Organisation name:

Policy Title: SUSTAINABLE FUNDING

1.0The Governing Body recognises its responsibility to develop sustainable funding for (name of organisation) in order to maintain and develop its service.

2.0Sources to be considered include:-

2.1General charitable giving – philanthropic sources, voluntary donations, legacies.

2.2Grant Funding – usually restricted to and provided to deliver specific outputs and/or mutually agreed outcomes.

2.3Contracts – payments for goods and services according to terms set out in the contract between (name of organisation) and a third party purchaser from the public, private or voluntary sectors.

2.4Trading – selling of goods and services either to contribute to (name of organisation’s) primary purpose or to generate profit (income generated in this way is unrestricted).

3.0The Governing Body aims to review sources of funding annually as part of the process of setting the budget each year.

4.0(Name of organisation) confirms its commitment to monitoring the effective and efficient use of all resources, including environmental and social in accordance with the Environment, Sustainability and Social Impact policy.

PROCEDURE

1.0The Treasurer with assistance from the (Administration/ Finance Officer) will:

1.1Report to the Governing Body as part of the budgetary process

1.1.1Funds in each category carried forward from previous year

1.1.2Income from 1st April each year in each category of funding

1.1.3Expenditure from 1st April each year against each category of funding.

1.2The report will identify all restricted funds, e.g. projects, legacies for a specific purpose, in each category and list income and expenditure accordingly.

1.3The report will identify outstanding debts where payment will be delayed.

2.0(Name of organisation) will provide reports to funders as required by the contract or agreement.

3.0Fundraising: (Name of organisation’s) annual budget is key to managing the fundraising process. This will show both the amount of money (name of organisation) plans to spend and also the amount of money already raised or promised from all sources including grants and contracts. (Name of organisation) will then identify what additional financial resources will be needed to meet the planned expenditure.

4.0(Name of organisation) will monitor progress in fundraising through keeping records of money received or promised. The monitoring report will be discussed together with the management accounts at regular meetings of the Governing Body. If income isn’t coming in as planned the organisation will need to consider:

4.1Cutting costs.

4.2Deferring planned projects or expansion.

4.3What additional resources can be raised by additional fundraising efforts.

4.4Subsidise deficit out of reserves (short-term).

5.0(Name of organisation) may wish to prepare a business plan to assist the Governing Body in planning the programme and development of the organisation over a period (usually 3 or 5 years). The costing of the proposed programme will assist in identifying where additional funds will be required and therefore the amount of additional funding (name of organisation) needs to raise.

6.0The Governing Body will review the extent of dependency upon one or more major sources of income. This will create severe funding problems if a grant or contract is lost. The Governing Body therefore needs to establish the importance of seeking funds from additional sources, such as donors, grant-making trusts, corporate giving or other sources.

7.0The funding strategy and fundraising activities of (name of organisation) assist it in creating a viable, strong and sustainable organisation fit to continue in the future.

8.0Fundraising options include:

8.1Developing a substantial and active donor base – inviting people to support you who feel involved and important to (name of organisation) and who will continue to give their support over a long period of time.

8.2Organising successful fundraising events.

8.3Creating capital within (name of organisation) such as an endowment or capital fund, buildings or equipment, especially when this reduces running costs.

8.4Developing income generating schemes.

Date this policy came into effect / Date approved by Governing Body
Next Review Date / As agreed by Governing Body
Name or position of person responsible for this policy
Other related policies / Commissioning & Tendering
Environment, Sustainability & Social Impact
Finance
Gifts
Reserves
Risk
Relevant legislation
Useful information

