Fundraising from Companies + Charitable Trusts/Foundations & through the Internet

FUNDRAISING FROM
COMPANIES AND
CHARITABLE TRUSTS/
FOUNDATIONS
& THROUGH THE
INTERNET

Produced & published by
Mr Gordon P Owen • M Inst F • F Inst D • FIBA

FUNDRAISNG FROM COMPANIES AND
CHARITABLE TRUSTS /
FOUNDATIONS & THROUGH THE INTERNET

- CONTENTS -

Suspects – Sources of Funding
The Five “I’s” of Fundraising
Resources
Turning Suspects into Prospects

Checklist for Identifying Trusts/Foundations
Checklist for Applying to Companies
Preparation # Home Work
Case Study # Example
From the potential Donor’s Point of View
10 Top Tips
Getting Beyond the Wastepaper Basket!
Common Pitfalls
Writing your Application
Some Tips on Writing Style
Then What?
Reporting Procedures
ICF Internet Fundraising Guidelines

© GPO • 2002.

SUSPECTS – SOURCES OF FUNDING
• Trusts and Foundations
- start up costs
- need right locality
- need right theme
- give £1.25 billion per year UK wide
- organisational restrictions
• Companies
- sponsorship or PR potential
- publicity materials
- employee involvement
- campaigns in schools
- high profile projects
- give £200 million per year

• National Lottery
- highly specific criteria
- organisational restrictions –
- Make grants worth £320 million per year

• Government
- local authority grants and contracts
• Europe
- ESF
- complex – Discuss with the EU Office in London
• Individuals
- Highly personalised – [Discuss with known sources of contact]
© GPO • 2002.

The Five "I's" of Fundraising

• INVESTIGATE - RESEARCH

• INFORM - INTRODUCE YOUR
ORGANISATION
AND PROJECT

• INTEREST- DEMONSTRATING
LINKS/MEETING

CRITERIA

• INVOLVE - ENGAGING
~ INTERACTING

• INVEST- BUILDING RELATIONSHIPS

© GPO • 2002.

Turning Suspects into
Prospects
Steps to work through:
• in-depth research assessing:

- locality (national or local remit & where) - size of grant
(match their capacity to your needs)

- timing (match frequency of grant making to your schedule)

- interests (how much commonality is there?)

• looking at the bigger picture:

- degree of competition and likelihood of a grant - work
required to submit an application - what relationship
already exists

- do you have any contacts or a lead in?

• a list of prospects:

- which you must check with before contacting – Consultancy available via
Gordon Owen

• these are your potential donors!
© GPO • 2002.

Checklist for identifying
Trusts / Foundations
• Have they donated previously?
- Check computer and paper records, please ask – Consultancy available from Gordon Owen

• What are the objectives of the Trust/Foundation?
- Are we eligible to apply?

• What is the giving capacity of the Trust/Foundation?
- Look at their income and expenditure - what are they capable of
giving?

• What are the types of grants they normally give?
- capital projects, scholarships, fund over several years?

• What are their conditions for a grant and what are their exclusions?
- Do we have to raise some of the money before approaching
them? Geographical constraints?

• When do the trustees meet?
- Monthly, quarterly, as necessary? How far in advance do they like proposals?
• Do they have a formal application form or guidelines?
- Do they require a summary of the project first?
• Who are the Trustees/Settler/Administrator?
- Do we know any of them?
• Do we have any Trustee contacts?
- Do any of our Trustees know any of theirs? How can we make use of this?
• What kind of projects do they like to fund and which part of our work is most
likely to find favour?
- Look at previous giving history. If unsure, seek advice from the Administrator.
• How much should we ask for?
- Look at previous history. If unsure, ask the Administrator.
• Who is the best person to submit the application?
- Director, Chairperson, Secretary, Fundraiser
• Who should the letter of application be addressed to?
- The Chairman of the Trustees, the Secretary, Administrator
• Would the Administrator/Trustees like to visit?
- Do they ever visit applicants' projects? Would they like to visit a project as an introduction to our
work?

© GPO • 2002.

