Basic Tips for Fund-raising for Small NGOs in Developing Countries

Basic Tips for Fund-raising
for Small NGOs in Developing Countries
Version June 26, 2006
by Jayne Cravens
www.coyotecommunications.com
with contributions from other volunteers at the
Aid Workers Network (www.aidworkers.net)
The latest version of this document can be found at
www.coyotecommunications.com/outreach/
Introduction ....................................................................................................... 2
The Problem ...................................................................................................... 2
Fund-raising: Some things You Should NEVER Do ........................................... 3
Fund-raising First Step - Networking & Establishing Credibility ........................ 3
Even More Credibility-Building ........................................................................... 4
The Absolute Essential Preparations To Solicit Donations ............................... 5
Details Ready to Share ..................................................................................... 6
Before Making A Funding Request ....................................................................7
Finding Donors & Making Contact ......................................................................8
ESSENTIAL - Respect the Organization's Granting Guidelines ........................ 9
Online Resources For Further Information ....................................................... 9
Online Resources for Detailed Tips on Writing Funding Proposals .................. 9
Want to adapt this document? You are welcomed to translate this document into another
language, edit it, change it, and republish it or distribute it, so long it is offered FOR FREE,
without any charge, and you credit Jayne Cravens as the original author, her web site
(www.coyotecommunications.com), and the volunteers at the Aid Workers Network as
contributors, and the AFN web site (www.aidworkers.net). And it would be appreciated
if you would notify jc@coyotecommunications.com that you have done so.
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Introduction
Some of the most frequently asked questions (FAQs) to forums for community-based
organizations (CBOs) in developing countries, whatever the subject, are regarding
funding.
In addition, the first impulse of many such non-governmental organization (NGO) seeking
funding is to request the contact information for possible funders, and once such
information is received, these NGOs often write immediately to the potential funder,
stressing how desperately funds are needed. Sadly, this approach often does harm to
the NGO, rather than garnering support. Not only does it rarely attract funding, it can turn
funding organizations against the NGO altogether.
With all this in mind, Jayne Cravens, a consultant based in Germany
(www.coyotecommunications.com) drafted very basic tips for fund-raising for NGOs
serving the developing world, as a volunteer for the Aid Workers Network
(www.aidworkers.net). Several other volunteers with AWN took the draft, revised it, and
posted it to AWN. However, the version you are reading now is one that has been
further revised by the original author, Jayne Cravens.
The document is meant to provide very basic guidelines for small NGOs in the developing
world regarding fund-raising, and to point to other, more-extensive resources; it should
not, however, nor be taken as a guarantee of success for funding. Also, please note that
every funding organization -- corporation, foundation, government agency, etc. -- has its
own requirements and ways of evaluating proposals and, therefore, it is impossible to
create a one-size-fits-all funding strategy. Even with these guidelines, an NGO still must
do research on its own about possible funders and their grant requirements.
Want to adapt this document? You are welcomed to translate this document into another
language, edit it, change it, and republish it or distribute it, so long it is offered FOR FREE,
without any charge, and you credit Jayne Cravens as the original author, her web site
(www.coyotecommunications.com), and the volunteers at the Aid Workers Network as
contributors, and the AFN web site (www.aidworkers.net). And it would be appreciated
if you would notify jc@coyotecommunications.com that you have done so.
The Problem
The work of CBOs & NGOs in developing countries is vital to millions of people. However,
fund-raising for these organizations is particularly difficult, for numerous reasons:
o There is often great competition among numerous local groups for scarce local
financial resources.
o International funders are reluctant to fund community-based NGOs “directly”,
because of a perception of lack of accountability, difficulty in establishing credible
references, practical issues with resource transfers, and numerous tax
questions.
o Some community-based organizations lack what donors regard as the necessary
prerequisite structure for being able to process donations, financial or otherwise.
For many organizations, this becomes a “Catch 22”: resources would permit the
necessary administrative changes to become more donor rule-compliant, but they
cannot get those resources without making the changes.
