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



               Produce...
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...
Turning Suspects into
                      Prospects
Steps to work through:
• in-depth research assessing:

    - localit...
Checklist for identifying
                       Trusts / Foundations
• Have they donated previously?
    - Check computer...
Applying to Companies

This section gives basic information for             • Because the Chairperson or other
putting tog...
•
•   organising a fundraising campaign            As a first step you might contact the
    amongst employees;           ...
Be clear about why you need the money            never support you. Go back a second and
                                 ...
One big problem is the ownership of              policy remains a purely local matter for
seemingly independent companies....
Smaller local companies                            •   You should state why you need the
                                 ...
• As for something specific. It is all too easy   • If you do not succeed, go back again next
to make a good case and then...
Charities Trust voucher. But more often they
will say no.

There may be various reasons given or
phrases used by a company...
PREPARTION # HOME
                     WORK
Identify the need and research study

    •    What is exactly required
    • ...
CASE STUDY # EXAMPLE
NEWHAM YOUTH LODGE HOSTEL PROJECT:

Picture for a moment the expression of a child’s face and what mi...
Worked with architects and QS to prepare works specifications and tenders. Liaised and work
with final appointed contracto...
disabled and separate funding secured to provide for this, e.g. wider doors, disabled toilets &
showers, ramp, easier acce...
FROM THE DONOR'S
                  POINT OF VIEW
• Is this project within our policy,
  priorities and area of benefit?

•...
10 Top Tips
 1] Address your appeal to the right person
 2] Tailor your appeal to the prospect
 3] Include a clear stateme...
GETTING BEYOND THE
             WASTEPAPER BIN!
PLAN AHEAD
           • Think in terms of months not weeks

           • t...
Common Pitfalls
       • "Dear sir/madam". There is no excuse for not addressing a named
         correspondent and prefer...
WRITING YOUR
                            APPLICATION
EXECUTIVE SUMMARY - A brief outline of the proposal
               • ...
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!...
REPORTING PROCEDURES
               Keep the funder informed of the progress of the work

• Follow any given reporting gui...
covered here, in their entirety the guidelines
INTRODUCTION                                     may still appear onerous t...
The capture and      cause donor resentment and damage
                             handling      of     public confidence...
delivery; this should be clearly stated in      Company registration number • Privacy
the contract. For example, component...
Setting up secure/encrypted          online    of what particular clauses could apply and
donation systems                ...
FUNDRAISING   USING   A   THIRD-                  organisation's bank and from other
PARTY'S INTERNET PRESENCE            ...
organisation could be: Compare the                formal agreement should specify the
proposal with your charity's checkli...
Communication)
      Regulations 2000                         www.smartchange.org.uk/
      Broadcasting Act 1990         ...
19334.html?tag=st.dl.10215.upd.10215-                 Gift Aid donations? Very few online
              108-19334         ...
location of a specific computer, be        used in conjunction with different
        set?                                ...
card -- but do not actually debit the       provide              you              with?
      card for five days. During t...
your internal donor database so that
       every record doesn't have to be          Server: computer that is connected to...
FUNDRAISING - FINANCIAL
          MATTERS
1. REPORTING TO FUNDERS
   (1) Find out what they want:

(a) Application/Budget
...
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
Fundraising from Companies + Charitable Trusts/Foundations & through the Internet
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Fundraising from Companies + Charitable Trusts/Foundations & through the Internet

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(Fundraising eBook Published by Mr Gordon Owen) - Download via Kindle:

Guide and reference to fundraising techniques, things to consider, and contacts for new, small, and emerging Groups/ Organisations in the Charity Section seeking to improve their engagement with potential finders in the Corporate and Charitable Trusts/Foundations sectors

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Transcript of "Fundraising from Companies + Charitable Trusts/Foundations & 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.
  5. 5. Turning Suspects into 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.
  6. 6. Checklist for identifying Trusts / Foundations • 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.
  7. 7. Applying to Companies This section gives basic information for • Because the Chairperson or other putting together applications to companies. senior managers have a personal interest in that cause, this is particularly the case for To make an effective appeal to industry you smaller companies. Even where a company must have a basic understanding of why has well-established criteria for giving, if you firms give. This enables you to put forward can get a friend of the Managing Director to good reasons why they should support your ask on your behalf, you are more likely to get work. Some companies in this guide receive a donation, even when your cause does not up to 100 applications each week. You need exactly fit those criteria. to make a good case for yours to be successful. A company will not be Generally it is worth emphasising the sheer particularly impressed with a general plea to chaos of company giving. Few companies 'put something back into the community'. have any real policy for their charitable They want something more substantial. You giving. Mostly they cover a wide range of should be able to demonstrate a clear link good causes or attempt to deal with each with the company, be it geographical, appeal on its merits. product, employee contact, or some other connection. However, some companies do have a clear policy. Where policies are printed please Why companies give? respect them; dealing with a mass of clearly The main reason for company giving is often inappropriately applications is the single said to be enlightened self-interest, rather biggest headache in corporate giving and than pure altruism and they see their giving has caused some to consider winding-up as 'community involvement' or' community their charitable support programmes investment'. The following are some of the altogether. reasons why companies’ give:- clearly inappropriate applications is the single What companies give? • To create goodwill. Companies like to be seen as good citizens and good There are a variety of ways in which neighbours, so they support local charities. companies can support charities:- They also like to create goodwill amongst employees. Contributing a senior member • cash donations; of staff to the charity's • sponsorship of an event or activity; • sponsorship of promotional and • To be associated with certain causes educational materials; that relate to their business. Mining • sponsorship of an award scheme; companies often like to support • joint promotions, where the company environmental projects, pharmaceutical contributes a donation to the charity in companies health projects, banks return for each product sold in order to economic development projects and so encourage sales; on. • making company facilities available; secondment of a member of staff, where Because they are asked and it is expected a member of the company's staff helps of them. They know that other companies on an agreed basis whilst remaining also receive appeals and give their support. employed (and paid) by the company; They will often support trade charities such • contributing a senior member of staff to as a benevolent fund or an industry research the charity's Management Board; organisation; beyond that they will probably • providing expertise and advice; pitch their level of giving more or less at that • encouraging employees to volunteer; of their rival. © GPO • 2002.
