds of this practical guidebook were sown in a
pilot resource mobilization workshop held in Bangkok in 2003, and were Part A discusses the three major concepts that set up the framework for
further nurtured in succeeding workshops and consultations, up until the resource mobilization: organizational development and management,
most recent follow-up workshop held in Manila in September 2006. The communicating and prospecting, and relationship building.
practical guidebook itself evolved out of a writeshop process that brought
Part B is divided into several chapters, each chapter presenting at length a
the Venture team together in Cebu City, and helped distil from the team’s
step in the resource mobilization process, with one step building upon the
storehouse of knowledge the concepts, models, activities and case studies
other. Throughout each chapter, the reader may find:
appropriate to the development research sector.
◆ Case studies of Asian development research organizations that have
Therefore, the content of this practical guidebook has been inspired by the
applied the concept or technique, which validates the practical
experiences and ideas of many:
application of the practical guidebook. Users of this publication will be
◆ Katherine Hay, IDRC Regional office for South Asia (SARO) and Vivien able to draw on the successes and avoid the pitfalls of the featured
Chiam, IDRC Regional office for Southeast Asia (ASRO) — guiding cases;
members of the project team;
◆ Key findings from various surveys on the giving trends of institutions
◆ The worldwide team of the PBDD, earlier headed by Alain Berranger, and individuals across Asia;
and currently by Danièle St.-Pierre;
◆ Articles or workshop presentations by resource persons that elaborate
◆ Various IDRC partners who participated in the following resource on particular topics;
mobilization workshops: the 2003 pilot workshop in Bangkok;
◆ Tools and templates that can be freely used within an organization in
December 2004 workshop for the Asian Model Forest Network in
order to apply the concepts discussed
Madiun, Indonesia; February 2005 workshop for the partners of the
Medicinal and Aromatic Plants Program in New Delhi; May 2005 Both Venture and IDRC firmly believe that although resource mobilization
workshop for IDRC’s Asia-wide partners; February 2006 workshop for is a big challenge, various on-the-ground projects in capacity-building
IDRC’s agricultural biodiversity partners in Colombo; May 2006 for the have shown that development research organizations can become
members of the Global Knowledge Partnership, also in Colombo; and adequately funded. This shared belief has made developing this practical
finally, a follow-up/ monitoring workshop in September 2006 in guidebook such a gratifying learning experience.
Manila.
Organizations are dynamic systems, and must adapt in order to continue
◆ Resource persons Melanie Billings-Yun of Global Resolutions, Mr. on. The days of receiving funding from a single source are numbered. All
Harsha de Silva of the Govi Gnana Seva Project in Sri Lanka, Nalaka non-profit organizations, including development research institutions, need
Gunawardene of TVE Sri Lanka, Liz Fajber, Sarah Earl and Rana Auditto to arm themselves with the tools, techniques and strategies to shift from
of IDRC, and Jeremy Cherfas of IPGRI. dependence to independence, very much a maturing process. To face up
to the challenge, an organization must never underestimate its capacity to
◆ Featured organizations: Chaitanya, International Center for Integrated
change and transform. This practical guidebook hopes to provide
Mountain Development (ICIMOD), Foundation for Revitalization of Local
organizations not only with the information and tools, but also the
Health Tradition (FRLHT), Asia Network for Sustainable Agriculture and
confidence to make that transformation happen.
Bioresources (ANSAB), eHomemakers, Ngao Model Forest, Govi Gnana
Seva, GREEN Foundation, User’s Perspectives with Agricultural
Research and Development (UPWARD), LEAD India and North East Venture for Fund Raising
Network (NEN).
◆ The team from Venture for Fund Raising, headed by Executive Director
Mayan Quebral.
Part A contains two chapters. The first one, Looking Beyond Just Raising The Importance of Diversifying Funding Sources
Funds, discusses resource mobilization and fund raising, and the three
A diversity of funding sources provides protection against fickle donor
major concepts that set up the framework for resource mobilization:
trends. Other than grants, income sources include gifts and earned
organizational development and management, communicating and
income. The characteristics of each are found in the table below:
prospecting, and relationship building. It also talks about the Pareto
Principle as applied to non-profits, and the three major characteristics
Different Funding Sources
that donors look for in organization they wish to support. The second
chapter, a case story entitled Rallying Support, the Chaitanya Way, SOURCES CHARACTERISTICS EXAMPLES
features the inspiring efforts of the Indian organization Chaitanya as they Grants Usually restricted, project- Governments, foundations,
learned to engage their various stakeholders to meet their goal of raising based, time-bound, short- associations, multilateral
over US$50,000. to-medium-term funding and bilateral agreements
Now that funding from aid agencies has become less reliable due to
shifting donor trends and preferences, many research organizations are Building Constituents
left with unfunded programs, and may even begin to wonder about their The call now for development research organizations is to make the shift
survival. More grant making institutions require counterpart funding, and from dependence on grants to building their own constituencies and
token grant proposals just to meet paper trail requirements don’t work mobilizing local support through other strategies.
anymore. Non-profits actually have to earn their keep! As the non-profit
Raising resources from a local base has direct implications on the
sector comes face-to-face with the reality of declining funds from the
relevance of an organization’s reason for being. A community willing to
international donor community, non-profit leaders are left with two
support the organization’s research efforts, financially or otherwise,
options: close shop, or aggressively and creatively look for alternative
suggests that it shares the objectives of the program, understands them,
funding sources to fill the gap.
and aspires to see them realized. This becomes an endorsement of the
The latter poses as a challenge for non-profits that have been used to organization’s mission, and serves as an indicator of how wide and deep
writing up grant proposals to secure funding. Board members, executive the organization’s impact is on its constituents.
directors and non-profit managers must now learn to diversify funding
In addition, more grant giving institutions, foundations and corporations are
sources and come up with creative resource mobilization strategies to
using the level of community support as a criterion for funding. Developing
ensure survival.
a base of support should thus be a part of an organization’s resource
development plan.
Looking closely at this definition, one can see that resource mobilization is This concept is governed by two principles:
actually a process that involves three integrated concepts:
1. Resource mobilization is really FRIEND raising. Financial support comes
as a result of a relationship, and not as the goal in and of itself.
Elements of Resource Mobilization
2. People don’t give money to causes, they give to PEOPLE with causes.
People give to organizations to which they have personal affiliation, in
some shape or form.
Relationship
Building
Relationship Building
And thus the courtship begins: once you identify your donors, the objective
then is to get closer to them, get to know them better, very much the same
Communicating Organizational
and Prospecting Management way as developing a casual acquaintance into a trusted friend and
and Development confidante. As the relationship deepens, this increases the chance of
donors giving higher levels of support over time, intensifying commitment
and enlarging investment. As cultivation techniques become more targeted
The key concepts are: organizational management and development,
and personal, a donor may become more involved in the organization.
communicating and prospecting, and relationship building. Each concept
Initiating new relationships, nurturing existing ones, and building an ever-
is guided by a number of principles which are further elaborated in the
expanding network of committed partners is an ongoing activity, embedded
forthcoming chapters.
as a core function of the organization. This requires the dedication of
board members, staff and volunteers, and in order to build enduring
Organizational Management and Development relationships, the following principles should be remembered:
Organizational management and development involves establishing and
1. Donor cultivation means bringing the prospect to a closer relationship
strengthening organizations for the resource mobilization process. It
with the organization, increasing interest and involvement
involves identifying the organization’s vision, mission, and goals, and
putting in place internal systems and processes that enable the resource 2. Start at the bottom of the resource mobilization pyramid to get to the
mobilization efforts, such as: identifying the roles of board and staff; top
effectively and efficiently managing human, material, and financial
resources; creating and implementing a strategic plan that addresses the
The Resource Mobilization Pyramid
proper stewardship and use of existing funds on the one hand, and
and the 80–20 Rule
identifies and seeks out diversified sources of future funding on the other.
The resource mobilization pyramid is a graphic depiction of the proportion
This concept covers the following principles, elaborated throughout the of an organization’s supporters vis-a-vis their level of involvement in its
practical guidebook: activities:
1. Resource mobilization is just a means to the end, the end being the Major Donors make up only 10% of an organization’s support base, but
fulfillment of the organization’s vision contribute 70% of total donations received.
2. Resource mobilization is a team effort, and involves the institution’s Repeat Donors make up 20% of an organization’s support base, and
commitment to resource mobilization; acceptance for the need to raise contribute 20% of total donations received.
resources; and institutionalizing resource mobilization priorities,
First-time Donors make up 70% of an organization’s support base, but
policies and budget allocation
contribute only 10% of total donations received.
community relationships was more critical than the espoused cause itself.
10% It further stated that these relationships were based on three major
First-time Gifts
of $
70% of Donors characteristics that an organization needed to have in order to attract
support: legitimacy, transparency, and accountability.
Legitimacy
The Goal: Different countries have different terms and requirements for recognizing
Move Donors Up the legal existence of organizations. But however diverse these
to Higher Levels Major Donor requirements are across the region, each state still exercises a degree of
control over the incorporation of non-profit organizations. Only those that
Repeat Donor
have been established according to their country’s civil laws and traditions
Donor are considered to be legitimate. Such organizations are more likely to gain
donor support because they have achieved some level of compliance with
Potential Donors government standards, and are less likely to be suspected of being fronts
General Public
for underground political movements or “fly-by-night” operations.
Transparency
The pyramid reflects a concept called the Pareto Principle, also known as This refers to open communication with internal and external stakeholders
the 80-20 Rule, which states that a small number of causes (20%) is regarding an organization’s financial and management health, and is a
responsible for a large percentage of the effect (80%). In one business characteristic of organizations that disclose information ab0ut their
application, it can mean that 20% of the customers generate 80% of the programs, activities, and even financial transactions and investments to
sales, or that 80% of merchandise comes from 20% of the vendors. stakeholders and anyone who wishes to know more about the organization.
In the non-profit application of the Pareto Principle, it can mean that 20% It is a criterion that is highly regarded by prospective donors and partners,
of an organization’s funding comes from 80% of its donors, forming the as transparency assures them of an organization’s trustworthiness and
base of the pyramid. Majority of the supporters are involved in a smaller commitment to its constituents.
capacity. Further up the pyramid, individuals with greater involvement Accountability
become fewer, and the apex is the smallest group of supporters who This refers to an organization’s ability to stand up for its mission, and to
contribute the most (80% of the funding coming from 20% of its donors). be guided by sound management and financial principles. An accountable
The percentages per se are not as important as understanding that the organization is one that responsibly services its community, properly
higher the gift or donation, the smaller the number of donors who have the manages its resources, and is able to report back to donors regarding the
capacity or interest to give it. use of donated funds. Such organizations are also likely to gain public
The donor pyramid serves as a model to envision the resource support, as quite a number of donors now expect to be updated on how
mobilization strategies that are appropriate for each level. An entry-level their funds have been used by their beneficiary organizations. Moreover, it
strategy such as a special event or a direct mail campaign can be used to is not uncommon for donors to request visits to project sites to be sure
draw in donors to an organization (the base of the pyramid). As a donor’s that their monies are being used in the best way possible.
capacity to give increases over time, other strategies, such as face-to-face If there is only one message to take home from this chapter it is this:
solicitation, are then implemented to draw them up the pyramid, providing
them with successive giving opportunities that may cultivate a deeper In building a base of donors, the focus is less on resource mobilization,
commitment and interest in the organization. Generally, only a few from more on friend raising. The funds come as a by-product of the relationship,
the larger pool of donors move up into the next level. There are of course and not so much as an end in itself.
exceptions, and a major donor can surface at any level.