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Fund-raising: Some things You Should NEVER Do
o post to online discussion groups or send letters via post with desperate pleas for
money. You will not gain funds this way. You may even harm your credibility and
create bad feelings about your organization among potential supporters.
o send out information riddled with spelling errors.
o WRITE EVERYTHING IN ALL CAPITAL LETTERS. This is shouting online or in print.
o Give Up. If you are not successful with your first attempts, keep trying. Review
the reasons a donor has rejected your request, and use the information you
gather to improve future requests. If you don't receive a reason, ask, respectfully,
and say it is because you would like to be able to do better in the future. Don’t
pester the same donor with multiple requests, but if your NGO changes its work
or administration and you believe your NGO's operations now better fit a funder's
guidelines, consider contacting a potential donor again, emphasizing how your
proposal is different than the one previously rejected.
Fund-raising First Step - Networking & Establishing Credibility
Many funders want to know that a CBO or NGO is credible before they will even reply to
an organization's request for funding. Establishing credibility doesn't take money -- it
takes time, effort and personal attention.
As noted earlier, the first impulse of many CBOs or NGOs seeking funding is to request
the contact information for possible funders, and once such information is received,
these NGOs often write immediately to the potential funder, stressing how desperately
funds are needed. Sadly, this approach often harms the NGO's reputation, rather than
garnering support. Not only does it rarely attract funding, it can turn funding sources
against the NGO altogether.
The activity to start with for successful fund-raising is networking: establish relationships
-- formal or informal -- with local NGOs and representatives from International NGOs,
local UN offices, large employers in the area, etc. If someone were to approach any of
these agencies and institutions and ask about your organization, the answers should
obviously demonstrate that these other organizations know what your CBO or NGO is,
why it is important, and some of the good things it has done. Having such good local
relationships means its more likely for these situations to occur:
o your CBO or NGO may be able to collaborate with these organizations and
institutions and, therefore, receive funding
o when funding becomes available for an activity your CBO or NGO undertakes,
these organizations will contact you and let you know
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To network, start locally, with:
o local reporters or local media outlets (newspaper, radio, etc.)
o large employers in your area
o local UN offices (UNDP, UNICEF, UNESCO, ITU, etc.)
o local offices for International NGOs with excellent reputations with donors, such
as OneWorld, Save the Children, Oxfam, World Vision, MercyCorps, and Doctors
Without Borders (this is by no means a comprehensive list)
o local CBOs and NGOs
o local communities of faith
o local universities
o international volunteers serving in your geographic area
o any associations in your area (such as associations for small businesses,
associations of women farmers -- such associations can be formally or
informally-organized)
o local embassies or consulates
o local and regional government offices
Meet face-to-face with these people, whenever possible, to let them know what your
CBO or NGO is doing -- do not emphasize what your organization needs but, rather, the
good work that it is doing, and why the organization believes its mission is important,
even essential, to the area. Invite representatives of these organizations to visit your
organization and see your work first hand -- invite them more than once! If you can, give
them printed information about your organization. And people representing your CBO or
NGO should attend their events and accept their invitations too!
By doing this, you will lay the groundwork for funding! You will greatly increase your
chances of receiving resources if you engage in these networking and reputation-
building activities.
Even better is if this networking can lead to formal associations/affiliations with other
local CBOs, NGOs, International NGOs, or UN agencies in your area, in the form of
Memoranda of Understanding (MOUs), collaborative activities or shared resources.
Potential funders view all such associations very favorably when considering who to
fund.
But remember -- when networking initially, do NOT ask for funds, nor describe your
organization as desperate for support. The purpose of networking is to establish your
organizations reputation for excellent, quality work, and to create a network of
organizations and people who will verify to others that your organization is legitimate,
credible and worth supporting.
Even More Credibility-Building
The aforementioned networking tips should help build up the reputation of your CBO or
NGO, but there is more that you can do, if you have the resources to do such. Some of
the following activities may not be possible in your geographic area, or, you may not have
the funds to engage in these activities:
o Membership in formal networks and associations -- If your country or region has
a network or association of CBOs or NGOs, you should be a member. You can
find these by contacting other local organizations to find out if such exists, or
searching on the Internet for such.
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o Excellent online profile -- If you type your organization's name into
www.google.com what happens? Does your organization's web site come up (if
you have such)? What about an online document by an International NGO or UN
agency that references your organization? Or a newspaper article highlighting
your organization's work? Or your listing on a site such as
www.onlinevolunteering.org? Anything negative come up? An online profile adds
to your organization's credibility, and many potential funders, if they receive a
proposal from you, will "Google" your organization's name, as well as the name of
the leader of the organization, to see what comes up.