Applying to Companies

This section gives basic information for • Because the Chairperson or other
putting together applications to companies. senior managers have a personal interest
in that cause, this is particularly the case for
To make an effective appeal to industry you smaller companies. Even where a company
must have a basic understanding of why has well-established criteria for giving, if you
firms give. This enables you to put forward can get a friend of the Managing Director to
good reasons why they should support your ask on your behalf, you are more likely to get
work. Some companies in this guide receive a donation, even when your cause does not
up to 100 applications each week. You need exactly fit those criteria.
to make a good case for yours to be
successful. A company will not be Generally it is worth emphasising the sheer
particularly impressed with a general plea to chaos of company giving. Few companies
'put something back into the community'. have any real policy for their charitable
They want something more substantial. You giving. Mostly they cover a wide range of
should be able to demonstrate a clear link good causes or attempt to deal with each
with the company, be it geographical, appeal on its merits.
product, employee contact, or some other
connection. However, some companies do have a clear
policy. Where policies are printed please
Why companies give? respect them; dealing with a mass of clearly
The main reason for company giving is often inappropriately applications is the single
said to be enlightened self-interest, rather biggest headache in corporate giving and
than pure altruism and they see their giving has caused some to consider winding-up
as 'community involvement' or' community their charitable support programmes
investment'. The following are some of the altogether.
reasons why companies’ give:- clearly inappropriate applications is the single
What companies give?
• To create goodwill. Companies like to be
seen as good citizens and good There are a variety of ways in which
neighbours, so they support local charities. companies can support charities:-
They also like to create goodwill amongst
employees. Contributing a senior member • cash donations;
of staff to the charity's • sponsorship of an event or activity;
• sponsorship of promotional and
• To be associated with certain causes educational materials;
that relate to their business. Mining • sponsorship of an award scheme;
companies often like to support • joint promotions, where the company
environmental projects, pharmaceutical contributes a donation to the charity in
companies health projects, banks return for each product sold in order to
economic development projects and so encourage sales;
on. • making company facilities available;
secondment of a member of staff, where
Because they are asked and it is expected a member of the company's staff helps
of them. They know that other companies on an agreed basis whilst remaining
also receive appeals and give their support. employed (and paid) by the company;
They will often support trade charities such • contributing a senior member of staff to
as a benevolent fund or an industry research the charity's Management Board;
organisation; beyond that they will probably • providing expertise and advice;
pitch their level of giving more or less at that • encouraging employees to volunteer;
of their rival.

© GPO • 2002.

•
• organising a fundraising campaign As a first step you might contact the
amongst employees; company to find out the following:-
• advertising in charity brochures and
publications. • who is responsible for dealing with
charitable appeals
Key factors in approaching companies
• their name and job title
Research
• what information theyof ansend regarding
~ sponsorship can award scheme
Research is very important, not just into their company
companies, but also into personal contacts.
When planning an appeal, an important first • any procedure or timetable for submitting
step is to find which of the people associated applications
with your charity have influence or know
people who have. If you can find a link • whether they might be interested in coming
between one of your supporters and a to see your organisation at work.
particular company - use it.
Visitsfirst step is to find which of the people
are useful when discussing bigger
• One of your trustees/members may be on donations with the larger companies, but are
the board of directors or have contacts difficult to arrange for anything small.
there - it will
• prove useful for them to write or sign the Almost certainly your appeal will be in the
appeal letter. form of a letter. Make this as personal as
• One of your volunteers or supporters may you can. Circular letters tend to end up in the
be an bin. Make the letter short and to the point.
• employee of the company.
Be specific in your approach
• Your clients/users (or their parents) may
work for the company. Rather than sending out a circular mailing to
100 or 1,000 companies, you will be more
Alternatively, you might be able to tie your successful if you select a few companies you
appeal in to a known personal interest of a believe will be particularly interested in your
director. project, and target your application to them
and their policy. (Many companies will not
Getting in touch consider circular appeals as a point of
policy).
Generally an appeal through a personal
contact will work the best. But if you haven't Find a good reason why you believe the
got a contact and can see no way of company should support you and include
developing one, then you will have to come this prominently in
up with another link.
your letter. You may be able to relate what a related company's support. If there is no
you are doing as a charity to companies relationship, should you be approaching that
which have some relevance to your work; for company at all? A health education charity
example, a children’s charity can appeal to may not want to accept money from a
companies, making children’s products tobacco or brewery company or from the
companies, a housing charity to construction confectionery industry, or similarly an
companies, building societies, etc. Any environmental group may not wish to accept
relationship, however tenuous, creates a a donation from a nuclear power company.
point of contact on which you can build a These may feel that as a result of doing so
good case for obtaining the company’s they would be seen to be compromised.
support. If there is no relationship, should Similarly, a local charity might not want
you be approaching that company at all? money from a company who has made
people in the area redundant. Each charity
There may be occasions where a charity will has to judge where it draws the line.
not want to accept money from a company in