  8. 8. • • organising a fundraising campaign As a first step you might contact the amongst employees; company to find out the following:- • advertising in charity brochures and publications. • who is responsible for dealing with charitable appeals Key factors in approaching companies • their name and job title Research • what information theyof ansend regarding ~ sponsorship can award scheme Research is very important, not just into their company companies, but also into personal contacts. When planning an appeal, an important first • any procedure or timetable for submitting step is to find which of the people associated applications with your charity have influence or know people who have. If you can find a link • whether they might be interested in coming between one of your supporters and a to see your organisation at work. particular company - use it. Visitsfirst step is to find which of the people are useful when discussing bigger • One of your trustees/members may be on donations with the larger companies, but are the board of directors or have contacts difficult to arrange for anything small. there - it will • prove useful for them to write or sign the Almost certainly your appeal will be in the appeal letter. form of a letter. Make this as personal as • One of your volunteers or supporters may you can. Circular letters tend to end up in the be an bin. Make the letter short and to the point. • employee of the company. Be specific in your approach • Your clients/users (or their parents) may work for the company. Rather than sending out a circular mailing to 100 or 1,000 companies, you will be more Alternatively, you might be able to tie your successful if you select a few companies you appeal in to a known personal interest of a believe will be particularly interested in your director. project, and target your application to them and their policy. (Many companies will not Getting in touch consider circular appeals as a point of policy). Generally an appeal through a personal contact will work the best. But if you haven't Find a good reason why you believe the got a contact and can see no way of company should support you and include developing one, then you will have to come this prominently in up with another link. your letter. You may be able to relate what a related company's support. If there is no you are doing as a charity to companies relationship, should you be approaching that which have some relevance to your work; for company at all? A health education charity example, a children’s charity can appeal to may not want to accept money from a companies, making children’s products tobacco or brewery company or from the companies, a housing charity to construction confectionery industry, or similarly an companies, building societies, etc. Any environmental group may not wish to accept relationship, however tenuous, creates a a donation from a nuclear power company. point of contact on which you can build a These may feel that as a result of doing so good case for obtaining the company’s they would be seen to be compromised. support. If there is no relationship, should Similarly, a local charity might not want you be approaching that company at all? money from a company who has made people in the area redundant. Each charity There may be occasions where a charity will has to judge where it draws the line. not want to accept money from a company in
  9. 9. Be clear about why you need the money never support you. Go back a second and even a third time. You must be clear about the objectives of the work you are raising money for, If you are going back, mention the fact that particularly its time-scale and how it relates you have applied to them previously, to your overall programme of work. Try to perhaps saying that you are now presenting think in project terms rather than seeking them with something different which may be money to cover basic administration costs. (you hope) of more interest to them. This can be difficult, because most people spend most of their money on administration If they give you reasons for refusing support, in one form or another, so you need to use them to help you put in more appropriate conjure up projects out of your current applications in the future. If they said that activities to present to potential donors. You they do not give to your particular type of can build a percentage of administrative activity then you know that it is absolutely no costs into the costs of the project. If you use your going back. If they said their funds relate what you are doing to a specific time- were fully committed, you can try to find out scale, this again makes what you are when would be a better time to apply applying for more of a project than a (although it might only have been a contribution to your year-on-year core costs. convenient excuse because they did not want to give to you). Be persistent Note the response to your appeal and use Do not underestimate the persistence factor. any information you can glean to improve If you do not receive a donation in the first your chances the next time. People respect year, do not assume that the company will persistence, so it really is important to go back again and again. How to find out which firms to approach? • The Directory of Directors and Who's Who are useful for finding out more The firms to approach must depend on what about company directors. sort of organisation you are. If you are a • Corporate Register - updated national organisation then an appeal to the quarterly - a guide to makers in UK country's leading companies is appropriate. Stockmarket companies. Local groups should approach local firms and local branches of national companies For local companies in addition to this which have a presence in their area. All guide: organisations can approach companies in allied fields: for example, theatres can • The appropriate regional section of appeal to fabric companies. Kompass. • The local Chamber of Commerce. You will find the names and other details of • Confederation of British Industry – companies in a whole series of useful Regional contacts. directories and publications. • The Institute of Directors. Sources of information: Whichever directories you are using make sure they are up-to-date copies. Company • The Times 1,000 personnel and/or donations policies change • The Kompass Register of British regularly. Industry & Commerce – [available in regional sections] If you want gifts in kind, you should find likely • Guide to Key British Enterprises suppliers of what you need. Trade • Stock Exchange Official Year Book associations will often provide a list of its • Jordan's Top Privately Owned member companies. Another idea is trade Companies – [2 volumes] list of its member companies. Another idea is trade exhibition catalogues which give To find key contacts in companies: details of all exhibitors.
