It's tricky to generalise about how the pandemic has impacted organisational grant funding levels. While inevitably many charities and social enterprises have struggled, many others with a grassroots community focus have thrived. Some have even unexpectedly smashed their fundraising targets.
However, if there's one thing that’s been consistently difficult in the past 12 months, it's securing funding for capital projects. From talking to various funders, I think there are two (overlapping) reasons for this:
Capital projects are unavoidably high-risk, and many funders are understandably playing it safe
There's no getting away from the fact that renovating a building or creating a new space is complicated and risky. Capital projects often run over budget and behind schedule, and sometimes fail entirely. Even if you've never managed one before, you may know this if you've ever done work on your house – once work begins on the roof or walls, new issues are uncovered, then all bets are off.
This is before you even factor in Covid and Brexit, which will inevitably impact the cost of materials, the availability of labour and the complexity of working on a crowded site.
Funders know all this, and it can worry them. As we recover from the pandemic, they'll continue to be inundated by countless worthy and urgent causes, and won't possibly be able to fund them all. So it’s not surprising that many choose to play it safe. Put yourself in a funder's shoes – would you rather award £10,000 towards a grassroots community food bank that will have a definite and immediate impact, or a complex capital project that might be subject to delays and complications?
Capital projects take a long time, and in a crisis landscape, funders inevitably focus on the short-term
Trusts and foundations often award capital funding in a different way to project grants. If you apply for £25,000 towards a £200,000 project, rather than a funder immediately awarding a grant, they might make a conditional pledge that you can draw down on later, once you’ve raised enough for the project to start.
This approach helps funders to manage risk, but it introduces other problems. If you're in the early stages of a capital campaign, their pledge might remain unused for 6, 12 or even 18 months while you fundraise the rest – and in that time, they’re not having any charitable impact.
Remember that many trusts and foundations are registered charities themselves, so they have their own charitable objectives to work to, and need to report back on their impact. So as well as focusing on lower-risk projects, a funder might well prioritise applicants that can achieve shorter-term impact.
None of this is makes a capital project impossible - but there are a few key steps you can take to help convince sceptical funders:
1. Be crystal clear on your outcomes
With a capital project, it's easy to get wrapped up in the specifics of what you’re fixing or building, and the implications for your organisation. This stuff needs to be in an application somewhere, but it's less important the why.
Who will benefit from your capital project, and in what specific ways? What will they do or experience in the new space you're creating, and how will this change their lives and/or improve the local community?
Try to distill this into four or five clear and distinct bullet points. If you can tie this in with the impact of the pandemic (for example, if this has exacerbated certain needs among the people you support, or resulted in the closure of alternative services), this will help to convince a funder that your project is needed now.
2. Explain how you will deliver your project safely and reliably
As mentioned above, Brexit and Covid bring further complications for capital projects. So the more you can show that you're a safe pair of hands, the more you'll get a risk-averse funder on side.
For example, have you created a risk assessment and detailed contingency plan? Have you consciously chosen suppliers that work in a Covid-secure way? What is your ‘Plan B’ to avoid disruption to services if there are delays? Have you allowed some flexibility in your budget for unexpected costs? Don’t expect a funder to assume these things are in place - you need to convince them that you've been diligent and methodical.
3. Make a virtue of your previous expertise
For similar reasons, your previous track record will be a factor for funders. Has your organisation successfully delivered other capital projects? If not, do any of your leadership team or Board bring relevant experience from elsewhere? Evidence of previous experience in areas such as project management, financial management and architecture / accessible design can be a real plus.
If you can't point to this, a funder might reasonably expect you to show how you're buying in the appropriate professional expertise and guidance, or assembling an experienced project steering group.
4. Ensure you have all the necessary supporting materials in place
Capital funders often insist on specific criteria such as you having an architect’s plan, proof of building ownership or a long lease, and a certain level of match funding secured.
There’s good reason for this. An architect’s plan shows that a project has been professionally designed and can be an insurance policy against nasty surprises that crop up once work has started and threaten to delay or derail a project. A long lease ensures that a project will definitely have long-term charitable impact rather than benefitting a private landlord for unknown purposes. Match funding reduces the chance that a funder's pledge will remain unused for a long time while you scrabble to raise the rest.
