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The concept of Fund Raising

Muthuraj K
Muthuraj K
Muthuraj KFor HR Generalist at Confidential ( Consulting Firm)

For sustainable development of NGOs

The concept of Fund Raising

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FUND RAISING
FOR SUSTAINABLE DEVELOPMENT OF NGOS
Presented by:-
Dr. Renuka Asagi
Mr. Muthuraj K
INTRODUCTION
 The 'BRIC' countries (Brazil, Russia, India and China) are the
fast developing economies of the world. Their GDP growth
has improved and the income level of at least the middle class
is rising. Some of the erstwhile traditional countries in the
west's support to NGOs in the developing countries are
declining. Some overseas donors feel that countries like Africa
need financial support rather than fast developing countries
like India. There is also pride in standing on our own legs. Till
recently NGO's were managed by people without much
professional background. But the scenario has changed. Now,
increasingly more and more professionals are joining or
starting NGOs.
LEGAL ISSUES IN-FUND RAISING
 Does your organization's constitution permit you to
fundraise?
 Once we have decided to fund raise, it is better to check
the legal situation to see whether the legal provisions in
the country allows you to raise funds.( FCRA act)
 It is also better to understand, the existing tax situation in
the country to take advantage.
( Under sections, 10, 11,35AC and 80(G) of Income Tax
Act)
 If need be it is better to consult a consultant on this.
TECHNIQUES OF FUND RAISING
 Every fund raiser must first and foremost be completely
convinced of the value, integrity and benefits of the
organization, and the activities for which the raised funds
will be used.
 These guidelines must be modified in each community so
as to be adapted to the differences that characterize every
community and context.
 Principles of Fund Raising:
 Acknowledgement of Donations
 Thank You!
 Progress Reports
 Integrity: ( Honesty)
 The Importance of a Positive Attitude
 Calculating and Recording Project Inputs
 Principles of Fund Raising:
The principles of sincerity and ethical integrity especially apply
to fund rising. Fund raising should be the responsibility of all
members of the organization
 Acknowledgement of Donations:
 Acknowledgement is a must,
 Many donors use their donations to gain prestige and honour in
their communities. It is a small price to praise every donor.
 Ensure that communities we assist are aware of the need to
acknowledge all donations.
 Praise the donors for their loyalty to the community and their
much needed and appreciated donation.
 Thank You:
The most important two words in obtaining funds, and running a
successful NGO, or community project, are the words, "Thank
you!
 Progress Reports:
 Donors want to know what was achieved with their donated
money.
 Donors are less interested in your activities; they are more
interested in the results of your activities.
 Have you reached or partially reached ? And the objectives you
stated when you asked for the donation?

