Organizational sustainability has been both a tough challenge and a long-standing issue for NGOs around the world. Although NGOs have witnessed a substantial flow of aid, both at governmental and non-governmental level, and a large presence of bilateral, multilateral and private donor agencies continues to exist, everyone knows that the future of foreign funding is not encouraging.
Also, experience says that the donor support is often coupled with difficult operational guidelines, tight deadlines, impractical policies and hefty documentation.
The recent trend of NGOs mushrooming to a large extent has led to increased competition over limited resources available with donor agencies. Besides, donor funding is highly volatile, depending mostly upon the political situation of the country and also its policies. Wars, internal conflicts, uneven economic growth and changes in government and state policies have had their share of adverse effects on NGO funding, putting both the activities as well as the organizations at risk.
Further, it has been realized that excessive dependency on foreign donor support not only reduces opportunities for local resource mobilization, but also impedes upon generating innovative ideas which can ensure sustainable growth for NGOs. It has also been observed that the more dependent NGOs are on donors, the community also ends up becoming increasingly dependent on NGOs, thus, bringing down the whole model of sustainability to failure.
Looking at all these factors, it has become crucial for NGOs to involve themselves into some serious thinking to ensure organizational sustainability. Although seeking foreign donor support is still a good option, it should not continue to be the only option. NGOs need to diversify their activities by just not limiting their abilities to develop proposals for donor agencies. A huge cache of marketing opportunities exists at various levels, which if planned and implemented carefully, can ensure some kind of resource generation for NGOs over a long-term period.
However, it is not easy to plan and implement. The continued dependency on donors has led to a mindset where NGOs tend to act only on the basis of the funding received. If there are no funds, there is no need to act on that front. Any fundraising plan has to be accompanied with:
Looking at all these factors, it has become crucial for NGOs to involve themselves into some serious thinking to ensure organizational sustainability. Although seeking foreign donor support is still a good option, it should not continue to be the only option. NGOs need to diversify their activities by just not limiting their abilities to develop proposals for donor agencies. A huge cache of marketing opportunities exists at various levels, which if planned and implemented carefully, can ensure some kind of resource generation for NGOs over a long-term period.
However, it is not easy to plan and implement. The continued dependency on donors has led to a mindset where NGOs tend to act only on the basis of the funding received. If there are no funds, there is no need to act on that front. Any fundraising plan has to be accompanied with:
* having openness to ideas;
* dedicating a resource mobilization team;
* undertaking consistent efforts; and
* having the ability to think beyond the conventional donor support concepts.
The fundraising plan includes efforts for exploring local avenues within the country, no matter how big or small the size of the prospective funding is, but should be only governed with the long-term sustainability factor. Considerable potential exists in community-based marketing approaches, collaborations with private sector, utilizing non-financial voluntary contributions and collecting individual donations.
Several experiences and practices have taken place across the sub-continent, where NGOs are able to generate sources of income over a long period of time and at the same time, provide value-added services to the community in a sustainable fashion. A constant study and exposure to these efforts can earn valuable ideas and tap opportunities for NGO development.
The Objectives of a Fundraising Plan:
The objectives of a fundraising plan can be:
* To explore and initiate resource mobilization activities at local and global-level for long-term organizational sustainability.
* To reduce dependency on foreign donor support and increase local opportunities for generating funds.
* To understand, develop and implement community-based marketing and entrepreneurship development approaches.
Methodology:
The Objectives of a Fundraising Plan:
The objectives of a fundraising plan can be:
* To explore and initiate resource mobilization activities at local and global-level for long-term organizational sustainability.
* To reduce dependency on foreign donor support and increase local opportunities for generating funds.
* To understand, develop and implement community-based marketing and entrepreneurship development approaches.
Methodology:
The methodology proposed here involves working simultaneously at various levels for raising funds for the organizations, including seeking foreign donor support, tapping local fundraising avenues and integrating community-based marketing approaches. The tasks have been outlined, as follows:
Donor Tracking Team:
An essential task of each organization should be to build a team or a staff member to proactively monitor donor funding, regularly refer the donor database, develop proposals and concept notes, suggest ideas and respond to donor communications. The team/staff member has to be net savvy with good internet and computer access. In most circumstances, an NGO may not be able to appoint the team/staff member or even, for that matter, a professional separately. This additional task has to be generated from among the existing project staff, which means adding more work to their/his or her existing project work.