Sadly, no amount of engaging project information is a substitute for meeting these requirements, for a risk-averse funder with plenty of worthy projects to choose between. Make sure you know exactly what a funder expects you to have in place before deciding to apply. Even if these items aren’t mentioned as essential requirements, provide them where possible anyway – you can always link to digital files to avoid sending bulky additional material through the post.
5. And finally, consider breaking your capital project into phases
There's no getting around the fact that capital projects are high-risk, even if you can action all of the above, and many funders might continue to be more risk-averse and short-term in their thinking for a while.
You might benefit from dividing a complex capital project into several independent phases, each with their own smaller fundraising target, project timeline and set of outcomes. This could be particularly helpful if you haven’t raised much yet and don’t have previous experience of managing capital projects. It'll enable to get started, demonstrate impact and improve your track record of successful delivery sooner, even if it means temporarily compromising on your ambitions.
DIGITAL EXCLUSION: A GROWING THREAT TO YOUR IMPACT, STRATEGIC OBJECTIVES AND ABILITY TO ACCESS FUNDING?
Since September 2020, we’ve been working with a group of eight voluntary sector leaders to explore how the sector can respond to new challenges and opportunities related to Covid-19. One of the themes has been digital exclusion. With thanks to the group, we’ve shared some key learning and ideas below.
We're expecting to re-launch our Navigating the New Normal leadership course in partnership with the School for Social Entrepreneurs soon. For more info, please click here.
The pros and cons of digital transformation
In 2020, we witnessed digital transformation and innovation like never before. In response to Covid and social distancing, charities and social enterprises of all shapes and sizes were forced to find a way of delivering services online, or stop them altogether.
In mere weeks, organisations overcame barriers that previously seemed insurmountable - with software, skillsets and service user confidence. The results have been truly amazing. Organisations have been able to reach more people, more quickly, and potentially more cheaply than ever before. And many have found digital to be a great platform for their advocacy work - suddenly they’re able to voice their community’s needs and influence policy on a national rather than merely a local level.
Yet is everything quite as rosy as it seems? What about the people who can’t or simply aren’t accessing services online? Are you inadvertently at risk of leaving people behind and exacerbating inequalities? And if so, what does this mean for your long-term impact, strategic objectives and ability to access funding?
We asked voluntary sector leaders to explain the causes and impact of digital exclusion - and here’s what they told us
Covid-19 has significantly increased inequalities in many communities, with a growing digital divide. All too frequently, the people who are most in need of support are also the most digitally excluded:
This is a particular issue in primary care and education settings. While local authorities are attempting to address this by providing essential equipment, distribution is far too slow - even now, we are nowhere near the point where every child has a laptop. Free on-site digital training from businesses (such as banks) is currently not available due to social distancing measures, and even after lockdown could remain inaccessible for those who are most vulnerable.
Overcoming cultural, language and confidence barriers is much more difficult online. ‘Shoulder to shoulder’ activities (such as cookery clubs and Men's Sheds) are amazingly effective at encouraging people to bond, open up and share concerns in informal settings, while doing activities. This simply can’t be replicated in a Zoom call where people are forced to maintain eye contact and feel much more self-conscious.
Digital delivery introduces new safeguarding and privacy concerns that disproportionately impact people on low incomes. What if you need urgent support to protect you from domestic violence or deal with a personal health issue, but live in a small flat and are always within the earshot of family members? Or how can you make the most of online exercise classes if you have no space, facilities or privacy at home?
We are all overwhelmed by more screen time than ever before - adults are working from home and young people are home schooling. This leads to significant fatigue and is another big barrier to engagement, even for services that in theory work well online.
It's challenging to map out who is being excluded from digital services and what their barriers are, when you can’t engage them in the first place. And if digital delivery has enabled you to move into a new geographical area, you might know even less about the local delivery landscape and be working completely in the dark.
Staff who did a brilliant job running face-to-face services might not be natural online facilitators - due to a lack of digital confidence, training or a good home connection. But in current circumstances, they might feel that they should just 'muck in' rather than raising concerns.
For so long we’ve all been talking about digital transformation as a huge potential positive – but there’s an overwhelming sense that while services are changing at pace, too many service users and staff are being left behind.
So what can we all do to address digital exclusion?
1. Grassroots collaboration and activity
Some of our course participants are now exploring the idea of creating ‘digital community hubs’ for vulnerable people who lack the technology, expertise or space to access digital services at home. These hubs would be confidential and Covid-secure spaces for people who need drop-in style digital support and free WiFi connections.