Case Story:
Rallying for Support, the Chaitanya Way
The Organization
Chaitanya is an organization in India that aims to mobilize the backward
and underprivileged in society, especially women, and assist in the overall
social development through formation of self-help groups (SHGs), clusters
and federations.
Towards the end of the project, it was agreed to continue the capacity 1. A pamphlet in Marathi on the contributions of Chaitanya, and receipt
building program after the withdrawal of IFAD from the State, through books in the denominations of Rs.50/- 100/- and 500/- were printed
construction of a Women’s Training and Resource Center. IFAD and NABARD and distributed to the staff and few of the SHG leaders. The older SHGs
supported the proposal and sanctioned Rs.2,800,000 (US$65,116 at decided to contribute some money from their own funds and the others
US$1 = Rs.43) towards infrastructure. The design proposed was low-cost in decided to approach the village leaders for contributions.
keeping with the rural ambience within which it was situated. It included a
2. So far Chaitanya had not seen the need to reach out to other people
training hall, library and residential facilities for 30 persons with a total
beyond the development sector to talk about its programs. However, the
built up area of 6000 sq ft.
center provided this opportunity. In the absence of materials for
Though the land was acquired in 2001 through a donation from one of its publicity purposes, a five-minute film was prepared in English as well
trustees, there were legal problems involved in the land-use conversion as in Marathi, highlighting the achievements of Chaitanya. Brochures
that ultimately led to government authorities confiscating the land for the were also prepared and revised (at least five times between
training center. 2001–2004) to make its design and layout more attractive.
An alternative site was found six months before the closure of the IFAD 3. A local oil company Chakan Oil Mills as well as the multinational
project: an entire floor of 6000 sq ft, fully constructed and ready for sale. company EATON Corporation agreed to support the training center.
However, the cost was almost double the grant amount. The floor itself was
4. Chaitanya was governed by a Board of Trustees appointed for a lifetime
Rs.3,500,000 (US$81,395) and with interiors and all sundry expenses
(unless they resigned). However, two members with time commitment
the cost shot up to a little more than Rs.5,000,000 (US$116,279).
and innovative ideas on raising funds were included in the Board as
Within the grant amount, only half the floor space i.e., 3000 sq ft. was
advisors. Their involvement greatly enhanced the resource mobilization
available which was not in accordance with the original plan.
efforts.
With this situation, Chaitanya was left with two choices — let the grant
5. An organization experienced in raising funds through cultural events
amount lapse or take up the challenge of raising the remaining funds for
was approached for assistance in resource mobilization. A cultural
the building.
night was organized in which a leading Indian classical artist —
Shubha Mudgal was invited to perform. The management of the
Chaitanya’s Resource Mobilization Capabilities program was conducted by WISE and it gave Chaitanya a platform to
Chaitanya had no prior experience of raising such large amounts of funds talk about its activities and impact on the rural communities.
and never even wrote a single proposal with the aim of actively seeking
6. Chaitanya also decided to develop comprehensive grant proposals on
funding from organizations or individuals. NABARD therefore stated that the
the programs of the Center. This marked a first in Chaitanya’s history
grant funds would only be released after a resolution from the Board was
because in the past, proposals were written only when there already
drafted taking full responsibility for raising the remaining funds. With
was assurance that the funds would come in. This time, Chaitanya had
Chaitanya committed to set up the center, the Board decided to take on
to actually apply for grants. IFAD decided to provide partial support to
the massive responsibility of raising nearly Rs.2,500,000 (US$58,140).
meet the core costs, and Small Industries Development Bank of India
The builder agreed to receive only a partial payment and wait for one year
(SIDBI) gave support for documentation.
for the balance of funds, interest-free. But after one year the builder would
charge an interest of 16% on the outstanding amount. In effect Chaitanya 7. The status of resource mobilization became a regular agenda in staff
had only one year to raise the requisite amount to avoid the additional meetings.
burden of paying interest. In early 2003, the International Development
These strategies made Chaitanya reach its target of raising Rs.2,500,000
Research Center (IDRC) organized a resource mobilization training which
(US$58,140) for the training center, and in addition, Chaitanya received a
was attended by the program coordinator of Chaitanya. The training could
grant from SIDBI for documentation and IFAD for conducting training
not have come at a better time. It gave the organization a new perspective
programs and preparing training material at the center.
This section discusses the major steps in resource mobilization planning: Many non-profits are born out of the fiery goodwill and intentions of an
individual or a group of individuals who identify social needs that are
◆ Reviewing the organizational strategic plan
unmet and seek to find solutions to those needs. In the early years of the
◆ Determining resource mobilization targets non-profit, operations run informally, almost intuitively, and the initiator or
prime advocate sets the direction of the organization. However, as your
◆ Identifying constituencies and broadening stakeholders
organization grows, more complex programs will require more formal
◆ Developing key messages systems, and stakeholders would like to have greater influence in the
running of your organization, it is easy to lose sight of why the organization
◆ Reviewing and selecting resource mobilization strategies
was formed in the first place.
◆ Gearing up for resource mobilization
The vision and mission statements are what keep an organization on track.
Ideally, these steps are to be performed in successive order, and you will A non-profit without a vision statement is like being on a boat with no
notice that they build upon each other to create a full understanding and compass, flailing at the changing winds of a funder’s, or a founder’s,
appreciation of the resource mobilization planning process. Throughout preferences.
the succeeding chapters, we have provided case stories, studies, tools and
The Vision
exercises you can use in your own planning exercise.
There are as many definitions of a “Vision” as there are organizational
development consultants, but in the simplest of words, an organization’s
Reviewing the Organizational vision is the “shared hopes, dreams and images of the future.” Much more
Strategic Plan than a statement of identity, your vision is a proactive, public declaration of
This section starts with the importance of revisiting your Organization’s how your organization sees the ideal future in the area in which it works.
Vision, Mission and Goal statements, accompanied with an exercise that
can be used in reviewing or refining existing statements. The section on THINK ABOUT THIS:
Situational Analysis discusses the merits of going through this exercise, and A vision is the “shared hopes, dreams and images of the future.”
how this can be used to determine the strengths and weaknesses of your Vision is unchanging, and timeless.
resource mobilization capacity, as well as the opportunities and threats to
the organization (SWOT Analysis). The forward motion of your organization depends on the clarity of your
vision. Your vision statement is your prescription for pointing you in the right
Accompanying this section are guidelines to Planning for a Situational
direction. All other documents and tools – your mission statement, strategic
Analysis, and an excerpt from the SWOT analysis of eHomemakers. Also
plan, marketing plan, business plan, and even your fundraising campaigns
included are case stories of FRLHT, ANSAB and KADO, as well as excerpts
— are the means to reach your destination.
from a Donor Scoping Study commissioned by the IDRC.
When your vision is internalized by all the members of your organization, all
of your work leads you towards accomplishing this. Because you know your
Bringing the Future into the Present
vision, you believe in it, and you all live it.
Linking Resource Mobilization with the Vision and Mission
Most established non-profit organizations possess an articulated Vision As you begin to plan for resource mobilization, it is time to put on a
and Mission and engage in a regular strategic planning exercise. Ideally, at resource mobilization lens and analyze your existing vision statement using
the end of each Strategic Plan cycle, the members of the organization the following criteria:
engage in a review of its collective achievements, challenges faced, and ◆ Is your vision powerful?
current realities vis-a-vis its Vision, Mission and goals, in order to plan for
the next cycle. A similar process is employed when developing a Resource ◆ Does it capture the organization’s image of the future?
Mobilization Plan, since your organization’s Vision, Mission and Strategic ◆ Can members of the organization relate to it and be motivated to
Plan are the bases for its formulation. achieve it?
The nature of a non-profit is to fill its funding gaps from sources other ◆ Do they live the vision in their daily lives and passionately share this
than its beneficiaries. In an organization’s constant quest for resources, it vision with others — with potential donors and with the community?
can be tempting to develop a project just to match a donor’s requirements
and criteria. In some cases, an organization’s good intentions can lead it
to decide to serve this or that beneficiary, without taking into
consideration its financial limitations and available resources.
… ICIMOD is committed to a shared vision of prosperous and secure ◆ States the organization’s distinctive competence or the difference the
mountain communities committed to peace, equity, and environmental organization will make for those it serves
sustainability.
◆ Serves as an energy source and a rallying point for the organization
The Foundation for Revitalization of Local Health Traditions (FRLHT) has an
The following example of the mission statement of FRLHT captures the
even shorter one:
organization’s focus:
FRLHT has also attracted support for its endowment fund, and has When applied to resource mobilization planning, your organization’s
started providing technical and consultancy services armed with the mission becomes the anchor by which you will communicate your cause to
reputation of being a pioneering foundation in championing the your potential donors, why you are deserving of support, and how you will
causes of both conservation and revitalization. The strategic refining of prioritize your limited resources. As a result, your mission statement also
the original vision and mission has gained for FRLHT national and gives you a sense of your organization’s resource gaps. Which, ultimately
international recognition and support. becomes a major component of your resource mobilization plan.
Goals
When clearly crafted, an organization’s vision is unchanging, and timeless.
When the vision or dreams for the future have been defined, those who will
A well-thought out vision statement attracts donors that share common
benefit from that vision have been identified, and how to go about making
aspirations. It discourages your organization from force-fitting program
that a reality has been fleshed out through a mission, your organization’s
elements that have nothing to do with your vision, which may have only
goals now shape the targets towards which plans and actions are directed.
been created to meet the requirements of a particular donor.
A framework that is most useful for setting goals is the S-M-A-R-T goal
Staying focused on vision-driven vs. donor-driven programs will address
framework:
real, and not perceived needs within beneficiary communities. Conversely, it
helps your organization determine the prospective donors to approach and S pecific – what is required is clearly stated
as a result, moves you forward to its achievement.
M easurable – results are quantifiable
The Mission
A ttainable – targets are realistic but challenging
An organization’s mission statement is a brief expression of why it exists —
its reason for being. It states your organization’s purpose, with and for R elevant – goals have an impact on intended communities
whom your organization works, how your organization will go about fulfilling T ime bound – a clear timeframe is defined
its vision, and the values that your organization adheres to.
SMART goals ground the vision and mission, and help your organization
A mission statement … carve out a niche for the services you render. The goals distinguish your
◆ Is clear, concise and understandable organization from others within the sector.
◆ Expresses why the organization does its work or the organization’s Vision, mission and goal statements have the power to hold your
ultimate purpose organization together, and thus, present a consistent image to your publics.
The example below illustrates the link between ANSAB’s Vision, mission and 2. Have an individual draft the statement, then present to general body for
goals, and how these direct its resource mobilization efforts: feedback.
The organization’s Vision and Mission electrifies and directs its efforts.
Your vision and mission statements are your organization’s guides in On some occasions, there will be a need to revise the organization’s Vision
creating programs. In the process of identifying possible funding for your and Mission statements, in light of major shifts in its environment, a need
programs, you will come across those that fund activities in your area of to change the organizations programs due to increased demand for
work, but do not match your existing programs. This does not mean that specific services which fall within its expertise, or decreased support for
your organization develops a program because there is available funding. existing programs.