Be clear about why you need the money never support you. Go back a second and
even a third time.
You must be clear about the objectives of
the work you are raising money for, If you are going back, mention the fact that
particularly its time-scale and how it relates you have applied to them previously,
to your overall programme of work. Try to perhaps saying that you are now presenting
think in project terms rather than seeking them with something different which may be
money to cover basic administration costs. (you hope) of more interest to them.
This can be difficult, because most people
spend most of their money on administration If they give you reasons for refusing support,
in one form or another, so you need to use them to help you put in more appropriate
conjure up projects out of your current applications in the future. If they said that
activities to present to potential donors. You they do not give to your particular type of
can build a percentage of administrative activity then you know that it is absolutely no
costs into the costs of the project. If you use your going back. If they said their funds
relate what you are doing to a specific time- were fully committed, you can try to find out
scale, this again makes what you are when would be a better time to apply
applying for more of a project than a (although it might only have been a
contribution to your year-on-year core costs. convenient excuse because they did not
want to give to you).
Be persistent
Note the response to your appeal and use
Do not underestimate the persistence factor. any information you can glean to improve
If you do not receive a donation in the first your chances the next time. People respect
year, do not assume that the company will persistence, so it really is important to go
back again and again.
How to find out which firms to approach? • The Directory of Directors and Who's
Who are useful for finding out more
The firms to approach must depend on what about company directors.
sort of organisation you are. If you are a • Corporate Register - updated
national organisation then an appeal to the quarterly - a guide to makers in UK
country's leading companies is appropriate. Stockmarket companies.
Local groups should approach local firms
and local branches of national companies For local companies in addition to this
which have a presence in their area. All guide:
organisations can approach companies in
allied fields: for example, theatres can • The appropriate regional section of
appeal to fabric companies. Kompass.
• The local Chamber of Commerce.
You will find the names and other details of • Confederation of British Industry –
companies in a whole series of useful Regional contacts.
directories and publications. • The Institute of Directors.

Sources of information: Whichever directories you are using make
sure they are up-to-date copies. Company
• The Times 1,000 personnel and/or donations policies change
• The Kompass Register of British regularly.
Industry & Commerce – [available in
regional sections] If you want gifts in kind, you should find likely
• Guide to Key British Enterprises suppliers of what you need. Trade
• Stock Exchange Official Year Book associations will often provide a list of its
• Jordan's Top Privately Owned member companies. Another idea is trade
Companies – [2 volumes] list of its member companies. Another idea is
trade exhibition catalogues which give
To find key contacts in companies: details of all exhibitors.

One big problem is the ownership of policy remains a purely local matter for
seemingly independent companies. Many company management in the country
companies are in fact a part of a much larger concerned.
concern. In recent years there has been a
substantial number of mergers and Leading national companies
take-overs, plus the buying and selling of
business between corporations. A useful Many support large national charities, of
source of information is the directory Who which many have departments set up to
Owns Whom, which has a subsidiary index raise money from companies. Some make
listing most subsidiaries of companies grants through regional offices and most will
included in the guide. You can also use give preference to charities local to their
company annual reports, which (for most main operating sites.
companies) can be obtained on request.
These reports provide good background Larger local companies
information on the company, and
occasionally information on the company's In any city or region there will be large
corporate support programme. Some private companies who are important to the local
(and occasionally public) companies will not economy. These companies will often feel a
send out annual reports except to responsibility to do something to support
shareholders; in such cases you can go to voluntary action and community initiatives in
Companies House to get hold of a copy. The those areas, and value the good publicity
main offices are situated in Cardiff, that this will provide. It is a good idea to form
Edinburgh, Belfast and London, with satellite some kind of relationship with larger
offices in Birmingham, Glasgow, Leeds and companies in your area
Manchester.