Hubs could be set up in existing community facilities such as libraries, or make use of currently empty buildings such as offices or co-working spaces. To make this happen, local community organisations would need to pool their resources and collaborate on funding bids in order to secure spaces, equipment and staffing. While hubs would cost money, they might enable organisations to make savings by closing some services or facilities that they currently fund in their entirety.
To foster a collaborative approach, every community would ideally need a ‘digital coordinator’. Organisations also need to collaborate better in terms of sharing data and learning about digital exclusion, and pilot solutions.
In the short-term, while services can’t take place face-to-face, it's worth considering whether a digital-only approach is sufficiently fair and accessible. A blended approach involving things like telephone support is likely to better for service users facing safeguarding or privacy issues.
2. Funding and in-kind support
Nobody on our course was currently aware of any significant funding to specifically tackle digital exclusion. Grant funding will be esssential to pay for tangible things like equipment, WiFi connections and data allowances, as well as the additional staff time needed to map out people's needs, adapt services and trial new solutions.
There's a real opportunity for in-kind support too - for example tech equipment and training from companies, and cooperation from mobile phone companies to provide data allowances and devices with pre-installed platforms that minimise data use. Discussing this issue with your suppliers and corporate supporters may be an important first step.
Corporate fundraisers often experience frustration that companies are more willing to give time and ‘things’ than donations. Here’s a tangible opportunity to ask for readily-available equipment that can make an immediate difference - though with many companies severely impacted by the pandemic, the timing could be tricky.
3. Sector-wide lobbying and campaigning
It's clear that we haven’t fully got to grips with the scale of the problem of digital exclusion - there's a lack of awareness among policymakers, a dearth of research to understand it, and a scarcity of funding to overcome it. The organisations that we're working with felt that a coordinated response from the voluntary sector, including support from infrastructure and advocacy organisations, will be needed to:
Here’s a secret that not every fundraiser will admit: we all go through periods where things aren’t going to plan and we’re not quite sure how to change it. Periods when it feels like the money is drying up, you’re hearing no more often than yes, and you’re struggling to inject that fresh sparkle into your work.
With Covid-19 piling yet more pressure and competition on trusts and foundations, there’s arguably never been a tougher time to fundraise. For many organisations, emergency funding will tide them over until the end of the financial year, but the pressure to find that next big grant win is never far away.
If you're going through a lean patch and feel like you've tried everything, here's out checklist of things to try:
1. Beef up your evidence of need
Funders generally only care about what you do and how you do it if you first convince them why your work is so vital. This is one of the best ways to make sure your application truly stands out.
If you haven’t taken the time recently to refresh your evidence base, this is a great way to strengthen your case for support. For example:
2. Bring things to life with case studies, images and videos
If your core narrative is already strong, then turning your attention to the supporting elements is a great way to enhance your applications:
Too many people think of trusts and foundations as faceless institutions only looking for cold hard facts and statistics. But great applications appeal to hearts as well as minds. Even the larger, professionally-run funders like human detail, personal stories and visual content - so this is often an area to make quick improvements.
3. Squeeze every drop of feedback from funders
Trusts and foundations often feel they lack the time and resources to provide feedback (particularly at the moment) or worry it might be contentious and generate unwanted debate. But if you're persistent and diligent about seeking and responding to feedback, it's a great way of turning around a run of rejections.
Even if a funder doesn’t automatically provide feedback, it’s sometimes possible to get it by asking politely, explaining why it would be so helpful and being clear and specific about what you want.
Try calling rather than emailing for feedback - in my experience, funders are often willing to give more detailed and honest feedback over the phone, as it can be more nuanced and ‘off the record’. If you’ve managed to build a rapport with a Grants Officer before submitting an application, they’re much more likely to be helpful afterwards too.
4. Revisit your project - is there another way to deliver it?
In the current climate, many funders will be more risk-averse - with more applicants, and potentially less money to give away, they'll be keen to avoid projects that don't deliver results.
This could pose a problem if you’re trying to deliver an experimental or long-term project, or reliant on grants from several funders to go ahead. With Covid-19, many organisations can demonstrate an urgent need for support and show how grants will have an instant impact. In a crisis-driven landscape, the last thing funders want is the possibility that your grant might lie dormant for a few months before it can be spent.
