One of the first rules of trusts fundraising is that relationships are crucial – but forming them can feel harder than ever.
This is the inevitable result of an ultra-competitive climate. With so many funders inundated by interest, they’re taking steps to minimise the number of applications they receive, and the time they spend communicating with applicants.
As a result, many fundraisers scratching their heads by the lack of feedback, the requests for no unsolicited applications, and cryptic guidance notes. Sometimes it feels like funders and fundraisers are barely speaking the same language – but with more understanding on both sides, there’d be less wasted time all round.
We recently launched a new one-day trusts fundraising course – and, in response to the widespread confusion and frustration out there, we included a ‘What funders say, what they mean and what to do about it’ segment.
Having gathered feedback from loads of charities and social enterprises, and compared it to our own experience, we’ve developed a list of five frustrating things that funders say, and what you can do about it:
1. We don’t fund core / running / salary costs
The funder’s point of view: personally I think that charities need to invest in being strong, well-run organisations more than ever, despite the media obsession with things like management and admin costs. Sadly, funders are often more drawn to shiny, tangible projects. There are legitimate reasons for this: funders have their own charitable objectives and wish to demonstrate impact for what they give, and projects often feel cleaner, simpler to understand and more likely to produce short-term results.
However, it’s easy to misunderstand what funders mean when they say they don’t fund core or salary costs. Often, they mean they won’t fund these costs as stand-alone items, or don’t want to pay to simply keep people in jobs. It doesn’t necessarily mean they won’t fund core or salary costs as a part of a project, if packaged well.
How to respond:
2. We only fund new ideas and activities
The funder’s point of view: a bit like magpies, funders are often attracted to shiny things – that means new, exciting and innovative projects. This can be infuriating, particularly if you’re seeking funding for a project that you know works and is needed more than ever. It’s often driven by concerns about sustainability – funders don’t want to feel relied upon to keep supporting the same work year on year, or may feel that it’s better value for money to make a smaller contribution to test a pilot project that can then be scaled up.
How to respond:
3. We don’t fund work which is a statutory responsibility
The funder’s point of view: this is something I find very frustrating, particularly at a time when an increasing number of activities are seemingly being abandoned by statutory services. However, many funders simply don’t want to feel that they’re just picking up the slack for government spending cuts, or don’t recognise how what you’re doing is different – particularly in areas like residential care, housing and employment support.
Applying for direct replacement funding is a bit like going on a date and talking about your ex-partner the whole time – if you make a funder feel like you’re only interested in them to replace something you used to have, don’t expect them to feel special and excited about partnering up with you.
How to respond:
4. We don’t accept unsolicited applications
The funder’s point of view: in the current climate, many funders are inundated by applications, lots of which are poor quality or don’t meet their priorities. As a result, they choose projects based on personal recommendations or their own research. This helps them to make better use of their limited resources.
How to respond:
5. We don’t enter into discussions about funding in advance or provide feedback
The funder’s point of view: again, this is often driven by a lack of resources. Funders prefer to dedicate time to the organisations they’re funding. Also, feedback can be contentious – perhaps they used to provide it, but often got a negative reaction. Finally, they may simply have nothing meaningful to tell you, if they couldn't find any fault with your project but had to make a tough decision between several organisations they liked.
How to respond:
To learn more about how to build relationships with funders, write compelling applications and develop a successful trusts fundraising programme, click here to check out our training courses.
I had a lovely trusts and foundations blog planned for this week. I really did. But it’s going on hold for a few weeks, because I’ve been bitten by the World Cup bug.
I’ve been a football fan since around 1994 (more on that later). However, for perhaps the first time, I didn’t feel too excited during the build-up to this World Cup. A combination of England’s seemingly bleak prospects and the questionable ethics of hosting the tournament in Russia left me feeling a bit underwhelmed.
Then the first ball was kicked and I've been captivated again - from the novelty of catching a few minutes of Portugal v Morocco at lunchtime to the joys of watching flamboyant surprise packages like Mexico and Senegal, and of course the typical emotional rollercoaster of an England game.
Amid the drama and entertainment, there are also a few handy lessons to be learned by fundraisers and charities:
Pride and motivation go a long way
Hands up if you predicted that Russia would be the top goalscorers and best entertainers so far?
Going into the tournament, there was a general sense that Russia had picked an incredibly bad time to assemble a weak squad. Nobody – including many Russian pundits – was talking about how far they could progress, only hoping that they wouldn’t embarrass the host nation.
In their first game, Russia put five past Saudi Arabia, before a stylish 3-1 win over Egypt on Tuesday. A seemingly ordinary team have thrived in the spotlight and been transformed in front of thousands of partisan home fans.
You probably can't find thousands of Russians to cheer on your fundraising team (and it might be a bit distracting anyway). But creating the right circumstances for people to thrive, and feel confident and comfortable in their work, is just as important as having skilled staff. If you can do more to make your team feel proud of their work, motivated to do a great job and clear about the end goal, they might be able to achieve more than you expect.
You can also punch above your weight if you play to your strengths and develop a clear plan
Russia aren’t the only team to raise eyebrows so far. Mexico secured a famous 1-0 victory over Germany, while Iceland claimed their latest scalp with a gutsy 1-1 draw with Argentina.
