FUNDRAISING FROM
 COMPANIES AND
    CHARITABLE
      TRUSTS/
   FOUNDATIONS
  & THROUGH THE
     INTERNET


            Pr...
FUNDRAISNG FROM COMPANIES AND
                 CHARITABLE TRUSTS /
         FOUNDATIONS & THROUGH THE INTERNET
           ...
SUSPECTS – SOURCES OF FUNDING
• Trusts and Foundations
         -      start up costs
         -      need right locality
...
The Five "I's" of Fundraising


• INVESTIGATE - RESEARCH

• INFORM - INTRODUCE YOUR
          ORGANISATION
          AND P...
Prospects
Steps to work through:
• in-depth research assessing:

    - locality (national or local remit & where) - size o...
• Have they donated previously?
     - Check computer and paper records, please ask – Consultancy available from Gordon Ow...
particularly impressed with a general plea to      has well-established criteria for giving, if you
'put something back in...
contacts there - it will                        their company
• prove useful for them to write or sign the
  appeal letter...
Be persistent                                    applications in the future. If they said that
                           ...
Companies House to get hold of a copy. The
main offices are situated in Cardiff,              In any city or region there ...
Constructing an Appeal Letter                             funds; how the donation would be
                               ...
• If you can demonstrate some form of’                 policy to support your type of Organisation
 leverage' this will be...
© GPO • 2002.




    PREPARTION # HOME
          WORK
Identify the need and research study
•    What is exactly required
    •    Why the need
    •    Who will benefit
    •    Provide facts and figures to suppor...
excitement and happiness on the face of a child who is told - here is a chance for you to
participate.

Think of the educa...
Authority who included the project in their handbooks translated for a number of countries to
generate interest and future...
Secured revenue funding from the former LDDC for salary to employ first member of staff, e.g.
Administrative Secretary to ...
• How do we know they can do it?
• Who are they- do we know this
  organisation?
• What are the implications for the
  fut...
8] Offer to go and see them and follow up the letter
    within a week
   9] State the benefits for them
10] Be positive a...
NOW YOU CAN WRITE IT!
           • Avoid jargon
           • Bring out human interest
           • Generate emotion, belie...
WRITING YOUR
                        APPLICATION
EXECUTIVE SUMMARY - A brief outline of the proposal
               • Prob...
Some tips on writing style
• Use shorter sentences and avoid overly complicated sentences

• Use a PC/Mac and the spell ch...
Then What?


• KEEP TRACK
   - When is a decision likely?

• NO REPLY?
   - Try a gentle prompt

• YES
   - Thank them!

 ...
• If these are not clear, clarify with the funder.

• Ensure you report to the funder on time.
• Invite the funder to beco...
and e-mail communications. Secondly, they        fundraising using the web and e-mail and
cover relationships with third p...
that any consent obtained complies with the      of propagating chain e-mail letters, virus
Data Protection Act 1998. Expl...
of e-mail discussion lists, then you could be    all documents soliciting money (Charities
held liable if you allow libell...
Most companies will charge between 0%           One of the difficulties with the Internet is
and 5% of each donation to ma...
Promote accessibility of all fundraising           shared revenue schemes between the
materials to all Internet users irre...
Non Disclosure Agreements. Consider                   •   How are you compensated if they
offering written confirmation th...
1577)                                           www.freeserve.com
                                                  - Web ...
each additional currency), this does            Can a maximum number of failed
        not mean that people using foreign ...
a donation could be fraudulent?               credit card numbers to purchase
                                            ...
How many appeals can you run                           donors?
simultaneously?                                    -   IP a...
encryption facilities. Documents stored and
information entered on a secure server can
be encrypted and protected from unw...
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
Fundraising from Companies and Charitable Trusts + Through The Internet
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Fundraising from Companies and Charitable Trusts + Through The Internet

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FUNDRAISING FROM COMPANIES AND CHARITABLE TRUSTS/
FOUNDATIONS AND THROUGH THE INTERNET

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Transcript of "Fundraising from Companies and Charitable Trusts + Through The Internet"

