1 FUND-RAISING POLICY AND PROCEDURES 1. FOTIM’S VISION FOTIM’s vision is to facilitate opportunities for the benefit of higher education through collaborative projects. 2. FOTIM’S OBJECTIVES To facilitate cooperation amongst higher education and research institutions, non-governmental organizations and relevant communities in the northern metropolis through involvement of all interested groups; To transform existing higher education practice into a comprehensive articulated system allowing students greater mobility between institutions in the region by creating and sustaining an ethos of cooperation; To devise ways of optimal resource utilization and the prevention of unnecessary duplication through rationalization, consolidation and cooperative actions; To develop new, effective educational, research and community service programmes which fit the National Qualifications Framework. 3. FUND-RAISING GOALS To enable FOTIM, through effective fund-raising and marketing activities, realize its vision and objectives; Through effective fund-raising, to complete worthwhile projects successfully; To enable FOTIM to maintain its membership fees at a realistic and affordable level. to 4. PHILOSOPHY OF FUND-RAISING Fund-raising is a worthy process, possessing a dignity and a set of values. One should never feel apologetic about being part of an ethical fund-raising undertaking. An organization must earn the privilege of requesting donor support through its responsiveness to needs, the worthiness of its projects, and the stewardship of its Board. Its vision statement defines the value system that will guide projects and attract and hold the interest of members, staff and donors. 2 Fund-raising is at its best when it strives to match the needs of FOTIM with the donor’s need and desire to give. 5. THE CYCLE OF FUND-RAISING Fund-raising is not easy. It has a discipline that moves in an orderly fashion from preparation to planning to solicitation to project execution to management, evaluation and back to renewal of the plan. The following checkpoints in the cycle should take place: 5.1 Examine the case: A clear statement of case is evidence of FOTIM’s readiness to seek support. FOTIM must be ready and willing to address specific questions such as • Why does FOTIM exist? What problem or need is of major concern to FOTIM? • What special service or project does FOTIM offer in response to the need? • Who should support the project? • Why should any corporation or foundation contribute to FOTIM? • What benefits will accrue to the benefactor? Analyse market requirements: A needs assessment is an important part of the planning process. What is the reality of the need? Valid needs justify FOTIM’s existence and add value to the case for donor support. Prepare the needs statement: A needs statement is drawn from the findings of the needs assessment and prepared in draft form for review by the Board and by experts within the FOTIM member institutions. Once validated, a needs statement is translated into a project plan. The plan gives substance to the financial need, which, once approved by key people within FOTIM, becomes the goal of the fund-raising plan. Define objectives: Determine project goals and objectives. The objectives are specific explanations of how the goals will be accomplished. Objectives move from a more general statement to specific quantitative expressions. The specificity establishes a natural link to project budgeting, project cost and identification of project needs which provide the rationale for all fund-raising. A 20% agency fee is included, if permitted in terms of the grant, to cover administration of the grant by the FOTIM office. 5.2 5.3 5.4 5.5 Involve people from member institutions: People, often “experts” from FOTIM institutions, will agree to participate if they believe in the cause and all that it represents. Involving people to validate needs, approve plans and possibly help solicit potential donors is essential in successful fund-raising. Validate the needs statement: Key participants must be given opportunities to review, modify, accept or reject needs-assessment reports. This needs validation process is important. Through this 5.6 3 involvement, key people develop a sense of “ownership” and a sense of belonging that strengthens the initiative. 5.7 Evaluate donor market and identify donor source: Once the needs statement has been prepared and the financial goals decided, it is necessary to determine which donor sources should be approached, and the reasonable amounts that should be sought from each (if applicable). Sources may include individuals, foundations, corporations, associations and government departments. Careful analysis is needed, including level of interest in the work of FOTIM and the specific project, and accessibility through a key FOTIM person. This process builds an information base which can become a useful resource as long as it is maintained and developed. Board members can assist in this process. Broad spectrum fund-raising that seeks gifts from diverse sources will promote good health within FOTIM by making it more resilient, more aware of market requirements, more sensitive to change within the environment, and more responsive to the service and support requirements of its members. 