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The concept of Fund Raising

  • 1. FUND RAISING FOR SUSTAINABLE DEVELOPMENT OF NGOS Presented by:- Dr. Renuka Asagi Mr. Muthuraj K
  • 2. INTRODUCTION  The 'BRIC' countries (Brazil, Russia, India and China) are the fast developing economies of the world. Their GDP growth has improved and the income level of at least the middle class is rising. Some of the erstwhile traditional countries in the west's support to NGOs in the developing countries are declining. Some overseas donors feel that countries like Africa need financial support rather than fast developing countries like India. There is also pride in standing on our own legs. Till recently NGO's were managed by people without much professional background. But the scenario has changed. Now, increasingly more and more professionals are joining or starting NGOs.
  • 3. LEGAL ISSUES IN-FUND RAISING  Does your organization's constitution permit you to fundraise?  Once we have decided to fund raise, it is better to check the legal situation to see whether the legal provisions in the country allows you to raise funds.( FCRA act)  It is also better to understand, the existing tax situation in the country to take advantage. ( Under sections, 10, 11,35AC and 80(G) of Income Tax Act)  If need be it is better to consult a consultant on this.
  • 4. TECHNIQUES OF FUND RAISING  Every fund raiser must first and foremost be completely convinced of the value, integrity and benefits of the organization, and the activities for which the raised funds will be used.  These guidelines must be modified in each community so as to be adapted to the differences that characterize every community and context.  Principles of Fund Raising:  Acknowledgement of Donations  Thank You!  Progress Reports  Integrity: ( Honesty)  The Importance of a Positive Attitude  Calculating and Recording Project Inputs
  • 5.  Principles of Fund Raising: The principles of sincerity and ethical integrity especially apply to fund rising. Fund raising should be the responsibility of all members of the organization  Acknowledgement of Donations:  Acknowledgement is a must,  Many donors use their donations to gain prestige and honour in their communities. It is a small price to praise every donor.  Ensure that communities we assist are aware of the need to acknowledge all donations.  Praise the donors for their loyalty to the community and their much needed and appreciated donation.
  • 6.  Thank You: The most important two words in obtaining funds, and running a successful NGO, or community project, are the words, "Thank you!  Progress Reports:  Donors want to know what was achieved with their donated money.  Donors are less interested in your activities; they are more interested in the results of your activities.  Have you reached or partially reached ? And the objectives you stated when you asked for the donation?
  • 7.  Integrity: ( Honesty)  A high level of integrity must be maintained at all times.  specifically to its fund raising activities. An important aspect of that integrity is full accountability & transparency.  All actions must be accountable; all funds must be accountable. This means accurate, complete, understandable and honest narrative reports and financial reports, available at any time to any member of the public.  The Importance of a Positive Attitude:  Do not give up. You cannot allow yourself to be discouraged; it is a luxury that YOU, your organization and your community cannot afford. You may experience eight rejections; do not give up because the ninth and tenth may bring the needed donation.
  • 8.  Calculating and Recording Project Inputs:  It is important to maintain accurate records of all resources used in a community project.  An accurate estimate of the cash value of donated resources in kind like, donated skilled labour, time spent by community members and leaders in meetings for planning, or non cash physical donations must be made by the community.
  • 9. METHODS OF FUND RAISING  The following are some of the time tested methods by which the NGOs world over raise funds for their projects. They are as follows:  1) Individual donors  2) Fundraising events  3) Corporate donors  4) Trusts, foundations and other grant-making agencies  5) Overseas non-resident communities  6) Tourists and Visitors  7) Government sources
  • 10. 1) INDIVIDUAL DONORS  There is a wide range of potential donors for any worthy cause. Each donor has different reasons to give  Potential donors include the following:  The rich and the upper middle class; the young and the old.  Men and Women.  Professionals such as lawyers, Doctors, IT Professionals and so on.  Family and Friends.  Students and Members of Charitable Organizations
  • 11. ORGANISING A FUNDRAISING EVENT  Organizing an event can be a wonderful way of raising money for a good cause. The events attract a wide spectrum of people in the social and is the perfect place to present your cause for fund raising. There is an enormous I range of events you can organize. These include:  (Sporting events and tournaments, Musical and cultural events, human chain formation etc )  Management of Events
  • 12. 3) CORPORATE DONORS  Here are some reasons why they give:  To create goodwill in the local community;  To create goodwill amongst employees;  To be associated with certain good causes;  Because certain honest leaders approached for a cause  Because the Chairman or his wife is personally interested in the project  Publicity for their products and for their 'corporate image  There are tax reliefs on giving.  What companies can give?  Cash donation;  Sponsor an event  I Sponsor promotional and educational materials  Make company facilities available and provide expertise and advice; They would like to be a Board Member.
  • 13. TRUSTS AND FOUNDATIONS  Trusts and foundations are grant making bodies set up specifically to give money for charitable purposes. They distribute the income earned on this each year in grants. Here are some active foundations in India  1) Ford Foundation, Aga Khan Foundation which are International foundations with offices in New Delhi.  2) The National foundation for India, Delhi  3) Rajiv Gandhi Foundation, Delhi  4)The Indian Foundation for the Arts, Bangalore  5) Child Relief and You (CRY)  6) Concern India Foundation  7) Sir Ratan Tata Trust  8) Infosys Foundation
  • 14. 5) RAISING MONEY THROUGH OVERSEAS CONTACTS/ COMMUNITIES  There is a large chunk of Indian population spread throughout the world. They could be your contact for raising money for your projects. ( NRI - non-resident Indians )  6) VISITORS AND TOURISTS:  Visitors can be people passing through, who have heard about your work, or people coming on a tour organized by a donor agency for its committed supporters to see some of the projects they are helping, or if you run a conference or training centers.
  • 15. GOVERNMENT SOURCES  Apart from the foreign donors who have been providing much of the funding for development work, there will also be government sources at national and state level (and local government sources at district or Panchayat level) that are available for your work.