These two performances had something in common – both teams worked incredibly hard as a unit and had a clear gameplan, focused on playing to their own strengths and exploiting the weaknesses of their opponent.
This is also the key principle of a good fundraising strategy. You don’t need to be brilliant at everything to raise the money you need – just identify a few things that you do well, create a clear plan for maximising your return in those areas, and explain to everyone how they can play a part in getting it done.
Appropriately enough, this week is Small Charity Week – so an ideal time to celebrate the power of punching above your weight.
The power of a shared cause and dream
Even in the modern day of mega-rich football club owners and eye-wateringly big TV deals, it's still the fans that really light up any World Cup. I love the atmosphere and the colour, and seeing the passion of people who travel thousands of miles to watch their team. How many other events inspire people to give up their jobs and sell their possessions so they can be there?
Football fans are united by a sense of shared identity and a collective dream - and charities can tap into a similar feeling. People don’t support your cause because of who you are, or what you’re doing, but why you’re doing it. If you can articulate a clear vision, people will remember you and feel inspired to support your work – whether you’re trying to cure cancer, end child cruelty or make your local area a safer and better place.
Be willing to embrace change
A big talking point at this World Cup has been the introduction of VAR (Video Assistant Referees). In an attempt to reduce refereeing mistakes, certain key decisions are now referred to professional referees in a TV studio, who can review the incident from multiple angles and recommend that a referee overturns their decision.
VAR was first trialled in the UK during cup competitions last season, and was widely ridiculed. It caused long delays in play, confusion for fans in the stadium and on TV, and still got many decisions wrong. However, the system has quickly improved – while still not perfect, it’s already resulted in many correct decisions about penalties and goals at the World Cup, and is gradually being accepted as a positive development in the game.
The lesson is clear – when you try to make changes, particularly involving new technology, you’ll often face teething problems and encounter resistance. For charities, this often comes from donors, staff and trustees.
Trying to introduce a new CRM, run your first crowdfunding campaign or dabble in virtual reality technology is unlikely to be a pain-free experience. But people may change their views quicker than you expect, and you'll benefit from taking the time to iron out problems. In 6-12 months, you'll probably be glad you pushed through the change.
Tastes change over time
While I’ve been rapidly sucked into this World Cup, I haven’t always been a football fan. My first distant World Cup memories are from USA 1994, but they're not good memories. Apparently I came home from school, turned on the TV to watch my usual cartoon, found it'd been cancelled for the football, and threw a tantrum.
My parents like to remind me that I spent the next few hours sulking and cursing “stupid football”. I’m not sure what happened next, but by Euro 1996 I was a total convert, screaming the house down as we thrashed the Netherlands 4-1 at Wembley – one of my favourite football memories.
People’s tastes and circumstances change over time, and fundraisers need to stay on top of that. A student volunteer might not be in a position to donate to your work now, but may feel totally differently after five years in their graduate job. Your major donor might gradually lose interest in Project A, but start to really value the impact of Project B over time. Event trends come and go out of fashion, often leaving you scratching your head.
That’s why it’s so important to keep building genuine relationships with your supporters, recording what you learn from conversations about their interests, and developing personalised asks to match. This will help you develop a more engaged supporter base, and ultimately raise more money for your work.
But that's a job for tomorrow. Tonight you need to get home in time for Argentina v Croatia at 7pm - it's going to be a cracking game.
In the world of fundraising, I can't think of a more anticipated and talked-about date than 25 May 2018. It feels like the countdown to the General Data Protection Regulation (GDPR) coming into place has been going on forever, but now we're barely two weeks away from the big day.
Don't worry - this isn't another blog telling you how to get ready for GDPR. There are plenty of them already. I'm interested in the longer-term view - how could public fundraising fundamentally change as a result of the introduction of GDPR, and what should charities be doing now to stay ahead of the curve?
A friend of mine, who works in fundraising compliance at one of the big charities, set me the challenge of writing a blog about 'Public Fundraising 2.0' in the brave new world after GDPR. So I've dusted off my crystal ball and shared a few ideas...
Successful charities will focus on better relationships with fewer donors
There's no getting away from it - opt-in consent will make it harder to capture usable donor data and mean fewer contacts on your database. Gone are the days of adding big batches of contacts to your newsletter list gathered through business card drops, event contact lists and via your supporters' own fundraising efforts (arguably many of these methods weren't compliant pre-GDPR anyway, but many charities are only now clarifying their obligations in relation to existing Privacy and Electronic Communications Regulations (PECR)).
It's easy to see reduced data capture and fewer contacts as 'A Bad Thing'. After all, the traditional donor pyramid approach is very clear - capture enough new contacts at the bottom end and do a few clever things to nurture them, and you'll eventually have more high-value donors and legacy givers at the other end:
Although this approach is often accused of being outdated and fundamentally flawed, I think it has its merits (but that's a topic for another day). However, there's no doubt it's been working pretty badly for most charities. There's too much focus on quantity over quality - why keep building a database of passive contacts who rarely or never engage with your charity, when you're not investing in the capacity to communicate with people on a personal level or the analytics to evaluate what approaches are actually working?