Also, post relevant information that can help others at
www.developmentgateway.org, www.eldis.org and www.comminit.com. If you
involve volunteers, write about how they help your CBO and NGO (especially
how they help those you serve, NOT how they save you money), and submit
your story to www.worldvolunteerweb.org. Even doing these activities just once
every year will help greatly expand your online reputation, and increase the
chance of your getting noticed by potential funders.
o A clear, complete, easy-to-use web site -- It's not essential that your organization
have a web site in order to attract funding, but it will help in your efforts if you do.
If your organization has a web site, it should be:
o free of advertising for for-profit companies
o free of misspellings
o well-designed; simple and without lots of cumbersome graphics
o accessible via a variety of different types of web browsers
o complete, with a listing of your staff, your board of directors, your
organization's address, contact information, and at least a summary of
your organization's budget.
o Academic profile -- It's not essential, but it will certainly add greatly to your
organization's credibility if it has been referred to in a university-related paper.
Ofcourse, it's not always possible to say yes to participation in an academic
research project, given your other priorities. But your organization should try,
whenever possible and when asked, to participate, as such will add to the
appearance of your organization as transparent and credible to anyone
investigating your organization for such.
Again, these activities may not be possible in your geographic area, or, you may not have
the funds to engage in these activities. Potential funders will understand, for instance, if
your CBO or NGO cannot have a web site because your resources are so limited; they
will not, however, accept "limited resources" as an excuse for a web site riddled with
errors, or as an excuse for negative stories about your organization online.
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The Absolute Essential Preparations To Solicit Donations:
Details Ready to Share
Some CBOs and NGOs are so small, so grassroots and so limited that they have no
paperwork, no official documentation, and no official recognition by the government.
Therefore, they must rely solely on local, in-person networking to attract local support, as
most national or international funders require documentation and official recognition.
The following activities may not be possible in your geographic area, or, your CBO or
NGO may not have the funds to engage in these activities, but realize that the following
activities are absolutely essential to attract international funding, and sometimes more
local funding as well, and being able to adapt even some of them to your situation will
increase your organization's chances of receiving support. If your CBO or NGO can't do
or adapt the following activities, many potential funders will feel that your organization
cannot handle basic management/governance and, therefore, is too risky to fund.
All of the following are items that most potential funders are going to want to see
immediately. Therefore, do NOT start soliciting funds until you have all of the following in
order and ready to share on demand:
References -- Have a list of people and organizations, and their contact information
(phone number, postal address, email) who are willing to affirm your organization's work
and credibility, should they be contacted by potential funders. If called upon, they will
verify to potential donors that your organization is worthwhile and credible. Other NGOs
in your area, an international NGO serving the same geographic area, a representative
from a nearby university, or a local corporation that has supported your organization in
the past in some way, all make good references. The nearest UNDP office may be willing
to serve as a reference for your organization as well, if they are well-acquainted with
your organization's activities. Ask these organizations if they would be willing to be
references regarding your organization, and to be listed in your funding proposals. Even
if your NGO or CBO is so small and so resource-strapped that it cannot undertake any of
the other following activities in this category of suggestions, it should, absolutely, have
references.
Official papers - You need to have copies of your organization's official government
documentation / registration papers (if you are, indeed, officially registered), brochures,
press releases, staff list (if your staff is entirely volunteer, you still need to have a list of
names of key volunteer staff) and budgets/financial statements ready for review by
other organizations -- or even by potential international volunteers. Potential funders will
consider how quickly and completely you respond to their request for such, so get these
in order and ready-to-share before you start meeting with such organizations.
Budget - Have at least a one-page budget that shows, for last year or your most recent
fiscal year:
ß
expenditures - all costs your organization incurred, even if someone donated
money or paid directly to cover these costs. Expenditures should include rent,
salaries, travel expenses, paper, pencils, web hosting costs -- everything.
ß
revenue - all income, including previous donations, and that means money spent
by the staff or board or founder at the CBO or NGO for the organization (its
considered, officially, a donation and, therefore, revenue).
ß
put the budget in your local currency and in either Euros or US Dollars
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If you have this budget on your web site, it will add even more credibility to your
organization, as it will show that you are "transparent" -- a word very important to
potential funders. Donors want to see accountability and transparency. They want to
know how your organization's funds are spent, so they can have an idea of how a
donation they make will be spent. Having this information ready to share -- even sharing it
unasked for with a potential donor -- will demonstrate your organization's accountability
and transparency.
