Fundraising basics for NETFUND GIA winners. NETFUND GIA is an annual awards programs that seeks to inspire environmental conservation while improving livelihoods of Kenyans in order to promote economic growth.

1. NETFUND GREEN INNOVATIONS AWARDS
Ensuring Start-ups Start Green
CATEGORY WINNER’S TRAINING ON INTRODUCTION TO
FUNDRAISING!
17TH SEPTEMBER, 2014
Phyllis Engefu Ombonyo
Director, Business Development
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2. CONTENTS/OUTLINE
• What is Fundraising?
• Why do People Give?
• PR as a Foundation for
fundraising
• Building a PR program
• The chain of activities in
fundraising
• Types of Prospects
• Proposal/Business plan
writing.
• Potential sources of funding
• Fundraising resources
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3. WHAT IS FUNDRAISING?
• The process of soliciting and gathering voluntary
contributions of money or other resources, by
requesting donations from individuals, businesses,
charitable foundations, or governmental agencies
• Although fundraising typically refers to efforts to
gather money for non-profit organizations, it is
sometimes used to refer to the identification and
solicitation of investors or other sources of capital
for for-profit enterprises.
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4. GIVING
Why People Give
• Personal concern
• Belief in institution
• Confidence in leadership
• Agree with plans
• They were asked
• Tax considerations
Why People Don’t Give
• Don’t value mission
• Don’t believe
organization is stable
• Absence of powerful
trustees/volunteers
• Concerns about
management
• Wrong people asked
• Inadequate cultivation
• Failure to ask – or for
specific amount
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5. FOUNDATION FOR FUNDRAISING - PR
• Communication/Public relations/Brand
awareness must precede or supplement fund
raising efforts.
• Potential donors must be aware of your message:
your mission and goals
how you plan to achieve your goals
benefits your organization provides to the
community
Value proposition – How different are you?
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6. BUILDING A PR PROGRAM
• Determine your audience/fundraising
targets for communication
• Develop a plan for public relations
• Determine channels of communication
• Prepare a pitch: two minute teaser of the
problem, solution & how you solve it
uniquely– generate interest/intrigue in
order to say more!
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7. THE CHAIN OF ACTIVITIES IN FUNDRAISING
PROSPECT IDENTIFICATION/RESEARCH (Match the needs of donor with yours)
Individuals
Foundations
Bilaterals
Multilaterals
Corporates
Networking
CULTIVATION
Newsletters
Phone-calls
Industry events
SOLICITATION (Avenues for making the ASK)
Face to face
Special Events
Proposal
writing
Planned giving
Elevator
pitches
FOLLOW-UP (reporting)
STEWARDSHIP
MAKING THE
DONOR HAPPY:
Similar to cultivation
but only takes place
after gift is received:
annual reports, visits
etc.
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8. TYPES OF PROSPECTS
• Solicited – Call for proposals/RFAs: This is
initiated by the benefactor/funder;
Usually through a competitive
publication – RFA/EOIs; strict
requirements.
• Unsolicited – Initiated by the beneficiary:
Letters of Inquiry, follow-up to a
successful pitch etc.
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9. PROPOSAL WRITING/BUSINESS PLAN
An Important tool for fundraising
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10. IMPORTANCE OF A BUSINESS PLAN
• Can be used for fund raising from bankers and other
potential investors
• It serves as a blue print to follow like any maps
improves the users chance to reach the destination.
• It defines strategy, tactics and standard of operation.
• Gives you an opportunity to think through an idea
thus providing credibility.
• Helps make mistake on paper rather than in the
market.
• Reduces risks and failure because one takes time to
look through
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11. HOW TO WRITE A BUSINESS PLAN
http://www.youtube.com/watch?v=kN1wgKosS8A
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12. SOME CONTENTS OF A BUSINESS PLAN
• Describe your organization or business entity
• Describe the problem you are trying to solve; linkage with national
priorities
• Describe the objectives you are trying to accomplish, outcomes and
expected impact.
• Methodology: Describe your solution: products or services;
innovativeness; Describe your production process
• Analyze and describe your customers, your competitors, the market
size etc.
• Describe your marketing strategy
• Describe and analyze your risks (what? Probability, Mitigation)
• The budget/Financial Plan (Investment vs Return; Break even
analysis & ROI) & WP (Activity-based budgeting is the current norm)
• Finally write the Executive Summary
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13. DEVELOPING A FUNDRAISING STRATEGY
• This can be a two-page summary document and maybe part of your
business plan. Key questions to ask:-
1. What kind (activities), and how much, funding do we need?
2. Where will funds come from? (Prospect search)
3. What activities do we need to undertake? (includes
opportunities available to promote the org.)
4. What resources will we need? (Do we need to improve our
systems? Do we need to identify a extra staff/consultant to
support?
More details:
http://www.fundingcentral.org.uk/page.aspx?sp=6313
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14. POTENTIAL SOURCES OF FUNDING.
1. ACUMEN FUND (http://acumen.org/regions/east-africa/#expand)
Acumen fund make long-term debt or equity investments in
early stage companies providing reliable and affordable
access to agricultural inputs and markets, quality
education, clean energy, healthcare services, safe drinking
water to low-income customers
ACUMEN INVESTMENT MODEL
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15. USAID –DIV (http://www.usaid.gov/div)
• Development Innovation Ventures (DIV) is an
open competition supporting breakthrough
solutions to the world's most intractable
development challenges - interventions that
could change millions of lives at a fraction of
the usual cost.
• Support innovations up-to three stages: i)Seed
financing ($100k) ii) Testing & scaling ($1M
iii)Widespread implementation ($15M)
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16. POTENTIAL SOURCES contd.
• Women Enterprise Fund -
http://www.wef.co.ke/
• Youth Enterprise Development Fund
http://www.youthfund.go.ke/
• Various micro-finance institutions
• Various funds initiated by county governments
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17. USEFUL ONLINE RESOURCES
• http://www.fundsforngos.org/
– Current funding opportunities
– Fundraising hints and tips
– How to write/develop a proposal etc
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18. SUMMARY
• Matching the needs of the donor with the
needs of the institution
• Philanthropy is not logical, it is emotional
• Conduct physical meetings
• Form Partnerships/consortiums to increase
your chances of success.
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19. OPEN DISCUSSIONS
Thanks for listening!
Phyllis.ombonyo@netfund.go.ke
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