Other sources of funding
Any good funding mix will include not only statutory and grant funding (and possibly income from a social enterprise), but also money from fundraising events, gifts in kind, donations from individuals and contributions from the private sector.
Engaging the Private Sector | Events | Gifts from Individuals
Engaging the Private Sector
At our recent annual conference, we heard some great presentations on engaging the private sector, and explored a couple of very different models of engagement. The private sector can be a great source of funds, either by acting as a major donor, or as a commissioner of your services. The PowerPoint presentation from the workshop, which includes slides from Business Action on Homelessness and from St. George's Crypt, is a available to download.
Case Study: St. George's Crypt and Barclay's Bank
Martin Patterson from St. George's Crypt day centre gave a fantastic example of how to engage the private sector as a major donor. St. George's Crypt began its involvement with Barclay's Bank when a Barclay's employee began volunteering at the day centre. Soon this turned into match funding on food items for the day centre. Next, the Crypt got Barclay's to sponsor a publication called 'Entertaining Angels', which gained funds and publicity for the centre. The bank also benefited from sponsorship publicity. Next, the Crypt was able to host team building days where Barclay's employees would come to the centre for a day to help out by painting or performing some other task. That lead to Barclay's funding St. George's Crypt food budget for two years, and after they had paid for the food, the bank was convinced to fund a kitchen conversion for the centre. Eventually, the bank sponsored St. George's Crypt Create kitchen and training provision, as well as the Crypt Parliamentary reception. The day centre was also able to start effective dialogue with Barclay's other Community partners, and service users have been able to attend training days held by the bank.
Some key advice from Martin was to:
- Develop sustainable relationships with potential private sector partners - don't ask them for money right away, you have to build up to the ask! You should get people involved with your work first, which sometimes means accepting small donations or support at the beginning (Martin remarked that he'd lost track of how many times the Crypt had been repainted on team-building days), and building up to something bigger.
- Mutual understanding and mutual benefit - make clear how a partnership benefits your private sector partner as well as your service users. Make sure you understand your partner's business and that they understand yours!
- Network, network, network! Set yourself a goal of collecting 3 business cards at any event you go to - you never know who could end up helping you.
Another great initiative was where one organisation convinced a local jewelry shop to sell a particular range of jewelry as a charity project - so a portion of the proceeds were donated to the centre. The shop was able to secure free advertisement in the local paper because it was for a charity initiative, and benefited not only from a portion of the sales of the products, but also from free publicity.
Some tips:
- Think of a local business that might be able to sell products for your charity.
- Start sending them information about your work and invite them to open days. If you can, try to develop a relationship with the staff or ownership - for example, does anyone with a connection to the business volunteer for you?
- Lay out the benefits for them of fundraising for your charity - good publicity, attracting new customers, some profits from the sales, and the satisfaction that comes from contributing to a worthwhile cause.
Events
Many day centres will use events to raise extra money, either for a particular initiative or general running costs. While the amount you can raise and the type of event most appropriate for your centre will vary depending on your area, your contacts and your venue, there are a few tips that might help you grow your events into greater donations.
- Database your contacts: whenever you hold an event, whether 2 people attend or 200, make sure that you ask them for contact details to keep them informed about your work. You can then use these contacts to send information about future events and what you're doing, so as to get people involved with your charity. The more someone knows about your charity, the more likely they are to support it.
- Try to get sponsorship: local businesses might want to sponsor your event in order to obtain some publicity themselves, or to fulfill CSR requirements. They could sponsor you by providing gifts in kind to be auctioned off, providing a venue, or paying for a part of the costs, for example the catering. Ideally, their involvement will give you access to their employees and other contacts who might attend your event. Remember that a small gift in kind could be the beginning of a much more beneficial relationship.
Case Study: St. George's Crypt and Carey Jones Architects
Martin Patterson also provided a great example of successful event fundraising in his presentation on involving the private sector (available to download). After meeting Gordon Carey through Common Purpose in 2000, Martin was able to develop a more longstanding relationship with Carey Jones Architects where the company helped to organise events to fundraise for the day centre.
- The Crypt received financial support as charity partner in three Carey Jones Valentines parties.
- Carey Jones organised two Fashion Shows attended by key corporate people from Leeds - thus giving the Crypt access to potential major donors.
- Carey Jones employees were also key stakeholders in successful 75th Anniversary Fund Raising Committee (raised £750,000 from all sources in our 75th year – 2005).
- They were a key partner in a successful fundraising event called “The Crypt Factor” which has raised nearly £50,000 for the Crypt in two years.
In fact, the relationship that began with event fundraising eventually translated into further support in other areas. Carey Jones became foundation partners in a major accommodation/training project called “The Next Step”, and they played significant role in brokering materials and furniture for Crypt’s HCIP funded Faith Lodge project.
Gifts from Individuals
Typically, fundraising from individuals in time-consuming and expensive, so not always the best option for a small day centre. However, it can be worth putting a little bit of time and limited resources into the individuals you come across in your work or those who have a connection to your area. For example, sending out information to your local community inviting them to attend events, to volunteer and to donate could be very worthwhile. Trying to attract major donors could also be fruitful. The main principles are to identify people who may be interested in your project, send them information, and to try to involve them so that they will want to make a contribution - either a donation of their time, money or other resources.
Here are a few ideas to begin a strategy with individuals:
- Get your organisation onboard - members of staff, trustees and volunteers should all be thinking about whether they can make a financial contribution, or they might know who could donate.
- Once you've convinced some of your wealthy trustees or volunteers to give up their contacts, database them.
- Send your contacts information about your centre. You can also distribute information to residents of your local area.
- Invite contacts and residents to open days so they can see what you do.
- When you feel you've developed a relationship with someone and that they are interested in contributing, ask them for a donation. Be sure to explain exactly where the money will go and what difference it will make to your centre.
- For the more wealthy individuals who may have a connection to your work or to your area, find out why they might want to donate to your organisation. For example, is there an event they could attend that would be a publicity opportunity for them? Could they become your patron, and therefore have their name appear on your publicity material and website? Or perhaps they are oriented towards venture philanthropy, and you could offer them the opportunity to make a solid investment in the futures of vulnerable people?
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