Demonstrate That You Are Not a One-Person Organization - Donors are reluctant to
fund one-person organizations. Even if the CBO or NGO has just one employee, and that
employee happens to also be the founder, your organization should also involve many
local volunteers, and these local volunteers should have a voice in what the CBO or NGO
does, and how it works. Your written communications should demonstrate that many
different people are involved in the decision-making and management of the CBO or NGO.
Provide the names of people who serve on the CBO or NGO's advisory board -- this may
be, for instance, parents of children your organization provides services for, who help
your organization make decisions about programs and strategies.
Demonstrate Quality in Communications - This means:
o written communications from your CBO or NGO stress the activities your
organization undertakes successfully, and details the results the
organization has achieved. The communications stress successes and the
difference the organization makes in its community.
o all of the CBO or NGOs printed materials, emails and web sites are free of spelling
errors, and are clear and easy to read. Otherwise, the CBO or NGO may look
unprofessional to potential supporters, who are usually unwilling to fund an
organization that seems as though it cannot manage basics in communication.
Don't write your communications entirely on your own with no one else helping. Recruit
either local volunteers from a nearby university or business and or volunteers from
transnational organizations / companies to proofread your written materials. Online
volunteers are also an excellent resource to proofread and correct your materials, and
can be recruited from www.onlinevolunteering.org, a free service from the United
Nations Development Program.
Before Making A Funding Request
o
Know Your Organization:

You should be very clear about what your CBO or NGO is, why it is doing the work that it
does, and what it hopes to achieve. If you don’t already have a statement of your CBO or
NGO's overall mission and specific aims, write them down. Often, you will have only five
minutes to make an initial presentation, or a potential funder will decide in the first five
minutes of your presentation whether or not your CBO or NGO should be funded, so
rehearse your message!
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o
Know the Potential Donor

Research a potential donor's areas of interest, what kinds of organizations it has funded
in the past, what kinds of support it's provided (financial or in kind donations of
equipment, space, or staff time) and what it wants to achieve with its support.

And, very importantly, know the potential donor's requirements for funding proposals and
apply only if you are absolutely sure that you can fulfill them. If you do not know the
funder's details for any of the above criteria, and cannot find the information on the
organization's website, ask the potential donor for clarification.

Use this information in your proposal, showing how your CBO or NGO's work fits into the
potential donor's funding focus. This often impresses donors, to show that you have
done research on them and know the focus of their previous funding activities.

Many donors have their own formats for proposals. If you are thinking about approaching
a particular donor, always find out first if they accept uninvited applications and if they
have a format. There's nothing worse than spending all that effort on a great proposal,
only to find out they won't accept it, as it does not fit in their area of focus!
o
Have a Thank You Plan Already Defined
Prepare a plan to thank donors immediately after receiving their donations, AND, a way to
update them six months after their donations about what your organization has achieved.
This will increase the probability that they will contribute again!
Finding Donors & Making Contact
It can't be stressed enough -- all of the above needs to be done BEFORE you begin
soliciting funds!! By doing the previously-detailed activities, you greatly increase the
chances of your funding proposal being accepted, and for organizations to actually
approach you about funding your CBO or NGO (rather than the other way around).
Once you have undertaken the previous activities, you should be ready to begin
contacting organizations specifically about funding your organization. Some basic tips
about where to look and how to contact:
o
Start by undertaking "donor mapping". What organizations are funding NGO
activities in your geographical area? What companies are funding for-profit
activities (mining, farming, ranching, etc.)? And what activities in your local
community are being funded by local, regional or state government funds? These
are all potential funders for a CBO or NGO. And if you engaged in the previously-
detailed networking activities, they already know about your organization and its
work. Once you have this informal relationship with them, you are ready to ask
them about funding your organization.
o
Contact embassies. They often have small grants programs, and favor
organizations with whom they are already familiar (hence the importance of the
previously-detailed networking activities). But be aware that these grants are often
one-time-only -- you cannot count on such grants to be renewed year-after-year.
o
Many CBOs and NGOs in developing countries access funding from donors in other
countries through International NGO partners. And INGOs favor organizations with
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whom they are already familiar (hence the importance of the previously-detailed
networking activities).
