Last year was not kind to fundraisers. They and their
practices came in for a lot of criticism in the sector and wider press. The
start of 2016 does not look much rosier: diminishing public funds and the
discussions about regulating fundraising look set to continue this year. I meet
a lot of very hard working and inspiring fundraisers and so I thought I would
start my new blogging year with some well-deserved praise.
At the end of 2015 I attended some great training on
financial sustainability at NCVO. I was the only funder in a room full of fundraisers
and I learned a lot from listening to the issues they were all grappling with
in coming up with funding strategies for their charities. When assessing
charities, I get to read lots of business plans and funding strategies. It is
relatively easy to critique these and comment along the lines of “this charity
is over-reliant on one source of funding and needs to diversify its income
streams”. What the fundraisers I met with at NCVO reminded me is that I am in the
lucky position of being able to comment on strategies, while these fundraisers
have to actually deliver. They have to come up with a sustainable funding
strategy with diverse income streams that turns into actual cash – oh and at
the right time and in a steady, planned flow please.
Three things in particular struck me about just how
difficult this task is:
2. It takes resources - to have diverse income streams means having funding coming from several different sources e.g. contracts, legacies, regular donors, grants, community events, corporate sponsorship, trading. Each income stream needs to be managed and reported on separately. A small charity with lots of different income streams has to engage and manage a lot of different supporters and funders which all requires time and expertise.
3. It involves managing people – small charities are likely to have volunteers and Trustees doing the fundraising or may employ one or two paid fundraisers. No one individual or small team will have the skills needed for all areas of fundraising. Writing a tender document is very different from persuading someone to run a marathon for your cause. Switching emphasis from one type of fundraising to another will often mean letting current staff go and recruiting for the new expertise needed. And it will certainly mean managing change and all that brings.
Fundraisers have to do all this in
a hostile climate. Their costs divert precious funding from front line services.
They need to convince the Trustees that the return on any investment in
fundraising is worth it. And yet no-one knows for sure that the chosen funding
strategy is going to be right.
I for one, am going to be heading
into 2016 with a reinvigorated respect for all those charities – and their
fundraisers – who are trying to diversify their funding and secure a more
financially sustainable future for those they support.
Emma Beeston Consultancy advises funders and philanthropists on giving strategies
and processes; selecting causes and charities; assessments and impact
monitoring. Services for charities include external perception reviews; bid
reviews; training for fundraisers and non-fundraisers involved in bids. emma@emmabeeston.co.uk ; www.emmabeeston.co.uk ; @emmabeeston01
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