Chapter XII
Resource Generation / Fund Raising
Objectives:
At the end of the term, students will be able to:
1. Master some tips for generating funds
2. Learn the mechanics of writing fund raising
donation and request letters
3. Analyze the myths of non-profit fundraising
4. Study the 9 Basic Truths of Fund Raising
5. formulate mission statement as a non-profit
organization
Chamala ET. Al. (1990) cited that every successful
capital fund raising must have a CAUSE that is
worthy and of far greater importance than the present
specific needs of the institution; and/or “a cause
greater than one’s own”; NEEDS, so that the cause
for support is sound and practical, and has specific
objectives that are attractive to the majority of
potential members; and, LEADERS who are
dedicated, willing to accept membership at the top
level and are prepared to devote the process of
exchange or transaction between the
grantee/recipient of funds and the grantor/provider of
the funds.
The quality of the transaction or “fit” between you as
fund sources and your donor or granting organization
spells mutual satisfaction over the process.
Fund Raising / Generation: Concepts and
Meanings
 It is a science because it requires a
systematic way of doing it.
 It is a process since it involves steps or
procedures on how to go about it.
 It is an art because it takes one’s creativity to
come up with new ideas to convince a
prospective donor to give; and, different
people can employ different “tricks” or ways
and means to get what they are asking for.
 It is a profession that is why there are a lot of
professional fund raisers hired by different
organizations just to source funds.
Basic Elements of Fund Raising and their
Meanings
 Objective / Purpose
 The requesting party or prospective user bf
funds
 The prospective donor-provider of funds
 The process of exchange or transaction
between the grantee/receipt of funds and the
Grantor/provider of funds
 The funds involved and the actual usage of
such funds.
The Requesting Party or Prospective User of Funds
f you were to give funds to anyone or to any
organization, what else will you look for? What is the
track record of the organization?
Organization Attributes
 Size of membership or number of clients
 Magnitude of operations
 Revenues
 Locations
The Prospective Donor-Provider of Funds
 Depends on the purpose and amount
needed
 Request matches priority thrusts of the donor
If you have complete objectives, you have a better
chance of getting what you want.
The Process of Exchange or Transaction between
the Grantee/Recipient of Funds and the Grantor/
Provider of the Funds
Quality of the transaction or “fit” between you
as fund sources and your donor or granting
organization spells mutual satisfaction over the
process.
Criteria
 Availing of government subsidy or
government programs
 Tapping individual gift and contributions
PRINCIPLES: Successful Fund Raising Must Have
 A cause worthy and “greater than one’s
own”
 Needs genuine and explained convincingly
 Leaders dedicated, willing prepared
 An identifiable constituency with desire to
support the cause
 A favorable climate of opinion that
recognizes the needs and will support them
TEN STEPS to SUCCESSFUL FUNDRAISING
 Recognize the value of freedom of choice –
the right of concerned citizens to choose
improvements for their society.
 Examine your own attitude to money.
 Define goals clearly.
 Develop a workable plan of action for
spearheading fund raising action
 Select your leaders.
 Know your “Public”
 Rely on person-to person contact
 Launch fund raising at the height in the
campaign
 Ask for the money
 Don’t forget to say “Thank You”.
STRATEGIES IN FUND GENERATION
Principles
There are general principles and techniques
that enhance one’s capability to raise funds. Chamala
et al (1990) cited that every successful capital fund
raising must have the following:
1. A cause that is worthy and of far greater
importance than the present specific needs
of the institution; and/or “a cause greater
than one’s own”;
2. Needs which are genuine and can be
explained in a convincing way so that the
case for support is sound and practical, and
has specific objectives that are attractive to
the majority of potential members;
3. Leaders who are dedicated, willing to accept
membership at the top level and are
 prepared to devote considerable time and
effort to carry out the program and to enjoin
new members;
4. An identifiable constituency whose interest
and imagination may be roused and
cultivated to create the desire to support the
cause; and
5. A favorable climate of opinion which may
have to be created, so that an informed
constituency will recognize that an appeal
will satisfy a vital and urgent need and feel
disposed to support it.