Rather, you need to look at how your project can be modified to meet the
donor’s requirements. If there really is no fit, there is no need to force the There is one crucial question that will spur the need to revisit your Vision-
issue! Mission statements:
Are the current vision and mission statements clear and on-target in
Crafting Vision-Mission-Goal Statements today’s operating environment?
How do you go about crafting your vision-mission-goal statements? There If the answer to this question is a “No”, the following procedure can be
are a number of ways: adopted:
◆ Opportunities – conditions external to the organization, which it cannot Planning for Situational Analysis
control, that may contribute to the achievement of the organization’s Data Gathering Steps
mission
1. Determine the focus, goals and overview of the Situational Analysis
◆ Threats – conditions external to the organization, which it cannot (SA) Process.
control, that may hinder the achievement of the organization’s mission
◆ Focus: Desired end result as determined by the organization
During resource mobilization planning, these areas are examined once
◆ Goals: To assess systems, skills, personnel, resources in place in
more in the context of their impact on the organization’s resource
terms of effectiveness, relevance and usefulness in support of the
mobilization performance, as well as its potential.
desired end result
For example, your organization can use the tool to determine if it 3. Decide whether the situational analysis is to be done by external
has the capacity to generate a total of US$50,000 from a reviewers (those that have no direct involvement with the organization
minimum of four sources within the next three years. such as consultants) or internal reviewers (those involved with or
employed by the organization).
2. SWOT questions must be able to draw out answers that point to
factors relevant to the desired end result, and not count aspects 4. Work on a common definition of terms to be used by all reviewers.
that do not have any connection to the desired end result. 5. Review existing relevant publications, documents, web sites, etc.
3. Opportunities are sometimes interpreted as strategies. However, 6. Handle logistics: set time, date, venue of interviews.
opportunities are conditions, and strategies are actions.
7. Prepare interview guide questions.
4. One organization’s opportunity may be another’s threat, and vice
versa. This also applies to its strengths and weaknesses. A SWOT 8. During interview process, present objective of interview to participants.
map is very specific to an organization: one size DOESN’T fit all! 9. Conduct interviews.
Answers are then placed on a matrix like this: — Understand the organization’s programs? Are they involved in the
organization’s activities?
Objectives ◆ Program track record – What are our successes that can be
communicated to the public?
◆ To evaluate the organization’s capacity to mobilize resources
Resource Mobilization History ◆ What are the roles of our Board, staff and volunteers in relation to
resource mobilization?
◆ What are our organization’s resource mobilization strengths and
weaknesses ◆ What resource mobilization systems are in place within our
organization?
◆ What opportunities does our organization see in the near future?
— Donation receiving and processing systems
— Is there a growing demand for our services in other localities?
— Donation acknowledgements
— Is there a forecasted economic upturn within the year?
— Donor /Stakeholder profiles or records/reports/tracking
— Is our cause “top-of-mind” for the general public?
— Prospect research procedures and records
The SWOT table above can now be used by e-Homemakers to formulate its
resource mobilization goals, to reflect on which constituency groups to
target, and the resource mobilization strategies that match its existing
resources. For example, due to the high viewer statistics of their website,
the organization may want to pursue resource mobilization by including a
solicitation page on their website for contributions from viewers through
credit cards. In addition, the organization may need to include the
identification of a designate, a resource mobilization officer among its
tasks, who will oversee its campaigns which will maximize its large
membership base and wide network, and develop its growing male
constituency.
◆ Project the needs that your activities may still require to achieve
◆ Determine program areas in need of funding and resources throughout
fundamental results.
a three-year period by using a resource timeline
Not only do determining resource mobilization targets allow you to plan for
◆ Identify the funding gaps or resource needs
the future of your programs, i.e., where you want to be and what you want
to accomplish given a specific timeframe, but it also gives you a clearer Mechanics
picture of what you can do here and now.
See the table on the following page.
Advantages of Setting Resource Mobilization Targets
1. In column 1, list down programs that your organization is implementing
There are some scenarios common to development research non-profits.
at present and the activities you intend to pursue over the next three
In some cases, an organization may seek resources only when the need
years.
arises, or when the end of the grant period draws nearer. In this scenario,
there’s a tendency to fall into the trap of being fund-driven: a program 2. In column 2a, indicate the funding and resource needs of your
exists only when there’s funding. activities/programs. This should reflect the sum of monies and the
equipment your organization ought to have in order to achieve the
It often is the case that funding targets are set without consideration to
programs’ key results over a three-year period. It is best to consult with
real needs. For example, a non-profit may set a target of US$50,000 just
your finance unit so as to show the most realistic projections.
because it is their 50th anniversary. They dream of building a training
center to have a space of their own, without considering the costs of 3. Among the requirements presented in column 2a, specify the amount
building maintenance. By determining realistic resource mobilization of funds and in-kind resources that already exist with your organization.
targets, you are able to check if the goals are actually linked with or rooted Again, confer with your finance unit to get the most updated figures.
in your organization’s strategic plan and your current programs, and see if
4. Column 3 should be able to show the variance between column 2a and
the time and effort you exert are well worth it.
2b in terms of funds needed, as well as present a listing of items and
Key Considerations in Planning equipment. These are the resource gaps, which would be the resource
◆ A review of the organization’s current resource situation is important to mobilization targets and the basis of developing your resource
be able to plan resource mobilization activities realistically. mobilization program.
◆ The resource target should be based on the programs you are 5. In column 4, indicate the sources of your available funds and
implementing at present and the activities you are planning to execute. resources. Include individual contributors, donor agencies and funding
It is pragmatic to always go back to the organization’s strategic plan to partners, other non-profit organizations, resource mobilization
determine which programs or activities must be pursued that would strategies, etc.
make possible the realization of your organization’s mission. 6. Draw an arrow in column 5 to show until when the money and
◆ Financial management and strategic budgeting are of high importance resources will be available.
in planning your resource mobilization program. These contribute to 7. The last column must indicate if the available funds in column 2b are
getting the most accurate and updated budgetary figures, as well as in restricted, i.e. to be used only as proposed or how you have committed
helping determine the best strategy for closing the resource gaps. it to be spent/utilized, or unrestricted, i.e. to be utilized freely, when you
want to or whenever it’s necessary.
TOTAL RM TARGET
Points to Ponder
◆ What is your organization going to raise money for in the next few ◆ Why is it important to distinguish between restricted and unrestricted
years? funds?
◆ What will the funds accomplish? ◆ Why is it important to identify resource gaps?
◆ What does the timeline say about your organization’s financial situation? ◆ What will happen if the funds are not received?
per year products
from 2006-2007
3. Core Team RM15,000-20,000
4. Chinese and BM RM6,000 monthly + RM 43,000/4
Website RM5,000 hosting
per year from
2006-2007
5. Printed RM25,000 per issue
Newsletter
6. Production of RM100,000
eHomemakers
Video
campaign
2. Guidelines 20,000 Baht Money (20K)Staff
development for
forest
management
3. Effective 15,000 Baht Money (15K)
coordination Staff Technical
system support
development
4. Research & 15,000 Baht Money (15K)
group
promotion
Building relationships with your community is at the core of resource It makes sense then to begin by identifying who are the individuals or
mobilization planning. This section discusses how to Identify and Define groups that are directly served or influenced by your organization’s
your Community Using the Constituency or Stakeholder Map, and how you mission, and whose needs shape the strategies your organization
can use the 3Cs — Connection, Capability, Concern — in qualifying undertakes. These people have an intrinsic connection to your organization,
prospective donors and partners. Also featured are insights from SEARICE and have a stake and interest in the continuing existence of your
(Philippines) as it engages its stakeholders. The Case Stories of the Govi organization. Stakeholders could consist of members of your general
Gnana Seva Project (Sri Lanka) and GREEN Foundation (India) show the assembly, past and present consultants and contributors, past and
wide network these organizations have used to implement their initiatives. present participants of trainings or seminars or other projects that you’ve
Then you’ll find a summary of the findings of the seven-country research run, institutional donors, corporate donors, local NGOs, cooperatives,
project, Investing in Ourselves: Giving and Fund Raising in Asia. The study community leaders, local government units, academic institutions, your
affirms the belief that philanthropy is alive and well in Asia, and explores staff, their families, beneficiaries, and volunteers as well as other similarly-
the giving attitudes of individual givers across Asia. The section closes with inclined people and institutions who have been involved with your work in
an exercise on Identifying your Stakeholders using the Stakeholder Map. various capacities.
more people than just the direct beneficiaries. Defining your “community”, Individuals / Communities
also known as constituents or stakeholders, helps you determine whether
◆ Is your work inadvertently imposed upon by a small core that has failed ◆ Personal sense of satisfaction
to establish genuine ties with those at the grassroots, who in turn feel ◆ Result/impact to which they are contributing
that there is no place for them within your mandate?
◆ Information, contacts, public recognition to enable them to maintain
Looking into these concerns allows you to determine who may be or expand their interests
receptive to your overtures for either fresh or higher degrees of support, ◆ Economic returns on their social investment
who among your constituents you need to woo and which openings or
leads you can explore as you seek to harness resources waiting to be Once you have satisfactorily answered the questions posed by the 3Cs,
tapped and mobilized. Over and above this, the stakeholder map helps move on to learning more facts about the prospective donor, his donation
you determine if you already have the right mix of supporters or if you pattern (i.e., incidence of having donated to other organizations, the
need to bring in new people with other competencies. frequency and amount of the donations, etc.), and specific interests. This
The stakeholder map is a graphic device that not only serves as a will help you see how your own programs can match the prospect’s needs,
barometer of your relationships but also helps you define your sphere of and vice versa. A good prospect is one who meets the criteria of all 3Cs.
work in resource mobilization. While the map allows you to identify the As the goal of resource mobilization is to cultivate lifelong relationships,
types of individuals and organizations that you should target as you you must ascertain that this relationship starts out on the right foot, and
broaden your reach as an organization, it also helps you figure out how with both parties clearly understanding the responsibilities involved in a
you can deepen the level of participation of those who are already close partnership.
to the core, but not as close as they could, or should be.
While drawing on old reserves of resources, you need to be constantly The GGS Intervention: Making Prices Known
enriching and enhancing what you already have. This may entail your This section will show you how the Govi Gnana Seva (GGS) Project used a
board members, staff and close volunteers examining even the most multi-stakeholder approach to help generate more resources for the
mundane of personal connections, and doing your homework as you farmers in Sri Lanka.
research for prospects. In order to determine whether a prospective
The GGS project used information communication technology (ICT) to give
individual or organization would make a good donor, ask yourself the
farmers timely information on the buying and selling prices of various
following questions, based on the 3Cs:
agricultural products at the marketplace. The effort hoped to increase the
farmers’ income and reduce dependency on middlepersons. The GGS
Beneficiaries
Insights from the Experience
Funding and implementation The key to the success of the project was the multi-stakeholder approach
◆ Farmers
partners (pilot phase) used in its implementation, with the different sectors and partners
◆ Traders
◆ Wholesalers ◆ Government of Sri Lanka bringing in their institutional expertise. The project indeed offered solutions
◆ Private sector to some of the farmers’ pricing problems, imparted significant realizations
◆ Civil society on the openness and interest of farmers to such highly modern
◆ International organizations mechanism and opened the probability of doing the same to other poor
farmers’ communities.
The biggest challenge now is how to scale up GGS to provide essential, yet
costly, information to poor farmers more widely. And the even bigger
The various collaborators had the following roles:
challenge is how to build on existing pilot stakeholder relationships.