Finally there are national and local Some basic don'ts when applying to
newspapers which can provide useful companies
information and ideas about who to
approach. Informal sources or information Don't write indiscriminate 'Dear
may include the local business school, Sir/Madam’ circular letters to any
rotary, round table, Chamber of Commerce, company you come across.
Business Breakfast Clubs, as well as clients Don't use any guide you may have
of your auditor, banker, legal advisor or access to as a simple mailing list.
suppliers. Don't write to a company which
specifically says it does not support
The types of companies that give your kind of work. Don't write to a
Foreign owned multi-national companies company unless at least one of the
following applies:-
Many of the large multi-nationals have global
giving programmes. Some have an • The company has a declared policy
international structure for managing their indicating a specific interest in your
giving with budgets set for each country and group's area of work.
a common policy for the sorts of activity they • The company operates in the same
are interested in supporting. small budget to locality as your group and a clear
spend on charitable projects of its choice. product link exists between your
Others may give each country a small needs and their supplies.
budget to spend on charitable projects of its • You have a strong personal link with a
choice. With others, community involvement senior company officer, or a member
of their staff is actively involved in your
There are also companies that have a work.
regional remit, such as water, electricity and • There is some good reason to write to
television companies. The support of these that particular company. The fact that
companies is usually confined within these the company makes a profit and your
regional boundaries. group needs money is not a
sufficiently strong link.

Smaller local companies • You should state why you need the
money and exactly how it will be
Almost everyone is targeting the large spent. The letter itself should be
companies, because good information is straightforward. It should include the
available on these for fundraisers and there following information (not necessarily
is little available information on smaller local in this order): what the organisation
companies. Many of these are privately does and some background on how it
owned and the approach will often be was set up; whom the organisation
through the ‘Chairman & Chief Executive’ or serves; why the organisation needs
‘Managing Director’, or ‘Senior Partner’. funds; how the donation would be
Most of these companies will have no spent if it were to be forthcoming, and
policies about what to give to and may prefer why you think the company might be
to give in kind, for example a prize for a interested in supporting you.
raffle, or a fundraising event. It might be
easier to approach these companies for this • You should attempt to communicate
sort of support in the first instance; and later the urgency of your appeal.
on, (once they have given something), to Fundraising is an intensively
persuade them to make a cash donation. competitive business; there is a
limited amount of money to give have
Constructing an Appeal Letter to ensure that some of it comes your
way. If it appears that although you
Important points to consider:- would like the money now it would not
matter terribly much if you got it next
• Think up a project or aspect of your year, this will put people off. But don't
work that the business sector might give the impression you are
like to support. Generally, do not fundraising at the last minute. Show
appeal for administration costs or a them you are professional and you
contribution to an endowment fund have carefully planned your
(although there will be cases where fundraising appeal. You should also
this approach will succeed). try to show that your charity is
Recognise that companies are likely well-run, efficient and cost effective in
to be interested in some ideas and how it operates.
not others. For exarnple, a drugs
charity would be more likely to get • You should mention why you think the
money for education than company should support your cause.
rehabilitation. An appreciation of the This could range from rather
kind of projects that companies like to generalised notions of corporate
support will be very helpful to you. responsibility and the creation of
goodwill in the local community to
• Your letter should be as short as much more specific advantages such
possible. Try to get it all on one side as preventing children painting graffiti
of A4. You can always supply other on their factory walls or the good
information as attachments. Company publicity companies will get from
people are busy. You can help them supporting your cause. If the firm's
by making your appeal letter short generosity is to be made public, for
and to the point. It should be written example through advertising or any
clearly and concisely and be free from publicity arising from the gift, then
jargon. Someone not acquainted with emphasise the goodwill which will
what you are doing should be able to accrue to the company. Most
read and understand it and be companies would say that they do not
persuaded to act on it. Give your require any public acknowledgement
letter in draft to someone outside your for the contributions they make, but
charity to read and comment on most will appreciate and welcome
before finalising it and sending it out. this.