General Lessons in Fund Raising
 Foreign aid or overseas development
assistance is declining worldwide
 Giving of grant is influenced not simply by
the viability and reasonableness of a
proposed project but also by the credibility,
integrity and reputation proponent or leader
of the individual
 Focus on generating own or internal
resources
 Be more creative and offer unconventional or
“out of box” products and services
 Capitalize on partnerships and networks
 Fund raising is not just about money, it is
also about friend-raising and making lasting
relationships
10 Tips for Funding Technology
Fund technology so you can work on what really
matters.
Technology Planning is great, but how are
you going to pay for all the new equipment, training,
and staffing cost your plan requires?
There are no silver bullets when it comes on
fundraising, especially during tough economic times.
Here are ten tips to help you find the funds you need
to implement and sustain your critical technology
strategy.
1. Build strong relationship with funders.
2. Incorporate technology into your annual
strategic plan.
3. Focus on your mission and your program,
shot technology for technology’s sake.
4. Budget technology expenses as shared
costs, not overhead.
5. Target likely technology funders.
6. Maximize existing resources.
7. Use local community technology resources.
8. Partner with others for joint grant proposals.
9. Generate unrestricted revenue where
possible.
10. Spend less on technology purchases.
Step 1 Build strong relationships with funders
Fundraising is essentially about building
relationships. If you can establish a rapport with
foundation program officers or senior executives who
are sympathetic to your mission, understand your
needs, and can articulate your case before their
board, you will be well on your way to securing the
funds you needs.
Follow this up by doing great work for the
foundation throughout the grant period, keeping
communication open, and demonstration of success
through a well-conceived evaluation strategy. You will
then begin to earn the trust that forms the basic of
strong, long- term relationships with funders. You may
not receive funding every year, but by having a history
of doing good work with proven result you will have
established a record that may well prove invaluable.
In the best case scenario, your organization
would have already established a strong record of
making an impact with your funder. You or someone
in your organization may have forgotten personal
relationships with key individuals in the foundation
that have given you core support in the pact. No
matter what advice you may find in this or any other
article, these strong relationships with existing funders
will always be the best place to start. Given these,
contact prospective donors and tell them about the
strategic direction you have planned for your
organization. Let them know that you’ve done your
homework and that technology will play a vital role in
helping you work better, smarter, and more efficiently.
Ask them to help your organization reach this next
level.
Step 2 Incorporation of technology into your
Annual Strategic Plan
By having a plan in place that articulates
specific needs, identified costs, and ties them to
program initiatives that support your mission, you can
accomplish two (2) things at once. First, you
demonstrate due diligence in your management
practice to funders. Second, you ensure accuracy and
consistency in all your grant proposals. This
document serves as a map for your development
staff. Grant writers and development directors can pull
appropriate budget amounts and deliverables directly
from the technology plan for inclusion in the request
for grant. Since this cuts down the amount of work
and uncertainly requires including technology plan
elements in each request, your organization can
actually increase the number of grant proposals in
which technology is included as part of the request.
Step 3 Focus on your programs, not technology
for technology’s sake
Ask yourself what the benefits of this
technology are, will this new initiative or improvement
result in new learning and knowledge building? Will it
improve project coordination or collaboration? Will it
enable latent community energy to be put into action?
Will it create new capabilities? Will it make your work
more efficient or increase staff productivity? How will
your client experience improvement? Will it enable
you to make better-informed management decision?
Step 4 Budget technology expenses as shared
cost, not overhead
Technology expenses are best expressed as
shared cost, also sometimes called “common costs.”
These are expenses that are shared among all of
your programs to provide direct support to the
program staff. One way to think about them is to
imagine what you would need in order to operate a
given program as a stand-alone business. You would
need office space, utilities, paper, pens, telephones,
and technology computer, software, printer, and
network. Most funders worth their salt now accept that
information technology is just another cost of doing
business. They would no sooner expect an
organization to produce the result they seek without
cost benefit of IT than without a floor to stand on.