Government Partners
Building a Diverse Funding Base: GREEN Foundation
◆ The Information Communication Technology Agency of Sri Lanka. GREEN Foundation is a community-based with a vision of conserving
Selected GGS on a competitive basis to be piloted under the e-Sri agrobiodiversity for poverty reduction and for sustainable development of
Lanka initiative and support it through initial funding obtained from The the small and marginal farmers in the semi-arid regions of South India. GF,
World Bank. with an integrated and participatory approach, has grown from process to
product in revitalizing the cultivation of multipurpose local seed varieties
◆ Dambulla Dedicated Economic Centre Trust. Provided accessibility to
for ensuring food security and enhancing the biodiversity to sustain the
the hub of the country’s agriculture produce trade to establish and
livelihood system of resource-poor farmers.
operate GGS.
◆ Efficient Utilization of Financial Resources. In 2004, GF was awarded GF’s philosophy lies in initiating programmes through community
the Equator Initiative Prize by UNDP for its outstanding initiatives in participation. At every stage, right from identifying problems to finding
poverty reduction through conservation of biological diversity. The award solutions, the communities are made the stakeholders. GF’s achievements
money was deposited in the bank as a collateral security for are attributed to the community’s wholehearted participation in all the
procurement of loans of self-help groups. It was also utilized for initiatives. The commitment of the team and community’s involvement has
purchasing land and construction of the office premises for the translated the vision into a reality.
federation of seed banks.
Harsha de Silva is a consultant working on development issues in the
Small Funds — Big Impact South Asia region. His focus is on reform of laws, policies and regulations
to improve the provision of rural infrastructure in India, Nepal,
◆ Building a Federation. A federation of seed banks has been formed to
Bangladesh, Bhutan and Sri Lanka, particularly in the areas of
bring about stability to the seed bank program, which is to procure
telecommunications and electricity. Currently he is the Lead Economist of
indigenous varieties of crops. Self-help groups have been created to
LIRNEasia, a new Asia-wide research institution working in collaboration
empower women socially and economically. The Federation is
with a number of European Universities, IDRC Canada and InfoDev of the
supported in part by a revolving fund provided by the Seed Savers
World Bank.
Network, Australia.
breeding was initiated to improve the quality of crop varieties, the first
step being seed purification. The project was funded by IDRC at the
Broadsheets
Greenfields
Agriculture
magazine
Local
Commercial
Organizations
Enterprises
Fastfood chains,
Sweetpotato- Shopping malls, Big 14
farmers Dysona traders,
cooperations Potato/sweet potato
IFAD, IDRC, FAD, GTZ,
in Tagaland processors
AusAID, DGIS,
Batan, Phils Dept of
Wageningen University
Agric(Phils),
and Research System,
Philrootcrops, Dept of Agric
Netherlands
MDG South Asia, NPRCRTC (Phils) (Nepal), RNRRC NPGRs (Phils),
ICIMOD, SWR, NARC (Nepal) (Bhutan)
HORDI (Sri
CAPRI, ICRISAT, IRRI, Urban VASI (Vietnam) Lanka)
IPGRI, IWMI Harvest, SWP-
International PRGA, World Sweetpotato/potat
Organization GREEN Agro-forestry Geila Castillo, national scientist, o-producing towns
Foundation, Centre Julian Gonzales, fundraiser, Gordon in 3 countries
Nepal Prain, Other Advisory Board (Phils, Indonesia,
NEPAN, Nepal)
Foundation, members, Staff
LIBIRD, VECO
FORWARD, Indonesia +
Nepal network of 6 CLSU (Phils),
NCPC (Phils), NIAH (Vietnam), FCRI Government
local NGOs MMSU (Phils),
(Vietnam), RILET (Indonesia), DA- DA-HVCC Potato
DMMU (Phils),
CLIARCLD (Phils) Seed Project
TCA (Phils)
Mayan Quebral, Cooperators in SWD (Phils), DFRS (Nepal), Dept of (Phils)
lowland potato ICM trials, Upland BSMRAU (India), Assam Agri (Bhutan), Dept of Ag Extn
communities in Oudomxay, Laos Agricultural Univ. (India), BSU
(Phils), Tribhuvan University (Bangladesh), CIPOWDM (India),
and Tuyen Quang (Vietnam) BCISP (Lao PDR), Ha Gang Devt
(Nepal)
Prog (VN), RIDP (VN), West
Guangod Poverty Alleviation Proj
Individuals / Communities
(China)
User’s Perspectives with Agricultural Research and Development the level of resource support and program influence that they provide.
(UPWARD) is an Asian network of scientists and development specialists Stakeholders with the highest involvement and contribution to UPWARD
working to increase participation by farmers and other users of agricultural are placed in the core or inner section of the map while those in the outer
technology in research and development. UPWARD used the stakeholder layers of the map were perceived to have the least involvement with
map to identify and plot their various stakeholders in the map based on UPWARD.
This section emphasizes the importance of developing a strategic key A key message is not a short treatise of your organization’s vision and
communication message for one’s resource mobilization efforts, therefore, mission. It isn’t supposed to make your audience ask more questions but
focused on its target right audience and media channels. At the end of rather to find quick answers why your message is relevant to them. For
this section, there is also a template you may use in developing your example, if your organization’s mission is environmental protection, your
organization’s communication plan. key message should concisely state why your cause is urgent, why you
offer the best solution to that particular problem and why they, your target
audience, should respond to you.
Resources, Timeline
Communications Objectives Target Audience Key Message Media Channel
and Person/ Unit in Charge
To raise $100,000 from 25-35 year old working A lot of rural women do back- Direct mail package – $5,000 for the development,
individual donors within women who have at least a breaking work for virtually production, printing, mailing and
12 months for the building college degree and whose slave wages. The Training development of communication and
of a training center average annual incomes Center for Women will teach evaluation collaterals and donor
for women in rural areas. is S40,000. them much needed skills to service scripts for the response and
give them access to better fund collection systems of the direct
livelihood opportunities and mail campaign;
to improve their lives and the – 45 days (15 for development, 15 for
welfare of their families. production and printing, 15 for
mailing and development of
communication and collaterals and
donor service scripts for the
response and fund collections
systems;
– Resource mobilization unit.
Grants
Selecting the Right Mix for Your Organization Updated
Capital Campaign
Donor Planned / Giving Bequests
Exploring Various Resource Mobilization Vehicles
The agenda of this practical guidebook is to get your organization to be Renewed/ Major Gifts
Updated Donor
less dependent on one or two funding sources by engaging your larger
Direct Mail, Special Events
community and constituents. The constituency map shows that you will First Time Donors Earned Income, Other Effective
have in your universe supporters with varying levels of involvement, Acquisition Strategies
necessitating that you talk to these different audiences in different ways,
and approach them by using different strategies. This also means that you
must match the appropriate resource mobilization strategy to your The figure above shows two major resource mobilization strategies:
resource mobilization objectives.
◆ Acquisition strategies that are intended to bring in new donors to the
Below again is a sample constituency map. organization. Such campaigns are characterized by a high volume of
donors and low average gifts. Their objectives may also be to raise
awareness, raise visibility and branding of the organization, advocate
Customers
for a cause and gain public support, build a large volunteer,
Local Commercial
membership or grassroots base. These include special events, direct
Organizations Enterprise mail, earned income, cause related marketing, e-mail marketing, direct
response advertising, among others.
Week 4th 5th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 5th
Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
PROGRAM
Program Development
Finalize list of speakers
Invite speakers
Follow up invitations to
speakers
Finalize program with
speakers and topics
Get speakers profile and
materials
Coordinate with speakers for
presentation materials
Package gifts with
speakers
SPONSORSHIPS
Finalize packages
Write sponsorship kits
Send out all sponsorship
kits
Follow-up sponsors
Final list of sponsors
Get sponsor materials
and logos
As special events are a means to reach out to your target audience, Special events can also give corporations the means to get involved in a
making a publicity plan helps to promote the event to your publics and good cause. Commercial enterprises become event sponsors for different
eventually, get their support. There are various ways in which you can reasons:
promote your special event:
◆ They share the same values as the non-profit organization
◆ Tri-media promotions e.g. radio plugs, press releases, advertisements,
◆ The event gives them the opportunity for publicity
TV plugs and interviews, etc.
◆ It is something unique and offers media mileage
◆ Web-based media e.g. text messages, email, website, etc.
◆ It is a way to have people sample their products
◆ Promotions in schools, villages, other communities and networks
◆ It gives them the means to reach other audiences as special events, in
The Essence of Sponsorships
general, cater to “niche” markets.
Because special events can mean substantial expenses, non-profit
organizations find ways to lessen the burden of bearing all costs. One of Finding the RIGHT Corporation
these ways is tapping individuals and corporations as donors and
◆ One with a mission similar to yours
partners.
◆ One with a promotional budget looking for something ‘different’
Individuals can support your event by:
◆ One where you know someone from the ‘inside’
◆ Buying tickets or event merchandise ◆ One who works in your own backyard
◆ Sponsoring tables, seats or souvenir program advertisements
When dealing with suppliers, sponsors, talents, artists, and donated When evaluating the event, the first step is to see if you have achieved
merchandise, make sure that contracts are drafted and the terms are your PRIMARY OBJECTIVE.
mutually understood and accepted.
Why do Special Events Fail
Determining the Costs of the Event
◆ Costs are too high (i.e. the need for front money)
In planning an event, do some preliminary cost research to help you
prepare a more realistic budget. You should identify budget categories e.g. ◆ Prices are too low (i.e. setting prices below what it cost you to run
the event)
personnel, venue, tax/permits, promotion, emergency purposes, etc.
Budget has two classifications: ◆ Not enough tickets are sold
◆ Expectations are unrealistic
◆ Direct costs (e.g. venue, artists, production company); and
◆ Indirect costs (e.g. staff costs, organization letterhead, fax and Post-Event Tasks: Be Objective
telephone usage, postage expenses). ◆ Conduct committee meetings to evaluate event and team performance
Resource Mobilization Vehicle 3: 1. Start with an attractive newsletter published four to six times a year.
Direct Mail Delivering the mails on a schedule helps sustain your relationships with
the donors.
Bringing Donors Closer to Your Organization
In the United States, individual Americans donate more than a hundred 2. Enclose a return envelope to give your readers and prospective donors
billion dollars to non-profits. Some write small checks for a few dollars, the ease of sending a cheque in response to your mail.
others make contributions in the millions. But regardless of the range of 3. Send thank you letters to those who will respond with contributions. A
donation amounts or types of givers, they may share one thing in reply envelope enclosed with a thank you letter sometimes yields an
common: each may have made a first gift in response to a letter they additional contribution, even without mentioning another request for
received asking for support in some form. For organizations — even new funds.
ones which haven’t yet had the chance to establish their reputations —
that letter represents the opportunity to begin developing a dependable 4. In your January mailing to your donors, you can send a report on their
source of funding. And for donors, it offers a way to belong, and help in contributions during the previous year. Many donors who receive this
finding solutions to a problem. report, along with another letter of thanks and appreciation, may yet
send another gift. A portion of the funds generated from this modest
That letter would have invariably been part of a direct mail package. initial direct mail program can then be set aside to launch a more
How do those letters transform total strangers into the loyal friends whose systematic direct mail resource mobilization program.
generosity supports your organization? That’s what direct mail is all about!