  1. 1. FUNDRAISING FROM COMPANIES AND CHARITABLE TRUSTS/ FOUNDATIONS & THROUGH THE INTERNET Produced & published by Mr Gordon P Owen • M Inst F • F Inst D • FIBA
  2. 2. FUNDRAISNG FROM COMPANIES AND CHARITABLE TRUSTS / FOUNDATIONS & THROUGH THE INTERNET - CONTENTS - Suspects – Sources of Funding The Five “I’s” of Fundraising Resources Turning Suspects into Prospects Checklist for Identifying Trusts/Foundations Checklist for Applying to Companies Preparation # Home Work Case Study # Example From the potential Donor’s Point of View 10 Top Tips Getting Beyond the Wastepaper Basket! Common Pitfalls Writing your Application Some Tips on Writing Style Then What? Reporting Procedures ICF Internet Fundraising Guidelines © GPO • 2002.
  3. 3. SUSPECTS – SOURCES OF FUNDING • Trusts and Foundations - start up costs - need right locality - need right theme - give £1.25 billion per year UK wide - organisational restrictions • Companies - sponsorship or PR potential - publicity materials - employee involvement - campaigns in schools - high profile projects - give £200 million per year • National Lottery - highly specific criteria - organisational restrictions – - Make grants worth £320 million per year • Government - local authority grants and contracts • Europe - ESF - complex – Discuss with the EU Office in London • Individuals - Highly personalised – [Discuss with known sources of contact] © GPO • 2002.
  4. 4. The Five "I's" of Fundraising • INVESTIGATE - RESEARCH • INFORM - INTRODUCE YOUR ORGANISATION AND PROJECT • INTEREST- DEMONSTRATING LINKS/MEETING CRITERIA • INVOLVE - ENGAGING ~ INTERACTING • INVEST- BUILDING RELATIONSHIPS © GPO • 2002. Turning Suspects into
  5. 5. Prospects Steps to work through: • in-depth research assessing: - locality (national or local remit & where) - size of grant (match their capacity to your needs) - timing (match frequency of grant making to your schedule) - interests (how much commonality is there?) • looking at the bigger picture: - degree of competition and likelihood of a grant - work required to submit an application - what relationship already exists - do you have any contacts or a lead in? • a list of prospects: - which you must check with before contacting – Consultancy available via Gordon Owen • these are your potential donors! © GPO • 2002. Checklist for identifying Trusts / Foundations
  6. 6. • Have they donated previously? - Check computer and paper records, please ask – Consultancy available from Gordon Owen • What are the objectives of the Trust/Foundation? - Are we eligible to apply? • What is the giving capacity of the Trust/Foundation? - Look at their income and expenditure - what are they capable of giving? • What are the types of grants they normally give? - capital projects, scholarships, fund over several years? • What are their conditions for a grant and what are their exclusions? - Do we have to raise some of the money before approaching them? Geographical constraints? • When do the trustees meet? - Monthly, quarterly, as necessary? How far in advance do they like proposals? • Do they have a formal application form or guidelines? - Do they require a summary of the project first? • Who are the Trustees/Settler/Administrator? - Do we know any of them? • Do we have any Trustee contacts? - Do any of our Trustees know any of theirs? How can we make use of this? • What kind of projects do they like to fund and which part of our work is most likely to find favour? - Look at previous giving history. If unsure, seek advice from the Administrator. • How much should we ask for? - Look at previous history. If unsure, ask the Administrator. • Who is the best person to submit the application? - Director, Chairperson, Secretary, Fundraiser • Who should the letter of application be addressed to? - The Chairman of the Trustees, the Secretary, Administrator • Would the Administrator/Trustees like to visit? - Do they ever visit applicants' projects? Would they like to visit a project as an introduction to our work? © GPO • 2002. Applying to Companies This section gives basic information for firms give. This enables you to put forward putting together applications to companies. good reasons why they should support your work. Some companies in this guide receive up to 100 applications each week. You need To make an effective appeal to industry you to make a good case for yours to be must have a basic understanding of why successful. A company will not be
  7. 7. particularly impressed with a general plea to has well-established criteria for giving, if you 'put something back into the community'. can get a friend of the Managing Director to They want something more substantial. You ask on your behalf, you are more likely to get should be able to demonstrate a clear link a donation, even when your cause does not with the company, be it geographical, exactly fit those criteria. product, employee contact, or some other connection. Generally it is worth emphasising the sheer chaos of company giving. Few companies Why companies give? have any real policy for their charitable giving. Mostly they cover a wide range of The main reason for company giving is often good causes or attempt to deal with each said to be enlightened self-interest, rather appeal on its merits. than pure altruism and they see their giving as 'community involvement' or' community However, some companies do have a clear investment'. The following are some of the policy. Where policies are printed please reasons why companies’ give:- clearly respect them; dealing with a mass of clearly inappropriate applications is the single inappropriately applications is the single biggest headache in corporate giving and • To create goodwill. Companies like to be has caused some to consider winding-up seen as good citizens and good their charitable support programmes neighbours, so they support local charities. altogether. They also like to create goodwill amongst employees. Contributing a senior member What companies give? of staff to the charity's . There are a variety of ways in which • To be associated with certain causes companies can support charities:- that relate to their business. Mining companies often like to support • cash donations; environmental projects, pharmaceutical • sponsorship of an event or activity; companies health projects, banks • sponsorship of promotional and economic development projects and so educational materials; on. • sponsorship of an award scheme; Because they are asked and it is expected • joint promotions, where the company of them. They know that other companies contributes a donation to the charity in also receive appeals and give their support. return for each product sold in order to They will often support trade charities such encourage sales; as a benevolent fund or an industry research • making company facilities available; organisation; beyond that they will probably secondment of a member of staff, where pitch their level of giving more or less at that a member of the company's staff helps of their rival. on an agreed basis whilst remaining employed (and paid) by the company; • Because the Chairperson or other • contributing a senior member of staff to senior managers have a personal interest the charity's Management Board; in that cause, this is particularly the case for • providing expertise and advice; smaller companies. Even where a company • encouraging employees to volunteer; © GPO • 2002. • companies, but also into personal contacts. • organising a fundraising campaign When planning an appeal, an important first amongst employees; step is to find which of the people associated • advertising in charity brochures and with your charity have influence or know publications. people who have. If you can find a link between one of your supporters and a Key factors in approaching companies particular company - use it. first step is to find which of the people Research ~ sponsorship of an award scheme • One of your trustees/members may be Research is very important, not just into on the board of directors or have
  8. 8. contacts there - it will their company • prove useful for them to write or sign the appeal letter. • any procedure or timetable for submitting • One of your volunteers or supporters applications may be an • employee of the company. • whether they might be interested in coming to see your organisation at work. • Your clients/users (or their parents) may work for the company. Visits are useful when discussing bigger donations with the larger companies, but are Alternatively, you might be able to tie your difficult to arrange for anything small. appeal in to a known personal interest of a director. Almost certainly your appeal will be in the form of a letter. Make this as personal as Getting in touch you can. Circular letters tend to end up in the bin. Make the letter short and to the point. Generally an appeal through a personal contact will work the best. But if you haven't Be specific in your approach got a contact and can see no way of developing one, then you will have to come Rather than sending out a circular mailing to up with another link. 100 or 1,000 companies, you will be more successful if you select a few companies you As a first step you might contact the believe will be particularly interested in your company to find out the following:- project, and target your application to them and their policy. (Many companies will not • who is responsible for dealing with consider circular appeals as a point of charitable appeals policy). • their name and job title Find a good reason why you believe the company should support you and include • what information they can send regarding this prominently in your letter. You may be able to relate what Similarly, a local charity might not want you are doing as a charity to companies money from a company who has made which have some relevance to your work; for people in the area redundant. Each charity example, a children’s charity can appeal to has to judge where it draws the line. companies, making children’s products companies, a housing charity to construction Be clear about why you need the money companies, building societies, etc. Any relationship, however tenuous, creates a You must be clear about the objectives of point of contact on which you can build a the work you are raising money for, good case for obtaining the company’s particularly its time-scale and how it relates support. If there is no relationship, should to your overall programme of work. Try to you be approaching that company at all? think in project terms rather than seeking money to cover basic administration costs. There may be occasions where a charity will This can be difficult, because most people not want to accept money from a company in spend most of their money on administration a related company's support. If there is no in one form or another, so you need to relationship, should you be approaching that conjure up projects out of your current company at all? A health education charity activities to present to potential donors. You may not want to accept money from a can build a percentage of administrative tobacco or brewery company or from the costs into the costs of the project. If you confectionery industry, or similarly an relate what you are doing to a specific time- environmental group may not wish to accept scale, this again makes what you are a donation from a nuclear power company. applying for more of a project than a These may feel that as a result of doing so contribution to your year-on-year core costs. they would be seen to be compromised.
