SETTING UP A SUCCESSFUL TRUSTS & FOUNDATIONS FUNDRAISING PROGRAMME: FIVE KEY COMPONENTS

In a tough financial climate, charities are looking to cast their net more widely for financial support. This can include asking the general public, wealthy individuals and companies.
 
All these routes can deliver good results in the right circumstances, but it’s important to remember that trusts and foundations still offer one unique advantage: unlike everyone else, they exist solely to give away money.
 
The question is: are you doing enough to get it? Even if you think your charity’s best long-term income prospects lie elsewhere, it’s likely that grant funding will provide vital oxygen while you wait for your  corporate, major donor or legacy fundraising to bear fruit.
 
There’s a big difference between securing a few grants and having a truly successful trusts and foundations programme. Focusing on a handful of friendly long-term funders might have a high success rate but it'll yield a limited amount of money. And it leaves you very vulnerable: if one funder decides to stop giving, a key project or even your whole organisation could be at risk.
 
Committing to a strategic, carefully-researched and well-resourced trusts and foundations fundraising programme could be your passport to financial security, even if it involves stepping out of your comfort zone.
 
We think there are five key components to ensure you have in place. If you’re looking to build a trusts and foundations programme from scratch, or make sure that your existing programme delivers great results, here are the five areas to get right:

Consistent grant funding is extremely valuable - but you have to work hard to find it

1. Map out your funding needs
 
What do you need to raise money for anyway? Making a list of all your distinct funding needs will give vital context to your fundraising efforts, and help you to make the most of your limited time.
 
List all your different funding needs – including for project work, capital needs and organisational development. For each funding need, estimate the minimum and ideal amount needed – for instance, £30,000 would allow us to run this project at its current capacity, but £50,000 is what we ideally require to reach everyone in need. This also helps you to demonstrate the impact that successful fundraising could have on your work to your trustees and management.
 
Give each funding need a priority rating (e.g. low, medium or high) – this will help you to focus your efforts in the next stages below.
 
2. Thoroughly research funding prospects
 
There’s a vast amount of useful information about funders in the public domain. Use a database like Trustfunding or Funding Central to help your research – they’re worth the licence fees. Sometimes your local Community Voluntary Service (CVS) can arrange for you to access these databases for free.
 
Create a big old spreadsheet to record key information for each funder – including their name, areas of interest, how and when you must apply, average grant size, and similar charities they’ve supported previously. This will help you to decide which of your funding needs are the best fit for that funder, how much to apply for, and a priority level (e.g. low, medium, high). You should factor in which funders you already have a relationship with, to make use of your staff and trustee networks.
 
This process helps you not only to decide which funders to focus on first, but also to quantify the overall potential of trusts fundraising for your charity. If there are loads of excellent funding prospects out there, you might want to dedicate more short-term time to writing applications.

Take the time to carefully gather all the information you can about potential funders

3. Prepare convincing template applications
 
We strongly recommend that you avoid jumping straight into specific applications, and first spend some time ensuring that you have all the necessary information available to create a convincing ‘case for support’ for each priority funding need.
 
This should include a summary of the issue you’re trying to address, what your solution looks like, how much it costs, how you’ll measure success, and why you’re the best organisation to do it. Gathering relevant research and statistics, data and testimonials from your beneficiaries, and endorsements from independent experts will strengthen your case.
 
Creating strong, reusable content will save you time in the long run, and enable you to respond more quickly to last-minute grant opportunities. It’s also vital to be able to describe your work on your own terms, rather than purely in response to funders’ questions and criteria. This helps you to identify and address any weaknesses or gaps in your projects, ahead of those vital deadlines.
 
4. Submitting those all-important applications
 
If you’ve spent time researching funders and developing template applications, this stage should now be more straightforward.
 
Work through your funding prospects in priority and/or deadline order, adapting your template content to fit each funder’s areas of interest and application criteria. Always read any guidance from the funder, as they often make it very clear what they’re looking for and expect you to follow this advice. Plan carefully for deadlines to make sure you don’t miss them, and always include a well-written and personalised cover letter.
 
For more tips on writing strong applications, check out our ‘Ten trusts & foundations mistakes to avoid’ helpsheet.

5. Don't forget about robust record-keeping
 
Organisation and attention to detail are essential for trusts fundraising – you need to keep track of every application you make, the date you submitted it, what the outcome was, and any feedback from the funder.
 
This will enable you to chase up funding decisions at the right time, make a note of when you can re-apply, and use any feedback received to improve your application next time. It’s also vital that you keep on top of thanking funders and meeting any reporting requirements related to your grant.
 
A good CRM (database) is often well worth the investment in the long run, as it allows you to store and analyse information better. However, there’s no reason why a well-maintained spreadsheet can’t work for smaller charities, at least initially.