• As for something specific. It is all too easy • If you do not succeed, go back again next
to make a good case and then to mumble year (unless they say that it is not their
something about needing money. Many
companies, having been persuaded to give, The Application Letter – Checklist
are not sure how much to give. You can ask
them to give a donation of a specific amount, • Is it only one side of A4?
(matched to what you believe their ability to • Does it state what your link is with the
contribute to be), or to contribute the cost of company?
a particular item. You can suggest a figure • Does it stress the benefits to the
by mentioning what other companies are company?
giving. You can mention a total and say how • Is it clear why you need the money?
many donations you will need to achieve • Is it clear what you are asking for?
this. Do not be unreasonable in your • Is it addressed to the correct contact?
expectations. Just because a company is • Is it attractive to the company?
large and rich, it does not mean that it • Is it endorsed?
makes big grants. • Applying to companies

• If you can demonstrate some form of’
leverage' this will be an added attraction. policy to support your type of Organisation
Company donations on the whole are quite or to give to charity at all). Persistence can
modest, but companies like to feel they are pay. If you have received a donation, go
having a substantial impact with the money back again next year. The company has
they spend. If you can show that a small demonstrated that it is interested in what
amount of money will enable a much larger you are doing and in supporting you. It may
project to go ahead, or will release further well do it again next year, especially if you
funds say on a matching basis from had thanked them for the donation and
another source, this will definitely be an kept them in touch with how the 'project'
advantage. developed.

• Having written a very short appeal letter, How companies reply to you
you can append some background support
literature. This should not be a fifty-page Many companies will not even reply to your
treatise outlining your latest policies, but appeal. A few may acknowledge receipt of
like your letter it should be crisp and to the your letter, and occasionally you will get
point, a record of your achievements, your thanked for your request and be told that it is
latest annual report, press cuttings or even being considered and you will only hear the
a specially produced brochure to outcome if you are successful. Up to half of
accompany your appeal. the companies you approach will write back
depending on the spread of the companies
• Make sure that the letter is addressed to you approach. Larger companies have a
the correct person at or the correct system for dealing with charity mail, and
address. It pays to do this background most will see it as good PR to give a reply.
research. Keep all the information on file as Smaller companies which are not giving
it will make your job much easier next time. much charitable support will not have the
time or the resources to do anything but
• If you are successful, remember to say scan the mail and throw most of it in the bin.
thank you; this is an elementary courtesy
which is too often forgotten. If the company What sort of reply should you expect? If you
gives you any substantial amount of do an extensive appeal, you will inevitably
money, then you should probably try to get a lot of refusals. These will normally be
keep them in touch with the achievements in the form of a pre-printed or
related to their donation (such as a word-processed letter or a postcard.
between the lines. Companies in trying to Occasionally you will get an individually
be polite may in brief progress report or typed letter of reply. If they say yes, you will
copies of your annual report or latest get a cheque or a Charities Aid Foundation
publications).

Charities Trust voucher. But more often they
will say no.

There may be various reasons given or
phrases used by a company for refusing
your request. The company may not mean
what it says. Funds may still be available for
those appeals the company wishes to
support; the company may be able to give
support and just not want to; or it may not
want to now or in the future. You should try
to read fact be misleading you if you take
what they say at face value. © GPO • 2002.

PREPARTION # HOME
WORK
Identify the need and research study

• What is exactly required
• Why the need
• Who will benefit
• Provide facts and figures to support the need; area in which it will operate; and the
people it is aimed to aid.
• Provide all data to grant body in advance to study.
• Support with presentation summary + any graphical material possible -
• if a building - a visual drawing of what will look like
• if children - photo of them showing expression of disappointment of not having the
ability to benefit and image the excitement of what the expression would be from the
benefits and skills achieved from meeting that need.
• Create & develop positive image of the scheme
• Publicly & material
• Costings - Broken down into Capital & Revenue
- Budgets
- Projections

Shopping list of anything in terms of good needed (with costs) to enable smaller potential
contributors to be able to support and be able to identify specifically with what they have given
in support.

Who appeals will be target at:-

- Trust / Companies / Central & Local Government Departments/ Lottery / Euro funding

Prepare appeal letters and supporting material:-

- Identify voluntary & statutory authorities who will be invited to be involved.
- Identify any other useful contacts to help achieve goals.
- Programme - Time-table
- Development Plan
- Enables (a) Monitoring; & (b) Determine strategies to achieve goals

© GPO • 2002.

