COURSE: BSC.PROJECT MANAGEMENT.

UNIT NAME: RESOURSE MOBILIZATION.

UNIT CODE: HEPM 2401.

REG NO.HDE224-2859/2015

INDIVIDUAL ASSIGNMENT.
FINANCIAL MANAGEMENT.

Finance is very important asset, every enterprise, whether big, medium, or small needs finance to
carry on its operations and to achieve its targets. Finance is lifeblood of an enterprise. Without
adequate finance no enterprise can possibly accomplish its objective

Financial management refers to the part of management activity which is concerned with the
planning and controlling of firms financial resources.it deals with finding out various sources for
raising funds for the firm. The sources must be suitable and economical for the needs of the
business. The most appropriate use of such funds also forms a part of financial management.

J.K.Bradley defines financial management as, the area of business management devotes to a
judicious use of capital and a careful selection of sources of capital in order to enable a spending
unit to move in one direction of reaching its goals.

The financial management is centered around corporate finance or broadly speaking business
finance can be defined as the process of rising , providing and administering of all funds to be
used in business enterprise. It attempts to find answers to the following questions:

 What investment should the firm take on?

 How can cash be raised for the required investment?
 How should wealth be redistributed to shareholders?

Importance of financial management

 It helps in financial planning and successful promotion of an enterprise.

 It helps in acquisition of funds as and when required at the minimum possible cost.
 Provides proper use and allocation of funds
 It improves profitability through financial planning and control
 It helps in taking sound financial decisions.
 It increases the wealth of the investors and the nation.
 It helps in promoting and mobilizing individuals and also corporate savings

Factors influencing financial decisions

Internal factors
  Nature and size of business
 Expected return, cost and risk.
 Working capital requirements.
 Trends of earnings.
 Age of the firm

External factors.

 Government policy.
 State of economy.
 Structure of capital and money markets.
 Taxation policy.
 Requirement of investors.
FUNDRAISING

Fundraising is often the unsung hero of the non-profit operations. It is the process of gathering
voluntary contributions of money or other resources by requesting donations from individuals,
businesses, charitable foundations or government agencies.

It is mostly efforts to gather voluntary contribution for non-profitable organizations. Sometimes

is used to refer to the identification and solicitation of investors or other sources of capital for
profit enterprises or organizations.

Fundraiser is a person whose job or task is to seek financial support for a charity, cause or other
enterprise.

Fundraising strategy

Refining value proposition this is where an organization needs to look beyond a flowery vision
and develop a transformation statement.

Understand and communicate internal rate of return, this will help to demonstrate how donor’s
money is moving the organization towards sustainability.

Know the audience. Do not ignore individual donors and always promote and celebrate when
you are given or receive second gift which signals that you are meeting goals and satisfying
existing donors

Managing the strategies by often reviewing the progress and making realistic adjustments
regularly.

Set your expectations high in that your goals and strategy should be long term and highly
focused so as to convince the donors.

Forms of fundraising

i. Through product sale and promotion of special events such as; fun run or walk,
competition, auction, art exhibit, gala, concert, sporting events among others.
ii. Direct marketing can be done through; direct mailing, telemarketing, paid advertising,
public service announcement.
iii. Exploring ideas of approaching individual donors and also finding means to deal with
institutional grantors.
iv. Through grants
WAYS AND MEANS OF RAISING FINANCIAL RESOURCES

Debt capital

The most common types of debt capital are bank loans, personal loans, bonds and credit debt.
When looking to expand, a company can raise additional capital by applying for a new loan or
opening a line of credit. Lenders such as financial banks can offer surprisingly great terms and
interest rate depending on your credit profile and the type of collateral you can offer up. This is
the reason why drafting of business plan is important

Through crowdfunding

If one is not qualified for a small business loan, there are oodles of crowdfunding options
available. Do your research and select a reputable company with a great success rate. Just make
sure you carefully look at the terms and rates and perhaps have a legal advisor chime in.

Equity capital

This is generated by the sale of shares of stock. Companies can raise finance by selling
additional shares. These can be either common shares or preferred shares. The primary benefit of
equity capital is that unlike debt capital, the company is not required to repay shareholders’
investment. Instead, the cost of equity capital refers to the amount of return on investment
shareholders expect based on the performance of the large market.

Family and friends

This is always absolute best option. If you present you present your pitch professionally and treat
friends and family like real investors, it will go smoothly when you need their help.