  9. 9. Be persistent applications in the future. If they said that they do not give to your particular type of Do not underestimate the persistence factor. activity then you know that it is absolutely no If you do not receive a donation in the first use your going back. If they said their funds year, do not assume that the company will were fully committed, you can try to find out never support you. Go back a second and when would be a better time to apply even a third time. (although it might only have been a convenient excuse because they did not If you are going back, mention the fact that want to give to you). you have applied to them previously, perhaps saying that you are now presenting Note the response to your appeal and use them with something different which may be any information you can glean to improve (you hope) of more interest to them. your chances the next time. People respect persistence, so it really is important to go If they give you reasons for refusing support, back again and again. use them to help you put in more appropriate How to find out which firms to approach? • The appropriate regional section of Kompass. The firms to approach must depend on what • The local Chamber of Commerce. sort of organisation you are. If you are a • Confederation of British Industry – national organisation then an appeal to the Regional contacts. country's leading companies is appropriate. • The Institute of Directors. Local groups should approach local firms and local branches of national companies Whichever directories you are using make which have a presence in their area. All sure they are up-to-date copies. Company organisations can approach companies in personnel and/or donations policies change allied fields: for example, theatres can regularly. appeal to fabric companies. If you want gifts in kind, you should find likely You will find the names and other details of suppliers of what you need. Trade companies in a whole series of useful associations will often provide a list of its directories and publications. member companies. Another idea is trade list of its member companies. Another idea is Sources of information: trade exhibition catalogues which give details of all exhibitors. • The Times 1,000 • The Kompass Register of British One big problem is the ownership of Industry & Commerce – [available in seemingly independent companies. Many regional sections] companies are in fact a part of a much larger • Guide to Key British Enterprises concern. In recent years there has been a • Stock Exchange Official Year Book substantial number of mergers and • Jordan's Top Privately Owned take-overs, plus the buying and selling of Companies – [2 volumes] business between corporations. A useful source of information is the directory Who To find key contacts in companies: Owns Whom, which has a subsidiary index listing most subsidiaries of companies • The Directory of Directors and Who's included in the guide. You can also use Who are useful for finding out more company annual reports, which (for most about company directors. companies) can be obtained on request. • Corporate Register - updated These reports provide good background quarterly - a guide to makers in UK information on the company, and Stockmarket companies. occasionally information on the company's corporate support programme. Some private For local companies in addition to this (and occasionally public) companies will not guide: send out annual reports except to shareholders; in such cases you can go to
  10. 10. Companies House to get hold of a copy. The main offices are situated in Cardiff, In any city or region there will be large Edinburgh, Belfast and London, with satellite companies who are important to the local offices in Birmingham, Glasgow, Leeds and economy. These companies will often feel a Manchester. Finally there are national and local Some basic don'ts when applying to newspapers which can provide useful companies information and ideas about who to approach. Informal sources or information $Don't write indiscriminate 'Dear may include the local business school, Sir/Madam’ circular letters to any rotary, round table, Chamber of Commerce, company you come across. Business Breakfast Clubs, as well as clients $Don't use any guide you may have of your auditor, banker, legal advisor or access to as a simple mailing list. suppliers. $Don't write to a company which specifically says it does not support The types of companies that give your kind of work. Don't write to a Foreign owned multi-national companies company unless at least one of the following applies:- Many of the large multi-nationals have global giving programmes. Some have an • The company has a declared policy international structure for managing their indicating a specific interest in your giving with budgets set for each country and group's area of work. a common policy for the sorts of activity they • The company operates in the same are interested in supporting. small budget to locality as your group and a clear spend on charitable projects of its choice. product link exists between your Others may give each country a small needs and their supplies. budget to spend on charitable projects of its • You have a strong personal link with choice. With others, community involvement a senior company officer, or a policy remains a purely local matter for member of their staff is actively company management in the country involved in your work. concerned. • There is some good reason to write to that particular company. The fact Leading national companies that the company makes a profit and your group needs money is not a Many support large national charities, of sufficiently strong link. which many have departments set up to raise money from companies. Some make responsibility to do something to support grants through regional offices and most will voluntary action and community initiatives in give preference to charities local to their those areas, and value the good publicity main operating sites. that this will provide. It is a good idea to form some kind of relationship with larger Larger local companies companies in your area There are also companies that have a owned and the approach will often be regional remit, such as water, electricity and through the ‘Chairman & Chief Executive’ or television companies. The support of these ‘Managing Director’, or ‘Senior Partner’. companies is usually confined within these Most of these companies will have no regional boundaries. policies about what to give to and may prefer to give in kind, for example a prize for a Smaller local companies raffle, or a fundraising event. It might be easier to approach these companies for this Almost everyone is targeting the large sort of support in the first instance; and later companies, because good information is on, (once they have given something), to available on these for fundraisers and there persuade them to make a cash donation. is little available information on smaller local companies. Many of these are privately
  11. 11. Constructing an Appeal Letter funds; how the donation would be spent if it were to be forthcoming, and Important points to consider:- why you think the company might be interested in supporting you. • Think up a project or aspect of your work that the business sector might • You should attempt to communicate like to support. Generally, do not the urgency of your appeal. appeal for administration costs or a Fundraising is an intensively contribution to an endowment fund competitive business; there is a (although there will be cases where limited amount of money to give have this approach will succeed). to ensure that some of it comes your Recognise that companies are likely way. If it appears that although you to be interested in some ideas and would like the money now it would not not others. For exarnple, a drugs matter terribly much if you got it next charity would be more likely to get year, this will put people off. But don't money for education than give the impression you are rehabilitation. An appreciation of the fundraising at the last minute. Show kind of projects that companies like to them you are professional and you support will be very helpful to you. have carefully planned your fundraising appeal. You should also • Your letter should be as short as try to show that your charity is possible. Try to get it all on one side well-run, efficient and cost effective in of A4. You can always supply other how it operates. information as attachments. Company people are busy. You can help them • You should mention why you think the by making your appeal letter short company should support your cause. and to the point. It should be written This could range from rather clearly and concisely and be free from generalised notions of corporate jargon. Someone not acquainted with responsibility and the creation of what you are doing should be able to goodwill in the local community to read and understand it and be much more specific advantages such persuaded to act on it. Give your as preventing children painting graffiti letter in draft to someone outside your on their factory walls or the good charity to read and comment on publicity companies will get from before finalising it and sending it out. supporting your cause. If the firm's generosity is to be made public, for • You should state why you need the example through advertising or any money and exactly how it will be publicity arising from the gift, then spent. The letter itself should be emphasise the goodwill which will straightforward. It should include the accrue to the company. Most following information (not necessarily companies would say that they do not in this order): what the organisation require any public acknowledgement does and some background on how it for the contributions they make, but was set up; whom the organisation most will appreciate and welcome serves; why the organisation needs this. a particular item. You can suggest a figure • As for something specific. It is all too easy by mentioning what other companies are to make a good case and then to mumble giving. You can mention a total and say how something about needing money. Many many donations you will need to achieve companies, having been persuaded to give, this. Do not be unreasonable in your are not sure how much to give. You can ask expectations. Just because a company is them to give a donation of a specific amount, large and rich, it does not mean that it (matched to what you believe their ability to makes big grants. contribute to be), or to contribute the cost of