Of course, no single program should bear
the full burden of these costs, nor should any single
grant or funder. Calculations will differ for each
organization. But no matter for what use to determine
appropriate percentages, using shared costs in your
budgeting provides a way of allocating a fair share of
the costs for common resources to each project that
they make possible. Technology falls squarely in this
category.
Not all funders will see it this way. Many
government entities, in particular, place very precise
definitions and limitations on overhead or shared
costs that may effectively disqualify technology costs.
Nonetheless, you should understand the justification
both in terms of the direct benefits to providing
program services and in terms of accounting
principles. This knowledge will empower you to push
on unrealistic limit whenever possible. All a funder can
do is say no, and as anyone in development will tell
you, you’ll never receive if you don’t ask.
Step 5 Target technology funders
Finding the right funder to ask is often half
the battle. Here are a few rules for targeting funder
with technology request.
Expand your searches to include “capacity
building” as a search parameter when using
foundation libraries and search engines. This term
often indicate a willingness to invest in technology.
Many funders set aside a certain amount of
funds for what are termed technical assistance grants.
These can be used for many different kinds of
activities. Often, they provide money for external
consultants who bring you specific expertise that you
lack in the house. Technical Assistance grants are a
great way to pay for technology consulting,
technology planning, and often equipment.
Community foundations are often more likely
to found technology needs than national foundation.
To be sure, there are many national foundations that
invest in innovative applications of technology that
serve the sector at regional or national level. But most
small and medium-size nonprofits will have better luck
with their local community foundations. Such
foundations generally consider building the capacity
of the nonprofits in their local area an integral part of
their mission.
Step 6 Maximize existing resources
Non-profit experts are often adept at stretching limited
resources. Let’s be clear that we are not referring to
what some call “the myth of make-do.” Some
organizations make the mistake of holding
themselves back by “making do” with whatever they
already have and not preparing for future growth.
Stretching resources need not mean using outdated
equipment and never upgrading or improving your
service. A wise manager will stretch existing
resources by properly maintaining the equipment the
organization already has. This means doing regular
back-ups, installing proper security software, keeping
up-to-date with new software patches and virus
definition, and training staff to use the software to its
maximum capability. Often, you can skip new
purchases and instead focus on using the technology
you already have more effectively. If you thoroughly
understand what you have and what you really need,
you can save money and get the most out of your
technology.
Step 7 Use local community technology
resources
Take the time to find out what the community
technology resources are in your area, and find out
what resources can be pooled with other local
organization. Maybe you don’t need to reinvent the
wheel in your organization.
Step 8 Partner with others for joint grant
proposal
Once you begin learning about other groups in your
area involved in community technology, consider
collaborating with similar organization. Perhaps you
can find partners with whom you can share the costs
of developing a community network or a common
database that would be useful to anyone with a
similar mission. A group of similar organization
requesting technology assistance may be far more
competing than one organization alone. This gives
funders a way to stretch their funds and have a
greater impact.
Step 9 Generate unrestricted revenue where
possible
Every nonprofit expert – no matter what the size of its
budget should have plans in place to generate
unrestricted revenue. This revenue that does not have
to be spent on pre- designated expenses in the way
that some grants can only be applied to specific
programs or activities. Unrestricted revenue offers the
flexibility to apply funds where they are most needed
or to cover expenses that don’t often attract
designated funding streams. Strategies to create
unrestricted revenue can take many different forms.
For example, your organization could generate
earned-income through fees for services, or
individuals could donate to your general fund.
Fundraising events, auctions, membership programs,
direct mail, and direct e-mail can all help raise
unrestricted revenue. If you find that you are having
trouble raising funds specifically for technology,
consider your technology expenses as a percentage
of your general budget and adjust your fees,
fundraising targets, and strategies accordingly.