Through donors

This is another way of raising financial resource. It is where an organization looks for a potential
donors to finance their activities or projects.
GRANTS

Grants are amounts of money given to organizations or individuals for specific purposes.in
recent years and under unusual circumstances, some grant founders have been willing to fund the
operations of an organization rather than a new short term project.

It takes skills and time to write a grant that directly and succinctly answers the questions posed
by the grant request of the application. Unless stated otherwise, grantors do not want additional
or peripheral information about the organization on the application. Many organization hire a
grant writer who becomes familiar with the organization and can apply to appropriate sources. It
is important to match your funding need to an appropriate grant application. Grants come large
and small. No matter what your needs are, there is most likely a grant you can apply for.

The process of finding grants typically begins with prospect research. Foundations generally give
based on subject and geographic region, so it is wise to look for funders whose interest match
your organization’s mission, programs, populations served and locations served.

Sources of grants

Grants from the government. They give grants to its citizens who have potential in any
investment.

Grants from state government – the United States has a plethora of grants to choose from. Fine
print are necessary to be red when applying for any grant to ensure you can fully comply with the
agreement.

Colleges and universities are sponsoring grant source or their students and finding grants for
their institution. This grant helps entrepreneurship students, medical research students, arts
students and it also enables campus student organizations access to start a formal non-profit and
receiving funding.

Through community- it is done through contributing advice or valuable insight on community

forums, delivering a positive review on someone you have interacted with in the community,
supporting someone’s upcoming event, serving as a volunteer at another organizations program,
giving a small grant donation towards another organizations fundraiser. Also through offering a
valuable offer on product and service to the community and of course offering grants that is in
align with your believes and initiatives.

GRANT PROPOSAL.

This is the process of writing and proposing a request for subsidiary which is submitted to a
government or civilian entity. It shows projects which are proposed and its budgetary
requirements and requests monetary assistance in the form of grants.

Elements of a grant proposal

A proposal must convince the prospective donor of two things:

 That a problem need of significant magnitude exists.

 That the applicant agency has the means and the imagination to solve the problem or
meet the need.

Important sections when writing grant proposal

i. Qualification of the organization

ii. Problem statement or need needs assessments
iii. Project goals and objectives
iv. Methodology
v. Evaluation
vi. Future funding
vii. Budget
viii. Appendices

Key ingredients of a good grant proposal

Clear statement of need

The project objectives, goals and rationale should be stated clearly because at times projects
might have multiple goals and objectives. State clearly the problem that is going to be addressed.

Explicit link to funder

An effective proposal makes it clear to the reviewer that the project matches the funder’s
priorities. Always highlight the keywords the founder emphasizes or uses frequently and
statements that match your projects focus and goals.

Easy language

Effective grant proposals are written in easy, conversational language.

White spacing

Careful use of font size, subheadings, indents and bold/italics/underline helps in readability for
the reviewer.

Upside-down Triangles

More readable and effective paragraphs begin with a topic sentence.

COMPONENTS OF A GRANT PROPOSAL

Clearly defined goals and mission

This is the first part of a proposal and just like a newspaper or a storybook, the paragraph must
grab the reader’s attention. When writing this one should be specific as hero she can but doing so
in a manner that is clear, concise and persuasive.

Specific focus on the donor

When submitting a grant proposal of a project, one should make it a point to tailor the proposal
such that it aligns with the donating foundations goals and values. This is an instrumental part of
being approved for a grant, to only request funds from an organization that is already involved in
efforts to attain goals that are closely related to one’s project.

Follow grant proposal guidelines

Most organizations and foundations have specific guidelines for grant proposals including the
number of words or pages, what specific sections must be covered, deadlines and more. If the
guidelines are not uphold or if the proposal is incomplete it has the risk of being thrown out
before it even have a chance.

Appropriate objective tone

One of the most important component of a grant proposal is maintaining objectivity. The actual
project, numbers and reasons for pursuing a project should be clear, concise and convincing.
Loaded languages should be avoided.

Well-researched budget

The best budgets are very clear and specific and demonstrates that one has thoroughly researched
the most reasonable costs but still leave room for flexibility. The purpose of the budget is to
demonstrate to the potential funder that you know what financial resources will be needed for
success and that you have a plan to securing them.

Organization information

When preparing a grant proposal, all information about the organizations should be clearly given
to the potential funders. Clarify what the organization undertakes. In addition program partners
should also be highlighted
REFERENCES