February 2024
Genevieve Marshall, OAD Fellow on Fundraising
What is fundraising?
The process of gathering voluntary contributions (donations) of money carried out by non-profit making organisations in order to implement their programmes.
Organisations must be a registered charitable legal entity to receive donations.
Fundraising is not:
- Consultancy
- Contracted services e.g. government tenders
- Sponsorship of events e.g. conferences
- Other earned income e.g. sales of a product
This document focuses on fundraising from private sources, philanthropy and the general public.
Step 1: Develop your Theory of Change
A Theory of Change (ToC) provides a roadmap for how organisations and their programmes intend to achieve its long-term goals and create meaningful impact. This provides the overarching vision, mission and programme information which is required to fundraise.
ToCs cover the following questions
- What’s the problem?
- Why are you the solution?
- How are you going to make it happen?
- Who are your target audiences?
- What are your interventions?
- Can you measure your interventions?
- How do you know it’s working?
DIY Theory of Change Toolkit video
United Nations Development Group Theory of Change Guide
Datalab Africa Theory of Change example video
Familiarise yourself with key terminology we use in the sector, alongside jargon busting.
Use the Sustainable Development Goals (SDGs) as a framework to organise your Theory of Change and programmes.
Step 2: Impact, Monitoring, Evaluation and Learning
Is your organisation delivering impact? You need to be able to demonstrate the impact of your organisation and your interventions. These are the tangible outcomes that result from your organisation’s programmes. What did you demonstrably achieve which effected the desired change?
We measure this through Monitoring, Evaluation and Learning (MEL). These are directly linked to your ToC.
Scotland’s International Development Alliance MEL guide
Datalab Africa Monitoring, Evaluation and Learning video
USAID: How to work with USAID monitoring evaluation and learning module video
Step 3: Develop your Messaging and Case for Support
- Through your ToC you will have identified the core SDGs most suitable to your programme.
- Use your ToC as your point of reference when agreeing your message for donors and the general public
- Ensure impact is front and centre – what is the problem and how are you the solution?
- A telescope, for example, is the tool to get you there. It should not be the focal point of your message. The focal point is the change you will make.
Your Case for Support:
- Helps donors understand why they should donate to you
- Builds trust between you and your donors
- Can focus on a single fundraising goal e.g. a new mobile planetarium, or to general funds for your organisation
- Serves as your core document which all fundraising messaging can be drawn
Agree your elevator pitch – how do you get across your organisation’s reason for being and why someone should support you in 1 minute or less?
Prosper Strategies How to Create a Case for Support
Instrumentl Ultimate Guide to a Strong Case for Support
Step 4: Income Generation and Fundraising
Income generation encompasses all forms of income that nonprofits can receive. It is much broader than fundraising and may provide other opportunities for your organisation.
- Identify your audience
- Identify which income stream will best suit your organisation and programme
- Begin prospect research for trusts, foundations, corporate foundations and major donors who may be able to fund your organisation
- This can take place while preparing your Theory of Change
- Always try to diversify your income sources so you are not overly reliant on 1-2 donors
- Companies are the least generous but they often have pro-bono programmes that can help you offset costs in other areas
- Digital marketing and social media are vital for successful fundraising from the general public
Good fundraising is about relationship management. Ensure you have a Customer Relationship Management database (CRM) to manage all your fundraising contacts and networks.
Prospecting for Gold free Prospect Research guides and advice
TechSoup provide free licences for many forms of software, or at a heavily discounted rate. Check if this is available in your country
Salesforce provide free licences. Check if this is available in your location.
Nonprofit Digital Fundraising Campaigns
Digital Fundraising: 12 Campaign ideas to inspire you
Once you’ve identified the audiences who will be most receptive to your Ask, and established what you’re asking for, you can start to fundraise.
Key Tips
- Upskill yourself in fundraising. There are many free guides and resources to help you along the way. MOOCs include
- Embed fundraising across your organisation. It’s everyone’s responsibility.
- Collaborate! Make friends with your peers and large iNGOS (International Non-Government Organisations).
- Coalition building is a main source of funding in international development
- Be targeted! With trusts and foundations don’t send out blanket letters. Tailor your approach and look at your network to see who knows who. This brings your chance of success from 1:12 to 1:4.
- Promote your work. Speak at conferences, share your success
Above all, tell your story. People give to people. Storytelling remains the most compelling method of securing funds from the general public and from philanthropic sources.
Finally, don’t forget to say thank you!