Soon you'll find it much harder to build up your mailing list - or maybe you won't even have much of a mailing list at all, if you've been seeking fresh consent for GDPR - so you may as well start focusing on quality instead.
This means taking the time to use the data you have to personalise your communications as much as possible and segment your contact list more intelligently, making your mailings more relevant and targeted. You're only allowed to store personal data that you use anyway - so if you're collecting it, you ought to be acting on it.
Smaller charities may finally unlock the potential of major donors and legacy fundraising
A smaller contact list means two things - more time to focus on the supporters you do have, and fewer opportunities to get things wrong.
Retaining donors will become even more important, so charities have to be able to delight and inspire their donors. This should mean better thank you letters, more personalised follow-ups after events, and CEOs and trustees dedicating more time to meeting and cultivating high-value prospects.
Major donor fundraising and legacy fundraising have long been undervalued by smaller charities, who are often put off by the lead time and initial legwork involved. Now this might start to seem like a more obvious route, as high-volume individual giving starts to feel like a more difficult and less profitable pipe dream. If smaller charities start to realise the benefits of investing more time (and senior management time) in cultivating donors, I suspect we'll start to see an increased focus on major donor and legacy fundraising.
The value and popularity of communication channels will gradually change
If you do still want to focus on mass marketing, you may need to reconsider which channels work best. The high bar set for the level of consent you need means that email marketing could become a fading force - mailing lists are shrinking, people unsubscribe at the touch of a button, and emails are increasingly being caught in intelligent spam filters.
Meanwhile, unaddressed mail requires much less in the way of consent - so while this is a blunt instrument and the precise opposite of a personalised approach, it's likely to become more popular. It won't become an effective tool overnight, but could start to look more attractive to charities struggling with email marketing. As a result, more cost-effective and creative approaches to unaddressed mail will start to emerge over time.
Social media fundraising will also finally start to take off. Successful charities will focus less on trying to capture email marketing consent from followers, and more on engaging with these people meaningfully within that platform. The new Facebook fundraising tools mean that people don't need to be on your mailing list or even visit your website to spontaneously donate. So why spend time on your dwindling mailing list when you could be mastering these tools or making sure you reply to every single follower quickly and personally?
These changes will happen gradually, so you'll need to keep your ear to the ground and not assume that what worked best yesterday will still be the best option tomorrow. Which brings me to...
Charities will have to collaborate more to make sense of a tricky new world
With the whole sector taking a battering for its fundraising methods, charities need to work together to find the best way forward.
Of course there's naturally competition between charities, but we'll all raise more if we help each other to win back the trust of an increasingly sceptical public and deal with the challenges of GDPR. Large charities have access to more supporters - and therefore more meaningful test data - than smaller charities. Charity A might be more experienced with a specific audience than Charity B. One of your fundraising campaigns may have backfired spectacularly in a way that other organisations could learn from.
Some fundraisers are already collaborating to great effect - the immensely useful Fundraising Chat group on Facebook has topped 6,000 helpful members, but that's the tip of the iceberg for the sector as a whole.
Choosing the right third party platforms will be vital
Your Data Protection compliance and data capture methods are only as good as the third party platforms you use - whether that's Facebook, Mailchimp, Justgiving or any other system.
With data security high on the news agenda, people are becoming more cautious about sharing their data online - so platforms that are trustworthy and creative in how they gather data will be worth their weight in gold. Choosing the cheapest option may be a false economy, and free platforms are often free for a reason.
I recently worked with a charity running their first ever crowdfunding campaign. Despite setting an achievable fundraising target, they knew a lot of work would be involved - so the true value of the campaign would come through the long-term value of the donor relationships they built, more than the short-term income.
They successfully hit their target, but their crowdfunding platform was tricky to use and hadn't given much thought to donor consent. As a result, the charity felt unable to add the donors to their database, or even email them again to seek consent. A different platform, even with higher fees, would've resulted in a much more valuable campaign.
More fundraising will become product-based, and maybe not really fundraising at all
Without a sizeable supporter database, we'll become more reliant on profitable one-off interactions than repeated asks - but maybe that's no bad thing.
With charities increasingly picking up the slack for spending cuts and social inequality, an increased number of appeals feels inevitable. But fundraising is arguably reaching saturation point in terms of how much it interrupts our daily lives - in the streets, at our doors, on TV and through our letterboxes.
One way to address this is to make fundraising a more welcome part of people's lives - through gamification, collaboration with retailers or social media stars, or events that are profitable based solely on selling people a good experience rather than capturing their data for long-term fundraising. This focuses on the product instead of the ask. It blurs the boundary between fundraising and broader income-generation, and sometimes isn't really fundraising at all.
We recently published this blog on the need for more non-disruptive fundraising, which is only going to become more important after the introduction of GDPR. Have a read now to get some inspiration if you haven't already.
If you were asked to create an ethical fundraising policy, what would you do and where would you start?
With the latest wave of bad news stories – especially the Presidents Club scandal, which saw charities scrambling to hand back donations – I’ve been contacted for advice by several organisations who, quite sensibly, want to avoid getting in a similar position themselves.