  12. 12. • If you can demonstrate some form of’ policy to support your type of Organisation leverage' this will be an added attraction. or to give to charity at all). Persistence can Company donations on the whole are quite pay. If you have received a donation, go modest, but companies like to feel they are back again next year. The company has having a substantial impact with the money demonstrated that it is interested in what they spend. If you can show that a small you are doing and in supporting you. It may amount of money will enable a much larger well do it again next year, especially if you project to go ahead, or will release further had thanked them for the donation and funds say on a matching basis from kept them in touch with how the 'project' another source, this will definitely be an developed. advantage. How companies reply to you • Having written a very short appeal letter, you can append some background support Many companies will not even reply to your literature. This should not be a fifty-page appeal. A few may acknowledge receipt of treatise outlining your latest policies, but your letter, and occasionally you will get like your letter it should be crisp and to the thanked for your request and be told that it is point, a record of your achievements, your being considered and you will only hear the latest annual report, press cuttings or even outcome if you are successful. Up to half of a specially produced brochure to the companies you approach will write back accompany your appeal. depending on the spread of the companies you approach. Larger companies have a • Make sure that the letter is addressed to system for dealing with charity mail, and the correct person at or the correct most will see it as good PR to give a reply. address. It pays to do this background Smaller companies which are not giving research. Keep all the information on file as much charitable support will not have the it will make your job much easier next time. time or the resources to do anything but scan the mail and throw most of it in the bin. • If you are successful, remember to say thank you; this is an elementary courtesy What sort of reply should you expect? If you which is too often forgotten. If the company do an extensive appeal, you will inevitably gives you any substantial amount of get a lot of refusals. These will normally be money, then you should probably try to in the form of a pre-printed or keep them in touch with the achievements word-processed letter or a postcard. related to their donation (such as a Occasionally you will get an individually between the lines. Companies in trying to typed letter of reply. If they say yes, you will be polite may in brief progress report or get a cheque or a Charities Aid Foundation copies of your annual report or latest Charities Trust voucher. But more often they publications). will say no. • If you do not succeed, go back again next year (unless they say that it is not their There may be various reasons given or The Application Letter – Checklist phrases used by a company for refusing your request. The company may not mean • Is it only one side of A4? what it says. Funds may still be available for • Does it state what your link is with those appeals the company wishes to the company? support; the company may be able to give • Does it stress the benefits to the support and just not want to; or it may not company? want to now or in the future. You should try • Is it clear why you need the money? to read fact be misleading you if you take • Is it clear what you are asking for? what they say at face value. • Is it addressed to the correct contact? • Is it attractive to the company? • Is it endorsed? • Applying to companies
  13. 13. © GPO • 2002. PREPARTION # HOME WORK Identify the need and research study
  14. 14. • What is exactly required • Why the need • Who will benefit • Provide facts and figures to support the need; area in which it will operate; and the people it is aimed to aid. • Provide all data to grant body in advance to study. • Support with presentation summary + any graphical material possible - • if a building - a visual drawing of what will look like • if children - photo of them showing expression of disappointment of not having the ability to benefit and image the excitement of what the expression would be from the benefits and skills achieved from meeting that need. • Create & develop positive image of the scheme • Publicly & material • Costings - Broken down into Capital & Revenue - Budgets - Projections Shopping list of anything in terms of good needed (with costs) to enable smaller potential contributors to be able to support and be able to identify specifically with what they have given in support. Who appeals will be target at:- - Trust / Companies / Central & Local Government Departments/ Lottery / Euro funding Prepare appeal letters and supporting material:- - Identify voluntary & statutory authorities who will be invited to be involved. - Identify any other useful contacts to help achieve goals. - Programme - Time-table - Development Plan - Enables (a) Monitoring; & (b) Determine strategies to achieve goals © GPO • 2002. CASE STUDY # EXAMPLE NEWHAM YOUTH LODGE HOSTEL PROJECT: Picture for a moment the expression of a child’s face and what might be going through their minds reading an airline magazine on holiday about other children travelling abroad on exchange trips. Imagine their thoughts when such opportunities are disappointingly not been available to them. Given the opportunity and resources that this project provides - Imagine - the expression of
  15. 15. excitement and happiness on the face of a child who is told - here is a chance for you to participate. Think of the educational and cultural value helping them to understand and value others as people. Determine need: - What is the Project? An outer London Borough with a population of around 27,100 - high-rise flats, terraced housing. But it is home to the people and families. The people live happily engaging in professions, activities and interests with a host of skills. Along side this for the young are some 200+ youth clubs & organisations that make-up the youth service in the Borough. Trips to a variety of places in and around London, counties and even countries are organised by different youth organisations - to sight see, bike, camp and so on. We visit these places but rarely do we have the time, chance or inclination to meet, talk and live in these places for educational trips. The hostel currently provides accommodation to enable educational exchange trips to be complimented in situations where reciprocal visits are not possible because families do not have the space to accommodate visiting people from other counties and countries. It is designed and caters for groups of between 12 - 30 people, as distinct from individuals. Work Involved -- Historically: Sought assistance from Local Authority Architects to produce conceptual drawing to create visual concept of what the building would look like once converted. Negotiated Lease & Building Agreement for 15 years (with option to continue) with the Local Authority - therefore have the land. Engaged (at no cost), Architects & Quantity Surveyors to design and cost-out the building works of existing phase I of the project Worked with architects and QS to prepare works specifications and tenders. Liaised and work with final appointed contractors and sub-contractors to complete works. Worked through processes to expedite Building Regulations approval and Planning Permission. The Phase I initial official opening was so successful that no less then 50 Trusts alone, apart from another 100+ dignatories attended securing relationships for the future in terms of support and future funding. Some even offered more help at the time and subsequently helped again. Had a scale model of the building made to exhibit for consultation with youth organisations and schools in the borough. Also took this model to some presentation meetings with Trusts. Proved successful. Other promotional and publicity produced to include brochures with list of contacts to arrange direct exchanges, information on hostelling and graphics/photos. Plus: translated material languages + in Braille for the blind. Initiated and designed logos to project image of the project. Met and subsequently registered with the English/London Tourist Board and British Tourist
  16. 16. Authority who included the project in their handbooks translated for a number of countries to generate interest and future use. This task has successfully underpinned revenue income. Feedback from youth groups and schools were initially mixed but enough to qualify the project being forthcoming. Clearly the building would be used - others uncertainties from some potential users with in-house commitments - later a significant number of these came on board and participated. Visits made to each group to coordinate. Secured arrangements with local City airport for groups and have made many visits using the airport to discuss future arrangements. During the VE/VJ commemorations earlier this decade, worked in partnership with the International Duke of Edinburgh’s Award and hosted a group of people from some 14 countries around the world and an informal dinner for some 150. Co-ordinated arrangements with the main activities in Hyde Park and arranged trips for visitors. So successful was this venture that an invitation from the Duke of Edinburgh and Prince Edward to attend a Garden Party at Buckingham Palace was received and attended. Thousands of people, representing youth groups from all over Europe, Asia, Africa, Scandinavia, US, Canada, Australia and latterly the former Eastern block now visited the Borough putting them and the Organisation clearly on the map - moreover, think of the children & young people who benefited as a result from the Borough! Funding: • Feasibility Study [So as to be official recognised and accredited] - Grant-aided by CAF. Made shopping list of items required within the building to furbish, equip and furnish hostel. Sent this list to an initial host of some 500 manufacturing companies with information about the project, a brochure and covering appeal letter. Prepared and submitted grant-aid applications to the Local Authority, Department of the Environment and a variety of Trusts researched for initial funding required of £250k. Applications were successful and total monies needed raised. Building also took on needs for disabled and separate funding secured to provide for this, e.g. wider doors, disabled toilets & showers, ramp, easier access to phone etc. Before the decision of this was known a quarter of the manufacturing companies written to had positively responded pledging a variety of furnishings and goods for the buildings, including carpet tiles, bunk beds, office equipment, kitchen equipment etc. Successfully secured sponsorship from the British Council to personally visit the Borough’s twin-town in Germany to carry out study and to promote the project. This included producing a brochure translated in German to distribute. Subsequent to approval, received invitation to be a civic guest of the town by the Oberburgermeister (Lord Mayor). In the early stages we spent fruitful week visiting hostels and youth groups in and around town. Secured a scholarship through the Churchill Foundation to extend study to the US and visited a variety of hostels operated and again promoted project. Conceived idea of aesthetically improving the external of the building by introducing figurative murals on the external walls. Engaged an artist to produce concept ideas based on the history of the Borough. Later secured monies and paints/materials to bring this to reality and some 7 12ft high murals painted based on different historical elements of the Borough - introducing a new element in terms of companies/organisations who would otherwise not have become involved and who were interested - plus excellent publicity! This included dealing with all the processes for further Planning Permission with the Local Authority.