  10. 10. One big problem is the ownership of policy remains a purely local matter for seemingly independent companies. Many company management in the country companies are in fact a part of a much larger concerned. concern. In recent years there has been a substantial number of mergers and Leading national companies take-overs, plus the buying and selling of business between corporations. A useful Many support large national charities, of source of information is the directory Who which many have departments set up to Owns Whom, which has a subsidiary index raise money from companies. Some make listing most subsidiaries of companies grants through regional offices and most will included in the guide. You can also use give preference to charities local to their company annual reports, which (for most main operating sites. companies) can be obtained on request. These reports provide good background Larger local companies information on the company, and occasionally information on the company's In any city or region there will be large corporate support programme. Some private companies who are important to the local (and occasionally public) companies will not economy. These companies will often feel a send out annual reports except to responsibility to do something to support shareholders; in such cases you can go to voluntary action and community initiatives in Companies House to get hold of a copy. The those areas, and value the good publicity main offices are situated in Cardiff, that this will provide. It is a good idea to form Edinburgh, Belfast and London, with satellite some kind of relationship with larger offices in Birmingham, Glasgow, Leeds and companies in your area 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 a choice. With others, community involvement senior company officer, or a member of their staff is actively involved in your There are also companies that have a work. regional remit, such as water, electricity and • There is some good reason to write to television companies. The support of these that particular company. The fact that companies is usually confined within these the company makes a profit and your regional boundaries. group needs money is not a sufficiently strong link.
  11. 11. Smaller local companies • You should state why you need the money and exactly how it will be Almost everyone is targeting the large spent. The letter itself should be companies, because good information is straightforward. It should include the available on these for fundraisers and there following information (not necessarily is little available information on smaller local in this order): what the organisation companies. Many of these are privately does and some background on how it owned and the approach will often be was set up; whom the organisation through the ‘Chairman & Chief Executive’ or serves; why the organisation needs ‘Managing Director’, or ‘Senior Partner’. funds; how the donation would be Most of these companies will have no spent if it were to be forthcoming, and policies about what to give to and may prefer why you think the company might be to give in kind, for example a prize for a interested in supporting you. raffle, or a fundraising event. It might be easier to approach these companies for this • You should attempt to communicate sort of support in the first instance; and later the urgency of your appeal. on, (once they have given something), to Fundraising is an intensively persuade them to make a cash donation. competitive business; there is a limited amount of money to give have Constructing an Appeal Letter to ensure that some of it comes your way. If it appears that although you Important points to consider:- would like the money now it would not matter terribly much if you got it next • Think up a project or aspect of your year, this will put people off. But don't work that the business sector might give the impression you are like to support. Generally, do not fundraising at the last minute. Show appeal for administration costs or a them you are professional and you contribution to an endowment fund have carefully planned your (although there will be cases where fundraising appeal. You should also this approach will succeed). try to show that your charity is Recognise that companies are likely well-run, efficient and cost effective in to be interested in some ideas and how it operates. not others. For exarnple, a drugs charity would be more likely to get • You should mention why you think the money for education than company should support your cause. rehabilitation. An appreciation of the This could range from rather kind of projects that companies like to generalised notions of corporate support will be very helpful to you. responsibility and the creation of goodwill in the local community to • Your letter should be as short as much more specific advantages such possible. Try to get it all on one side as preventing children painting graffiti of A4. You can always supply other on their factory walls or the good information as attachments. Company publicity companies will get from people are busy. You can help them supporting your cause. If the firm's by making your appeal letter short generosity is to be made public, for and to the point. It should be written example through advertising or any clearly and concisely and be free from publicity arising from the gift, then jargon. Someone not acquainted with emphasise the goodwill which will what you are doing should be able to accrue to the company. Most read and understand it and be companies would say that they do not persuaded to act on it. Give your require any public acknowledgement letter in draft to someone outside your for the contributions they make, but charity to read and comment on most will appreciate and welcome before finalising it and sending it out. this.
  12. 12. • As for something specific. It is all too easy • If you do not succeed, go back again next to make a good case and then to mumble year (unless they say that it is not their something about needing money. Many companies, having been persuaded to give, The Application Letter – Checklist are not sure how much to give. You can ask them to give a donation of a specific amount, • Is it only one side of A4? (matched to what you believe their ability to • Does it state what your link is with the contribute to be), or to contribute the cost of company? a particular item. You can suggest a figure • Does it stress the benefits to the by mentioning what other companies are company? giving. You can mention a total and say how • Is it clear why you need the money? many donations you will need to achieve • Is it clear what you are asking for? this. Do not be unreasonable in your • Is it addressed to the correct contact? expectations. Just because a company is • Is it attractive to the company? large and rich, it does not mean that it • Is it endorsed? makes big grants. • Applying to companies • If you can demonstrate some form of’ leverage' this will be an added attraction. policy to support your type of Organisation Company donations on the whole are quite or to give to charity at all). Persistence can modest, but companies like to feel they are pay. If you have received a donation, go having a substantial impact with the money back again next year. The company has they spend. If you can show that a small demonstrated that it is interested in what amount of money will enable a much larger you are doing and in supporting you. It may project to go ahead, or will release further well do it again next year, especially if you funds say on a matching basis from had thanked them for the donation and another source, this will definitely be an kept them in touch with how the 'project' advantage. developed. • Having written a very short appeal letter, How companies reply to you you can append some background support literature. This should not be a fifty-page Many companies will not even reply to your treatise outlining your latest policies, but appeal. A few may acknowledge receipt of like your letter it should be crisp and to the your letter, and occasionally you will get point, a record of your achievements, your thanked for your request and be told that it is latest annual report, press cuttings or even being considered and you will only hear the a specially produced brochure to outcome if you are successful. Up to half of accompany your appeal. the companies you approach will write back depending on the spread of the companies • Make sure that the letter is addressed to you approach. Larger companies have a the correct person at or the correct system for dealing with charity mail, and address. It pays to do this background most will see it as good PR to give a reply. research. Keep all the information on file as Smaller companies which are not giving it will make your job much easier next time. much charitable support will not have the time or the resources to do anything but • If you are successful, remember to say scan the mail and throw most of it in the bin. thank you; this is an elementary courtesy which is too often forgotten. If the company What sort of reply should you expect? If you gives you any substantial amount of do an extensive appeal, you will inevitably money, then you should probably try to get a lot of refusals. These will normally be keep them in touch with the achievements in the form of a pre-printed or related to their donation (such as a word-processed letter or a postcard. between the lines. Companies in trying to Occasionally you will get an individually be polite may in brief progress report or typed letter of reply. If they say yes, you will copies of your annual report or latest get a cheque or a Charities Aid Foundation publications).