An ethical fundraising policy sets out what your organisation is willing to do and not do in relation to fundraising, based on some agreed ethical principles. This often includes (but shouldn't be limited to) when you may choose to reject a donation.
If this sounds like a straightforward exercise, it shouldn’t be. It goes without saying that ethics aren’t black and white, so putting together this policy must involve careful thought and reflection.
Here are six guiding principles to keep in mind if you're creating an ethical fundraising policy:
1. Start a conversation - don’t search for a template policy
A common mistake is to assign this task to one member of staff, and ask them to find an example policy that can be adapted quickly for your organisation.
However, creating an ethical fundraising policy goes right to the heart of your appetite for risk, your charitable objects and the areas of particular sensitivity for your cause. As such, it's crucial that trustees and senior management are involved.
This process should start with a conversation. This is arguably the most important stage, since you need to debate different scenarios and views, and arrive at a position that feels right for your organisation. This is usually a thought-provoking exercise that improves everybody’s understanding and appreciation of the complexities involved. If you treat creating the policy as a box-ticking exercise, you’ll miss out on this valuable development opportunity.
2. Take a broad view – don’t over-react to one event
It's common to be prompted into action by a single event, like a high-profile bad news story. This isn’t a problem as such, but you shouldn't let it skew your whole approach.
In the wake of the Presidents Club scandal, many charities are focused on whether they should accept (or return) certain donations. However, this is only part of the puzzle – your policy may need to cover the ethical standards you expect your suppliers to meet, how you check those standards, and how you interact with vulnerable donors.
It's helpful to start by making a list of all the circumstances and ethical dilemmas your charity needs to consider. This should be informed by the types of fundraising that you do and your existing risk assessment, as well as by external events.
3. Define your attitude towards risk – avoid making decisions that you’ll reverse later
Keeping everyone happy is rarely possible, as recent developments show. Many people were outraged that charities like GOSH had accepted donations from the Presidents Club, but others were reportedly angry when they considered handing them back.
There are no right or wrong answers, so you need to judge what feels appropriate for your organisation, anticipate how your supporters and beneficiaries might react, and be prepared to justify your decision. It's no good having a policy in place, then caving in as soon as you put it into practice and people object.
Defining your organisation’s attitude towards risk is essential – this is why trustees and management must be involved. Accepting some donations can be risky, but being totally risk-averse is a risk in itself – it can demoralise staff, or damage your financial position. This is inevitably a sensitive balancing act. It may be helpful to consult key donors and beneficiaries when creating your policy, to anticipate objections in advance.
4. Make it relevant to your cause – don’t be over-simplistic
When defining whether to accept or reject donations from individuals and companies, you may be tempted to start by creating a list of 'no go' areas, like if they are linked to alcohol, drugs, gambling or pornography.
Unfortunately, the world isn't that simple - household name companies sell alcoholic products, and established publishing companies produce pornographic magazines. If you're not careful, you could find yourself turning away a lot of donations!
You need to be more specific and mindful of your cause and charitable aims. It's not about what staff or trustees personally think is ethically correct, but whether a donation might damage your mission or beneficiaries. An animal welfare charity might be reluctant to accept a donation from a cosmetics company, but happy to do so from an alcohol brand - whereas an addiction charity might take the opposite view.
5. Include specific processes and procedures - not just general guidelines
Your policy should not only set out your position, but explain how to action it - for example, do you subject donations over a certain amount to more rigorous background checks? What do those checks involve? How do you go about reporting serious incidents?
This will help staff to put your policy into action, and also show anybody reading it that you're serious about fundraising ethically, rather than just treating it as a tickbox exercise.
6. Make your policy part of the bigger picture - don't see it as enough in isolation
It's tempting to sign off your ethical fundraising policy and assume it's 'job done' - but in reality, this is an ongoing commitment and part of a larger compliance picture.
Your policy shouldn't just sit in an obscure corner of your shared drive. It must be an ongoing reference point that's displayed clearly for staff to refer to when needed, and part of induction processes for staff and volunteers. Fundraisers should feel able to raise any concerns or discuss situations they feel unsure about. Management and trustees should review your policy periodically, in response to changing fundraising practices, issues affecting the sector, and changes to your own fundraising portfolio and risk assessment.
Aside from creating an ethical fundraising policy, you may also want to, for example, review your Data Protection compliance ahead of the arrival of GDPR, ensure your trustees are aware of their legal fundraising duties as set out in the Charity Commission's CC20 document, or produce a short supporter promise outlining your commitment to good fundraising (I've always liked this example from Mind).
It’s tempting to think that the recent fundraising crisis came out of nowhere – that public resentment was just whipped up by the media and a few horror stories – but the reality is different.
Frustration and dissatisfaction had actually been simmering away for a long time. In 2016, nfpSynergy reported that the charity sector had one of the lowest complaint rates across seven sectors, but the highest level of people wanting to complain but not doing so. Given that the other sectors included pensions, mortgages and broadband providers, that’s a sobering statistic.