  17. 17. Secured revenue funding from the former LDDC for salary to employ first member of staff, e.g. Administrative Secretary to facilitate the project. Prepared job advert and job description/ specification + contract for this post. The project has provided a real need for almost two decades. Now reached a cross-road with entire site under a new development with the intention of demolishing school and hostel and build purpose built accommodation - exciting future ahead. The proposed new purpose built hostel for international youth exchanges will cost a quarter of a million pounds. The research in support of this has been supplied. Equipping & furnishing will not be such a costly task with existing resources from the current building being moved into the new complex when complete. Part of this exercise is underway in terms of upgrading and replacing old items so as to suitable compliment the needs of the new building. © GPO • 2002. FROM THE DONOR'S POINT OF VIEW • Is this project within our policy, priorities and area of benefit? • Is it clear - what do they want, why and when?
  18. 18. • How do we know they can do it? • Who are they- do we know this organisation? • What are the implications for the future? • Has anyone else supported this project? • Do we expect to get anything in return? © GPO • 2002. 10 Top Tips 1] Address your appeal to the right person 2] Tailor your appeal to the prospect 3] Include a clear statement of Organisation's work and objectives 4] State clearly how much money you need and include a budget 5] Tell them what the money's for 6] Break a large appeal down into realistic chunks for particular items 7] Include the latest accounts
  19. 19. 8] Offer to go and see them and follow up the letter within a week 9] State the benefits for them 10] Be positive and upbeat about the Organisation and your ideas © GPO • 2002. GETTING BEYOND THE WASTEPAPER BIN! PLAN AHEAD • Think in terms of months not weeks • trusts may meet only twice a year; • sponsorship budgets may be committed 18 months ahead. RESEARCH THE DONOR • Read up on their policy and priorities. • How much do they normally give? • Find out the right contact name • When is the best time to apply? • Do they issue guidelines • How do they like to be approached? PACKAGE YOUR PROJECT • Identify unique selling points • Package specific needs • Prepare a proper budget • Is it cash you need? • Is it sponsorship or a donation? • Consider unit costs or a choice of costs • Sponsorship benefits PLAN THE PROPOSAL • Organise your information • Gather supporting documents • Decide on a format
  20. 20. NOW YOU CAN WRITE IT! • Avoid jargon • Bring out human interest • Generate emotion, belief and commitment • Break up the text & include a summary • Do not forget enclosures © GPO • 2002. Common Pitfalls • "Dear sir/madam". There is no excuse for not addressing a named correspondent and preferably the correct name! Circulars waste time and money. • Long-winded and vague appeal letters. Be concise and precise - most letters will be scanned. • Not understanding the commercial world. Companies want to know what they will get out of it. Companies expect some good publicity, even from a donation. • Not stating what you want. Many appeals give lots of information, but the donor is left wondering what you actually want from them. Be very clear what you are asking for and why. • Insufficient time. Plan ahead and appeal in good time. If you want the money next week it suggests bad planning, • Wrong address. Appeals may end up on the right desk, but a two week delay is unhelpful and creates a bad impression. • Tactical error. When sending photographs to Kodak in support of an appeal, do not send a Fuji film! • Not valuing their time. Applications should consist of a short letter. Do not say all the information is in the enclosed video! • Being unrealistic in what you ask for. • Lack of professionalism. Appeals, particularly by telephone need to be carefully thought through. Trying to make them feel guilty rarely produces a positive response. © GPO • 2002.
  21. 21. WRITING YOUR APPLICATION EXECUTIVE SUMMARY - A brief outline of the proposal • Problem • Solution • Funding requirements • Organisation and its expertise THE STATEMENT OF NEED - Why is this project necessary? • The problem - evidence of need, facts and statistics • Who are you helping? - comments and quotes from beneficiary group/s • Why is the issue important? • What would be the consequences if nothing was done to address the need? PROJECT DESCRIPTION - Nuts and bolts Show the project will be implemented • Objectives • Methods • Staffing and administration • Monitoring and Evaluation BENEFITS FOR THE PROSPECTIVE DONOR - what will they get out of it? • Business benefits, e.g. value of press coverage and PR • Corporate citizenship, and how it fits with their aims • Opportunities for employee involvement through volunteering • Opportunities for in store/branch promotion • Branding on promotional materials • Networking and contact with key government figures BUDGET - Financial description of the project • How much the project will cost in total? • How much will you need from the funder? • Income already received or expected ORGANISATION INFORMATION - Introduction and background to your Organisation • History • Main activities • Location and size • Aims and objectives • Beneficiaries and services CONCLUSION - Summary of the proposal 's main points • Final appeal for your project © GPO • 2002
  22. 22. Some tips on writing style • Use shorter sentences and avoid overly complicated sentences • Use a PC/Mac and the spell check! • Include a summary • Improve the visual appearance and readability by using shorter paragraphs, headings, sub-headings and indented tabulations • Ask someone to check it for errors, typos and clarity • Vary the length of sentences and paragraphs - it makes it easier on the eye and helps the reader • Use smaller rather than longer words • do not forget the enclosures! • Avoid unsubstantiated superlatives, such as "woefully inadequate" • Avoid jargon. Write as though you are presenting the information to a friend who has no knowledge of what you do • Write for the reader, with an understanding of their level of knowledge and their perception of the issue • Avoid the use of words or concepts that may be controversial • KISS - keep it short and simple, but say all that you need to say. They may have stacks of requests to sift through • Make it clear and logical © GPO • 2002
  23. 23. Then What? • KEEP TRACK - When is a decision likely? • NO REPLY? - Try a gentle prompt • YES - Thank them! - Report back (interest) - Invite to visit (involve) - Send Action etc – [inform] • NO - Thank them! - Speak to them (interest) - Invite to visit/meet (involve) - Send Action etc – [inform] © GPO • 2002 REPORTING PROCEDURES Keep the funder informed of the progress of the work • Follow any given reporting guidelines/requirements.
  24. 24. • If these are not clear, clarify with the funder. • Ensure you report to the funder on time. • Invite the funder to become involved where appropriate (attending launch events etc). • Keep reporting information brief and to the point, with a fuller report at the end of the grant, including whether the objectives of the work were met. • Enclose relevant information with your report such as financial update, publicity materials and photographs. • Offer the funder the opportunity to discuss the work or to request more information at any time. • If there are problems with the work, keep the funder fully informed. • If you are planning any changes to the way you are going to spend the money from what was originally proposed, seek OFFICE SERVICES the funder’s permission first. Be prepared to ADMINISTRATION FUNDRAISING change your plans or payback the money if ORGANISATIONAL SKILLS they decline permission. • Inform the funder of any key staff changes or funding information. © GPO • 2002 different ways, and very often the 'advisor' or the 'expert' being used can have little or no knowledge of the charity and its fundraising practice. It is therefore timely that charity fundraisers are given some guidelines on best practice and the opportunity to take a full and informed role in the development of their organisation's online conduct. The committee which developed this guide ICF INTERNET FUNDRAISING GUIDELINES brought together a wide range of relevant skills. These included legal, consultancy, INTRODUCTION online donation handling, online event management, trading, research, and web UK charities have been using the Internet publishing. Fundraisers and since the mid-1990’s. Today, the number of suppliers/agencies were both represented. charities using the Internet in increasingly diverse ways is mushrooming, and with it The guidelines presented here address grows the range and number of online Internet fundraising in two parts. Firstly, fundraising opportunities that they are being they cover your charity's own organisation's offered. Charity web sites spring up in web presence in terms of its web site(s)