Step 10 Spend less on software and equipment
next best
The thing to raising new funds to acquire
new equipment is to save money by spending less on
each acquisition. Donated equipment will often save
the most of all, but be certain that you’ve done a
thorough tech plan and understand your current
inventory. Your future needs, and your minimum
requirements. Knowing when to say no to
inappropriate donations is as important as t will end
up costing more in staff time, troubleshooting, and
maintenance finding appropriate ones. Installing the
wrong in the equipment long run.
Fundraiser Donation Solicitation – Letter Writing
Tips
 The key to many a successful fundraising
campaign is writing a good letter. This may sound
intimidating at first, but fundraising letters contain
many of the same elements as any good sales letter.
First, know your donors. Beginning with an
updated list of past donors is key – they will likely
give again and may even increase their donation over
time. Make sure to have a good, well targeted,
updated mailing list for new prospects as well.
Early in the letter, make your case quickly.
Don’t beat around the bush. Tell about your
organization or project at the top of the letter and get
to the point right away. What problem will this project
solve? What need it fill? Appeal to your donor’s heart
first with descriptions and anecdotes, then their heads
with facts and figures. If you are writing to previous
donors, be sure to thank them first before you ask
for more money. As with other sales letters, longer
copy pulls better in fundraising letters. I know, I know,
“Nobody reads long letters.” While most people won’t
read every word, the more you can tell the reader
about the benefits of giving, the better response you
will receive.
It's much harder with a one or two page letter
to state your case in a number of different ways than
it is with a four page letter. Write a longer letter, you
have much more room to convince the reader to give.
Appeal to reader’s sense of urgency by providing a
deadline. “We need these funds by January 1 in order
to carry our awards event.” If you don’t get them to act
right away, they probably won’t act at all.
As with any direct mail piece, it’s good to
make follow up phone calls one or two weeks after
you mail the letter. And if the letter was received and if
you can answer any questions. Of course, you won’t
always reach the right person but if you follow up you
greatly increase your chances of getting a donation.
Writing a successful fundraising letters isn’t
rocket science. These tips are based on years of trial
and error; if you follow them wisely your campaign will
be successful. Plan early, be organized, and the letter
writing will take care of the rest.
Writing Donation Request Letters
Writing a fundraising letter is not that difficult.
However, you need to know what works and doesn’t
before you invest your time composing your donation
request. Fundraising have some general rules of
thumb:
1. Keep in mind whenever you are asking for
money that you are providing a service.
2. Tell people what you’ve done and what you
plan to do to achieve progress toward your
goals.
3. Longer letters do better:
a) You can address all concerns and
potential concerns
b) There are different kinds of readers
– long letters are OK for all:
- For those who throw
letters unopened away;
the length of letter is
irrelevant.
- For those who read only
the beginning and ending,
the length of letter is
irrelevant.
- Skimmers can pick up
more points from a longer
letter.
- Passionate readers love
long letter
4. Make your fundraising letter compelling
5. Paragraphs and bullets should be no more
than 3 sentences or items; break longer
ones in half.
How to write a fundraising letter:
1. Good news always start the letter with a
series of good news bullets to build
momentum and make entire letter
entertaining and informative.
- Use foreshadowing to tease reader
and keep him or her reading.
- Create a “window” at the end of the
first page (a thought that’s finished
on second page)
- Make your reader turn to each
page.
2. Describe what you want to do next
- Tell what you’re going to do.
- Why you’re going to do it.
- How you’re going to do it.
- What results you expect.
3. List suggested contribution amounts
- Use even numbers in graduated amounts
- Offer a monthly auto charge credit card
option (P100 a month is P1200 a year)
- Include a blank line for write-in amounts
4. Remind readers that their contribution is your
budget
- Your successes have been possible
because of their past contributions.
- Thank them!
5. Use P.S.’s for skimmers
- May titillate skimmers and get them to read
the entire letter.
- To create a sense of urgency.
Summary
Once your fundraising is organized,
everything else is a whole lot easier!