So why have people been growing increasingly unhappy with charities? Specific cases of bad practice haven’t helped, but I think there’s a broader issue.
Most of our public fundraising methods seem to rely on interrupting – rather than complementing – our everyday lives. We get stopped in the street. People knock on our doors. Charity appeals pop up on TV and through our letterboxes.
In a world marred by spending cuts and growing inequality, this may feel inevitable. More and more people are being denied happy and healthy lives, and charities are stepping in to pick up the slack. Desperate times call for desperate measures, and if these fundraising methods work and people have the money to donate, what’s the problem?
Unfortunately, many fundraising methods seem incompatible with a changing society. Digital technology has given people an unprecedented level of choice and flexibility. We stream music that we want to listen to, instead of sitting through songs we don’t like on the radio. We watch our favourite programmes on catch up TV, rather than 'seeing what’s on'.
We increasingly live in our own bubble where we do things on our own terms. So when we perceive that we’re being interrupted unnecessarily – whether by a company, a charity or an individual – we often feel harassed or angry.
So street, door-to-door and television fundraising – while hugely successful financially, particularly for household name charities – are often negative experiences for the public, stirring up feelings of pressure and guilt.
I’m not saying that 'traditional' forms of fundraising are fundamentally wrong, or that negative media coverage is always justified. However, in these tough times, many charities need to raise increasing amounts from the public to keep supporting their beneficiaries. For this to be sustainable, we need to be more creative and varied in our fundraising efforts.
A popular buzzword today is ‘disruption’ – the concept (originating in Silicon Valley) of smaller companies unseating market leaders in an industry with an innovative or simpler solution. But when it comes to fundraising, perhaps the most effective form of ‘disruption' is actually to be as non-disruptive as possible.
We need to find more ways to fundraise that fit in with or add value to people’s lives, rather than interrupting them.
I’ve seen a few great examples recently – and while many are being implemented by large charities, there’s plenty that the whole sector can learn:
1. Rounding up in shops
Recently, staff in my local Tesco in Bristol were fundraising for Diabetes UK and the British Heart Foundation. To support their efforts, Tesco added a prompt to their self-service machines asking customers to make a small donation to round up their bills:
Over about a month, I must have donated ten times (I’m not a very strategic shopper, and Tesco is a one-minute walk around the corner). Never more than 10p – but with so many customers and transactions, you can imagine how this small but frequent giving can add up.
While this did involve adding an extra screen to the self-service process, I could choose to donate or decline within two seconds. It didn’t feel obtrusive at all, and there was no awkwardness in saying no. Many people will have supported two charities that they might not have thought of giving to before.
Smaller charities may find it near-impossible to forge a partnership with a major supermarket. However that doesn’t stop you approaching local shops or restaurants about a similar arrangement, or applying to supermarket community schemes like Waitrose’s green token scheme. You can also look at joining nationwide schemes like Pennies.
2. Good old-fashioned community fundraising
Community fundraising is brilliant because it performs a social function as well as raising money. It's something positive to do and provides an opportunity to meet new people, which can be really important for some.
While most people immediately think of the Macmillan Coffee Morning – which raises almost £30million annually – personally I love Mind’s Crafternoon fundraiser. This promotes mental health and mindfulness, while encouraging people to come together and focus on making something.
Any charity – no matter what size – can design an attractive community fundraising idea for their own supporters, whether that means a database of a thousand people or a small group of friends and family.
The key is to develop your idea in consultation with your target audience, start small, gather feedback and gradually scale it up. Ultimately, community fundraising works best when it's led by volunteers, with minimal input and support from paid staff.
3. Social media collaboration
Building an audience for fundraising is tough for smaller charities, so getting a leg-up makes a huge difference.
I’ve always loved this example of how the popular Humans of New York photoblog raised over $100,000 in less than an hour, by combining a powerful ask for a local cause with an inspiring story. Founder Brandon Stanton had already built a huge audience that enjoyed glimpsing other people’s lives and hearing their stories, so appealing for help was a logical next step.
Winning the trust of an audience that are already passionate about something, and making a related ask on the platform they already use, is another great way of weaving fundraising into the fabric of everyday life.
Building a relationship with - for example - a blogger or YouTube star isn’t easy, but might be a better bet than approaching major companies, particularly if there’s a reason why they’d support your cause. Try looking out for rising stars and make contact with them before they hit the big time.
Ever been through Stockholm Airport and seen these charity arcade machines?
I love this for two reasons. Firstly, it takes something that’s already popular and adds a fundraising twist. If people like arcade machines in airports, why wouldn’t they love using them for a good cause?
Secondly, this is a brilliant example of the gamification of fundraising. This increasing trend uses games, challenges and adventures to give people an added incentive to support a cause – and it really works.
You’ll probably struggle to get arcade machines placed in major airports. However, you can still use this as inspiration: can you ‘gamify’ any of your existing fundraising efforts, or add a fundraising twist to something your local supporters already enjoy doing?
5. Making donating easy
When people decide they want to donate to you – no matter how or where – it’s not the end of the story. The physical act of donating has to be intuitive and convenient – if it’s too complicated, you’ll lose donors.