  13. 13. Charities Trust voucher. But more often they will say no. There may be various reasons given or phrases used by a company for refusing your request. The company may not mean what it says. Funds may still be available for those appeals the company wishes to support; the company may be able to give support and just not want to; or it may not want to now or in the future. You should try to read fact be misleading you if you take what they say at face value. © GPO • 2002.
  14. 14. PREPARTION # HOME WORK Identify the need and research study • 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.
  15. 15. 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 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
  16. 16. 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 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
  17. 17. 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. 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.
  18. 18. 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? • 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.
  19. 19. 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 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.
  20. 20. 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 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.
  21. 21. 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.
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. REPORTING PROCEDURES Keep the funder informed of the progress of the work • Follow any given reporting guidelines/requirements. • 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 the funder’s permission first. Be prepared to change your plans or payback the money if they decline permission. • Inform the funder of any key staff changes or funding information. © GPO • 2002 ICF INTERNET FUNDRAISING GUIDELINES
  26. 26. covered here, in their entirety the guidelines INTRODUCTION may still appear onerous to some UK charities have been using the Internet organisations. Not all of what is contained since the mid-1990’s. Today, the number of here will apply in every case. charities using the Internet in increasingly The guidance can easily be prioritised into diverse ways is mushrooming, and with it what is law, what is specifically grows the range and number of online recommended by the ICF and what is fundraising opportunities that they are being understood to be best practice. Charities offered. Charity web sites spring up in must balance the information offered here different ways, and very often the 'advisor' with their organisation's overall context and or the 'expert' being used can have little or priorities and form their own judgements. no knowledge of the charity and its Nevertheless, we would caution ICF fundraising practice. It is therefore timely members and affiliates to pay attention to that charity fundraisers are given some the fact that managing your guidelines on best practice and the charity's Internet presence opportunity to take a full and informed role and fundraising is also in the development of their organisation's about managing your online conduct. charity's reputation and risk. Charities have been The committee which developed this guide known to mischaracterize brought together a wide range of relevant their relationship with a dotcom as skills. These included legal, consultancy, philanthropic or to fall into unrealistic online donation handling, online event contracts but, as with any contract for management, trading, research, and web service, charities should consider all their publishing. Fundraisers and online agreements carefully and enlist the suppliers/agencies were both represented. advice and expertise of relevant people where they have any doubts or concerns. The guidelines presented here address There can simply be no replacement for Internet fundraising in two parts. Firstly, due diligence in both the short and the long they cover your charity's own organisation's run for any charity embracing the web. web presence in terms of its web site(s) and e-mail communications. Secondly, they Finally, these guidelines focus explicitly on cover relationships with third parties who fundraising using the web and e-mail and provide charities with a wide range of online do not specifically address other new media services. They are designed to be used by issues and channels such as digital TV, all members and affiliates of ICF. mobile telephones and handheld devices. The advice here is intended to be general A basic awareness and experience of the enough to be useful when considering other Internet is assumed but otherwise the media. We have made every effort to avoid guidelines are designed both for those new built-in obsolescence wherever possible. to using the Internet to fundraise and for those with more experience. We would encourage Many of the guidelines will be familiar, since anyone who rules covering data protection, trading, has a query, an issue or an addition to contracts and other legal requirements these guidelines to contact the ICF. It is our apply as much to online fundraising as to intention to ensure this document is traditional fundraising. Ethical updated at appropriate intervals, to keep considerations are included also but for the pace with the inevitable changes in online largest part the guidance is of a practical fundraising practice. nature. FUNDRAISING USING YOUR CHARITY'S The Internet is a vast INTERNET PRESENCE field and, whilst not every aspect can be OnLine handling of personal data
  27. 27. The capture and cause donor resentment and damage handling of public confidence in the sector. personal data online can be a Acceptable Use Policy sensitive area, particularly when it comes to the methods used to capture information on In using the Internet to fundraise and visitors. Transparency is usually the best conduct other activities charities will give policy. The Data Protection Act 1998 Internet access to paid staff and volunteers. specifically covers the handling of personal In doing so charities should act to protect data using the Internet. both the organisation and individuals from any use or misuse of this access. Charities Do not use should seek legal advice on establishing unencrypted such an Acceptable Use Policy. pages for taking credit card payments or donations. Do not Such a policy could include the following use unencrypted e-mail to send or receive issues:- credit card payments or donations and actively discourage people from e-mailing Whether personal use of the Internet is their credit/debit card numbers to your acceptable, and if so at what times. charity. State clearly on your Web site, e- Instruction in responsibilities with regard to mail list or other communication how you adhering to copyright and other intellectual will use individuals' personal data e.g. to property legislation. Whether access to mail or e-mail supporters with information certain Internet resources e.g. pornographic related to your charity or other Web sites are not permitted from a charity organisations' sites, products or services to PC/Mac or other access device. Staff contact supporters in the event of a should be expected to monitor and respond necessary communication exchange to e-mail messages within a set period. requested by you or initiated by your Compliance with requests to remove e-mail charity, such as to confirm or check addresses and other personal data from supporters' donation details to use in your charity's database. The transmission aggregate form, that is not personally of e-mail that may be deemed harassing, identifiable, for analysis to help your charity libellous, defamatory, obscene, threatening, improve its services and products. Ensure abusive or hateful to recipients. Avoidance 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