  25. 25. and e-mail communications. Secondly, they fundraising using the web and e-mail and cover relationships with third parties who do not specifically address other new media provide charities with a wide range of online issues and channels such as digital TV, services. They are designed to be used by mobile telephones and handheld devices. all members and affiliates of ICF. The advice here is intended to be general enough to be useful when considering other A basic awareness and experience of the media. We have made every effort to avoid Internet is assumed but otherwise the built-in obsolescence wherever possible. guidelines are designed both for those new to using the Internet to fundraise and for We would those with more experience. encourage anyone who Many of the guidelines will be familiar, since has a query, an issue or an addition to rules covering data protection, trading, these guidelines to contact the ICF. It is our contracts and other legal requirements intention to ensure this document is apply as much to online fundraising as to updated at appropriate intervals, to keep traditional fundraising. Ethical pace with the inevitable changes in online considerations are included also but for the fundraising practice. largest part the guidance is of a practical nature. FUNDRAISING USING YOUR CHARITY'S INTERNET PRESENCE The Internet is a vast field and, whilst not OnLine handling of personal data every aspect can be covered here, in their The capture and entirety the guidelines handling of may still appear onerous to some personal data organisations. Not all of what is contained online can be a here will apply in every case. sensitive area, particularly when it comes to The guidance can easily be prioritised into the methods used to capture information on what is law, what is specifically visitors. Transparency is usually the best recommended by the ICF and what is policy. The Data Protection Act 1998 understood to be best practice. Charities specifically covers the handling of personal must balance the information offered here data using the Internet. with their organisation's overall context and priorities and form their own judgements. Do not use Nevertheless, we would caution ICF unencrypted members and affiliates to pay attention to pages for taking the fact that managing your credit card payments or donations. Do not charity's Internet presence use unencrypted e-mail to send or receive and fundraising is also credit card payments or donations and about managing your actively discourage people from e-mailing charity's reputation and their credit/debit card numbers to your risk. Charities have been charity. State clearly on your Web site, e- known to mischaracterize mail list or other communication how you their relationship with a dotcom as will use individuals' personal data e.g. to philanthropic or to fall into unrealistic mail or e-mail supporters with information contracts but, as with any contract for related to your charity or other service, charities should consider all their organisations' sites, products or services to online agreements carefully and enlist the contact supporters in the event of a advice and expertise of relevant people necessary communication exchange where they have any doubts or concerns. requested by you or initiated by your There can simply be no replacement for charity, such as to confirm or check due diligence in both the short and the long supporters' donation details to use in run for any charity embracing the web. aggregate form, that is not personally identifiable, for analysis to help your charity Finally, these guidelines focus explicitly on improve its services and products. Ensure
  26. 26. that any consent obtained complies with the of propagating chain e-mail letters, virus Data Protection Act 1998. Explain clearly "warnings", and other inappropriate how individuals may edit or delete their attachments. details at any time, or request such changes. Personal data should either be The more advanced the site, the more held offline and not on the live Web server chance that all sorts of different or be held securely behind a firewall or in a copyright works have been used e.g. non Web-accessible database to prevent photographs, music, film, sound, unauthorised access. ICF recommends graphic design and animation. Check that you be as transparent as possible, you have the necessary global for example in declaring how you intend permission to use any copyright works to use personal information collected by not created by employees of the charity. your charity's Web site. Cover how your If your Web site has been designed by visitors' movements/activities are an agency, get them to warrant that the tracked (if at all) and whether income is site does not infringe any third party generated simply by clicking through rights and that you have the necessary links to commercial participators. licences to use all the software involved Fundraisers should at no time use or in running the site. Some specialist encourage unsolicited commercial e-mail software companies will give permission (spam), where individuals have not given free of charge to charities. their consent for their details to be released or used. Fundraisers should understand Check as well that all assets and integral that currently even the use of legitimate e- components e.g. scripts, used to create mail lists purchased from third parties can the sites are assigned to you on cause donor resentment and damage delivery; this should be clearly stated in public confidence in the sector. the contract. For example, components could include copy, code, programs, Acceptable Use Policy images and sound files. However, this may not be always possible. Some In using the Internet to fundraise and companies share code across clients, conduct other activities charities will give and therefore cannot assign the Internet access to paid staff and volunteers. intellectual property rights to a single In doing so charities should act to protect client. In these instances, you should both the organisation and individuals from insist that your charity is given a lifetime any use or misuse of this access. Charities licence to use the code and develop it should seek legal advice on establishing 'for non-commercial gain'. It is also such an Acceptable Use Policy. handy to ask for a detailed style sheet of the site's design so that you know which Such a policy could include the following fonts and colours have been used. issues:- You could should not infringe someone Whether personal use of the Internet is else's intellectual property in other ways acceptable, and if so at what times. e.g. words used as "metatags" can Instruction in responsibilities with regard to infringe registered trade marks (so adhering to copyright and other intellectual ensure that you have permission to use property legislation. Whether access to them) linking to other sites without certain Internet resources e.g. pornographic permission could give rise to copyright Web sites are not permitted from a charity infringement claims. It is good practice PC/Mac or other access device. Staff to seek such permission. You might should be expected to monitor and respond also choose to ensure that external sites to e-mail messages within a set period. linked to on your charity's site should Compliance with requests to remove e-mail open in a new, separate browser addresses and other personal data from window, so that you do not alter the your charity's database. The transmission external site's page layout in any way. of e-mail that may be deemed harassing, libellous, defamatory, obscene, threatening, If your Web site includes a chatroom, or abusive or hateful to recipients. Avoidance noticeboard, guestbook, or archived copies
  27. 27. of e-mail discussion lists, then you could be all documents soliciting money (Charities held liable if you allow libellous statements Act 1993 Section 5). It is sensible to to be published on the site, however assume that documents soliciting money temporarily. include web-sites and emails soliciting money. Anyone who designs a site and ICF recommends that you speak to your fails to include this is guilty of an offence legal advisor and your charity's and liable to a fine of up to £1,000. The insurance company to establish what charity number should also be included as kind of AUP best suits your charity. This a matter of course, as this will give some will help you to identify areas where you donors a sense of security that their money need to protect yourself or your staff is going to a regulated charity. Of course, and limit any liability you may have. In some charities may wish to have the site most cases you can assume your owned by their trading subsidiary. Internet activities are excluded from your insurance cover unless you have Remember that codes of practice such as asked explicitly for them to be assessed. the British Codes of Advertising and Sales Minimum legal statements for a Web site Promotion apply equally to the Internet. ICF recommends that all applicable Charities that are companies should also items from numbers 1 to 6 should be show their registered company number, included on your web site and that a status and registered office address. copyright symbol should appear on every relevant page. Setting up secure/encrypted online donation systems Company registration number • Privacy policy • Security statement (on personal Authorising payment by credit or debit card data handling) • Copyright statement. securely on the Internet requires expensive, complex hardware and software systems. It Terms and conditions of use, and is much easier and substantially less disclaimers e.g. regarding accuracy or expensive to contract a third party to currency of data, and external links to third- authorise credit and debit cards online for party Web sites. your charity. Charities should also consider displaying Before you can accept credit/debit card prominently and consistently their logo or donations via the Internet you should have:- trademark, together with the logos of any relevant membership organisations or • A bank business account kitemarks to which they belong or • An online merchant ID (arranged by subscribe. the bank) • Optional online BACS authorisation Copying from Web sites happens all the for paperless direct debit time and is difficult to prevent. However, if • A Web site you use the © symbol on all your pages, it shows that the charity is the copyright These are not essential, but will reduce owner of material on the site and acts as a costs and increase the number of suppliers warning against copying. On the other who will deal with you if you have them. hand, there are some pages you might Once these elements are in place, you will want actively to encourage visitors to copy need to set up a secure payment system, e.g. sponsorship or donation forms, so where credit/debit cards are authorised make it clear which pages can be printed online. off. There are more than a dozen companies If your organisation is a registered charity that securely authorise credit card with gross income in the last financial year payments/donations via the Internet in the of more than £10,000, UK. Some companies will charge a set up then its status as a fee (anywhere from between £100 to registered charity must £2000), others will not. be stated in English on