The Nine Basic Truths of Fund-Raising
Basic Truth 1: Organizations are not entitled to
support; they must earn it,
No matter what an organization’s good
works, it must prove to those who support the value of
those works to the community and the efficiency with
which the organization delvers them. The primary key
to fund raising success is to have a first-class
organization in every sense. There are no
entitlements in the nonprofit world.
Basic Truth 2: Successful fund-raising is not magic; it
is simply hard work on the part of people who are
thoroughly prepared.
Fund-raising is simple in design and
concept, but it is very hard work! It is planning,
executing, and assessing. It is paying attention to
detail. It is knowing your organization and what it
needs. It is knowing who has the money, and how
much they can giver
Basic Truth 3: Fund-raising is not raising money; it is
raising friends.
People who don’t like you don’t give to you.
People who know little about your organizations give
little at best. Only those people who know and like
you will support you. Raise friends and you will raise
money.
Basic Truth 4: You do not raise money by begging for
it; you raise it by selling people in your organization.
No matter how good your organization, how
valuable its services, how efficiently it delivers them,
people will not give money unless they are convinced
to do so. Fund-raisers function much as sales and
marketing people do in the commercial world. So, be
ready, willing, and able to “sell” your organization and
the programs for which you are raising money.
Basic Truth 5: People do not just reach for their
checkbooks and give money to an organization; they
have to be asked to give.
No matter how well you sell your
organization, no matter how much money they have,
no matter how capable they are of giving it, they have
to be asked to give. There comes a point when you
have to ask for the money.
And by the way, make sure that you are
asking for a specific amount. Don’t leave it up to the
donor to recommend how much to give. People with
money to give are accustomed to being asked for it.
The worst thing that will happen is that they will say
no, and even then, they’re like to be supportive, even
apologetic.
Basic Truth 6: You don’t wait for the “right” moment
to ask; you ask now.
Basic Truth 8: You don’t decide today to raise money
and then ask for it tomorrow: It takes time, patience,
and planning to raise money.
Make the decision to initiate a fund-raising
campaign before the need becomes dominant. It
takes time to develop a campaign and its leadership.
With each prospective donor the chances are you will
get only one chance to present your case. Be
prepared. If you present a poorly prepared case, you
will be told no.
Basic Truth 9: Prospects and donors are not cash
crops waiting to be harvested; treat them as you
would treat customers in a business.
No successful businessperson deals with
customers as if they had a responsibility to buy.
Prospects and donors have to be courted as you
would court a customer. They must be told how
important they are, treated with courtesy and respect,
and if you expect to do business with them again,
thank them.
There are, of course, exceptions to each
Basic Truth, but if you rely on the exceptions to
support your organization, you will find them to be few
and far between and dollars in short supply.
In the end, we raise money from people who:
 Have it
 Can afford to give
 Are sold on the benefit of what we are doing
 Wouldn’t have given it to us unless we had
asked
 Receive appreciation and respect for their
gifts
It doesn’t take a genius to raise money. The process
is a combination of common sense, hard work,
preparation, courtesy, commitment, enthusiasm,
understanding, and a belief in what you are asking
others to support.

If you are always looking for the right

moment – the “perfect” time – to ask for the money,
you will never find it. You have to be ready, willing,
and able to close the solicitation at any time. You
have to take the risk of hearing no.

If that happens, don’t take the rejection

personally. They are saying no to the organization, not
you. Once you have presented your case, ask for the
money. Don’t wait. Either close the solicitation, find
out what the objection to giving is and overcome it if
possible, or get your turndown, and move on.

Basic Truth 7: Successful fund-raising officers do not

ask for the money; they get others to ask for it.

The professional fund-raising officer is the

last person who should ask prospects for money. The
request should come from someone within the
prospect’s peer group. It is the job of the professional
development officer to design, put together, and
manage the campaign. Volunteers who are
themselves business executives, well-off individuals,
community leaders, or board members, are the ones
who should ask their counterparts for donations.