So now is a good time to step back and consider whether there’s a different way of delivering your project:
5. Anticipate and address any ‘red flags’
There are common reasons why funders might be concerned about your organisation – if your reserves seem too high or too low (sometimes you can’t win!), if your work sounds unusually expensive to deliver, or perhaps if it sounds like a service that they expect another organisation (or the local authority) to be delivering instead.
If you’re experiencing a run of funding rejections, spend some time anticipating what your ‘red flags’ might be, and proactively address them in your applications. If you can’t get feedback from funders to help with this, try going through your applications with a mentor, friend or fundraiser from another charity to get some independent advice and a new perspective.
6. Do some fresh prospect research
Trusts and foundations frequently change their priorities and new programmes spring up all the time, particularly as funders scramble to respond to changing needs arising from Covid-19. While you'll inevitably stumble across some opportunities by chance or word-of-mouth, doing some proactive research will help you to unearth better prospects, and is a great way out of a rut.
It helps to think creatively about the impact of your projects, particularly if they're a bit niche. For example, with a few tweaks to your case for support, your community gardening project might appeal to funders that are focused on improving mental health or reducing social isolation for older people, but weren't previously on your radar.
We recommend using a funding database like Funds Online or Funding Central, or the excellent free database by Charity Excellence Framework. You should also check whether you can sign up for regular funding alerts with your local authority or Community Voluntary Service (CVS).
7. Review the balance between quality and quantity
When a couple of key funding decisions go against you, it’s easy to hit the panic button and start churning out as many applications as possible. While this might temporarily ease the pressure, it rarely produces better results. Actually, you probably need to spend more rather than less time getting applications spot on, in the ways that we’ve described above.
If you’re on an unlucky run, take a step back and make sure you’re focusing on quality rather than quantity - even if that involves pushing back on pressure and targets from anxious colleagues. Use previous successes to remind yourself that you are good at your job, and that by following some of the steps above, you’ll turn around results in no time.
In our Fundraising During Covid-19 online briefing last week, five different fundraising specialists talked about their recent experiences and what organisations should be looking out for in the next 6-12 months. Here are six lessons from the briefing for fundraisers far and wide...
Firstly, a huge thanks to our panel of four external speakers:
1. People are still giving...
The headline news from all our speakers was that, for the most part, people are still donating and fundraising.
Research in May showed that one-third of UK donors were actually donating more than pre-Covid-19. Louisa highlighted the phenomenal success of mass participation virtual events like the 2.6 Challenge. Claire said that while many charities felt uncomfortable talking about legacies in the early months of the pandemic and stopped doing so, the Law Society actually reported a dramatic growth in will writing - potentially an opportunity missed for the sector. Some charities have been working sensitively with executors to speed up legacy payments to help with cash flow problems.
I shared this example of a small family trust that are still giving, and doing what they can to show flexibility and understanding:
They may be facing their own challenges, but funders and donors are also responding to events around them - stories in the news, or experiences of illness or tragedy closer to home - which are often prompts for wanting to support good causes.
2. …but they're also facing new pressures
While people are still giving, many are feeling the strain of the pandemic – financially, emotionally and in terms of time/capacity. With a recession around the corner and dividend income down, some philanthropists may hesitate about donating, and some companies are slashing Corporate Social Responsibility budgets. Trusts and foundations will be dealing with the same logistical challenges as you – staff furloughed, unwell or struggling with childcare, meetings postponed, and technology hiccups.
In such uncertain times, it’s easy to talk yourself out of asking for money at all. This is a mistake. If you don’t ask, you’re denying your funders and supporters an opportunity too, and somebody else will them instead. It’s fine to ask, but be conscious of the challenges people might be experiencing currently, don’t put them under pressure, and listen and respond to feedback.
Contact companies and trusts to check on their current situation before applying, to avoid wasting your time and theirs. Listen carefully to your prospective major donors - as Lottie explained, hearing ‘no’ might not be an absolute rejection, but could just mean no to that amount, no for the next six months, or no to that particular project.
3. Relationships remain crucial, but adapt your approach to building them
Building relationships is one of our seven universal fundraising rules that will never let you down. But developing relationships amid social distancing, and when your time is stretched, is difficult. While it's been a pleasant surprise just how much can be achieved online in recent months, there's no easy substitute for face-to-face interaction when it comes to getting to know supporters or getting introduced to new contacts.