The Direct Mail Package
What Is Direct Mail Resource Mobilization? There are four basic items in a direct mail package: the letter, the outside
A direct mail strategy can provide your organization with loyal supporters (or carrier) envelope, the response device and the reply envelope.
and a cost-efficient means of communicating your organization’s The Letter
programs. This program can include funding appeals, membership
Here are winning tips in crafting the letter.
renewals, and special appeals, amongst other things. It allows you the
ease to solicit again from previous donors, and has the potential to 1. Personalize the letter. Do not write something like, “Dear Friend,” or
provide you with a constant stream of unrestricted funds. “Dear Prospect,” when you can easily personalize the letter through
mail merge and laser printing technology. Make sure that you have the
A direct mail program can systematically identify the people capable of
gender correctly encoded. Do a random check as the letters are
making the large gifts on which so much of your group’s future success
printed out.
depends. Through cultivation of your direct mail donors, you identify those
who will become a little more involved, those who may become volunteers 2. Write with strong feelings and emotions and back these up with facts.
and even board members, and those who will make major financial People give not because your organization needs money, but because
commitments to your organization. It’s a strategy that can pull in people they are touched or angered or saddened or made hopeful and they
closer to the core of your constituency map, or push donors up the want to do something to help!
resource mobilization pyramid.
3. Do not overwhelm your reader with the board of directors listing on the
This broad base of support — acquired, cultivated, and upgraded by mail side of your letter. This is an old style for resource mobilization letters
— will also help you raise more money from other sources including and there’s absolutely no need for this. Besides, it is distracting and
foundations and corporations. A broad base of support says to the world visually heavy. Your letterhead will do well with just the name, address
that there is a real need for your services. And there is nothing more and logo of your organization. Keep your readers focused on your
compelling to a potential major donor than that. appeal.
Resource mobilization letters, or solicitation letters as they are sometimes 4. Do not bore your readers with the merits of your organization. Rather,
called, are a vital source of information. By describing the social problems write about the people that your organization serves. Tell stories. Give
and urgent realities that your organization is trying to address, you give the people names — real people, real names.
people the opportunity to share in your cause and to make it theirs as
5. Fund raisers used to be advised to keep their appeal letters to short
well. It allows you to communicate with thousands of donors whom you
one-pagers, and traditionally enclosed a separate brochure with
can’t meet otherwise through personal contact. Many of the prospects may
6. Ask for a contribution. Specify the amount of the desired gift and ◆ How to send his or her donation
explain what it will do. Do not wait until the last page to mention
◆ Name and address of your organization
money. Give payment options like the use of credit cards or checks.
The Reply Envelope
7. Make your appeal personal. Imagine that you are writing only to one
It is an absolute must to include a reply envelope pre-addressed to your
person. Use conversational language. Do not use big words or jargon.
organization to make it easy for your donors to respond. Depending on the
8. Create attention to pertinent phrases or paragraphs through indented purpose of your mailing the enclosed reply envelope can be postage-paid
copy blocks, check marks, bullets, giant quotation marks, color, or without prepaid postage where the donor pays for the return postage. If
paragraphs or drawings. Do not overdo the underlining or printing in your organization is striving to acquire new members or more donors
boldface. (acquisition mailing) or you are embarking on first time (pilot) mailings, it
is wise for your organization to invest in business reply envelopes with first
9. Sign your letter. Give your printer a specimen signature and have it
class postage.
printed above your name.
10.Finally, P.S. wisely. A postscript has the highest readership among all Good time to send out mailers
the contents of a mail package, so do not let your P.S. just take up ◆ Around festivals and commemorative dates
space. Use it to give the prospective donor another push to send in a
◆ Away from heavy expenditure months like: school tuition time, rainy
gift. Usually the P.S. repeats the “offer” or the benefit offered to the season and tax season
donor prospect for their donation.
Remember, your letter should: Is Your Organization Ready for Direct Mail?
◆ Create INTEREST In the context of countries in the South, direct mail has some hurdles to
◆ State the PROBLEM overcome. It is not a reliable strategy in areas where the infrastructure for
◆ Arouse EMOTION postal services is not in place. Also, limited payment options, such as
non-availability of the credit card option, may inhibit responses. Direct
◆ Offer HOPE
mail entails significant investment, organizations that use direct mail
◆ Offer PARTICIPATION should not expect to see high response rates and return on investment in
◆ Induce RESPONSE (ask for the gift) the short-term. However, the biggest advantage of direct mail in this region
is that because it is used so infrequently, it is still a novel mechanism,
◆ Offer THANKS
unlike in the United States where the volume of direct mail is so immense
it has come to be considered a nuisance. In Asia, for example, response
rates vary from 1 to 2%, compared to 0.5 to 0.7% in the United States.
The Outer Envelope
It is hard to go wrong with a simple envelope, but it is very easy to go So how do you know if your organization is ready for direct mail? Ask
wrong with fancy artwork and a fancy teaser copy. So in designing the yourself and your resource mobilization team some basic questions to
outside envelope, you must ask two very important questions: help you make the right decision:
1. Will it call attention to my envelope and get it opened? 1. Has your organization acquired credible name recognition and a
demonstrable track record?
2. Is the envelope message appropriate to the enclosed letter?
2. Does your organization deal with specific issues rather than abstract
Remember that the carrier envelope is a 10-second decision point. ideas? Aside from being specific, are these issues timely, compelling,
It is at this point where your prospect decides whether or not to open the and of concern to a broad public?
package.
3. Is your mission clear enough for you to package your program for a
wider public?
The Response Device
4. Does your organization serve or help specific constituencies (for
The first purpose of the response device is to provide a record of the
example, tribal minorities, abandoned and abused children,
donor’s name and address. But a more important purpose of the response
endangered species, coastal communities, the elderly)?
device is to stimulate the contribution. A lack of a response device will
likely stall your prospect’s intent to give to your cause. 5. Are there organizations serving the same constituency as yours? If so,
can you effectively distinguish how your organization is unique? Do you
Do not neglect the expertise of your board or the experience of other non-
profits that have already taken this route. Consumers aren’t going to be
buying your products out of compassion. Once you’re out there and your
business is up and running, the rules of the market, supply and demand
govern.
◆ To assess if your constituency map is realistic and if your prospect and 3. Have a 15-minute meeting with the funding agency staff. The objectives
current donors will be able to support your resource mobilization of the meeting are to:
campaign at the levels to which they may be asked to give. ◆ Present your case;
Activity Mechanics ◆ Discuss any questions they may have; and
1. Identify your resource mobilization goal for the year.
◆ Request for funding.
2. Divide your resource mobilization goal into specific gift range amounts.
It is suggested that you consult your organization’s donation history to
find out the amounts your current donors are giving. This way, you will
be able to present reasonable gift levels and not estimates or inflated
figures.
3. Project the number of prospects that you can tap and who can possibly
give that particular amount. Then, from the prospect range, determine
how many will likely agree to give at that level.
4. The column on cumulative total in the table below must show the full
amount of successful gifts in every range. Formula: gift range x no. of
successful gifts.
enable the participants to apply previously discussed sessions on structure, plan, budget and name
negotiations, communications, donor research, and many others, and to
◆ Defined, intensive time period, usually two to seven years
ultimately build their confidence in clear and effective communication and
listening skills. It was also a ‘reality check’ for the participants with regard ◆ Well organized development office
to how well they knew their organizations and its programs and services.
◆ Focus on the quality of gifts as opposed to the quantity of gifts
This is significant information that must be in the heart and mind of every
staff in dealing with people outside of their organizations at any given time. There are three types of capital campaigns:
Based on the simulation, these are the donor’s comments. 1. Bricks and Mortar. The object of the capital campaign is the
construction of tangible assets such as buildings, renovations and
STRENGTHS WEAKNESSES
equipment.
◆ Knowledge of project and ◆ Simplify message
organization ◆ Did not always address the 2. Endowments. The object of the campaign is to raise resources that will
◆ Rapport questions enhance future funding for programs and general operations through
◆ Story ◆ Inability to present impact increasing the principal revenue base of assets to be invested. The
◆ Mention past, links of project organization can draw interest earnings from the investment to fund its
◆ Passionate! ◆ Research on donor future operations.
◆ Preparation – way ahead ◆ Give the card; get the card!
◆ Pick-up on clues ◆ Follow-through 3. Comprehensive. The objective of the campaign is for both bricks and
◆ Pleasant ◆ Ready to pitch story mortar and the endowment fund.
◆ Staying on track ◆ Listen actively/pick-up on offers
◆ Enthusiasm for referrals When to Launch a Capital Campaign
◆ Well-prepared ◆ Summarize next steps
Your organization must first determine the feasibility of the intended
◆ Had “materials” to give
campaign as well as the ability of the organization to implement such a
campaign. You can do this by asking the following questions:
These are the participants’ feedback on the simulation.
1. Is there a pressing need for the object of this campaign? Do you really
◆ Know who you are addressing need that endowment? That new structure? Can you share the
◆ Adjust according to clues resources with other non-profits for now rather than building your own
◆ Do not show surprise if you are offered a completely different structure?
alternative
◆ Learned skills from the exercise — how to behave in front of donors 2. Have you validated your financial targets? Was there a business plan?
◆ Be on time What was the basis for setting the target? Have you factored in
◆ Be confident operations and maintenance costs for buildings and renovations?
◆ Avoid nervousness
◆ Be specific 3. Have you set aside funds to raise funds? Have you calculated the
◆ Pitch with enthusiasm working capital you will need to develop communications materials, to
◆ Adjust opening line to fit the person you are talking to; then link your
hire and train staff, purchase supplies, travel and transportation, meals
project
◆ Do not be too engrossed in your project at donor meetings and gatherings, and other expenses?
◆ Make no assumptions
4. Is your staff ready and experienced enough to do the resource
◆ Avoid jargon
◆ Match your program to the interest of your donor mobilization work? Have they been engaged in smaller resource
◆ Be ready to explain your cause in simple ways mobilization activities? Are they familiar with donor nurturing and donor
◆ When engaging a journalist, do your homework. Make your story acquisition strategies?
interesting without embellishing it.
◆ Be upfront with journalist 5. Are your major donors ready to back you up? Is your board in
agreement with the object of your campaign or are there loud
dissenters? Do you have a history of high giving levels from your
Capital Campaign donors?
As your organization matures, you may start to consider setting larger
A Note on Endowments
resource mobilization targets for long-term, enduring projects. Among all
Often, an endowment is seen as the long-term solution to a non-profit’s
the resource mobilization campaigns, the capital campaign is most suited
financial sustainability. Recent trends, however, suggest than an
for financing big expenditures.
endowment must be studied in the light of your organization’s unchanging
What is a Capital Campaign? values. These values and long-term planning may justify the need for a
A capital campaign is a carefully organized, highly structured campaign for large amount of money to be set aside and used only as principal. This
specific needs (e.g., a training center, an endowment fund). Focused on a must be balanced with the preference of some donors who would like to
large goal set against a deadline, it is the ultimate test of an institution’s see immediate results from the programs they fund.
resource mobilization skills.
5. In the event that the capital campaign is intended for construction of a The gift of land from a landowner is considered the lead gift for NEN’s
building, consideration must be given to the cash flow requirements capital campaign. This led to gifts of architect’s expertise, government and
and maintenance costs. army contributions and international contributions.
This strategy provides good publicity for the company and the non-profit at Email/Internet Mobilization
minimal or zero expense for the non-profit. It also provides the company Advantages Disadvantages
with an opportunity to reach an alternative audience.