  28. 28. delivery; this should be clearly stated in Company registration number • Privacy the contract. For example, components policy • Security statement (on personal could include copy, code, programs, data handling) • Copyright statement. images and sound files. However, this may not be always possible. Some Terms and conditions of use, and companies share code across clients, disclaimers e.g. regarding accuracy or and therefore cannot assign the currency of data, and external links to third- intellectual property rights to a single party Web sites. client. In these instances, you should insist that your charity is given a lifetime Charities should also consider displaying licence to use the code and develop it prominently and consistently their logo or 'for non-commercial gain'. It is also trademark, together with the logos of any handy to ask for a detailed style sheet of relevant membership organisations or the site's design so that you know which kitemarks to which they belong or fonts and colours have been used. subscribe. You could should not infringe someone Copying from Web sites happens all the else's intellectual property in other ways time and is difficult to prevent. However, if e.g. words used as "metatags" can you use the © symbol on all your pages, it infringe registered trade marks (so shows that the charity is the copyright ensure that you have permission to use owner of material on the site and acts as a them) linking to other sites without warning against copying. On the other permission could give rise to copyright hand, there are some pages you might infringement claims. It is good practice want actively to encourage visitors to copy to seek such permission. You might e.g. sponsorship or donation forms, so also choose to ensure that external sites make it clear which pages can be printed linked to on your charity's site should off. open in a new, separate browser window, so that you do not alter the If your organisation is a registered charity external site's page layout in any way. with gross income in the last financial year of more than £10,000, then its status as a If your Web site includes a chatroom, or registered charity must be stated in English noticeboard, guestbook, or archived copies on all documents soliciting money of e-mail discussion lists, then you could be (Charities Act 1993 Section 5). It is held liable if you allow libellous statements sensible to assume that documents to be published on the site, however soliciting money include web-sites and temporarily. emails soliciting money. Anyone who designs a site and fails to include this is ICF recommends that you speak to your guilty of an offence and liable to a fine of up legal advisor and your charity's to £1,000. The charity number should also insurance company to establish what be included as a matter kind of AUP best suits your charity. This of course, as this will will help you to identify areas where you give some donors a need to protect yourself or your staff sense of security that and limit any liability you may have. In their money is going to a most cases you can assume your regulated charity. Of Internet activities are excluded from course, some charities your insurance cover unless you have may wish to have the site owned by their asked explicitly for them to be assessed. trading subsidiary. Minimum legal statements for a Web site ICF recommends that all applicable Remember that codes of practice such as items from numbers 1 to 6 should be the British Codes of Advertising and Sales included on your web site and that a Promotion apply equally to the Internet. copyright symbol should appear on Charities that are companies should also every relevant page. show their registered company number, status and registered office address.
  29. 29. Setting up secure/encrypted online of what particular clauses could apply and donation systems ask if any cases have arisen already. Authorising payment by credit or debit card Trading - selling goods or services via securely on the Internet requires expensive, the Internet complex hardware and software systems. It is much easier and substantially less Current legislation prohibits the sale of expensive to contract a third party to charity society lottery tickets via the authorise credit and debit cards online for Internet. This is because the lotteries your charity. legislation prohibits sale of society lottery tickets "by machine". If you are selling Before you can accept credit/debit card goods via the Internet (for example, you donations via the Internet you should have:- have included your usual catalogue on the charity's Web site), then you must make • A bank business account sure you comply with The Consumer • An online merchant ID (arranged by Protection (Contracts Concluded by Means the bank) of Distance Communication) Regulations • Optional online BACS authorisation 2000. These came into force on 31st for paperless direct debit October 2000. • A Web site If you are advertising fundraising events run These are not essential, but will reduce by the charity's trading subsidiary (such as costs and increase the number of suppliers challenge events) or if you are advertising who will deal with you if you have them. merchandise sold through the trading Once these elements are in place, you will subsidiary, you do not necessarily need a need to set up a secure payment system, separate site for the trading company's where credit/debit cards are authorised activities (though there may be VAT online. benefits to doing this). But the relevant pages should make clear they are activities There are more than a dozen companies carried out through the trading company. that securely authorise credit card The charity should recover from the trading payments/donations via the Internet in the subsidiary a proportion of the costs involved UK. Some companies will charge a set up in setting up and servicing the site. fee (anywhere from between £100 to £2000), others will not. Most companies will Global issues charge between 0% and 5% of each donation to maintain the service: 5% is the One of the difficulties with the Internet is commercial rate and 2% is the average that while you could (and should) make charity rate. If you receive sure that your Web site complies with all a free service, you might relevant UK law, it currently seems an not be entitled to much impossible task to ensure a Web site 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 see where you are required to indemnify or • make clear that your site is only otherwise protect the company against any intended for fundraising in the UK legal action or injury. Consider your rights • ensure you can react quickly if a and responsibilities, the company's and the problem arises and you need to customer's. Do not sign anything with which change the content of your site. you are not entirely happy. If in doubt, ask the service provider to give you examples