Nevertheless, we mustn’t abandon our attempts to build meaningful relationships. Harpreet told attendees that now is the time to be creative, test new channels, and invest time in ideas and conversations on social media. It could also be a good time to re-examine your lawful basis for getting in touch with your supporters – Harpreet observed that many charities haven’t communicated with some supporters since 2018 because they didn’t give opt-in consent when GDPR came in, but some of these supporters may never have understood why they stopped being contacted. You could explore using ‘legitimate interests’ to get back in touch now.
If cancelled events have freed up budget and staff time, consider investing this in phoning supporters and being more active and visible on social media. Don’t hold off communicating with supporters because you don’t have a specific ask ready. Phone them anyway, even just to ask how they’re doing or to update them on your work. Investing time in relationships now will lead to stronger support and donations tomorrow.
4. Keep externalising your case for support
Drawing on her experience in the arts sector, Lottie observed how many organisations have recently asked for money to ‘keep their doors open’ or avoid laying off staff. Sadly, while this is paramount to you, it's unlikely to be compelling to your donors, unless they’re extremely invested in your organisation.
Donors care about the people you support and the positive impact of your work, not keeping you afloat. So you need to be telling inspiring stories and presenting a clear case for support that explains who you help, why they need support, what you do to meet the need, the impact of your work, and why you’re best placed to achieve change.
Virtually all our speakers highlighted the importance of a good case for support - for funding applications, individual giving campaigns, major donor asks and legacy fundraising. It’s more important than ever during a crisis, with so many organisations competing for donations and emergency funding. One possible negative impact of the recent Government bailouts for the charity sector and the arts is that the general public might mistakenly perceive that charities are now well-funded. The reality is that these bailouts are tiny in the face of rising need, but it’s up to you to make this case to your supporters.
5. Maintain quality and good practice
We asked our speakers to explain what hasn’t changed in fundraising since Covid-19, as well as what has - and it was abundantly clear that good practice doesn’t go out the window when a crisis strikes.
Time and again, our speakers emphasised the importance of doing things the right way, even when there's a sense of urgency. Louisa talked about the need to plan events well in advance and budget very carefully, especially when social distancing might mean your events have to be smaller-scale and less profitable. Claire highlighted the need to maintain common good practice in legacy fundraising: not leading with a scary focus on death, taking a ‘drip drip’ marketing approach, and always respecting donors’ wishes and wellbeing.
It’s easier to keep an emphasis on quality and good practice when you don’t overcommit. For example, you’re likely to make a better impression - and raise more money - if you take the time to write three emergency funding applications well, rather than rushing out eight poor-quality bids.
6. We’re all still figuring things out - so be curious, flexible and kind
Harpreet put it best when she said that right now, fundraisers have to be comfortable not knowing all the answers, as we’re all feeling our way in the dark. This is an unprecedented crisis – nobody really knows what is round the corner, or which fundraising tactics will yield the best response. So I believe we need to do three things:
Be curious - test out new messages and ways of communicating with supporters, before committing significant time and budget to them. Measure and reflect on the results. Monitor what other organisations are doing well, and badly. Ask other fundraisers for advice, and sign up for events where people share observations and best practice.
Be flexible - lockdown restrictions and public mood are liable to change quickly, so be ready to respond. Your Senior Management Team will need to be more agile and get used to signing off ideas more quickly, or your organisation could be left behind.
Be kind - it’s ok to not know what’s round the corner, to make mistakes, and to sometimes just feel overwhelmed and despondent. Equally, Louisa mentioned the importance of celebrating your successes when they come – this keeps you feeling positive, makes the inevitable rejections easier to deal with, and boosts colleagues’ moods too.
Time will tell, but I really hope the last couple of weeks will be a landmark moment in history, with the Black Lives Matter movement gathering widespread support, and people doing some genuine, long-overdue soul-searching about racial inequality. Bristol, where I live, has felt like the epicentre of grassroots change, with the dramatic toppling of the statue of Edward Colston.
Bristol is a city haunted by the slave trade, and this statue has been a focal point of the long debate about the legacy of Edward Colston. It's important to remember that the statue is very much the tip of the iceberg – at last count, Bristol ‘boasts’ eight streets, two pubs, two schools, a fruity bun and the city’s largest music venue named after Colston.
Disentangling the messy web spun by such a prolific philanthropist has proved complicated, particularly as change has long been opposed by influential philanthropists in Bristol. People only took matters into their own hands after many tried - unsuccessfully - to find a democratic solution for years.