◆ Low cost, high response: ◆ Very limited audience
While there are benefits to such a relationship, there is also the risk of the 10-12% (more than direct mail) ◆ In Asia, this is not yet fully
non-profit being associated with the values of the sponsoring company • ◆ Information and involvement-rich developed as credit card online
and the partnership may be misconstrued.
◆ Donations made with the click transactions are not widely used
of a button ◆ Fails to attract more
◆ Benefits of interactivity mature/aged donors
◆ Broadcast ability through e-mail
and search engines
◆ Younger respondents
Mechanism ◆ How much money was actually raised as income (gross revenues less
Donations from Butuan folk in the United States are channeled through expenses), and whether there was any profit at all (gross revenues over
Ivory Charities Foundation to the ultimate beneficiaries in the countryside. expenses, or Return on Investment)
Administrative, incidental, and other expenses are borne solely by Ivory
Charities Foundation. Donors are fully informed and pictorial reports of ◆ How well the budget was managed (analyzing the variance between
projects are sent to them. And when they come for a visit, they are taken to budgeted and actual expenses, planned and unplanned activities)
meet the recipients of their generosity.
◆ How much it cost to mobilize resources (acquisition cost, or cost per
Projects
dollar raised in a specific activity, or cost per donor acquired)
◆ Neurosurgery services
◆ Ultrasound machine donation to the City Hospital
◆ What is the amount level that donors can be expected to support your
work (average gift, which is the total number of gifts received over the
◆ Donation of other hospital equipment, medicines and supplies
total number of donors)
◆ Deworming project in city elementary schools
◆ Construction of artesian wells Other questions are non-financial: How many new donors or volunteers
◆ Microlending program
were acquired? Are we acquiring many donors who just give once and
whom we never hear from again, or are we successful at getting repeat
◆ Patriotism and values formation
donors? How many donors are we losing per year? From the time we
◆ Barrio Klinik
submit a proposal to a grantor to the time we get a response, how long
◆ Ivory lecture series does it take? Such questions measure performance in building the
stakeholder base:
you to problem areas such as overspending, so you decide how to 001 (date? Study of the IDRC-SARO Approved RS. 2.88
adjust or modify your strategies name of extent and (date?) million
staff?) profile of Declined 36–month
◆ Demonstrates your organization’s commitment to accountability women- (date) project
headed For revision
◆ Continuous learning and flexibility contributes to improvement in results households (date)
in rural
Developing a Monitoring and Evaluation Plan Maharasthra
1. What to monitor
Summarizing the data, you can measure on average how long it takes from the
◆ Identify your indicators. Indicators are qualitative and quantitative
time of proposal submission to revision and approval. If you know that it takes
measures that show to what extent you are achieving your goals.
donors on average so many months to respond, you can then time your
There are short-term and long-term indicators as well as process
proposal submission better. It makes for better time management as well. If
and results indicators.
you can also track the proposal ‘authors’, you will also be able to see which of
◆ The indicators you choose should be relevant to the goals set. If the your staff members produces proposals that are most often approved. If
goal is to get funding to do a Phase 2 of a current successful project development is a performance indicator among your staff, this is one of
project, monitor donor response to funding proposals, NOT publicity the ways you can evaluate their results.
for your good results.
If you had this proposal log, how would you use it? Who would be in charge of
2. Determine when you will monitor periodically summarizing the information and reporting it to the rest?
◆ The timing depends largely on the indicator you set, and the result The type of a chart (opposite page) indicates how much lead time you
or process you are checking on. For example, when would it be have in planning your event, or if you are already critically delayed in some
realistic to expect responses to a direct mail pack? Factor in the activities and need to make adjustments.
efficiency of your local postal system.
◆ Who will put together the monitoring report? What framework will be
used?
◆ Do not always think you need to reinvent the wheel; use staff
meetings or other already existing processes to report on progress.
* a variance is the difference between the expected amount and actual amount, expressed as
a percentage of the expected amount. A positive number indicates the variance is over the
expected amount, a negative number indicates that it is under the expected amount.
Executive Resource Staff
Right from the beginning, this guidebook has asserted that resource
mobilization is a management process. This means that such activities Director Mobilization Involvement
Mobilization
cannot operate in a vacuum within your organization, cannot be
accomplished or implemented by one person, and cannot be absorbed by
Volunteer/Member
a unit probably that is probably already overburdened with other
Mobilization
functions.
◆ Time: You want board members who are willing and able to spend time
Resource Mobilization Policies with the organization. At the very least, board members are expected to
An organization embarking on instituting resource mobilization programs be able to attend the mandatory meetings indicated in the
must discuss and decide on resource mobilization policies and restrictions organization’s by-laws.
at the board level. A useful exercise is this sentence completion activity:
◆ Talent: You want board members with a variety of expertise and talent
◆ Our organization will partner with… to come into the organization. Depending on the needs of the
◆ Our organization will not partner with… organization at the time of recruitment, experts in these fields can be
brought in. A lawyer will be able to provide legal advice for transactions
◆ Upon receiving financial or in-kind contributions, our organization will… and contracts. A celebrity will be able to put the organization in the
◆ The funds raised by our organization will be used for … limelight. An investment banker will be able to advise the organization
how to make their money work.
◆ Our organization will acknowledge our stakeholders by …
◆ Treasure: You want board members who bring in resources to the
◆ Formulating our organization’s resource mobilization policy is the organization. It may be their own resources, or they may have access to
responsibility of… people or entities with resources.
* “Born to Raise” by Jerald Planas, a survey of 2,700 professional fund raisers
√ √ √ √
responsibilities related to resource mobilization.
1. Will make contribution
√
◆ Planning and preparation spell out the implementation of the
campaign. 2. Will contribute services
◆ Guidelines must be in place before resource mobilization 3. Will help raise money √ √ √
√ √ √
implementation.
4. Has access to individuals
The pre-campaign work and “behind the scenes” tasks call for
√
◆
attention to detail. 5. Has to access to
corporations/foundations
A useful tool for assessment is the Board Grid. The Board Grid will reveal 6. Has personal wealth √ √ √ √
areas where there is under- representation at the board level and
conversely, over-representation. It will also show the ability of the board to 3. Based on TIME and TRUST, rate each board member for each category
bring in and access resources, and show their commitment to and belief as High (H), Medium (M) or Low (L). Ideally, the board must have more
in what your organization stands for. Highs (H) as opposed to Lows (L) in the board grid. If the organization’s
board registers more Lows (L) in the Time factor, this would indicate a
difficulty in achieving quorum during board meetings. In the same
The Board Profile Grid
manner, the organization must seek out new board recruits that will
The Board Profile Grid can be adapted to the specific interests of the
balance the Lows (L) as opposed to adding to it.
organization. While it addresses the key elements and diversity needed by
most non-profit organizations, your board may require other talents given TIME & TRUST
(Rate the ff: John Ahmed Miriam Lila
its scope. These may include the medical background, artistic experience, H– High, M–Medium, L– Low)
etc.
1. Stature in community M H H H
The Board Profile Grid is a simple tool to guide organizations in assessing 2. Leadership potential M H H L
its board composition. Examples are presented below.
3. Will help raise money M M H H
1. List board members by name and term of office, and place a check
4. Influence in community M H H
mark on the skills they bring into the organization. Once done, you can
assess the areas of weakness and strength of the current board 5. Communication skills H M L L
membership. The weaknesses will allow the organization to identify 6. Interest in program H M M M
candidates for recruitment to provide the needed skill. Where there are
many board members for a specific talent, the organization need not
Volunteers
recruit a new board member in that area.
Volunteers can be excellent ambassadors of your organization’s mission
TALENT John Ahmed Miriam Lila and values. They lend credibility to the organization and are more likely to
(Skills and Experience) Up to 2009 Up to 2010 Up to 2008 Up to 2011
“raise friends” for the organization out of sheer faith and passion for your
1. Business and Planning √ √ cause. They can also provide much needed help to augment overworked
√
staff. They may come at little or no expense to your organization, but they
2. Politics/Government
are a priceless addition to your human resources.
3. Media √
√ √
6. Community Groups/ prior to asking for money.
Social Services
√
Tracking costs. The process of properly recording all expenses as they are
7. Financial Management incurred, and not just at the conclusion of a resource mobilization
√ √
campaign. Thus at any given time, you can be alerted if you are
8. Religious Group
√ √
overspending on a particular campaign.
9. PR/Markleting
Receiving contributions. The system of setting up credit card merchant
accreditation, having official receipts available, making arrangements with
banks for efficient processing of deposit slips.
Database Requirements
The Functions of a Database
Your database will require appropriate hardware (computer, memory,
A well-managed donor database is not merely a mailing list of names and
printer), software (donor management software), data (information about
contact information for your direct mail campaign or special events
donors), staff (who encode the information), and processes (rules and
participants. Depending on your organization’s needs, a donor database
procedures followed so that entries are recorded accordingly).
can be designed to help you meet, in a strategic manner, your resource
mobilization goals. The rationale behind database management is to understand and respond
to the explicit and implicit needs of your donors and broad constituents. It
A donor database:
is an intensive and deliberate process of collecting, organizing and using
◆ Is a cost-effective and accountable marketing tool this information to reach your vision. There are no shortcuts.
◆ Equips you in sending the right message to the right person at the right
time
Your information needs will dictate the level of sophistication you will
require from your donor database system. For instance, if you currently
have only 12 donors, the amount of work to update the list will not require
high-level software applications. A simple Excel or spreadsheet format will
do. Other factors to consider are levels of security for those given
permission to access the database, and your current hardware and
software set up.
1. Determine how you want your system to function. What is the primary
use of your database? To support your mailing requirements? To track
and update information beyond addresses and phone numbers? Do
you want to separate your donor database from other institutional
databases, such as those set up for members, volunteers or suppliers?
Who should be allowed access to the database?
Adapted from workshop materials prepared by Vivien Chiam, ◆ Intervention in areas of conflict and the ‘counter-terrorism’ agenda
International Development Research Centre is detracting from the MDGs and poverty criteria.
3. Aid trends
Introduction ◆ Aid declined in 1990s, but rising since 2001
A thorough resource mobilization analysis includes a review of external
◆ 5% fall in aid to the Far East
factors, such as opportunities and threats, that are beyond the control of
the organization, and that can either nurture or hinder an organization’s ◆ 5% increase to South and Central Asia
fulfillment of its mission. The following Scoping Study on Donor Funding
◆ 3% increase from 33% to 36% of aid to sub-Saharan Africa (likely
for Development Research in Asia, carried out by IDRC, provides a good
to continue going up)
environmental scan of the funding aid situation. The study, completed in
December 2004, is here presented in three sections: an overview of ◆ Europe’s share of aid has doubled from 5% to 11%
global trends; information specific to Asia; and implications of aid
4. Aid to NGOs is Changing
agendas on development research funding. A summary of the findings is
presented here. During the 1990s, grants from bilaterals to NGOs increased substantially;
but recent information suggests that this may now be declining (in real
The Research Methodology terms).