o
Local government may be able to provide small grants. But, as many NGOs and
CBOs are already aware, government funding is being scaled back in most areas,
and the days of government funding all NGOs and CBOs are almost over (and are
over in many places).
o
UN Agencies often have small grant programs, and like others, favor organizations
with whom they are already familiar (hence the importance of the previously-
detailed networking activities). And often, with UN agencies, small grants can lead
to more grants, and sometimes, bigger grants, in the future.
o
Large transnational corporations are reluctant to fund local CBOs or NGOs serving
the developing world unless the corporation has an office somewhere in or near
the geographic area of the NGO. If you decide to approach a transnational
corporation about funding, look at that company's web site and read all information
posted about that company's philanthropic activities. Find out if they have an office
in your geographic area. If the company has guidelines for submitting funding
proposals, RESPECT THOSE GUIDELINES. If the company states that it does not
fund environmental organizations, for instance, and your organization is focused
on environmental issues, do not ask for funding. Also, before you solicit funding
from such companies, consider creating volunteering opportunities for that
company's local employees, and invite the company's participation. These local
employees, through volunteering, will get to know your organization, and may be
willing to champion your organization for funding within the company.
o
Foundations can be approached, but often, only through International NGO
partners. Foundations usually require ALL of the items detailed under the section
"The Absolute Essential Preparations To Solicit Donations: Details Ready to Share."
Suggestions for how to find such foundations are noted later in this document.
When you solicit funds, stress how the funding will be used, NOT desperation for funds.
Here are two examples of well-written explanations of how funds will be used:
Donations will be used to pay for the shipping of donated books from all
over the world, for our library that serves disabled-children and their
families. Donations will also be used to pay our two-person staff, made
up of two professionals in child-development.
Donations will be used to pay the duty fees and transportation costs of
five computers and networking equipment being donated to our
organization by Acme Computer company, as well as to pay a local
person to connect the computers to the Internet; all of this will allow us to
provide Internet access to local women and children as part of our
various community education activities.
Here is an example of a poorly-written explanation:
If we do not receive donations, our doors will close!! We need fund
immediately, or we must turn children away!! We urgently request your
assistance!!
Remember that potential donors often have many requests for support. Don’t be
disheartened if they don’t show interest initially.
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ESSENTIAL - Respect the Organization's Granting Guidelines
It is absolutely ESSENTIAL that you find out before submitting a proposal:
o that the funder will consider projects in your country/area/location
o that the funder will consider projects that are focused on the kind of work your
CBO or NGO undertakes
o that the funder will consider funding the costs that you need (some will only fund
capital expenses such as vehicles; others may only fund staff costs)
o what information the funder requires in a proposal - possibilities are detailed
under the section called "The Absolute Essential Preparations To Solicit Donations:
Details Ready to Share."
All funders are covered by legal documents and official policies which dictate how funds
can be spent. Funders CANNOT give support outside the specifics stated on these
documents. The information on what an institution will fund is often clearly stated on a
funder's website.
Foundations, corporations and government offices receive hundreds of applications a
month from organizations that have obviously not checked their websites. These
applications not only may never receive a reply, the organizations submitting them may be
marked so that any future proposals are automatically refused.
The rest of this document deals with web sites that provide further information. Web
addresses (URLs) change frequently. If you try a URL and it no longer works, try typing
in the address to www.archive.org; or try typing in the name of the organization or
resource to www.google.com to find the new URL.
Online Resources For Further Information
The website of the Synergos Institute in New York, has lots of tips on mobilizing
resources. The articles are addressed to Foundations, but can be easily adapted for any
of us "non-experts" engaging in periodic fund-raising.
www.synergos.org/globalphilanthropy/00/fbsresources.htm
Online Resources for Detailed Tips on Writing Funding Proposals:
www.innonet.org/
The Innovation Network works with nonprofit organization to share the power of
evaluation with nonprofits and funders. Their evaluation tools help with everything
from creating your organization’s mission statement to post-program evaluation, and
draw heavily on log-framed approaches to program development.
www.ifrg.org.uk
The Resource Alliance's mission is to build the fund-raising and local resource
mobilization capacity of the voluntary sector worldwide.
www.tgci.com
The Grantsmanship Center links to foundation and corporate sites of interest to fund
raisers, and has general information on fund raising. Focused primarily on the USA.
www.cof.org
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