  28. 28. Most companies will charge between 0% One of the difficulties with the Internet is and 5% of each donation to maintain the that while you could (and should) make service: 5% is the commercial rate and 2% sure that your Web site complies with all is the average charity rate. If you receive a relevant UK law, it currently seems an free service, you might not be entitled to impossible task to ensure a Web site much support. complies with the laws of every country from which it could be accessed. However, See Appendix 1 for a checklist on selecting some countries (and in particular some US a secure online credit card handling states) are taking active steps to require supplier in terms of range of services, Web sites accessible by their nationals to security, handling of fraud, administration be compliant with their local laws. and reporting. ICF recommends that you read the contract with your Internet credit Ways to minimise risk include:- card payment provider carefully. Check to • make clear that your site is only see where you are required to indemnify or intended for fundraising in the UK otherwise protect the company against any • ensure you can react quickly if a legal action or injury. Consider your rights problem arises and you need to and responsibilities, the company's and the change the content of your site. customer's. Do not sign anything with which you are not entirely happy. If in doubt, ask FUNDRAISING USING A THIRD- the service provider to give you examples PARTY'S INTERNET PRESENCE of what particular clauses could apply and Practical ask if any cases have arisen already. Charities are receiving Trading - selling goods or services via offers from third-party the Internet organisations such as companies and non- Current legislation prohibits the sale of profits to provide online charity society lottery tickets via the fundraising services. These include online Internet. This is because the lotteries shopping malls, cause related marketing legislation prohibits sale of society lottery programmes, online events management, tickets "by machine". If you are selling donation handling services and many other goods via the Internet (for example, you services. have included your usual catalogue on the charity's Web site), then you must make To assess the benefits of proposals from sure you comply with The Consumer such third-party organisations it is worth Protection (Contracts Concluded by Means considering the following:- of Distance Communication) Regulations 2000. These came into force on 31st Avoid signing exclusivity agreements as October 2000. these can limit your charity's options. Is the organisation's contract flexible enough to If you are advertising fundraising events run cover your charity's requirements and by the charity's trading subsidiary (such as concerns? Will the organisation adapt it to challenge events) or if you are advertising meet your needs? Would you as an merchandise sold through the trading individual buy in to the proposed service? subsidiary, you do not necessarily need a Can you work with the staff at the separate site for the trading company's organisation? With new start-up companies activities (though there may be VAT without a track record, this can be one of benefits to doing this). But the relevant the few key elements on which you can pages should make clear they are activities judge them. Will the site be accessible to carried out through the trading company. people with disabilities using the Web? Do The charity should recover from the trading not deny yourself a large market: for subsidiary a proportion of the costs involved example, 1.7 million people in the UK have in setting up and servicing the site. serious uncorrectable sight loss. Is the organisation aware of the Web site Global issues amendments required to address this issue, and will they undertake to address them?
  29. 29. Promote accessibility of all fundraising shared revenue schemes between the materials to all Internet users irrespective of organisation and your charity? How long disability. Ensure reasonable backward will it take the money to reach your bank compatibility of material with regard to account? Does your charity incur any browser software and type of hardware. costs e.g. for marketing, bank fees, receipts This is most easily done by providing a text of acknowledgements to donors? Does only version of the site. RNIB publishes your charity need to consider acquiring guidelines at www.rnib.org.uk/access. insurance or indemnities with regard to Alternatively, sites can be checked using a liability? Consider preparing a response to free service from CAST at offers and enquiries from Internet www.cast.org/bobby. fundraising companies. Set out your fundraising plans and minimum Conduct due diligence requirements from organisations you are checks to find out if the prepared to work with. For example, do you organisation and its business are have ethical trading criteria? What sustainable. How is it funded? What documents do you expect to see from an commitments does it owe to its financial organisation? This checklist will help you backers and shareholders? Is its business assess approaches made. A response to plan realistic? Seek references from the an approach from an online fundraising organisation's bank and from other organisation could be: Compare the participating charities and business proposal with your charity's checklist e.g. partners where possible. What does the exclusivity, financial data, ethical concerns, organisation ask of participating charities in your fundraising priorities. Educate them terms of marketing? Is the marketing and request that they submit a proposal planned by the organisation realistic and specifically for you. Evaluate the proposal sustainable? Avoid organisations that and decide on the options available. If you expect charities to conduct all the marketing decide to continue, perform due diligence activity on their behalf. Can the organisation and sign a contract that reflects your provide you with statistical reports on the charity's requirements. ICF recommends number and quality of visitors generated by that you take care not to confuse offers and its marketing? How will you allow your arrangements with dotcoms or commercial charity's name and brand to be used by the services providers as philanthropic organisation in its efforts at audience initiatives. Avoid services where the acquisition? company cannot offer you some evidence of its sustainability and audience potential. Is there a limit on the These things can be more time-consuming number of charities or and wasteful than they appear at first! the number per market sector? On some sites this will increase income for Contracts participating charities, on others it will limit Contracts can be time- it. Does the organisation's site take other consuming and difficult to forms of online payment in addition to credit understand. The Internet arena is no cards e.g. direct debit payments from bank exception. All the more reason to exercise accounts? This could expand the number of due diligence and consult with others to supporters likely to make an online ensure that you are comfortable with what transaction at the site. Have they taken into you are signing up to and that you are account tax efficiency issues and are they being treated fairly. able to offer online tax reclamation of any donations? What is unique about the ICF recommends that you show any organisation's offer? Why should your agreement to your charity's compliance charity work with them and not similar officer, financial director, legal firm or online fundraising companies? With regard insurance company before signing. to trading Web sites, does the organisation Consider drawing up your own contract offer a customer charter covering issues or seek amendments to the standard such as their delivery commitments and contract offered by the organisation. their returns and/or refund policy? Is this acceptable? What is the revenue split in Avoid signing
  30. 30. Non Disclosure Agreements. Consider • How are you compensated if they offering written confirmation that all are not met? conversations, whilst active, are • How important is your organisation commercial and in confidence and will not to the supplier? If your business be shared. Contracts with online fundraising accounts for less than 0.1% of the organisations may need to comply with the supplier's turnover, you are unlikely Charities Act 1992 and its definitions of to receive a premium service so you "commercial participator" or "professional might do better with a smaller fundraiser". In these cases, the obligations supplier. to make statements and have agreements covering minimum terms will apply. Some relevant legislation Be clear - Computer Misuse Act 1990 what your - Data Protection Act 1998 charity's Copyright Designs and Patents Act liability 1988 could be should anything go wrong. A Consumer Protection (Contracts formal agreement should specify the Concluded by Means of Distance degree of liability which the Internet-based Communication) service provider assumes to the donor, the Regulations 2000 charity and third parties for information, Broadcasting Act 1990 transaction handling and losses related to Contempt of Court Act 1981 the Internet-based service provider's Universal Copyright Convention, administration of a donation. Consider Geneva 1952 financial losses and brand reputation. Berne Convention for the Protection Include a termination clause in the Service of Literary and Artistic Works, Berne Level Agreement, such that the contract 1886 can be terminated if customers are not receiving a sufficiently high quality of Useful resources service. Immediate termination should come into place if the partner brings the http://embark.to/fundraisingatgowenco charity's name into disrepute, and income - Messrs G Owen & Co (e-Mail: from existing customers should still be gowenanco@yahoo.com) protected even though the active agreement fails. Contracts should specify www.computeruser.com/resources/dictionar explicitly data ownership, not only of y/ standard personal data but also of related - High-Tech Dictionary from Computer data e.g. tracking of individuals' User preferences and movements throughout a site via "cookies" and other methods. www.cafonline.org Contracts regarding licensing or syndicating - Charities Aid Foundation (tel. 01732 content should include delineating 520 000) responsibility for a charity's content on an external/third-party site. In certain cases, www.charitycommission.gov.uk service level agreements should be - Charity Commission for England and established. These should make clear Wales issues such as:- (tel. 0870 333 0123) www.dataprotection.gov.uk • Will you have a dedicated account - Data Protection guidance tel. (01625 manager? 545745) • If yes, how many other accounts does he/she manage? www.fundraising.co.uk • Can you speak directly to the - UK Fundraising (tel. 020 8640 5233) technical support team? • What levels of service are www.horwathcw.com guaranteed? - Horwath Consulting (tel. 020 7583
  31. 31. 1577) www.freeserve.com - Web Site ISP www.rnib.org.uk/access - RNIB's advice on accessibility in www.hotwired.lycos.com/webmonkey/design electronic /graphics publishing (tel. 0845 766 9999) - Graphics & Web Tutorials www.scvo.org.uk - Scottish Council for Voluntary www.tucows.com/ Organisations - Graphics & Web Tutorials (tel. 0131 313 2488) www.the-dma.org/library/privacy/ www.pathfinder.com/adinfo/gifbuilder.html - help in constructing an online policy - Gifbuilder – Web Animation document. www.download.cnet.com/downloads/0-102 www.fundraising.co.uk/other_fr/scams.html 15-108-19334.html? - possible fundraising frauds/scams tag=st.dl.10215.upd.10215-108-19334 - Graphics & Web assistance www.smartchange.org.uk/ - fundraising www.stud.fh- heilbronn.de/~jdebis/leechftp/download.html www.justgiving.com - Graphics & Web assistance - Government sponsored fundraising site www.charitiesdays.net - fundraising site www.giftaid.org.uk - All about Gift Aid APPENDIX 1 www.charitycard.org.uk - Donating via the Web Choosing a secure online credit card processor www.vouchers4charity.org.uk - Buying gift vouchers for family/friend The level of service, security and customer - % goes to charity care offered by online credit/debit card processors varies dramatically. When www.inlandrevenue.gov.uk/payrollgiving choosing an online credit card processor, it - Tax concessions on giving via the would be advisable to ask the following Payroll questions:- www.premiumserve.com/donations Range of services - Donating via the Web 1. Do they process both credit and debit cards, including Switch cards? www.charitiesdirect.com It is advisable to go with a supplier - Donating via the Web that processes both. 2. Can they process donations of any www.charitasdata.co.uk amount? Or is there a minimum - Details about charities & donors amount? It's advisable to go with a company that offers a zero floor limit. www.angal.co.uk Does the usage charge increase for - Fundraising collection boxes small payments? www.funderfinder.org.uk 3. Do they process in multiple - fundraising database currencies? If you choose to process only pounds (you are charged for