As technology moves on, people expect the organisations they interact with to keep pace. The use of contactless cards is booming – contactless payments now account for a third of all card purchases, up from 10% just two years ago. Cash is a fading force, and charities are losing out by still relying too much on it – by as much as £80million per year, according to this report.
It’s worth exploring options now for taking card and contactless payments, as the cost and barriers to entry will continue to come down for smaller charities. Also, make sure your donation and registration forms (both online and paper) are as simple as possible.
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:
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.
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.
Trustees’ Week is a great opportunity to celebrate the amazing contribution being made by over one million voluntary trustees in the UK – and rightly so. But are trustees doing as much as they can to support their charity’s fundraising efforts – and is your organisation missing a trick?
The UK is the sixth most giving country in the world and has a proud charitable tradition, despite plenty of negative media coverage in recent years. This simply wouldn’t be possible without the work of trustees, who dedicate their time to making vital decisions about a charity’s work and strategy.
On average, trustees give almost five hours per week of their time – based on the median hourly wage, this is worth a staggering £3.5bn a year to the sector (source: Civil Society). However, in our experience, often only a small amount of this time is dedicated to supporting fundraising. Generally, the charities that we work with have few (if any) trustees with fundraising expertise or knowledge.
Smaller charities inevitably tend to have few paid staff, so it’s essential that their Boards bring expertise related to governance, financial management and their specific area of work (for instance, education or social care). As a result, fundraising can seem a lower priority – charities may never get around to looking for trustees with fundraising experience, lack the contacts to find the right people, or not have a vacant space on their Board.
Many trustees therefore feel they lack the knowledge and confidence to support fundraising – but with a bit of encouragement, there’s so much they could do.
Leading the way on a whole-organisation commitment to fundraising
Fundraising relies so much on contacts and having a captive audience. However, for obvious reasons, smaller charities rarely have the large supporter bases, volunteer networks and marketing budgets enjoyed by household name charities. As a result, they need as much help as possible from all the people already involved in their work.
Charities raise more money when all their staff and trustees recognise the value of fundraising and the importance of supporting it however they can. That doesn’t mean people need to put their hands in their own pockets, or feel under pressure to always help in the same way. There are so many small things that trustees and staff can do that help to make a huge difference:
Developing the right culture for fundraising
As well as leading by example and providing hands-on support, great trustees can also shape the entire working culture of a charity, creating an environment where fundraising – and fundraisers – are able to thrive. Here are five ways of doing this:
Developing a whole-organisation commitment to fundraising, and creating the right culture for fundraising to thrive, is of course easier when you have fundraising expertise on your Board. However, in a tough financial climate, you can’t wait until tomorrow to start. While most trustees won’t be able to help with all of the above, we guarantee that every trustee can do something - and staff will appreciate it more than you may expect.
I read recently that 116 Artificial Intelligence (AI) experts – including Elon Musk – have petitioned the UN to ban the development of autonomous weapons and ‘killer robots’.
Elon Musk is one of the world’s most prominent tech entrepreneurs. His companies are revolutionising transport, both on the roads and in space - Tesla Motors has brought fully electric vehicles into the mass market. He's invested heavily in AI research, in his own words because he wants to “keep an eye on what’s going on.”
I've long been fascinated by AI and autonomous technology. Without doubt it's going to completely change our lives – we've already seen the emergence of driverless cars and robots in Japanese hospitals to ease the burden on nurses. Stephen Hawking recently said that AI could hold the key to eradicating disease and poverty.
On the flip side, there are growing concerns about what will happen if autonomous technology falls into the wrong hands. Hawking and Musk have both warned that it's the biggest threat to the survival of the human race. We're now just years away from huge autonomous weapons that can cause unimaginable loss of life at the touch of a button. Robots with vastly more capability than the human brain, but no moral code, no longer belong in the realm of science fiction.
As technology races ahead, the debates about ethics and regulation fight to keep up. The technology for driverless cars already exists - it's the challenge of how we programme them that's holding things up.
On the surface, this has nothing to do with charities and fundraising. However, I know that many of us have to battle with something that also has great potential to improve how we do things, but great destructive capability too.
When you have big responsibilities in a small organisation, what role does self-doubt play? Is it a positive or a negative influence?
My transition from fundraiser to charity consultant left plenty of room for self-doubt. When you stop working for an organisation, you leave behind the comfort that comes from being part of an established structure with a good reputation.
For most of our first two years, I went into every major meeting or event with some kind of self-doubt. Am I well enough prepared? Will people appreciate my ideas? What if our training attendees find this exercise unclear or boring?
Doubting yourself can be enormously beneficial, but too much self-doubt can be destructive and exhausting.
It drove me to meticulously prepare for everything – if you naturally go through 20 different ways something could go wrong in your own head, more often than not it ends up going to plan!
But the negative thoughts also meant I used up lots of nervous energy, spent too much time preparing for things that weren't essential, and got bogged down anticipating problems that didn’t really exist.
Over time, I've gained experience and started doubting myself less. Generally I enjoy my work more as a result, but sometimes I also miss that ‘edge’ - fretting over small decisions or details can definitely help keep you on your toes.