CASE STUDY # EXAMPLE
NEWHAM YOUTH LODGE HOSTEL PROJECT:

Picture for a moment the expression of a child’s face and what might be going through their
minds reading an airline magazine on holiday about other children travelling abroad on
exchange trips. Imagine their thoughts when such opportunities are disappointingly not been
available to them.

Given the opportunity and resources that this project provides - Imagine - the expression of
excitement and happiness on the face of a child who is told - here is a chance for you to
participate.

Think of the educational and cultural value helping them to understand and value others as
people.

Determine need:

- What is the Project?

An outer London Borough with a population of around 27,100 - high-rise flats, terraced
housing. But it is home to the people and families. The people live happily engaging in
professions, activities and interests with a host of skills. Along side this for the young are
some 200+ youth clubs & organisations that make-up the youth service in the Borough.

Trips to a variety of places in and around London, counties and even countries are organised
by different youth organisations - to sight see, bike, camp and so on. We visit these places but
rarely do we have the time, chance or inclination to meet, talk and live in these places for
educational trips.

The hostel currently provides accommodation to enable educational exchange trips to be
complimented in situations where reciprocal visits are not possible because families do not
have the space to accommodate visiting people from other counties and countries. It is
designed and caters for groups of between 12 - 30 people, as distinct from individuals.

Work Involved -- Historically:

Sought assistance from Local Authority Architects to produce conceptual drawing to create
visual concept of what the building would look like once converted.

Negotiated Lease & Building Agreement for 15 years (with option to continue) with the Local
Authority - therefore have the land.

Engaged (at no cost), Architects & Quantity Surveyors to design and cost-out the building
works of existing phase I of the project

Worked with architects and QS to prepare works specifications and tenders. Liaised and work
with final appointed contractors and sub-contractors to complete works.

Worked through processes to expedite Building Regulations approval and Planning
Permission.

The Phase I initial official opening was so successful that no less then 50 Trusts alone, apart
from another 100+ dignatories attended securing relationships for the future in terms of
support and future funding. Some even offered more help at the time and subsequently
helped again.

Had a scale model of the building made to exhibit for consultation with youth organisations and
schools in the borough. Also took this model to some presentation meetings with Trusts.
Proved successful.

Other promotional and publicity produced to include brochures with list of contacts to arrange
direct exchanges, information on hostelling and graphics/photos. Plus: translated material
languages + in Braille for the blind. Initiated and designed logos to project image of the
project.

Met and subsequently registered with the English/London Tourist Board and British Tourist
Authority who included the project in their handbooks translated for a number of countries to
generate interest and future use. This task has successfully underpinned revenue income.

Feedback from youth groups and schools were initially mixed but enough to qualify the project
being forthcoming. Clearly the building would be used - others uncertainties from some
potential users with in-house commitments - later a significant number of these came on board
and participated. Visits made to each group to coordinate.

Secured arrangements with local City airport for groups and have made many visits using the
airport to discuss future arrangements.

During the VE/VJ commemorations earlier this decade, worked in partnership with the
International Duke of Edinburgh’s Award and hosted a group of people from some 14 countries
around the world and an informal dinner for some 150. Co-ordinated arrangements with the
main activities in Hyde Park and arranged trips for visitors. So successful was this venture
that an invitation from the Duke of Edinburgh and Prince Edward to attend a Garden Party at
Buckingham Palace was received and attended.

Thousands of people, representing youth groups from all over Europe, Asia, Africa,
Scandinavia, US, Canada, Australia and latterly the former Eastern block now visited the
Borough putting them and the Organisation clearly on the map - moreover, think of the children
& young people who benefited as a result from the Borough!

Funding:

• Feasibility Study [So as to be official recognised and accredited] - Grant-aided by CAF.

Made shopping list of items required within the building to furbish, equip and furnish hostel.
Sent this list to an initial host of some 500 manufacturing companies with information about the
project, a brochure and covering appeal letter.

Prepared and submitted grant-aid applications to the Local Authority, Department of the
Environment and a variety of Trusts researched for initial funding required of £250k.
Applications were successful and total monies needed raised. Building also took on needs for

disabled and separate funding secured to provide for this, e.g. wider doors, disabled toilets &
showers, ramp, easier access to phone etc.

Before the decision of this was known a quarter of the manufacturing companies written to had
positively responded pledging a variety of furnishings and goods for the buildings, including
carpet tiles, bunk beds, office equipment, kitchen equipment etc.