Donor Database:
A donor database is a compilation of comprehensive information about donor agencies, locally as well as globally, which have a policy of providing regular funds through tenders and other means. The database should be developed with full listing of potential donor agencies, their country policies and priorities, contact addresses, fund guidelines, submission criteria, proposal formats and proposal deadlines. The database can act as a reference for the tracking team in submitting proposals and concept papers.
Fundraising Material:
Organizational material is often considered to be the tools for raising funds. However, this has to be planned professionally, designed effectively and has to remain visually attractive. Brochures, calendars, greeting cards, posters, websites etc can be developed with appropriate messages. It is important that the fundraising material focuses on sensitive case studies, success stories and organizational achievements. NGOs may decide upon the kind of material they need to bring out and can be designed effectively. However, the cost recovery factor needs to be kept in mind here.
Communications and Appeal Letters:
This task involves contacting and corresponding with both donor agencies as well as individual donors. Small donations can be received from individual donors inside as well as outside the country. A list of such individuals, especially from the Diaspora (which developing countries usually have to a greater extent), can be drawn up and contacted with appeal letters. Donors can be updated with organizational information and regular correspondence can take place.
Events, Workshops and Exhibitions:
These have been identified as potential sources of income generation either through donor agencies or through the collection of individual registration fees. NGOs can jointly plan out events and request donor support and/or collect registration fees.
Collection Boxes:
Donor Tracking Team:
An essential task of each organization should be to build a team or a staff member to proactively monitor donor funding, regularly refer the donor database, develop proposals and concept notes, suggest ideas and respond to donor communications. The team/staff member has to be net savvy with good internet and computer access. In most circumstances, an NGO may not be able to appoint the team/staff member or even, for that matter, a professional separately. This additional task has to be generated from among the existing project staff, which means adding more work to their/his or her existing project work.
Donor Database:
A donor database is a compilation of comprehensive information about donor agencies, locally as well as globally, which have a policy of providing regular funds through tenders and other means. The database should be developed with full listing of potential donor agencies, their country policies and priorities, contact addresses, fund guidelines, submission criteria, proposal formats and proposal deadlines. The database can act as a reference for the tracking team in submitting proposals and concept papers.
Fundraising Material:
Organizational material is often considered to be the tools for raising funds. However, this has to be planned professionally, designed effectively and has to remain visually attractive. Brochures, calendars, greeting cards, posters, websites etc can be developed with appropriate messages. It is important that the fundraising material focuses on sensitive case studies, success stories and organizational achievements. NGOs may decide upon the kind of material they need to bring out and can be designed effectively. However, the cost recovery factor needs to be kept in mind here.
Communications and Appeal Letters:
This task involves contacting and corresponding with both donor agencies as well as individual donors. Small donations can be received from individual donors inside as well as outside the country. A list of such individuals, especially from the Diaspora (which developing countries usually have to a greater extent), can be drawn up and contacted with appeal letters. Donors can be updated with organizational information and regular correspondence can take place.
Events, Workshops and Exhibitions:
These have been identified as potential sources of income generation either through donor agencies or through the collection of individual registration fees. NGOs can jointly plan out events and request donor support and/or collect registration fees.
Collection Boxes:
Collection Boxes can be used at various points to receive small donations, giving clear and positive messages on welfare and development. The boxes need to be designed well and must be placed at potential spots.
Consultancy Services:
NGOs can begin offering expert services in social development such as conducting research surveys, studies, assessments and evaluations to donor organizations, government and academic institutions. For this, a list of experienced staff members and their available expertise can be developed and presented to potential clients.
Private Sector Collaboration:
Working for a social cause is becoming increasingly popular in the private sector, especially among the private companies, banks and schools. The NGOs can start tapping collaborations where in private agencies are ready to share their resources for community development activities. Also, the long-term business collaborations, such as banks for micro-finance and insurance companies for micro-insurance, can be beneficial. Private agencies can be listed out and corresponded/contacted and meetings can be organized to initiate collaborations.
Community-Based Marketing Approach:
This can be a significant part of the overall fundraising and sustainability strategy as it has the potential to build resources over a long-term, both for the organization as well as the community. However, careful assessment and planned implementation will be required. NGOs may opt for many sectors here such as micro-enterprises, micro-finance, micro-insurance, health micro-insurance and community tourism. These approaches can be used to develop innovative proposals to be submitted to donor agencies. This is based on the fact that NGOs already have a strong base of community-based organizations and the community itself to whom it can market approaches.
Voluntary Support:
Volunteers especially from abroad can be a good resource to raise funds and provide other forms of support including documentation and promotion. Their assistance can be sought by contacting them via internet.
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