Working for a smaller charity is often a lonely experience, particularly if you’re in a senior role or you’re the organisation’s only expert in what you do. This can make self-doubt a double-edged sword.
Often, your work isn’t subject to many checks and balances. Your colleagues or trustees may not know enough to meaningfully question your decisions, or reassure you that you’re on the right track. As a result, you may find you have a broad range of questions going round in your head:
So what's the right balance? I’m not sure I’m qualified to say, however personally I have a couple of ground rules:
1. You need to make self-doubt a 'force for good' in some way, that you can use to drive yourself forward and improve your work.
2. If it becomes draining or stops you enjoying what you do, you must address it, even if that means you lose out on some of the positives too.
Like with autonomous technology, there's probably no holding back the 'technology' of self-doubt - it's hard-wired in most of our brains. The challenge is harnessing it in a positive way, and remembering to be kind to yourself along the way.
How do you ‘sell’ your cause to people?
If you find yourself talking to someone about your charity in the pub or at the school gates, what do you tell them? Do you trot out your vision and mission statement, and those inevitable bullet points describing your main services? Is there a particular story you always tell?
I’ve been involved with many charities as a fundraiser, consultant, mentor and trustee. If you work for one of these organisations then you might want to look away now. Sorry, but when I tell someone about what your charity does, I rarely use your carefully crafted marketing language.
The unavoidable reality is that many causes are hard to explain, particularly in these times of austerity. Multiple disadvantage, multiple services for one beneficiary group, or one particular issue that affects multiple groups.
It’s often tricky to distil this into one concise, meaningful description. That bullet point list might sound ok on paper but it’s instantly forgettable when recited verbally. Staying 'on brand' can sound a bit…bland.
I think there’s a better way to engage people in what you do. Stop trying to tell them everything, and instead look for your ‘diamond in the detail’.
All the charities I really ‘click’ with and enjoy talking about have something in common. Amidst all their services, statistics and slogans, I’ve found a particular thing that for me really captures why they do what they do.
Often this is a beneficiary story, but it could just be a concept or an idea that’s easy to understand and memorise. I’ll give you a couple of examples.
I spent five years at Link Community Development, a charity working to ensure children in sub-Saharan Africa receive a meaningful education. Link provides teacher training, quality assessments of schools and helps headteachers and district authorities to run schools better. The Millennium Development Goals focused on getting children into school but not what happened when they were there. So Link’s work was vital, but not very ‘sexy’.
Over time, by speaking to teachers and parents in South Africa and Malawi, I understood things better. Children growing up in countries ravaged by HIV/AIDS don’t miss school because they don’t want to be there. They stay at home to look after sick relatives, or work the land to earn money for their family because their parents are no longer with them.
Many people see children not attending school as the biggest problem. But for me, the burning injustice is encouraging children to walk five miles to school because it’s ‘the right thing to do’, meaning they can't perform a critical role in their families, then failing to provide them with an education that makes any difference when they get there.
This was my ‘diamond’ for explaining why Link’s work was so important. As a problem that urgently needed fixing, it meant so much more than saying ‘Link works in five countries in sub-Saharan Africa doing X, Y and Z to improve the quality of education in schools.’
I’m currently working with a very different charity called The Camden Society, who provide a range of services to people with a learning disability. Among other things, this includes supported living, employment and health and wellbeing.
But if you ask me about The Camden Society, this isn’t what I’ll tell you. Instead I’ll talk about their amazing apprenticeship programme, helping to arrange job trials for people who would otherwise lack the core skills to secure a role in the catering industry.
I’ll tell you about the apprentice I heard speak who knew he would never shine in a formal interview, but proved in a trial that he could prepare food more quickly than any of the regular staff. He secured a job where he could thrive and feel proud of his skills, and he’s not looked back since.
This is just one aspect of the charity's work, but it's the one I feel most comfortable and passionate talking about.
You don’t need to talk about the whole of what your charity does, or even focus on your main project. By finding your own ‘diamond in the detail’, you'll be able to explain things with more belief and passion. Crucially, this diamond may be different for every staff member or volunteer.
I've heard people find their own engaging ways to talk about their charity, only to be told that it's not on brand - which I think is a real shame.
It can be helpful to think of your charity as a cube. There are many sides to what you do. People can only see one or two sides at any one time, but those sides are still part of the whole shape.
Ultimately, is it better to give someone a concise and complete summary of what you do and hope they remember it? Or tell them one specific memorable thing that can be a ‘hook’ for finding out more later?
You might be willing to try this approach when talking to family and friends, but I’m convinced it can be just as effective with donors, funders or companies. So isn’t it time you found your diamond in the detail?
What particular diamond works best for your cause? Do you have some different advice for engaging people? We’d love to hear from you – please leave a comment below.
Lime Green Consulting HQ has now relocated from London to Bristol, which is the inspiration for this blog. If you're based in Bristol or the South West, we'd absolutely love to hear from you. We're also continuing to work with organisations in London and across the country.
This week, after months of planning, my partner Sally and I finally took the plunge and moved to Bristol.