Successfully secured sponsorship from the British Council to personally visit the Borough’s
twin-town in Germany to carry out study and to promote the project. This included producing
a brochure translated in German to distribute. Subsequent to approval, received invitation to
be a civic guest of the town by the Oberburgermeister (Lord Mayor). In the early stages we
spent fruitful week visiting hostels and youth groups in and around town.

Secured a scholarship through the Churchill Foundation to extend study to the US and visited
a variety of hostels operated and again promoted project.

Conceived idea of aesthetically improving the external of the building by introducing figurative
murals on the external walls. Engaged an artist to produce concept ideas based on the history
of the Borough. Later secured monies and paints/materials to bring this to reality and some 7
12ft high murals painted based on different historical elements of the Borough - introducing a
new element in terms of companies/organisations who would otherwise not have become
involved and who were interested - plus excellent publicity! This included dealing with all the
processes for further Planning Permission with the Local Authority.

Secured revenue funding from the former LDDC for salary to employ first member of staff, e.g.
Administrative Secretary to facilitate the project. Prepared job advert and job description/
specification + contract for this post.

The project has provided a real need for almost two decades. Now reached a cross-road with
entire site under a new development with the intention of demolishing school and hostel and
build purpose built accommodation - exciting future ahead.

The proposed new purpose built hostel for international youth exchanges will cost a quarter of
a million pounds. The research in support of this has been supplied.

Equipping & furnishing will not be such a costly task with existing resources from the current
building being moved into the new complex when complete. Part of this exercise is underway
in terms of upgrading and replacing old items so as to suitable compliment the needs of the
new building.

© GPO • 2002.

FROM THE DONOR'S
POINT OF VIEW
• Is this project within our policy,
priorities and area of benefit?

• Is it clear - what do they want, why and
when?

• How do we know they can do it?

• Who are they- do we know this
organisation?

• What are the implications for the
future?

• Has anyone else supported this
project?

• Do we expect to get anything in return?
© GPO • 2002.

10 Top Tips
1] Address your appeal to the right person
2] Tailor your appeal to the prospect
3] Include a clear statement of Organisation's work
and objectives
4] State clearly how much money you need and
include a budget
5] Tell them what the money's for
6] Break a large appeal down into realistic chunks
for particular items
7] Include the latest accounts
8] Offer to go and see them and follow up the letter
within a week
9] State the benefits for them
10] Be positive and upbeat about the Organisation
and your ideas
© GPO • 2002.

GETTING BEYOND THE
WASTEPAPER BIN!
PLAN AHEAD
• Think in terms of months not weeks

• trusts may meet only twice a year;

• sponsorship budgets may be committed 18 months ahead.

RESEARCH THE DONOR
• Read up on their policy and priorities.
• How much do they normally give?
• Find out the right contact name
• When is the best time to apply?
• Do they issue guidelines
• How do they like to be approached?

PACKAGE YOUR PROJECT
• Identify unique selling points
• Package specific needs
• Prepare a proper budget
• Is it cash you need?
• Is it sponsorship or a donation?
• Consider unit costs or a choice of costs
• Sponsorship benefits

PLAN THE PROPOSAL
• Organise your information

• Gather supporting documents

• Decide on a format

NOW YOU CAN WRITE IT!
• Avoid jargon
• Bring out human interest
• Generate emotion, belief and commitment
• Break up the text & include a summary
• Do not forget enclosures
© GPO • 2002.

Common Pitfalls
• "Dear sir/madam". There is no excuse for not addressing a named
correspondent and preferably the correct name! Circulars waste time and
money.

• Long-winded and vague appeal letters. Be concise and precise - most
letters will be scanned.

• Not understanding the commercial world. Companies want to know what
they will get out of it. Companies expect some good publicity, even from a
donation.

• Not stating what you want. Many appeals give lots of information, but the
donor is left wondering what you actually want from them. Be very clear
what you are asking for and why.

• Insufficient time. Plan ahead and appeal in good time. If you want the
money next week it suggests bad planning,

• Wrong address. Appeals may end up on the right desk, but a two week
delay is unhelpful and creates a bad impression.

• Tactical error. When sending photographs to Kodak in support of an
appeal, do not send a Fuji film!