This is something to be celebrated - and many have been, including the CEO of the Wolfson Foundation:
I want to agree with this sentiment, but actually I think we're at the very beginning of the argument, not the end. While few people would actively argue that philanthropy excuses the unethical practices that first generated that money, this view is inadvertently endorsed every day - and fundraisers and charities are very much complicit in this. There are examples everywhere, once you start to look.
The day after the statue came down, I felt this strange need to go down to the site myself, and just...think. I started writing this blog down there.
Looming above the smashed plinth and handful of people still milling about was Colston Tower - a building that can’t be torn down by people who are fed up of waiting for official action. If Bristol wants to fully rid itself of the Colston legacy, this is going to take a conscious decision from those in power whose track record - no matter they say - still suggests they believe that philanthropic good deeds outweigh harmful past actions.
Of course, this isn't just a Bristol problem. London's Tate Galleries take their name from Henry Tate, whose company Tate & Lyle was inextricably tied with the sugar industry and the slave trade.
A great many museums have received large donations from the Sackler Trust, and some bear the Sackler name. You might well know that the Sackler Trust was closely linked to Purdue Pharma, who are accused of fuelling the US opioid crisis and spent years aggressively pursuing legal action so they could continue selling their highly addictive drugs.
But we're on safer ground with most corporate foundations, right? I know countless grassroots community projects that have benefitted from grants connected to the banking sector - think Santander Foundation, the RBS Skills and Opportunities Fund, and Barclays' new 100x100 UK COVID-19 Community Relief Programme. Yet a 2018 report by Ethical Consumer magazine said this:
How many charities write ethical fundraising policies that prohibit donations from philanthropists involved in these 'problem sectors', but wouldn’t think twice about applying for a grant from a foundation connected to one of the big five banks?
The trouble is that while most people have clear views about Edward Colston, underneath this there's a huge grey area. And the more you dig, the greyer it gets.
Many social welfare charities are funded by wealthy family trusts whose trustees have, for decades, both implemented and supported policies that drive a coach and horses through social mobility. Their businesses often pay as little tax as possible and profit greatly from things like zero hours contracts - which keep vast numbers of people, including so many charity service users, locked in poverty.
2020 brought a new entrant to the UK trusts and foundations scene: the Hargreaves Foundation – founded by Peter Hargreaves, major donor to the Leave.EU Brexit campaign, friend of Jacob Rees-Mogg, and a man who outlined his employment policies and interest in charities in an interview with The Sunday Times:
And I recently discovered this remarkable exclusion from a small family trust in Oxfordshire: “We will not support charities that in our view are ambivalent about, or actively campaign for the abolition of, field sports.” Imagine being so vehemently pro-field sports that you simply wouldn’t consider funding a charity that has even mixed feelings about fox-hunting?!
Does any of this really matter? Where should we draw the line?
Should we only reject money from those who have been publicly condemned for doing Very Bad Things? Or are harmful but widespread business practices up for scrutiny too? When should we take people's publicly held opinions into account - when they actively harm our beneficiaries, when they go against our charity's message, or when we just find them personally repugnant?
I'm not saying everyone will take issue will all of the above examples - or that you should. But it's an important conversation to have. And I think that recent events in Bristol should mark the beginning of the argument about hypocritical philanthropy, not the end.
It's an inescapable fact that philanthropy is closely tied with extreme wealth, and most of that wealth is derived from activities that increase inequality. Philanthropy often buys people 'a seat at the table', and this gives a particular audience – wealthy, privileged, mostly white, usually male – disproportionate influence to implement their own vision of equality, social mobility and climate change. A vision that is, almost certainly, very different from your own.
If we want to address this, we’re going to have to start digging a lot deeper than Edward Colston.
You don’t need me to tell you that the world has turned completely upside down. In recent months, you’ve likely faced new challenges, had to come up with new ways of working, and completely reinvented services or repurposed people’s roles.
As we've been sharing fundraising advice with our clients, I've noticed that while much of this work involves interpreting and responding to new situations, it’s amazing how much hasn’t changed. So many of our top tips for good fundraising in ‘normal’ times hold true for crisis fundraising too.
Amid the current uncertainty, it's comforting to fall back on some universal fundraising rules. No matter what life throws at us next, we're pretty confident that these rules will never let you down...