  30. 30. FUNDRAISING USING A THIRD- organisation's bank and from other PARTY'S INTERNET PRESENCE participating charities and business partners where possible. What does the Practical organisation ask of participating charities in Charities are receiving terms of marketing? Is the marketing offers from third-party planned by the organisation realistic and organisations such as sustainable? Avoid organisations that companies and non- expect charities to conduct all the marketing profits to provide online activity on their behalf. Can the organisation fundraising services. These include online provide you with statistical reports on the shopping malls, cause related marketing number and quality of visitors generated by programmes, online events management, its marketing? How will you allow your donation handling services and many other charity's name and brand to be used by the services. organisation in its efforts at audience acquisition? To assess the benefits of proposals from such third-party organisations it is worth Is there a limit on the considering the following:- number of charities or the number per market sector? On some Avoid signing exclusivity agreements as sites this will increase income for these can limit your charity's options. Is the participating charities, on others it will limit organisation's contract flexible enough to it. Does the organisation's site take other cover your charity's requirements and forms of online payment in addition to credit concerns? Will the organisation adapt it to cards e.g. direct debit payments from bank meet your needs? Would you as an accounts? This could expand the number of individual buy in to the proposed service? supporters likely to make an online Can you work with the staff at the transaction at the site. Have they taken into organisation? With new start-up companies account tax efficiency issues and are they without a track record, this can be one of able to offer online tax reclamation of any the few key elements on which you can donations? What is unique about the judge them. Will the site be accessible to organisation's offer? Why should your people with disabilities using the Web? Do charity work with them and not similar not deny yourself a large market: for online fundraising companies? With regard example, 1.7 million people in the UK have to trading Web sites, does the organisation serious uncorrectable sight loss. Is the offer a customer charter covering issues organisation aware of the Web site such as their delivery commitments and amendments required to address this issue, their returns and/or refund policy? Is this and will they undertake to address them? acceptable? What is the revenue split in 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
  31. 31. organisation could be: Compare the formal agreement should specify the proposal with your charity's checklist e.g. degree of liability which the Internet-based exclusivity, financial data, ethical concerns, service provider assumes to the donor, the your fundraising priorities. Educate them charity and third parties for information, and request that they submit a proposal transaction handling and losses related to specifically for you. Evaluate the proposal the Internet-based service provider's and decide on the options available. If you administration of a donation. Consider decide to continue, perform due diligence financial losses and brand reputation. and sign a contract that reflects your Include a termination clause in the Service charity's requirements. ICF recommends Level Agreement, such that the contract that you take care not to confuse offers and can be terminated if customers are not arrangements with dotcoms or commercial receiving a sufficiently high quality of services providers as philanthropic service. Immediate termination should initiatives. Avoid services where the come into place if the partner brings the company cannot offer you some evidence charity's name into disrepute, and income of its sustainability and audience potential. from existing customers should still be These things can be more time-consuming protected even though the active and wasteful than they appear at first! agreement fails. Contracts should specify explicitly data ownership, not only of Contracts standard personal data but also of related Contracts can be time- data e.g. tracking of individuals' consuming and difficult to preferences and movements throughout a understand. The Internet arena is no site via "cookies" and other methods. exception. All the more reason to exercise Contracts regarding licensing or syndicating due diligence and consult with others to content should include delineating ensure that you are comfortable with what responsibility for a charity's content on an you are signing up to and that you are external/third-party site. In certain cases, being treated fairly. service level agreements should be established. These should make clear ICF recommends that you show any issues such as:- agreement to your charity's compliance officer, financial director, legal firm or • Will you have a dedicated account insurance company before signing. manager? Consider drawing up your own contract • If yes, how many other accounts or seek amendments to the standard does he/she manage? contract offered by the organisation. • Can you speak directly to the technical support team? Avoid signing • What levels of service are Non Disclosure guaranteed? Agreements. Consider offering written • How are you compensated if they confirmation that all conversations, whilst are not met? active, are commercial and in confidence • How important is your organisation and will not be shared. Contracts with to the supplier? If your business online fundraising organisations may need accounts for less than 0.1% of the to comply with the Charities Act 1992 and supplier's turnover, you are unlikely its definitions of "commercial participator" or to receive a premium service so you "professional fundraiser". In these cases, might do better with a smaller the obligations to make statements and supplier. 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 Concluded by Means of Distance