PRACTICE NOTE

Issued to:
Relevant personnel / Subject:
Fundraising / No:
Issued by: / Date issued: / Date amended: / For Information to:
Principles of fundraising from personal and corporate donors:
● Ask the potential donor clearly for what you want and make it easy for the donor to respond.
● The more personal the approach, the more effective the response. The following list is in order of effectiveness:
  • Ask in a face to face meeting
  • Give a presentation to a group of people
  • Telephone to ask for support
  • Write a personal letter
  • Put out a request via your website
  • Send a circular letter to lots of people.
● Show your confidence in what (name of organisation) is doing as this makes it easier for people to support you.
● Say thank you not only for donations, but for the consideration given to your request or presentation, for the time the prospective donor has given. The prospective donor will be more willing to consider your needs in the future.
● Get the prospective donor involved in the work of (name of organisation) and committed to its long term success.
● Show that (name of organisation) is responsible and accountable by reporting back to donors and prospective donors, telling what has gone wrong as well as (name of organisation’s) successes.
● Ensure that the donor is advised of tax incentives such as Gift Aid.
Writing a fundraising proposal for a grant-making trust or corporate body
● Plan your approach
● Check whether the trust or donor requires an application form to be completed
● Check whether there is a date by which your application should be received
● Consider how many donors to approach, as each approach should be as individual as possible
●Consider the size of the donor – ensure that evidence of need for (name of organisation’s) service/s is provided, not just a good idea. Try to establish how much detail to give and whether there is a limit on length of application.
●Consider the likelihood of success from a specific donor when deciding how much time to allocate to the application process.
● Has the donor previously supported (name of organisation) and are they likely to do so again.
● Content of the proposal or application
● Is the application for funds for core costs, a specific piece of expenditure or a particular project? This decision will guide the information given to the donor
● Consider which of the following are appropriate:
  • Aims and objectives of (name of organisation)
  • Problem or need to be met
  • Particular geographic or socio-economic factors which make it important to do something in the area where (name of organisation) works/plans to work
  • What working methods will be used to meet the aims
  • Why is the method chosen the best, most appropriate or most cost-effective
  • Short and long-term operational plans for the project/organisation
  • Expected outcomes and achievements
  • Why is (name of organisation) likely to be successful
  • If proposed work is innovative, how does (name of organisation) plan to disseminate the experience so that others can benefit
  • How will the work/project be monitored and evaluated
  • Does (name of organisation) have a clear budget for the work, and can expenditure be justified
  • What will happen when funding runs out
  • Will the work/project become self sustaining in some way
  • What sources of funds have already been identified or committed
  • What other grants or sources of funding are available to fund the organisation or project
  • When is the money required
  • Why is the need important and urgent, and what are the consequences if nothing is done
  • Can (name of organisation) use volunteers to add value to the work/project
  • Will (name of organisation) be seeking support from the local community and in what way
  • Will (name of organisation) be collaborating with other agencies or organisations to bring in additional skills and resources
  • What the plans for the future of (name of organisation)/project are, to build on and develop from the work already planned
● Decide how much to ask for
●Allow time to prepare the application or proposal
● In writing up
  • Consider the length of the application or proposal. Is an executive summary required?
  • Identify and include key points
  • Demonstrate your credibility as an organisation
  • Ensure that recognition of the importance of the problem/need is included
  • Include the budget
  • Information on (name of organisation) and its status
  • Be aware of language and avoid jargon. Style should concentrate on strengths, opportunities, desirable outcomes and hopes for the future
● Preparation
  • What constraints are imposed by the donor as a matter of policy
  • What size grant does the donor typically give
  • What are the interests of the donor and what have they supported in the past
  • Who should the letter/application be addressed to, and who makes the decisions
  • Are there different decision-making procedures for different levels of grant
  • What is the decision-making cycle
● Research the target bodies
● Telephone the donor organisation, if appropriate, to identify contact person and application procedure
● Suggest a meeting, if appropriate
●Invite donor to visit (name of organisation) or project
● Talk to others who have received support from that donor
● Contact key advisers or trustees of the donor organisation to tell them about the proposal, if appropriate
● Write a draft proposal, seek comments from colleagues and redraft
●Produce final application and send together with any appended information, such as most recent annual report and accounts.

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