5.8 Select the fund-raising vehicle: Selecting the most appropriate fund-raising method during the planning stage is as important as selecting the right donor source. It is likely that FOTIM will use the “written proposal” method most often. Prepare the fund-raising plan: Fund-raising is a management process and must follow the precepts of sound management. Gather the facts, study the facts, prepare the plan, evaluate and modify where necessary. Prepare the communication plan: A case for financial support has no purpose or value until it is communicated in a compelling, inviting form to individuals who are in a position to commit funds. Effective communication is more than data dissemination and facts that confuse rather than convince! Creative communication is a two-way instrument. It conveys what the market is willing to receive and what it needs to help it understand the project’s objectives. Activate participants: “People give to people who believe so deeply in a cause that it motivates them to ask others to give”. The most effective solicitor in any fund-raising initiative is the person who is committed to the cause. Solicit the donation: Someone must ask someone for money! No other process can really match the effectiveness of a person-to-person, face-to-face solicitation of funds, the personal explanation of the worthiness of the cause and its work in addressing human needs. Manage the donation: Receiving the donation is not the end to all action. The receipt should mark the beginning of a continuing and important relationship with the donor. A donation is received with the tacit promise that it will be used carefully and wisely. Proper stewardship requires periodic reports to the donor confirming that the donation is indeed being used in this way. Accountability and disclosure are essential. 5.9 5.10 5.11 5.12 5.13 4 5.14 Renew the donation: Should a donation be given annually for a period of years, the annual renewal of the donation does not complete the transaction. It in fact returns the process to the cycle’s entry point of “examine the case”. Just as the donation is renewed, the case must be renewed by subjecting it to ongoing scrutiny. 6. PREPARING A CASE The case is an expression of the cause - a clear, compelling statement of all the reasons why someone should support the cause. The internal case is the compilation of the knowledge base required to define the case, while the external case distills the database into a statement that justifies the fund-raising effort. 6.1 The internal case: What are the most compelling questions that challenge the existence of FOTIM? Who are we? Why do we exist? What is distinctive about us? What is it we want to accomplish? How do we intend to accomplish it? How will we hold ourselves accountable? Several elements make up the knowledge base that will enable FOTIM to respond to these questions. These are mission, goals, objectives, projects, services, staffing, governance, facilities, finances, planning, statement of needs, evaluation methods, and history. The external case: This tells the story of FOTIM to its constituencies. Stating the external case may take the following sequence: • Identify and validate the needs; • Document the needs; • Identify projects and strategies designed to address the needs; • Establish the competence of FOTIM and its staff; • Explain who will benefit from the services made possible by the donation; • Identify the resources required to fund the project; • Explain why the prospective donor should give; • How can the prospective donor give? • Respond to the unasked question in the donor’s mind – what’s in it for me? The case statement is always prepared in draft form so that it may be reviewed by appropriate persons and Board members. This gives both groups a sense of participation, crucial to their involvement as part of the team. 6.2 7. SOLICITATION STRATEGY A good written proposal is very important, but so is personal communication if this is possible. Time should be spent in ascertaining the best possible solicitation strategy for each prospective donor. Solicitation success must be designed; seldom is it accidental. There are three essential elements to plan for: The introduction establishes the common ground between the prospective donor and the FOTIM team by generating positive feelings about the mission, role and experience of FOTIM. The argument generates a sympathetic interest on the part of the prospective donor in the FOTIM project. 5 The summation presents specific donation ranges and opportunities and describes the donation’s impact on FOTIM. Remember that it is more important to know when to close than when to begin. Do not overstay the allocated time period. When a team is present, there must be a specific role for each person in each of the three presentation elements. Recount the argument, avoid redundancy, paint a realistic picture, cite the hopes and apparent promises of the future, use the prospective donor’s own words to “spin the dream”. 8. 8.1 FUND-RAISING PRE-REQUISITES Governance: The statement of overall needs and the plan to raise the funds that will address these needs must be reviewed, accepted and approved by the Board. It is essential that Board members place their full support behind the plan. The Board is FOTIM’s energy center and can serve as a sounding board to receive and reflect feelings about the project and about FOTIM’s readiness for fund raising. 