  32. 32. each additional currency), this does Can a maximum number of failed not mean that people using foreign attempts to make a donation with credit cards won't be able to donate, one credit card be set? it just means that all donations will be made in pound amounts and the Can a maximum number of donor will have to do the maths. Do successful donations made with one they charge extra for processing credit card be set? multiple currencies? Can a maximum number of failed 4. Can they process tax attempts to make a donation from efficient donations e.g. one IP address, which details the Gift Aid donations? location of a specific computer, be Very few online credit set? card processing systems are designed with charities Is the donor's e-mail address in mind - it is advisable to ensure validated before the credit card is that the company you chose can authorised? meet your special requirements. Fraud 5. Do they offer paperless direct debit? Very few online credit card 1. Credit card fraud is a major problem processors currently do. This may on the Internet. Fraudsters typically also have a very high set-up and obtain credit from lists of stolen running cost. cards published on the Internet, or by using illicit programmes to 6. Can they process transactions where produce lists of algorithmically donors have come straight into the allowable card numbers. Fraudsters donation page from an use charity sites to test stolen credit affiliated web site (this card numbers, because they don't can cause security have to go through the lengthy issues, so needs to be process of purchasing a product. carefully handled). Once they've used you to authorise a card, they'll abuse it on other sites. Security 2. It is currently against the Data 1. Do they process credit card Protection Act in the UK and payments for gambling or Germany to capture and cross- pornography web sites? The majority reference someone's postal address of online fraud occurs in these areas with his or her credit card number on and charities may choose to avoid the Internet. As a result the billing online credit card processors that are address of credit cards used online involved in these industries. are not verified by the online credit card processing company. Because 2. When credit card payments are this law has made online fraud in the processed, what kind of security is in UK and Germany easy, the credit operation? card companies, banks and UK Is online live authorisation of cards government are currently re- (involving no storage of details) sent evaluating the law. It may be over a Secure Sockets Layer- revoked in April 2002. In the mean encrypted (secure) link? Are all time, if you plan to ship goods to card details inputted on their site someone who has purchased them sent through both offline (expiry date via your Web site, you should always and hot/stolen card server) and on- verify that the address provided is line (hot/stolen card server, sufficient the billing address associated with funds, authorisation) to prevent use the credit card. of stolen or lost cards on their site? 3. When should you be suspicious that
  33. 33. a donation could be fraudulent? credit card numbers to purchase products or make donations to your The same credit card number is organisation, can the online credit being used from different countries. card processor implement what is known as a deferred payment The same e-mail address is being system? Deferred payment systems used in conjunction with different ring fence funds that have been credit card numbers. donated on the individual's credit card -- but do not actually debit the The same postal address is being card for five days. During this time used in conjunction with different the charity can decide whether it credit card numbers. thinks the donation is fraudulent or not. If the charity thinks the donation Many donations are made in rapid is fraudulent, it can un-ring fence the succession from the same IP funds. If it thinks it is genuine, it can address (an IP address details the debit the card. However, fundraisers location of a specific computer). should be aware that this procedure could add significantly to the The donation is very small (£1 administrative burden. donations should be carefully examined). Although online credit card processing companies are not liable A free web-based e-mail address is for credit card fraud, it would be used, such as Hotmail. Many are advisable to ensure that your legitimate, but when combined with contract with them states that they any of the above the donation should will do everything in their power to be very carefully examined. limit fraud and to co-operate with The e-mail address does not match your bank and international police to the IP address of the machine the track down fraudsters, once they donation was made from. have been identified. 4. If credit card fraud occurs, what can 5. If credit card fraud occurs, what your online credit card processing should you do to stop it? company do to stop it? Can they:- Report the stolen card numbers to Block the fraudster's IP address? your bank. Remember that the computer could Reimburse the cards that have be located in an Internet cafe, or been fraudulently used. large organisation such as AOL or FreeServe, where many computers Ask your online credit card can appear to have the same IP processing company to block the address. Block the fraudster's e- fraudsters' e-mail and IP mail address? Most fraudsters’ use addresses. free, Web based e-mail such as Hotmail -- some online credit card Implement a deferred payment processors will send you a warning system if the fraud continues when a donation has been made by somebody using this kind of e-mail Administration address. Implement an intelligent software What kind of online administrative systems system that develops a profile of are provided? typical donor behavioural patterns and warns you if a donor's behaviour Can you edit the layout and content of your varies from this norm? secure payment pages via the Internet? Can you use this system to launch one or If fraudsters continued to use stolen more new appeals in a matter of minutes?
  34. 34. How many appeals can you run donors? simultaneously? - IP address? Resolved IP address? Can they be different e.g. one-off - How are the donation reports donations, prompted levels of giving, direct formatted? It is advisable to ensure debit/regular gifts? that the online credit card processing If you are a membership organisation, how company can supply you with reports many membership ID numbers can they in a format that is compatible with provide you with? your internal donor database so that Can you view reports about the number, every record doesn't have to be quantity, and origin (donor details) of keyed in by hand. donations online at your convenience? APPENDIX 2 Can you reimburse credit cards that have been fraudulently debited via the online Glossary system? Can you reimburse credit / debit cards for Encryption: a method of encoding other reasons, not only due to fraudulent sensitive data, such as donor records and use? credit card numbers, so that it might be Can you utilise the deferred payment stored or transmitted safely. system online to un-ring-fence or claim Extranet: a private or restricted access donations? computer network usually operated by an What kind of security at your charity and at organisation. Unlike an intranet, an extranet the payment service provider is used to is made accessible to other relevant ensure that only authorised personnel have organisations or individuals such as access to the above systems? Passwords? suppliers as well as to the organisation's Certificates (digital)? Certain IP addresses employees. only? Internet Protocol: a standard method of Reports naming and identifying a particular computer connected to the Internet using a - What kind of confirmation does a unique series of numbers. The shorthand donor receive after having made a "IP" is more common. donation? Intranet: a private restricted access - An e-mail sent instantly by the credit computer network usually operated by an card processing system? organisation. Information is stored and - Can this e-mail be customised or retrieved in the same method as the changed? Internet but access is restricted usually to - Can your charity do this over the company employees. Web? - Is there a charge for this? IP: see Internet Protocol. - How long does the change take to effect? Meta tags: "hidden" information within a - Can different e-mails be sent to Web page that describes the content and different people? other qualities of that Web page. The information does not appear when the Web How do they report back to you about page is viewed, but is used by search donations:- engines to interpret further the text content of Web pages. - Is an e-mail sent to you every time a donation is made? Offline: not connected to the Internet or - Is a daily report e-mailed to you other computer network. about all the donations that have been made that day? Online: connected to the Internet or other - Is a monthly report e-mailed to you computer network. about all the donations have been made that month? Secure server: a server that features - What information is provided about
  35. 35. encryption facilities. Documents stored and information entered on a secure server can be encrypted and protected from unwanted access. Secure sockets layer: a standard and widely used method of data encryption. Server: computer that is connected to the Internet and on which documents are stored. It serves or publishes these documents when requested by other computer users. Style sheet: a standard method of defining how text and graphics should appear on one or a series of Web pages, including font size, colour and alignment. Web: see World Wide Web World Wide Web: a method of storing and retrieving information, including text, graphics, video and sound. Relevant documents on multiple computers are linked using hypertext, a global standard method of connecting. © GPO • 2002

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