1. It’s better to do a few things well than stretch yourself too thin
Whether you’re deciding which emergency funding opportunities to pursue, or making a top-level decision about to do as part of your fundraising strategy, prioritisation is vital. While it’s natural to worry leaving stones unturned, or feel under pressure not to say no, taking on too much is usually the bigger issue. When you spread yourself too thin, you don’t leave yourself enough time to do things properly, and you’ll raise less money as a result.
Every decision you make to sacrifice or postpone something less important frees up more of your time to pursue something you’re really good at, or well placed to succeed with. Fundraising is a skilled profession and requires diligence and quality. That doesn’t mean only ever concentrating on one thing - diversifying income sources over time is important - but don’t bite off more than you can chew.
2. Always play to your strengths
When deciding what to prioritise, always give yourself the best possible chance of success – which funders do we fit best with, or know our work already? What activities have historically raised us the most money? What types of donor do we have the best relationship with, or are most likely to appreciate what we do?
This sounds obvious, but I’m amazed how many organisations make their lives more difficult by attempting things they don’t have the skills to do well, moving into a completely new market, or banking on quickly building good relationships with donors or funders from scratch. By all means try new things, but don't bank on instant success, and consider whether there are easier opportunities to explore first. And don’t assume that something that worked for another organisation will automatically work for you.
Shameless plug: we help organisations to understand their strengths and weaknesses, prioritise the best fundraising opportunities and over-committing their resources to things that won't work.
3. Invest time in quality relationships
I'm reluctant to use the phrase ‘relationship fundraising’, because it's been around (and over-used) for decades. But let’s look at why relationships with funders and donors are so valuable. They give you a ‘way in’ to pick somebody’s brains about an idea or application, and get insight and advice that isn’t available to all. They create friends who naturally want your organisation to do well, and are in your corner when things go wrong. They enable you to reach many more people by leveraging your friends' networks too.
Just like in our social lives, good relationships open us up to new opportunities and help us out in moments of need. In the current crisis, so many organisations have leant on their existing funders and donors for extra financial support, more flexibility in how to use donations, and introductions and recommendations to others. Those key relationships are delivering a financial return like never before.
This rule is being disrupted by rise of online fundraising platforms like Facebook Giving Tools, which make it virtually impossible to gather donor data and consent. In rare cases, you may decide that the immediate fundraising return is worth sacrificing the potential for new donor relationships. But more often than not, building relationships is key to raising money and weathering an unexpected crisis.
4. A great thank you is one of your best fundraising tools
This rule holds true across every type of fundraising. A well-written report to your current funder is more likely to lead to a new grant than a cold application to a new funder. Thanking individual donors often leads to repeat gifts, while asking people for a donation for the first time has a low response rate. Well-timed follow-ups with events participants or crowdfunding supporters build your future regular donor base.
This blog explores the power of saying thank you, and our recent podcast episode explores the psychology behind why it makes donors feel good. Too many organisations still don’t get this right, but why? A common mistake is seeing thanking donors as a tedious admin task to tick off quickly when you have a dull moment, rather than an essential fundraising task to do promptly and do well. Re-framing your approach to thanking donors will help you to raise more - after all, it’s key to building relationships.
5. Fundraising is a whole organisation endeavour
Organisations that develop a strong fundraising culture, where everyone takes responsibility for success, raise more.
This doesn’t mean that everyone has the time or expertise to directly ask for money. But everyone can play a role by introducing their contacts, sharing content on social media, providing quality project information for fundraising updates, volunteering at events, and being a sounding board for ideas. All these things will improve your return on investment, broaden your supporter base, and make your fundraisers feel supported and happy.
No fundraiser excels with all the responsibility on their shoulders. Many organisations have achieved remarkable wins in the past two months because the crisis has focused minds and made people pull together. Now we need to make sure we keep this up in 'normal' times too.
6. All the best fundraising activities take time
Given everything we’ve said about planning activities carefully, taking the time to say thank you and building relationships, it’s not surprising that success is rarely immediate. Expecting instant results not only leads to disappointment, but can cause you to abandon promising activities because you judge them too quickly.
Corporate and major donor fundraising, and particularly legacy fundraising for obvious reasons, take a long time to bear fruit. It can take well over a year to secure big donations from companies or wealthy individuals, and several years to yield a consistent return. These activities can gradually become a crucial part of a long-term profitable portfolio, but they won’t save you tomorrow. Expecting instant results will just put people under pressure, reduce the quality of your fundraising, and harm long-term success.