8.2 Management: The Director must serve as the principal advocate for FOTIM’s mission and the driving force behind these initiatives, constantly championing the projects and the goals they seek to serve. Project participants: Project accomplishments, not budget requirements, will attract financial support to FOTIM. The competence and commitment of all involved will provide the motivation for donors to give, and for individuals to involve themselves in projects. Staff from member institutions will play many roles in the fund-raising process once their commitment has been confirmed. To encourage this commitment, these people must be meaningfully involved, properly recognized, and given a sense of participation 8.3 8.4 Fund-raising staff: Fund raising is included in the job description of the Director; however it is likely that all staff in the FOTIM office will be involved in fund-raising initiatives. The ability of the staff to plan, organize and administer projects (with the help of key people from member institutions) will determine the outcome of the fund-raising effort. The Organisational plan: • Create plans that reach at least 3 – 5 years forward in support of FOTIM’s strategy for addressing its mission, goals and objectives; • The plan should set forth details of project support, purpose, and capital and endowment needs for the period of the pan. The financial requirements will serve as a guide for fund-raising for each year of the plan, as well as for the total period; • To be effective, the plan must be a living document with meaning for each Board member and person involved, and should be prepared, evaluated, refined and accepted by those people who possess the power to put it into action. 8.5 6 8.6 The case: • Each request for a donation must have a case of its own drawn from FOTIM’s larger case. • Each case must be exciting, compelling and responsive to the prospective donor’s interests and requirements for information • The case must describe valid needs, and it must offer various donation options suitable to the donor’s situation. • The case must be renewed regularly if it is to have merit and pertinence for prospective donors. 9. 9.1 WRITING A PROPOSAL Cover letter: This is a summary of the proposal as a whole. It should be signed by the Director and Chairperson of FOTIM. It should identify FOTIM as the applicant and explain the reason for the request, the objectives to be achieved, as well as the total cost, funds already committed and amounts asked for. Introduction: This is to establish the credibility of FOTIM and the project applying for funds. Problem statement: This explains the problem (or need) to be approached using the funds requested. It should be clearly related to FOTIM as an organization, and evidence of the relationship should be provided. An idea of the scope of the problem should also be provided with an explanation as to how we can justifiably achieve the outcome we expect. Project objectives: This section defines the outcome of the project. It will be used to evaluate whether the donation has done what both FOTIM and the donor expected. Objectives should be measurable if possible. If not, some means should be provided of qualitatively understanding the outcome of the project. There should be an indication of who is going to do what, when and how, and the means used to measure the degree of success of the project. Methodology: This section explains what needs to be done in order that objectives are met. This is the appropriate place to provide estimates of timing, for the project as a whole as well as whatever sub-tasks comprise the project. Use past work and related projects to justify the estimates. It is useful to incorporate a critical-path analysis. Evaluation: There are two aspects to evaluation: outcome evaluation and process evaluation. Outcome evaluation measures how well the outcomes were achieved; process evaluation analyses the effectiveness of the methods used, especially in relation to cost-effectiveness. Answers to the following questions need to be established: Who will conduct the process evaluation? How will evaluation data be collected? How will evaluation data be analysed? How will evaluation date be reported? 9.2 9.3 9.4 9.5 9.6 7 9.7 Follow-up: An explanation is needed as to how the project will be handled once the initial funds from the donor have been used. How will the project be brought to completion, or sustained? Donors need reassurance that the project will not become a burden. Budget: Possible items for inclusion are: • • • • Personnel (Salaries/wages, Fringe benefits, Consultants/contracts) Non-personnel (Space, Equipment, Consumable supplies, Travel, Phone/fax) FOTIM administration fee (20% of the proposal budget) Indirect costs 9.8 Acknowledgements: 1. ROSSO, Henry A and Associates. Achieving Excellence in Fund Raising. San Francisco, Jossey-Bass, 1991. 2. University of the Witwatersrand Foundation. Writing a Proposal. html://wits.ac.za/foundation/proposal.html Heather Edwards Director : FOTIM 18.10.2000 Approved in principle by the Board 25.10.2000 Revised 10.11.2000 Approved by Board 7.3.2001
"FUND-RAISING POLICY AND PROCEDURES"