  32. 32. Communication) Regulations 2000 www.smartchange.org.uk/ Broadcasting Act 1990 - fundraising Contempt of Court Act 1981 Universal Copyright Convention, www.justgiving.com Geneva 1952 - Government sponsored fundraising Berne Convention for the Protection site of Literary and Artistic Works, Berne 1886 www.charitiesdays.net - fundraising site Useful resources www.giftaid.org.uk http://embark.to/fundraisingatgowenco & - All about Gift Aid http://messrs-g-owen-co.websites.uk- plc.net.master.com/ www.charitycard.org.uk - Messrs G Owen & Co (e-Mail: - Donating via the Web gowenanco@yahoo.com) www.vouchers4charity.org.uk www.computeruser.com/resources/dictionar - Buying gift vouchers for family/friend y/ - % goes to charity - High-Tech Dictionary from Computer User http://www.hmrc.gov.uk/payrollgiving/ - Tax concessions on giving via the www.cafonline.org Payroll - Charities Aid Foundation (tel. 01732 520 000) www.premiumserve.com/donations - Donating via the Web www.charitycommission.gov.uk - Charity Commission for England and www.charitiesdirect.com Wales - Donating via the Web (tel. 0870 333 0123) www.dataprotection.gov.uk - Data Protection guidance tel. (01625 www.charitasdata.co.uk 545745) - Details about charities & donors www.fundraising.co.uk www.angal.co.uk - UK Fundraising (tel. 020 8640 5233) - Fundraising collection boxes www.horwathcw.com www.funderfinder.org.uk - Horwath Consulting (tel. 020 7583 - fundraising database 1577) www.freeserve.com www.rnib.org.uk/access - Web Site ISP - RNIB's advice on accessibility in electronic www.hotwired.lycos.com/webmonkey/design publishing (tel. 0845 766 9999) /graphics www.scvo.org.uk - Graphics & Web Tutorials - Scottish Council for Voluntary Organisations www.tucows.com/ (tel. 0131 313 2488) - Graphics & Web Tutorials www.the-dma.org/library/privacy/ - help in constructing an online policy www.pathfinder.com/adinfo/gifbuilder.html document. - Gifbuilder – Web Animation www.fundraising.co.uk/other_fr/scams.html www.download.cnet.com/downloads/0- - possible fundraising frauds/scams 10215-108-
  33. 33. 19334.html?tag=st.dl.10215.upd.10215- Gift Aid donations? Very few online 108-19334 credit card processing systems are - Graphics & Web assistance designed with charities in mind - it is advisable to ensure that the www.stud.fh- company you chose can meet your heilbronn.de/~jdebis/leechftp/download.html special requirements. - Graphics & Web assistance 5. Do they offer paperless direct debit? Very few online credit card processors currently do. This may also have a very high set-up and running cost. 6. Can they process transactions where donors have come straight into the APPENDIX 1 donation page from an affiliated web site (this Choosing a secure online credit card can cause security processor issues, so needs to be carefully handled). The level of service, security and customer care offered by online credit/debit card Security processors varies dramatically. When choosing an online credit card processor, it 1. Do they process credit card would be advisable to ask the following payments for gambling or questions:- pornography web sites? The majority of online fraud occurs in these areas Range of services and charities may choose to avoid 1. Do they process both credit and online credit card processors that are debit cards, including Switch cards? involved in these industries. It is advisable to go with a supplier that processes both. 2. When credit card payments are processed, what kind of security is in 2. Can they process donations of any operation? amount? Or is there a minimum Is online live authorisation of cards amount? It's advisable to go with a (involving no storage of details) sent company that offers a zero floor limit. over a Secure Sockets Layer- Does the usage charge increase for encrypted (secure) link? Are all small payments? card details inputted on their site sent through both offline (expiry date 3. Do they process in multiple and hot/stolen card server) and on- currencies? If you choose to process line (hot/stolen card server, sufficient only pounds (you are charged for funds, authorisation) to prevent use each additional currency), this does of stolen or lost cards on their site? not mean that people using foreign credit cards won't be able to donate, Can a maximum number of failed it just means that all donations will attempts to make a donation with be made in pound amounts and the one credit card be set? donor will have to do the maths. Do they charge extra for processing Can a maximum number of multiple currencies? successful donations made with one credit card be set? 4. Can they process tax Can a maximum number of failed efficient attempts to make a donation from donations e.g. one IP address, which details the
  34. 34. location of a specific computer, be used in conjunction with different set? credit card numbers. Is the donor's e-mail address Many donations are made in rapid validated before the credit card is succession from the same IP authorised? address (an IP address details the location of a specific computer). Fraud The donation is very small (£1 1. Credit card fraud is a major problem donations should be carefully on the Internet. Fraudsters typically examined). obtain credit from lists of stolen cards published on the Internet, or A free web-based e-mail address is by using illicit programmes to used, such as Hotmail. Many are produce lists of algorithmically legitimate, but when combined with allowable card numbers. Fraudsters any of the above the donation should use charity sites to test stolen credit be very carefully examined. card numbers, because they don't have to go through the lengthy The e-mail address does not match process of purchasing a product. the IP address of the machine the Once they've used you to authorise donation was made from. a card, they'll abuse it on other sites. 4. If credit card fraud occurs, what can 2. It is currently against the Data your online credit card processing Protection Act in the UK and company do to stop it? Can they:- Germany to capture and cross- reference someone's postal address Block the fraudster's IP address? with his or her credit card number on Remember that the computer could the Internet. As a result the billing be located in an Internet cafe, or address of credit cards used online large organisation such as AOL or are not verified by the online credit FreeServe, where many computers card processing company. Because can appear to have the same IP this law has made online fraud in the address. Block the fraudster's e- UK and Germany easy, the credit mail address? Most fraudsters’ use card companies, banks and UK free, Web based e-mail such as government are currently re- Hotmail -- some online credit card evaluating the law. It may be processors will send you a warning revoked in April 2002. In the mean when a donation has been made by time, if you plan to ship goods to somebody using this kind of e-mail someone who has purchased them address. via your Web site, you should always verify that the address provided is Implement an intelligent software the billing address associated with system that develops a profile of the credit card. typical donor behavioural patterns and warns you if a donor's behaviour 3. When should you be suspicious that varies from this norm? a donation could be fraudulent? If fraudsters continued to use stolen The same credit card number is credit card numbers to purchase being used from different countries. products or make donations to your organisation, can the online credit The same e-mail address is being card processor implement what is used in conjunction with different known as a deferred payment credit card numbers. system? Deferred payment systems ring fence funds that have been The same postal address is being donated on the individual's credit