Twenty agencies were contacted by email and phone with specific NGOs are seen as contractors for services. The nature of funding has
questions about their grant making procedure and priorities, and invited increasingly moved away from the provision of grants for activities and
for interview by consultants. Three of these were interviewed by phone and ideas developed by NGOs to the tendering for contracts for delivering
four responded by email, and one agency was met personally. Assistance services that aid agencies want to provide.
strategy/ strategic plans of several organizations were either downloaded ◆ An increasing interest in directly supporting Southern NGOs.
from the web or hard copies obtained from the organizations. In the case
Northern NGOs compete with these Southern NGOs for funds
of the European Union (EU), an extensive discussion with a London-based
consultant who specializes in writing EU proposals for international non- ◆ Grants are getting bigger to fewer, larger NGOs. There is also a trend
government organizations, was a valuable source of information. Several towards bigger grants to large and very large NGOs with less money
books on aid and donor policies were used and referenced in appropriate available for medium and small NGOs. Most funding sources are
sections in the original text. becoming increasingly inflexible. The demands for increased
planning, accounting, budgeting and implementation requirement
are increasing exponentially, while there is a general lack of donor
An Overview of the Global Scene coordination around procedures.
1. The development funding landscape is marked by a high degree of
◆ There is an increasing emphasis on sophisticated large-scale
consensus today.
planning agreements and frameworks. The trend is towards
◆ A commitment to the Millennium Development Goals (MDGs) developing increasingly sophisticated planning, management and
accounting systems. The European Commission (EC) for example
◆ A consensus strategy on how to reduce poverty
has developed a system whereby NGOs could present consortia
◆ Use of Poverty Reduction Strategy Papers applications for certain types of funding. This is a complex area
requiring NGOs to draw up legal frameworks for such partnerships. A
◆ Sector-wide approaches
more positive approach to reducing transaction costs has been
◆ Budget support through flexible funding instruments.
◆ Result-based management ◆ National NGOs as ‘middlepersons’. A disturbing feature of emerging
funding patterns has been that often the role of Northern NGOs has
2. Aid is generally guided predominantly by four political considerations.
been transformed from being partners working in solidarity with
◆ Security (against the rising tide of communism in the cold war Southern NGOs to being either intermediary in the sub-contracting
period, and now ‘war on terror’ in the post 9/11 period). Foreign chain or becoming themselves direct competitors of Southern NGOs
policy considerations influence donor countries to support certain for funds.
states: e.g., Afghanistan, Iraq and Sri Lanka.
Donors are developing framework agreements with key international
◆ Economic interests, primarily in opening new markets and organizations, like the Partnership Program Agreements (PPAs) by the
developing captive suppliers of primary commodities. Promoting Department for International Development (DFID) and similar
economic liberalization to ‘open up’ new markets. instruments like Framework Agreements by the Swedish International
Development Agency (SIDA) and the Directorate-General for
◆ Domestic special interests, e.g., the farmers’ lobby in the US and
International Cooperation (DGIS)
Western Europe which has been a strong supporter of food aid,
There is an overall decline in funds for Asia and certainly for East Asia. If Funding for Development Research
you leave out grant funding for Afghanistan, Sri Lanka and East Timor
which are going through post-conflict transition, this research reveals that Funding for development research must have a clear link to MDGs,
NGO funding in Asia has definitely declined as several major agencies country/regional priorities, and programs of agencies. There should be
have either reduced their funding (Gesellschaft für Technische some relation with action-research institutions in ‘home’ countries. The
Zusammenarbeit-Germany, Canadian International Development Agency, issues prioritized are as follows:
United States Agency for International Development, United Nations
Environment Program, for example) or withdrawn from many countries Natural resource management, 9 agencies
altogether (DGIS, Norwegian Agency for Development Cooperation and agriculture development
SIDA).
HIV/AIDS, tuberculosis and malaria 9 agencies
It is expected that declining trend will accentuate in the future as the
donor community focuses its aid in Africa. Environment 5 agencies
◆ What? — objectives
Objective
◆ Who? — audience Clear objectives are the key to the success of your communications
◆ How to change? — key messages strategy. The communications activity is not an end in itself but should be
aligned with your organizational objectives, or with the objectives of a
particular project or resource mobilization campaign.
Delivery 2. Identify the target audience for which the communication is intended
Identify the tools and activities that are most appropriate to
3. From the list of developed key messages, identify which is the best
communicating the key messages to the audiences. These will be
message for the target audience and will help achieve the
identified based on your audiences, messages, or a combination of the
communication objective
two. For example, an annual report is a useful tool in corporate
communications whereas an email newsletter lends itself well to internal 4. List all possible channels or media that can reach and communicate to
communication. Tailor your tools and activities to the level of time, human the target audience
and financial resources available.
5. Identify the strategies and activities for communicating to the
audiences
Tell good stories and tell them well.
Messengers are important.
Definition of Terms
People listen to people who care about people. Communications Objective — what you want to achieve
◆ Keep releases short, no longer than one page. If the media want more
information, they will contact you.
The web can be a great starting point. Annual reports and local embassies
can also be a way to get started.
Do not assume that all donors are the same! Try to understand their Bring multiple copies of documents, including short summaries with all
different motivations and approaches. documents. All documents should have a concise executive summary.
Make sure you get all names and contact information and try to leave the
It is surprising how many requests IDRC gets and how many meeting on a clear action point.
proposals received that are in no way linked to the organization’s Use the more influential people in your organization but use them wisely.
mandate. Their name may get you the meeting but you need to give the pitch (or
For example, one NGO was very keen to work with IDRC. They mailed they need to be well briefed on it) to ensure it goes beyond a courtesy
on several occasions, sent their annual report, and finally set up a call. Work out ahead of time who is going to do what and think about your
meeting. At that meeting they made a pitch for IDRC to support a organizational dynamics.
mobile crèche (nursery school). They had no research questions nor
identified link to IDRC programs. When told this was not something 4. Establish Local Partnerships
IDRC funded, they said it was important and IDRC should fund it. This Establish solid local partnerships and be able to lay these out to donors.
was a waste of their energy and time. This would likely include the following:
◆ Go to conferences and networks. Most of these recommendations are not just about marketing – they are
about increasing the quality of the project. Quality and strategic donor
◆ Treat everyone you meet as a potential strategic partner until you have partnering are usually linked.
evidence to the contrary. This is especially true at conferences or other
network events. IDRC had so many potential recipients who refused to peg a dollar
amount and it doesn’t help. The grant seeker can always put forward
The author was once at a conference where a fellow participant had two amounts — one the full cost of the initiative and another smaller
asked her if she was a student. She replied that if he was asking if amount to reflect a specific component.
she was there to learn, then definitely, yes, she was there as a
student! Upon hearing this, the person then proceeded to brush her
off rudely. Later in the day they were both on a panel together, and it 5. Know What You Want
turned out that the participant was representing an organization that Know what you want from the relationship and be clear. Do you want
actually had a concept note to be submitted to IDRC. Thanks to the technical support, do you want to use their networks, what else do you
participant who was unpleasant, it became a lost opportunity for that want on top of money?
organization to make a positive connection with a potential donor. This is true for general elements but also specifics such as how much
money you want. You may be willing to take any amount you can get, but
3. Be Prepared... and Listen! that is not a useful answer to a donor.
The people you may be meeting may know a lot about your proposal, your Donors need to know roughly how much money you want before they can
organization, and your region. Or, they may know nothing. Don’t assume even begin to consider your request. This affects which funding pot they
either. Come prepared to give them all this information in a clear and could access/direct you to, which year you could be funded, etc.
concise way but ask questions and listen to the answers so you know how
to make your pitch. If you know who you are meeting, find information
about them on the internet. This may come handy in your meeting.
8. Think Long-Term
Think long-term and don’t give up. Many donors may not respond at first.
We have many examples of that. Some donors move from emerging
partners to forward planning partners to core partners.
Many may be interested and may engage with you in various ways but not
actually fund you immediately. Building partnerships take time. Plan on a
long-term strategy, around two to four years, not on immediate funding
success. Think about incremental milestones.
Don’t risk losing them by putting all your energy trying to engage other
donors. Don’t think that your work is over because they have signed a
contract, otherwise it may be the last one they do sign with you! Give them
short but detailed and frequent reporting and visit them when possible. Try
to be open to their inputs even though they may be frustrating to work with
at times! Meet your deadlines and deliver what you say you will deliver.
Don’t let your professionalism start to wane as you get comfortable in the
relationship.
This also applies to individual donor contacts you may have. Through your
networks you will probably find that you have personal contacts working in
various donor agencies. Use these contacts wisely. You still need to do all
the steps, such as research, plan, and focus. The contact may get your foot
in the door, but you now have to perform even better than your
competitors since many donor agencies will want to avoid any semblance
◆ Who are the main beneficiaries? ◆ State why you are approaching this funder
Projects need two kinds of objectives: a general objective, and a specific ◆ Mention any prior discussion of the proposal
objective. A general objective is usually not measurable. Organizations or ◆ Describe the contents of the proposal package
projects cannot achieve general objectives, only contribute towards it. A
general objective should be compatible with your organization’s mission, ◆ Briefly explain the project
and that of the donor, and is usually longer to achieve than specific ◆ Offer opportunity to set up a meeting and to provide additional
objectives. information
A specific objective, is more operational — on what you will accomplish. ◆ Provide the name of the specific contact person within your
The more specific the objectives are, the easier it is to design a process organization responsible for the grant application, and contact
for achieving them. Specific objectives are measurable, and can be the information of your organization
basis for evaluation; are comprehensive; need to be feasible in time frame
Objectives Budget
Well written objectives should clarify for the donor what your main strategy Be realistic and upfront. Make sure the size of the request is possible for
is: the donor. Show other contributions from your own organization and other
donors. Essentially, this section should contain:
◆ State what you expect the project to achieve
◆ Budget categories
◆ Describe the beneficiaries or recipients of the proposal
◆ Detailed budget notes
◆ Describe potential impact
◆ Organization contribution
Process Description: Activities and Methods
◆ Other donors’ contributions
This section should detail how you will accomplish the objectives and
should be presented in sequential form with a clear link of activities with Present the financial blueprint of the entire project. The budget should
objectives. This details the nuts and bolts of the project proposal. It should cover all operational and administrative expenses (personnel and
have six subsections: nonpersonnel items) associated with the implementation of the project.
◆ Methods Conclusion
◆ Activities The conclusion should answer the following questions:
◆ Monitoring and Evaluation (M&E) procedures ◆ Why your organization is the right one to implement the project
◆ Impact and output ◆ Why the donor should consider the proposal
◆ Detailed explanations on points from earlier sections DO Be realistic. What is achievable — in the timeframe?
◆ Use of planning tools such as the Logical Framework Approach or other DON’T Send so much documentation that ‘your reader gives up.
formats specific to donors DO Be concise and easy to read. Keep it simple and as short as
◆ Organization reports and information appropriate.
◆ ease of reading (numbering, headings etc) Katherine Hay and Liz Fajber are both Senior Program Officers in IDRC’s
◆ white space Regional Office for South Asia (based in New Delhi, India).
