Kickstart your fundraising
John Baguley
CEO International Fundraising
Consultancy
Where to begin
Fundraising often begins
with a personal
encounter….
The ask…
1. Research the source: family, friends,
funders
2. Meet their needs
3. Prepare your case for support well
4. Present your case with confidence
5. Thank appropriately
6. Keep them informed of progress
7. Ask again
Asking for advice opens doors…
Social Enterprise and Charity income
generation is different
Social Enterprise
Charity
A convincing commercial
business for social good…
An organisation for social
good dependent on gifts
and grants…
… the ‘case for support’ is
key to fundraising.
… the business plan is key
to investment.
McKinsey
• Sƒ ocial Enterprises have great
innovation capabilities,
responding swiftly to the
demand of consumers.
• Their superior value
proposition can drive change
across the industry and bring
traditional enterprises along.
• W
ƒ ith their self-sufficient
economic model, Social
Enterprises provide
sustainable solutions to social
issues.
• We are convinced that an
attractive economic model can go
hand in hand with delivering
social impact.
• First of all, the company can
capture part of the social value
created by charging a price
premium to consumers.
• Secondly, there is a cost benefit
from reducing raw material
waste. And thirdly, its
inspirational ambitions will be so
appealing to superior talent from
all disciplines, that they may well
be satisfied with moderate
wages.
Social Enterprises finance their activities with different
types of capital. In addition to own
capital, subsidies and donations are important
especially for start-ups. Loans and equity
investments are more demanding forms of funding
since investors require returns on
their capital.
The majority of Health & Wellbeing and Cleantech
companies (75% respectively 67%)
rely on subsidies, but many entrepreneurs expect
these subsidies to decline.
Loans are most common in Cleantech and Biosystems,
which could be explained by the capital intensive
nature of their activities. The lack of collateral in
Economic Development makes it harder for
entrepreneurs in that sector to secure loans.
Entrepreneurs in all sectors expect the amount of
equity investments to rise in the years
to come.
McKinsey
A logical framework
The need
Your input
The
outcome
Monitor &
evaluate
indices of
change
Case for Support
Intellectually satisfying
and emotionally
compelling…
Sources of Funds
Governments
Foundations
Major donors
Equity investment
Friends
Trading (goods & services)
Events
Legacies
Internet
If no one has heard of you..
Matching funders objectives
Every funder has
their reasons for
giving…
Long-term income strategy
No funder wants
to give for ever…
Leadership
Enter the leaders and experts…
Sustainable strategies
Foundations
Friends
Strategy
Tourists
Government
etc
Internal - Overseas matrix
• Rent
• Shop
• Café etc
• Tourism
• Exhibitions
• Books etc
Internal
Overseas
earned
earned
Internal
Overseas
donations
donations
• Friends
• Major donors
• Government
• Foundations etc
• Foundations
• Government
• Major donors
etc
Our research shows that 42% of Social
Enterprises is not profitable, 27% not even
after five years.
However, this need not deter Social
Enterprises in the Netherlands, because
the biggest and most successful Social
Enterprise to date, the Grameen Bank,
took almost 10 years to reach profitability
in micro-finance.
The third main challenge in the
professionalizing phase is the transition
from relatively abundant and not very
sophisticated seed capital (<250k) to
scarce and more demanding venture
capital.
McKinsey
Research is crucial
Major donors
Friends are important…
Trusts & Foundations
How to apply for funding
1. Research and visit website.
2. What are their objectives?
3. Two page letter – logframe format & emotion.
4. Phone up and chat – create a relationship.
5. Do your contacts know their trustees.
6. Build in overheads and contingency.
7. For large applications hire an expert.
8. Fulfil your promises but let them know as soon as things go wrong.
9. Invite to events.
10. Keep applying…
Government
“Hello, I am from the
government and I am
here to help you!”
Subsidy-independent Social Enterprises have higher turnover and are
often more profitable than subsidy-dependent Social Enterprises.
McKinsey.
Other fundraising
Events
Legacies
Internet
www.avaaz.org
Internet & fundraising
Website
Social media / email etc
Research
Crowd funding
Best practice in fundraising
Benchmarking
•Testing
Monitor & evaluate
•Expert advice
Although social impact is what it is about for
Social Enterprises, almost half of the Social
Enterprises that responded to the survey do
not measure their social impact (figure 4).
Those Social Enterprises that do measure
social impact mostly use specific impact
indicators and/or use the reach of their
organization as a proxy for social impact.
A typical indicator of reach is the number of
people supported. Typical ways to measure
social impact are number of people employed
(in case of labor participation) or amount
of CO2 reduction (mostly applicable in
Cleantech).
Only a small share of respondents
used advanced methodologies such as Social
Return on Investment (SROI). McKinsey
Questions?
THANK YOU!
John Baguley
CEO
International Fundraising Consultancy
WWW.IFC.TC
A few crowd fundraising sites
And there are a lot more out there…
http://www.pledgebank.com/ for charity
www.Kiva.org loans that change lives.
www.kickstarter.com/ for creatives…
http://www.crowdrise.com/ for charity
www.crowdfundsw1.com hyper local
fundrasing
http://www.aswarmofangels.com/
A Swarm of Angels (ASOA) is an open source
film project GoFundMe http://gofundme.com
for personal finance.
www.WeFunder.com
With more than $12,000,000 already
committed in their beta, WeFunder might just
take the lead and win hands down.
www.StartSomeGood.com
A Crowdfunding Website for Social
Entrepreneurs and others.