  35. 35. card -- but do not actually debit the provide you with? card for five days. During this time Can you view reports about the number, the charity can decide whether it quantity, and origin (donor details) of thinks the donation is fraudulent or donations online at your convenience? not. If the charity thinks the donation is fraudulent, it can un-ring fence the Can you reimburse credit cards that have funds. If it thinks it is genuine, it can been fraudulently debited via the online debit the card. However, fundraisers system? should be aware that this procedure Can you reimburse credit / debit cards for could add significantly to the other reasons, not only due to fraudulent administrative burden. use? Can you utilise the deferred payment Although online credit card system online to un-ring-fence or claim processing companies are not liable donations? for credit card fraud, it would be What kind of security at your charity and at advisable to ensure that your the payment service provider is used to contract with them states that they ensure that only authorised personnel have will do everything in their power to access to the above systems? Passwords? limit fraud and to co-operate with Certificates (digital)? Certain IP addresses your bank and international police to only? track down fraudsters, once they have been identified. Reports 5. If credit card fraud occurs, what - What kind of confirmation does a should you do to stop it? donor receive after having made a donation? Report the stolen card numbers to - An e-mail sent instantly by the credit your bank. card processing system? - Can this e-mail be customised or Reimburse the cards that have changed? been fraudulently used. - Can your charity do this over the Web? Ask your online credit card - Is there a charge for this? processing company to block the - How long does the change take to fraudsters' e-mail and IP effect? addresses. - Can different e-mails be sent to different people? Implement a deferred payment system if the fraud continues How do they report back to you about donations:- Administration - Is an e-mail sent to you every time a What kind of online administrative systems donation is made? are provided? - Is a daily report e-mailed to you about all the donations that have Can you edit the layout and content of your been made that day? secure payment pages via the Internet? - Is a monthly report e-mailed to you Can you use this system to launch one or about all the donations have been more new appeals in a matter of minutes? made that month? How many appeals can you run - What information is provided about simultaneously? donors? Can they be different e.g. one-off - IP address? Resolved IP address? donations, prompted levels of giving, direct - How are the donation reports debit/regular gifts? formatted? It is advisable to ensure If you are a membership organisation, how that the online credit card processing many membership ID numbers can they company can supply you with reports in a format that is compatible with
  36. 36. your internal donor database so that every record doesn't have to be Server: computer that is connected to the keyed in by hand. Internet and on which documents are stored. It serves or publishes these APPENDIX 2 documents when requested by other computer users. Glossary Style sheet: a standard method of defining Encryption: a method of encoding how text and graphics should appear on sensitive data, such as donor records and one or a series of Web pages, including credit card numbers, so that it might be font size, colour and alignment. stored or transmitted safely. Web: see World Wide Web Extranet: a private or restricted access computer network usually operated by an World Wide Web: a method of storing and organisation. Unlike an intranet, an extranet retrieving information, including text, is made accessible to other relevant graphics, video and sound. Relevant organisations or individuals such as documents on multiple computers are suppliers as well as to the organisation's linked using hypertext, a global standard employees. method of connecting. Internet Protocol: a standard method of naming and identifying a particular computer connected to the Internet using a unique series of numbers. The shorthand "IP" is more common. Intranet: a private restricted access computer network usually operated by an organisation. Information is stored and retrieved in the same method as the Internet but access is restricted usually to company employees. IP: see Internet Protocol. Meta tags: "hidden" information within a Web page that describes the content and other qualities of that Web page. The information does not appear when the Web page is viewed, but is used by search engines to interpret further the text content of Web pages. Offline: not connected to the Internet or © GPO • 2002 other computer network. Online: connected to the Internet or other computer network. Secure server: a server that features 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.
  37. 37. FUNDRAISING - FINANCIAL MATTERS 1. REPORTING TO FUNDERS (1) Find out what they want: (a) Application/Budget (b) Regular reports and returns (c) Annual Project accounts (d) Parent Body accounts (2) Does the funder understand the relationship between the individual Project and Parent Body. 2. APPLICATIONS/BUDGETS It is essential that the application is based on fact land reality and not on "last year's application plus a built-in element for contingencies. This is not only to ensure that the figures and costings are reasonable and based on up-to-date information, but also to ensure a consistency in the various figures supplied to the funder. Any variances between the application and the accounts supplied ma, at best result in a query, and at worst result in a withholding of funds. (1) Is the expenditure in the correct cost centre? (2) Is the income in the correct cost centre? 3. PROJECT ACCOUNTS/REPORTS (1) How much detail does the funder require? (2) Are all our expenditure headings acceptable? For example, are your on-costs, (e.g. audit fee), chares to be included or re-categorised. (3) Are annual accounts sufficient or do we need to provide quarterly accounts? (4) Is the funder's financial year different to Project/Parent Body and do we have to adhere to this rather then our own (5) What is the funder's timescale for reporting? (6) Are separate salary details required, if applicable. (7) Does' the funder require the individual Project accounts to be separately audited or will they be satisfied with an "extract from the audited accounts".

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