◆ readable font
The Art of Negotiation ✔ Forcing ✔ Avoiding
“Win” Lose Lose Lose
Even the most seasoned and successful fund raiser gets “No” for an
answer. As a practical guidebook “bonus”, the following articles by
What are the consequences of bargaining in any of the four positional
consultant Dr. Melanie Billings-Yun talk about negotiating as an
styles above? If you force, you risk losing your relationship with that
indispensable skill in mobilizing resources. She discusses the GRASP
potential donor, and frankly, ‘threatening’ your donors will seriously
Model in the first article, then in the second, deconstructs a Case Story
backfire! Smoothing is an effective way to calm angry tempers as long as
using GRASP to show how the initially contentious parties can work
it does not mean giving in on key interests. However, as a general style, it
toward achieving mutually beneficial results.
yields poor results. In the example above, when you consistently smoothes
your donor, you may feel resentful, which can damage your relationship
and lead to brokerage of the deal. Avoiding does not address anything and
is unproductive! Splitting the difference (or compromise) also does not
Maximizing Returns Through Negotiation
lead to an optimal outcome. Even if your donor agrees to sponsor
GRASPing a Successful Outcome US$150, you have less than the minimum counterpart required! Why
No matter how tight your proposal or how good your donor research, there compromise and produce poor results when you can present an
is always the chance that your donors will decline or maybe respond with opportunity that creates something bigger?
a counter-proposal you are not prepared to accept. So, how can Positional bargaining sees negotiation as a power game and puts
negotiation help us in such a situation? relationships and issues in conflict. Worse, it makes one lose sight of the
Many associate the word ‘negotiation’ with conflict, compromise, winners real concerns, which in this case, is implementing a best practices
and losers, a ‘them’ and an ‘us’ and even manipulating the other side to workshop to benefit the local farming community.
get what we want. It is true that negotiation involves conflict because
without differing interests, all are happy and there is nothing to negotiate. Problem-Solving: The Ideal Strategy
However, negotiation also involves common goals and interests, with each The ideal mindset is principled negotiation, meaning we focus on interests,
party having something to gain out of finding solutions. not positions; we separate the people from the problems and we decide
The key here is not to fall into the trap of positional bargaining where the issues based on legitimacy. Essentially, we move away from “oh that
only options are yes and no, proposal approved, proposal declined. This businessman is so greedy!” to “let’s go figure this out!”
makes us lose sight of the real concerns, i.e., the goals our proposal aim The local distributor has valid reasons for declining your proposed
to achieve and which our donors share. US$300 sponsorship. If you probe why, you may just find out that he is not
allowed to give out cash sponsorships above US$200 or that he is in fact
Strategies for Dealing with Disagreement willing to give you resources, but in-kind. Your potential donor also has
Say you are a program head in Organization X, a community-based NGO something to gain by sponsoring your activity. The benefits to him include
that promotes sustainable agriculture. Your key project this quarter is to an opportunity to serve their customers in a different way, to increase
organize a workshop for farmers in your area to learn from each other’s visibility vis-à-vis competition and to reach their target audience in a cost-
“best practices” in organic farming. You wrote to a local distributor of farm efficient way.
products (e.g., small farm implements, seeds) for a US$300 event A problem-solving approach will lead to an optimal outcome and will help
sponsorship. This is the minimum amount of counterpart funding you need meet the interests of both parties. It turns conflict into synergy and
in order to access funds from other sources. The local distributor says no creates value by exploring options. Going back to our example,
to the cash sponsorship that you had asked for. What will you do? Organization X could quite easily ask the distributor why they couldn’t
◆ Force: You insist on US$300 cash donation; otherwise you will tell your sponsor and possibly offer other giving options such as footing the lunch
workshop participants — i.e., his customers — of his lack of support. bill, providing transport for all participants, or even providing products or
merchandise that can be used as prizes for ‘best case presentations’.
◆ Smooth: You easily accept his “No” answer and find another donor. Most importantly, the problem-solving approach creates sincere
◆ Avoid: You do nothing! No further communication. agreement because all sides feel it is fair, it is implemented willingly and
is therefore sustainable. In Organization X’s case, by giving options, you
◆ Split: You say, “Okay, can you give me half, just US150?” demonstrate understanding of the distributor’s limitations. And by
Arguments
Routes Market Place
Goals
Cost Time
Goals Fairness
3. What are the external pressures on them? And put yourselves in their
Substitutes
shoes. Consider substitutes: what other ways can you fulfill your goals? Establish
your walk-away-line (WAL) and make sure it is firm and high. (The WAL is
4. What do they want or are afraid of? Here it is important to distinguish the point in a negotiation on which you will absolutely not compromise or
between shared, conflicting and different goals. settle.) There is no deal if they cannot top your WAL.
The shared goals are why you want to deal in the first place. The conflicting Consider their probable WAL too. Who has more urgency or concern? Who
goals are why you need to negotiate, and the different goals are the has the higher WAL?
‘trading zone’.
A High WAL Gives You Leverage
Three Types of Goals
Power is absolute strength
R
Shared — Why you want to deal
WE
◆ resources
PO
◆ status
◆ authority
Conflicting — Why you need to negotiate
Leverage is situational WAL
advantage
Different — The “trading zone”
◆ Who has the higher WAL?
The GRASPTM Method of Interest-Based Negotiation One of the patrons at one of the annual auctions was Euro-Asia Airways,
a new airline trying to establish itself among European holiday travelers.
Euro-Asia’s Paris office chief, Klaus, signed a contribution form promising
▲
▲
▲
▲
▲
▲
Recoup lost €3,000 or as 1 This is her number one priority. The loss of the money has been a serious blow to WICE, especially as the
much as possible (7 pts) funds had already been earmarked for buying new classroom facilities.
Maintain integrity of auction 2 As the auction is critical to the continued operation of WICE, it is important to ensure that “bait & switch”
and not set a precedent for (3 pts) incidents like this do not happen in the future or no one will bid on items. Failing to resolve this problem
future donors effectively could send a dangerous signal to other donors that they don’t need to take WICE donations
seriously.
Clarify issues and resolve 3 For Euro-Asia suddenly to place restrictions on the tickets makes little sense, obviously there is something
misunderstandings more going on. It would probably do the relationship well (and perhaps teach WICE something about its own
fundraising methods) to discover why these complications arose and to salvage as much of the relationship
as possible.
Show executive abilities 4 As president of WICE, Marlene needs to demonstrate to the executive board and her subordinates that she is
capable of dealing with such important issues.
Long-term funding 5 Building a long-term relationship with their corporate contributors is an important way of maintaining the
relationship with Euro-Asia operations of WICE. While building this with Euro-Asia may seem difficult at the moment, it is still a possibility
worth exploring.
To convince WICE to keep the 1 Klaus feels WICE has acted ungratefully in asking why restrictions were placed on the tickets. He most likely
restricted tickets believes they should appreciate the fact that the tickets came at no cost to them, and that the restrictions at
best simply require a little more planning on the part of its owners.
Promote a good image with 2 With Euro-Asia having just entered the market, it is important for them to quickly build a positive reputation
frequent business-class amongst travelers so as to attract consumers to the airline.
travelers
Not embarrass himself with 3 As the office chief of Paris, who is directly answerable to the head office, Klaus would not want an incident
the head office that could damage his status with them.
Participate in next year’s 4 The importance and reach of WICE members makes them an important potential market to market Euro-Asia.
auction?
Unknown — try to uncover 5 Why did he go back on his word? Why did he react so emotionally when asked about the restrictions?
in conversation
Routes
Ways Marlene and Klaus could achieve their shared and different goals and settle their dispute.
1. Euro-Asia to honor tickets, but upgrade them to Business or First Class as they now have less resale value.
This is the route that maximizes both parties’ There is still the concern that this may set a Klaus may feel he should receive something
goals. Marlene gains tickets that can be precedent for donors to alter the terms of use extra in return for the upgrade, as the tickets
reasonably sold for the value that was lost from for their donations after the auction, leaving now have improved value. He may want some
the previous pair. Klaus is able to give tickets WICE in a difficult position. incentives to make the upgrade option more
with the restrictions which allow for minimal attractive; such as additional publicity for
disruptions to the airline, and which would not Euro-Asia through WICE publications. But
have any serious effect on the bottomline. wouldn’t that be rewarding him for bad
behaviour? What message does it send to
other donors?
WICE is able to regain the lost money which is It would be difficult to convince Klaus that this We need to find out why Klaus changed his
so important in covering further operational would be a viable option, since he has already position in the first place. Something going on
expenses, and avoids the problems that may turned that down. It would mean a complete from his head office? We need to try to get him
come with setting the precedent of allowing the reversal and public loss for him. Would likely end to open up so we can find a win-win solution.
terms of use for donated items to change after any future dealings with Euro-Asia.
they have been sold.
This is the quickest route, recouping WICE’s This is a long shot, since tickets are worth much This position is the most likely to end up in
lost funds and avoiding the hassle of having to less to Klaus than their market value. More of a threats of lawsuit.
search for new buyers. point of pressure than a likely outcome.
WICE can regain at least some of its lost funds WICE has to accept the “bait & switch” making a Better make sure what conditions are placed on
by selling these. Klaus, meanwhile, can bad precedent. Will be harder to sell tickets for these before accepting them!
substitute open tickets for specific routes he is specific routes. Not certain that WICE can recoup
trying to build up. the whole €3,000.
Arguments ◆ The real monetary loss to WICE is €3,000, the amount they were sold
for at the auction, not whatever value Klaus places on the tickets.
Legitimate Reasons Marlene Could Draw Upon
to Justify her Position ◆ It will be difficult to find a new buyer for the tickets at the same price,
A contract is a contract. Klaus not only made verbal promises but also since it will have to be done very quietly and internally to avoid
signed a written agreement specifying that the tickets were to be negative publicity. As this will be a “fire sale,” the purchaser would
unrestricted. reasonably expect a discounted rate.
WICE kept its part of the bargain. Euro-Asia has already received at least ◆ Marlene honored Klaus at the auction, while she and WICE have
3,000 in tangible benefits including advertising and tickets to the suffered an enormous loss of face with the Jacobs because Euro-Asia
auction. failed to honor its obligations.
WICE also acted as a good partner by not seeking donations from ◆ Since the Jacobs no doubt will talk to friends about this, the integrity of
competing airlines, so that Euro-Asia received maximum public attention the WICE Gala Auction has been damaged. Future bidders will not give
from its donation. so generously if they feel they will be cheated.
Resell current restricted tickets at a discount, ◆ Recovery of some of the €3,000. ◆ A public fight would embarrass Marlene and
with published apology and explanation to ◆ Would “punish” Klaus by publicly embarrassing destroy any relationship with Euro-Asia.
members. him and removing PR benefit. ◆ Could put off next year’s donors.
Organize an internal lucky draw with the tickets ◆ Recovery of some of the €3,000. ◆ Time consuming and costly to implement,
as the grand prize. with smaller return.
◆ Would give Euro-Asia positive publicity for bad
behaviour.
Return tickets to Euro-Asia and find another ◆ Other airline may see this as an opportunity to ◆ No evidence that we can find someone. It will
airline to provide tickets of equal value. get some good PR while harming their take a lot of work.
competitor’s image. ◆ How to sell the new tickets?
4. Communicate that this is about mutual trust between the various Dr. Melanie Billings-Yun is a senior partner at Global Resolutions,
parties rather than just the text of a contract. It is only fair and Singapore’s first negotiation consulting firm, providing negotiation
honorable that both sides should honor their obligations as previously strategies, assistance and training as well as mediation and conflict
agreed upon. resolution services to business, government and individual clients in the
Asia-Pacific region. Formerly a lecturer and research director at Harvard’s
5. Indicate that WICE has already helped Euro-Asia out by refunding
Kennedy School of Government, Melanie has consulted on numerous
money to the Jacobs, helping to avoid any embarrassment on the part
multimillion dollar joint ventures between Asian and Western companies.
of Euro-Asia.
6. Show that any negative publicity for Euro-Asia would not help in
establishing them within the region, and could lead to personal
embarrassment for Klaus with his head office.
◆ “What if you/we....?”