7. Take a step back to move forward
With money tighter than ever, fundraisers are often under pressure to move straight on to the next event, appeal or application, without considering what they learned and where improvements can be made.
As with saying thank you, this analysis is often seen as an added extra rather than essential part of the fundraising process. But gathering feedback from supporters, analysing data from your CRM and pausing to reflect are crucial to improving your approach over time. If you skip this, you’ll raise less, not more.
The current crisis is no different. Right now we're all hastily adapting approaches and raising emergency funds, but there will come a time for all-important reflection. Which of these new approaches might work in normal times too? Which emergency donors can we build a profitable long-term relationship with? What have we learned that will help us prepare better for the next crisis? The organisations that make time for this reflection will do better in the long-term too.
Tell us any universal fundraising rules that we've missed off this list in the comments below 👇👇
Like many, I’ve been watching on with despair at the impact of coronavirus on the charity sector. One of the things we’re doing to help in our own small way is to run a series of free live Q&As to give small charities advice on how to deal with the crisis.
During the first Q&A, amid the technical questions about emergency grant funding, urgent fundraising appeals and strategic planning, one question jumped out: “Are there opportunities in the general gloom?”
I really don’t want to trivialise what is an incredibly tough time for many. The current crisis is likely to have a huge long-term financial impact. Many charities are facing closure or being tested like never before. At a time when there was already nowhere near enough funding to go around, this is one more straw added to the camel’s back. And as Emily Maitlis brilliantly said, coronavirus will disproportionately impact the poorest and most vulnerable people in our society. It’s no exaggeration to say that I worry about these things every day.
But that’s not to say that there aren’t any positives in the gloom. New attitudes and ways of working are being born out of necessity, but some of them could be here to stay. At a time when we all need a boost, it’s helpful to highlight a few…
The flexible response from funders
Barring a couple of horror stories, most funders have responded overwhelmingly positively and are rallying around the sector. They’re giving grantees an unprecedented level of flexibility in terms of how, where and when they spend the money. In general, funders are giving away more money more quickly, with easier processes and fewer restrictions and reporting requirements, than ever seen.
It’s important to remember that many funders are also registered charities and have their own charitable objectives to adhere to. This often explains why they have restrictions and reporting requirements in place. However, sometimes it also comes down to control and trust. Funders are currently ceding this control to charities and trusting them to use their judgement on where money is needed most - and if charities prove that this trust is well placed, it’s possible that many funders will continue offering increased flexibility in future.
If you're unsure how best to tackle funders in these unusual times, we've tried to explain through the unlikely medium of an onion:
The groundswell of public gratitude
Public and media attention are focused on things like the NHS, food banks and grassroots community organisations like never before. The Prime Minister is praising the NHS for saving his life, and looking like he might even still remember it in six months. Conservative MPs are publicly questioning their assumptions about so-called ‘low-skilled workers’. You really do have to pinch yourself to be sure this is actually happening – although it’s a shame and disgrace that it took this level of crisis to prompt it.
Of course, the challenge will be to maintain this level of public support whenever things go back to(wards) normal. Still, maybe I’m being naïve, but it does feel like there’ll be an opportunity to change long-term perceptions for the better, and keep up public pressure on decision-makers, if we can harness the amazing stories of community solidarity, and the levels of recognition and gratitude, that currently exist.
Some people have more time and money to give than usual
Again, we mustn't trivialise things. Many people are under more financial pressure than ever, and face the thankless task of juggling work commitments and care responsibilities. But equally, plenty of others actually have more time and money to give. There are people furloughed from work, desperate to do something to help, saving on their daily commute, and not spending money in pubs and restaurants. This is an opportunity.
Pressuring people to donate in the current climate is unconscionable. And you should consider the ethics of running an ‘emergency fundraising appeal’ now for the sake of hitting targets, if there isn’t actually an urgent need. But if you’re being hit hard, explain what problems this crisis is causing for you, and give your supporters the opportunity to help fix them. Not everybody will be able to donate, but that doesn’t mean you shouldn’t ask. If any of the charities that I regularly support went out of business now, and hadn’t asked for my help, I’d feel very frustrated.
This is an opportunity for volunteering as well as fundraising. More than ever, don't be afraid to ask people to give their time. Trust me, there are plenty of people out there – including children, teachers, graphic designers – who will jump at the opportunity to channel their creativity positively. Check out our associate consultant Gemma’s amazing blog on why micro-volunteering is more important than ever.