Options for Fundraising

Diversification is the name of the game when it comes to fundraising. Drawing all of the money you need from just one or two sources may feel like a great strategy right now but in the long-term it is likely to leave your organisation cash-strapped, vulnerable, threatened and constrained.

There are a variety of sources of funds that community organisations can tap into. You need to think about each of these sources and work out which are likely to be feasible, achievable and profitable for your organisation. Whatever you do, don't just take one piece of the pie. Ideally, your organisation should have a finger in each.

Grants

Grants funding can be an incredibly useful source of money for community organisations. There are grants of varying sizes that are given out by all sorts of grantmakers and for a huge range of purposes - your group and its projects are sure to be eligible for some of them.

Grants are available from a range of government departments and programs - federal, state and local - as well as corporate and philanthropic trusts and foundations The trick is to keep on top of the where, when and how - where the grants are coming from, when you need to get your applications in and how to win them. Other help sheets in this series deal with these questions in more detail.

A word of warning: it is important for community organisations to not become too reliant on grants as there are several serious drawbacks to this type of funding. Grants funding provides little or no flexibility - you have to do what you say you will do and when you say you will do it, and your project has to fit in with the requirements of the funding body for them to even consider making a contribution. Many will only give to organisations with Deductible Gift Recipient status and few will give out money for things like paying the electricity bill or to fix the photocopier.

Another major drawback is that grants are usually "one-offs" - you are unlikely to find a granting program that will continue to deliver to your group month after month, year after year. It is critical therefore that your organisation looks upon grants funding as an important part but not the only part of your fundraising strategy.

Memberships

Annual membership fees are a staple for many community organisations. Your membership base should be expanding every year - if it's contracting or remaining stable, you're probably not trying hard enough.

A great way of getting the most from this form of fundraising is to introduce different levels of membership, with associated fees. Your different levels might include standard, junior, family, non-playing, "friends of", lifetime or gold memberships, and so on. One Melbourne community radio station provides membership options including full, concession, passionate, business, band/artist/DJ - and another option for pets! Each option attracts a different fee. Large sporting clubs often provide options for high-wealth individuals (charging a large fee and providing high prestige and big benefits in return - corporate boxes, for example), as well as low-cost junior memberships for the kids, and everything in between.

The trick is to think creatively, tailor your memberships to what you do and make sure there's something for everyone.

And remember, you cannot expect people to pay for a membership unless you offer them something in return. Even if it's just a subscription to your monthly newsletter or an invitation to the annual fundraising ball that's on offer, dress it up and make sure people think there's a real benefit to signing up.

Donations

Most funds for most community groups come from individuals through donations and bequests.

Donations can be elicited in a variety of ways - through direct mail, appeals to your email database (if your organisation does not have database of previous supporters and donors then it's way overdue for one), special fundraising efforts, personal approaches, and so on.

Setting up an online donations facility is a great way of encouraging your supporters to dip into their pockets at the exact moment they feel inspired to do so and from the comfort of their home or office. Remember, though, that people will not miraculously find their way to your online donations site - you need to direct them there via your website, your newsletters and any other correspondence you send out either through the post or electronically. You can set up a free and secure online donations facility through the Nillumbik Giving Centre - log on to www.nillumbik.vic.gov.au for more information about how you can do this.

Bequests

Long-term, stable organisations should also be pursuing options for "planned giving" - i.e. the donation of assets through a will to your organisation. This is a fantastic way for strong supporters of your group to make a lasting contribution to the work it does.

A bequest doesn't necessarily have to involve large amounts of money; it could be shares, artworks, property or even cars - anything of value that the organisation can sell.

People who choose to give in this way need to be assured that their important and highly personal gift is going to a solid and stable organisation so this method of fundraising obviously has to be handled with great professionalism and sensitivity.

Organising bequests is a relatively simple thing to do - just ask people if they would like to remember your group in their will and tell them how to do it.

Special fundraising events

Most community organisations hold at least one and usually several special fundraising events every year. While these events can be as important in friend-raising as fundraising, they usually require a huge investment of time and other resources so you need to make sure that they also make money.

Examples of common fundraising events include:

• Sales and fetes.
• Trivia nights, fashion parades, talent contests, art shows with a local retailer or gallery, dances and discos, film nights, restaurant functions.
• Various 'athons, with your organisation's members seeing sponsorship for a walkathon, readathon, skipathon, workathon or skillathon.
• Games' nights using casino-type games and "play" money.
• Sponsored record attempts or other similar quests.
• Fun runs (carefully check legal requirements with local authorities).
• Raffles, competitions, auctions - major items, memorabilia, services, travel, gifts, tickets, etc.

For each event or initiative, try to incorporate other fundraising activities. For example, if you have a special event, set up a stall to sell your organisation's merchandise, or conduct a raffle, and always make sure programs or invitations have a donation form attached as well as information on how people can join as members and a link to your online donations site.

Community business partnerships

There are a huge number of community business partnership models that can benefit your community group. Whether it's volunteerism, a sponsorship arrangement or pro bono support, partnerships can represent a huge shot in the arm for your organisation.

Don't limit yourself to one partnership; there are literally thousands of variations available. You can find out more about your community business partnership options online at www.ourcommunity.com.au/partnerships.

Sponsorships

A particularly useful form of fundraising is to secure a sponsorship deal. Sponsorships represent a great win-win opportunity for both your community group and the sponsoring body - they provide you with a little bit of money and you provide them with a great advertising opportunity. Think about all the things that you could get somebody else to help you pay for and, importantly, what you might be able to offer in return.

In-kind support & freebies

While this is not technically fundraising, anything that helps you save money (and thus not have to raise as much) should be considered in your fundraising strategy. Do your homework, ask nicely and ask the right people and you might be able to get donations of a huge number of money-saving goods and services - a venue, office supplies, printing and photocopying, transport, entertainment, pro bono work (legal, accounting, IT, marketing/public relations, auditing), gifts, subscriptions, uniforms and so on.

While community organisations are renowned for their ability to run on the smell of an oily rag, there may well be some other ways of cutting costs that you haven't thought of yet.

Tenders

In the current climate of increasing privatisation of government assets and services it is increasingly common for governments at all levels to contract out community services. This has created a great opportunity for community groups to get some extra funding for things they were already doing, or to take on some extra roles. Because they are the people on the ground, community groups are often the best for these sorts of jobs. (But beware: these sorts of activities can come at the cost of your independence.)

Sales & Merchandising

Just because you are a not-for-profit organisation does not mean that you cannot ever make a profit - your group is permitted to make money as long as it is invested back into your group.

Think about things your group has or does that may be of value to others - your club clothing, office products, sports products, branded glassware, and so on. If you have a multicultural membership, could you put together a multicultural cookbook that you could sell?

Think also about the skills your organisation has to offer that others might be willing to pay for. Could you offer a counselling service for example? Or sports training advice? Or team bonding activities? While many groups are cautious about taking on business-style ventures, others are finding that they provide a fantastic means of "no strings attached" income.

A never-ending process

Remember to constantly review your fundraising plan. You can always be doing something better than you are and have more money at your disposal than you already do, and this will help you to make an even greater difference.