Like many people, we were looking to buy our first house but facing the reality of London house prices. We knew that saying goodbye to North London after ten years would mean more space and a better quality of life. However, uprooting not just our home but our social lives and my growing business has been challenging and, at times, daunting.
Moving house is stressful at the best of times, especially when you’re relocating to a new city. On top of the usual challenges, we’ve got two very anxious young cats and unwittingly scheduled our move at the same time as a prolonged heatwave!
Unpacking boxes and painting walls as the thermometer hit 31 degrees wasn’t a pleasant experience – especially when we had to keep doors and windows closed to prevent our cats making a break for freedom. Even the local Tesco (our one local supermarket) couldn’t cope with the heat as their fridges broke down - so not only did we run out of basic supplies, we couldn't even celebrate with a calming alcoholic drink either.
So how can you ensure 'business as usual' when you're surrounded by mayhem? Plenty of small businesses - including charities - face the same challenge during a major upheaval such as office move, a change of leadership, or even a key staff member facing something big in their personal lives.
Having now (just about) survived the move, I wanted to share a few tips on ensuring continuity during these stressful times, including some I've learned the hard way:
1. Be realistic about your time
Like me, I'm sure you're guilty of sometimes stretching the definition of a 'working day' in order to achieve as much as possible. But when you've got something major going on outside of work, protecting your time is more important than ever.
For our big move, I was determined to do something I'm usually pretty bad at - take enough time off to do everything else properly. When you're planning things weeks in advance, it's easy to fall into the trap of wishful thinking: "I'm sure things won't be that bad when it's time to move - after all, how much more difficult could one extra meeting / deadline / piece of work make things?
I tried to avoid falling into this trap by carefully scheduling client work weeks and even months in advance, consciously preserving a full five days off. At the time this felt like way longer than I'd need, but I've been grateful for every minute of it. As a result, I've been able to unpack things properly, deal with the inevitable teething problems of a new home, and explore the local area a bit.
I'm writing this blog in a sunny garden on my final afternoon off, rather than in the evening after rushing a piece of work that I wish I hadn't taken on. To protect my time, I've had to be firm with myself and others, but that's much better than promising the world and disappointing people later.
2. Keep your focus
When life is pulling you in multiple directions, you don't just lack time, but quality time to reflect and think. So it's essential to decide your priorities in advance, and remain focused on them.
A few weeks before the move, I wrote a list of all the priority tasks we needed to accomplish in June and July at all costs. So when I was able to briefly open my laptop between unpacking and painting, I already knew what I needed to focus on. No need for creative thinking!
Keeping your focus involves difficult decisions - I was recently asked to speak at a really interesting event in Bristol which would've been a first opportunity to meet some local organisations, but I reluctantly had to turn it down because it clashed with our move and I had clear priorities already.
Last year, we worked with a social enterprise whose founding CEO was leaving after 10 years. They had an overall direction, but their staff were anxious about preserving their focus and values during the upheaval. We helped them to evaluate their position and develop a one-page list of crystal clear 'interim' priorities, which gave them so much reassurance during the handover period.
3. Think positive and give yourself something to look forward to
Moving to Bristol has involved a lot of disruption and we've also had to say goodbye to a lot of people and places, which is never easy.
I've tried to keep positive by focusing on all the things I'm gaining in return, including a garden (unheard of in London!) and a spacious home office after years of working out of a tiny flat in London. Designing this office - including buying new furniture and painting the walls (lime green of course!) - has been a little treat that has made everything else seem more bearable.
Reminding your staff (and beneficiaries) about the positives of a big transition can reduce anxiety and maximise productivity. Every big change brings opportunity as well as uncertainty, even when it's unplanned. I love this story about Ben Medansky, who used a devastating fire in his studio to launch a new range of ceramics and find the time to reflect on and rejuvenate his business.
4. Count on others
'Business as usual' is only possible when things run smoothly. This means working closely with colleagues, but also not being afraid to ask for help from everyone else in your life.
Sally and I have had to work as a team to overcome the challenges of our own move. When we exchanged contracts on our house, I was in the midst of an intense month of work, so Sally took on the unenviable task of endless dealings with solicitors and mortgage brokers. In return, I've taken extra time off work for the move itself, so Sally could get back to some urgent work more quickly.
We've had help from so many people including our brilliant friends Sam and Jess, who even let our removal men into the house when we took a wrong turn on the motorway and arrived an hour late!
5. Have a bit of patience
While our initial move went smoothly, it wasn't long before we encountered problems - a washing machine that didn't work, a fuse that keeps tripping, and a particularly long afternoon in Ikea.
When we initially made it to Bristol and started unpacking quickly, I felt that the worst part was behind us and everything was working out perfectly. So when things started going wrong, I struggled to stay patient and deal with it.
Any big move or transition period involves ups and downs. Paradoxically, ensuring business continuity involves accepting that nothing will go completely to plan, and that disruption will linger for longer than you'd like. This helps you to stay calm and keep things ticking along in the meantime. Getting frustrated rarely does any good, so it's better to take a deep breath and just get on with it.
If you've recently survived a big transition period in your work and have your own tips, or if you're based in the South West and would like to find out more about what we do, please come say hi.
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