Developing a Fundraising Strategy. Environmental Funds. Tanzania. Paquita Bath September 2011

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1 Developing a Fundraising Strategy Environmental Funds Tanzania Paquita Bath September 2011

2 Why have a Fundraising Strategy?

3 Why have a Fundraising Strategy? Set realistic goals on the time /resources needed to mobilize new funds; Prepare for the future: A calendar and Plan B; Improve decision-making and priority setting; Diversify sources; Align the board and staff and increase role clarity; Reduce fundraising emergencies and crisis appeals; Prevent and control distractions; To celebrate what you accomplish!

4 Why have a Fundraising Strategy? GREAT materials developed for target donors and partners about the EF; Tout the existing strengths of the EF Share GREAT case statements; Consistently focus on critical relationships spend the time needed to build trust and confidence with key donors and partners; and Raise the bar engage supporters in expanding the scope and ambition of the EF.

5 Fundraising Strategies: ARE NOT get rich quick schemes!!! ARE tied closely to donor motivation! They do require clear choices and competencies: Do you have the capabilities required? Could you develop them? Do you have discipline/support to do that?

6 Many Funding Sources are NOT Worth Pursuing for your EF!! Will the funding model allow the EF to achieve your financial and programmatic goals? Is the revenue potential at the appropriate size for your EF? Are the costs greater than the benefits?

7 Costs of a Fundraising Strategy!! 1. Program Adjustment - Refinement 2. Personnel: 3. IT systems: 4. Communications: 5. Trips/Meetings 6. Consultants Expertise 7. Partnering 8. Research Capacity

8 CHOICE!! Clarity is king when running a nonprofit. Picking a sensible revenue model was one of the most liberating and clarifying things we ve done to date. I empathize with leaders who constantly wonder (or are constantly asked), why not membership, what about online giving, how about government grants, or fee for service? Taking maybe out of the process has already boosted our bottom line. Brett Jenks, RARE Finding Your Funding Model: A Practical Approach to Nonprofit Sustainability, is available at

9 Prospects Which prospects are not a good fit for your EF? Multilaterals Major individual gifts Bilaterals Corporations Foundations BINGO Rel Events Earned Income Membership/Small Indiv donations Public Funds Offsets Payment for Ecosystem Services

10 Take strategies off the table Talk to your neighbor: Decide on 2 Funding Prospects you will NOT pursue. Articulate why so you can tell your Board.

11 Fundraising Strategy Key Elements 1. Mission Statement 2. Clear Program Goals 3. A Case Statement 4. Funding Needs Strategic Planning Completed as part of the Strategic Planning Process 5. Analysis 6. Fundraising Action Plan New Analysis Prospects Capacity Relationship Approach

12 WHO? Everyone has to be on board with the fundraising strategy and know how to help advance it!

13 Fundraising Strategy Key Elements 1. Mission Statement 2. Clear Program Goals 3. A Case Statement 4. Funding Needs Strategic Planning Completed as part of the Strategic Planning Process 5. Analysis New Analysis 6. Fundraising Action Plan Prospects Capacity Relationship Approach

14 STRATEGY 1 Mission Statement and Clear Program Goals EF Mission Goals Conservation 2 Threat reduction Outcomes Activity Outputs Activities

15 3 A Case Statement WHY YOUR EF!!!! Integrity Transparency Institutional Autonomy/Reputation Reliability

16 4 Funding Needs A sophisticated realistic analysis of what it will take to achieve your program goals!! Can be organized as one large program; Can be divided into programs by geography, theme etc. Example: Protected Area Gap Analysis

17 Fundraising Strategy Key Elements 1. Mission Statement 2. Clear Program Goals 3. A Case Statement 4. Funding Needs Strategic Planning Completed as part of the Strategic Planning Process 5. Analysis 6. Fundraising Action Plan New Analysis Prospects Capacity Relationship Approach

18 5 Analysis - Prospects Which donors have the motivation that best overlaps with your strategic plan? Multilaterals Major individual gifts Bilaterals Corporations Foundations Events Earned Income Membership/Small Indiv donations Public Funds Offsets Payment for Ecosystem Services

19 5 Analysis - Prospects Will the funding strategy allow the EF to achieve its fundraising and programmatic goals? Is the revenue potential at the appropriate size for your EF? Are the costs greater than the benefits? What are the risks of managing this fund?

20 5 Analysis - Capacity Choosing fundraising strategies requires choice, competence, and investment: Do you have the capabilities required? Could you develop them? Do you have discipline/support to do that? What is the best relationship opportunity? Additional Insights: Have peers been successful? Is it an acceptable time frame? Can you maintain current sources while building this capacity?

21 6 Fundraising Action Plan Identify highest priority funding model. Develop strategy for Relationships and Approach Funding Mix Example for Environmental Funds 2% Earned Income 1% Other 5% PES 4% Corporations 16% Debt swap 19% Bilateral Donors 7% Foundations 3% National Government 43% GEF

22 STRATEGY 6 Fundraising Action Plan Goals $ for conservation MOUs, Agreements Outcomes Activity Outputs Relationships, Proposals, Field visits Activities

23 Make a case for the BEST Funding Source for your EF! Talk to a different neighbor: Make the case for your top priority funding prospect where you will put MOST (80%) of your fundraising strategy - time. Articulate why so you can tell your Board. 5 Minutes each!

24

25 Additional Questions and Discussion

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