• Not valuing their time. Applications should consist of a short letter. Do
not say all the information is in the enclosed video!

• Being unrealistic in what you ask for.

• Lack of professionalism. Appeals, particularly by telephone need to be
carefully thought through. Trying to make them feel guilty rarely produces
a positive response.
© GPO • 2002.

WRITING YOUR
APPLICATION
EXECUTIVE SUMMARY - A brief outline of the proposal
• Problem
• Solution
• Funding requirements
• Organisation and its expertise

THE STATEMENT OF NEED - Why is this project necessary?
• The problem - evidence of need, facts and statistics
• Who are you helping? - comments and quotes from beneficiary group/s
• Why is the issue important?
• What would be the consequences if nothing was done to address the need?

PROJECT DESCRIPTION - Nuts and bolts Show the project will be implemented
• Objectives
• Methods
• Staffing and administration
• Monitoring and Evaluation
BENEFITS FOR THE PROSPECTIVE DONOR - what will they get out of it?
• Business benefits, e.g. value of press coverage and PR
• Corporate citizenship, and how it fits with their aims
• Opportunities for employee involvement through volunteering
• Opportunities for in store/branch promotion
• Branding on promotional materials
• Networking and contact with key government figures
BUDGET - Financial description of the project
• How much the project will cost in total?
• How much will you need from the funder?
• Income already received or expected

ORGANISATION INFORMATION - Introduction and background to your Organisation
• History
• Main activities
• Location and size
• Aims and objectives
• Beneficiaries and services
CONCLUSION - Summary of the proposal 's main points
• Final appeal for your project
© GPO • 2002

Some tips on writing style
• Use shorter sentences and avoid overly complicated sentences

• Use a PC/Mac and the spell check!

• Include a summary

• Improve the visual appearance and readability by using shorter paragraphs,
headings, sub-headings and indented tabulations

• Ask someone to check it for errors, typos and clarity

• Vary the length of sentences and paragraphs - it makes it easier on the eye and
helps the reader

• Use smaller rather than longer words

• do not forget the enclosures!

• Avoid unsubstantiated superlatives, such as "woefully inadequate"

• Avoid jargon. Write as though you are presenting the information to a friend
who has no knowledge of what you do

• Write for the reader, with an understanding of their level of knowledge and their
perception of the issue

• Avoid the use of words or concepts that may be controversial

• KISS - keep it short and simple, but say all that you need to say. They may
have stacks of requests to sift through

• Make it clear and logical

© GPO • 2002

Then What?

• KEEP TRACK

- When is a decision likely?

• NO REPLY?

- Try a gentle prompt

• YES

- Thank them!

- Report back (interest) - Invite to visit (involve) - Send Action
etc – [inform]

• NO

- Thank them!

- Speak to them (interest) - Invite to visit/meet (involve) -
Send Action etc – [inform]

© GPO • 2002

REPORTING PROCEDURES
Keep the funder informed of the progress of the work

• Follow any given reporting guidelines/requirements.

• If these are not clear, clarify with the funder.

• Ensure you report to the funder on time.
• Invite the funder to become involved where appropriate (attending
launch events etc).
• Keep reporting information brief and to the point, with a fuller report at
the end of the grant, including whether the objectives of the work
were met.
• Enclose relevant information with your report such as financial
update, publicity materials and photographs.

• Offer the funder the opportunity to discuss the work or to request
more information at any time.
• If there are problems with the work, keep the funder fully informed.
• If you are planning any changes to the way you are going to spend
the money from what was originally proposed,
seek the funder’s permission first. Be
prepared to change your plans or payback the
money if they decline permission.
• Inform the funder of any key staff
changes or funding information.

© GPO • 2002

ICF INTERNET FUNDRAISING GUIDELINES

covered here, in their entirety the guidelines
INTRODUCTION may still appear onerous to some
UK charities have been using the Internet organisations. Not all of what is contained
since the mid-1990’s. Today, the number of here will apply in every case.
charities using the Internet in increasingly The guidance can easily be prioritised into
diverse ways is mushrooming, and with it what is law, what is specifically
grows the range and number of online recommended by the ICF and what is
fundraising opportunities that they are being understood to be best practice. Charities
offered. Charity web sites spring up in must balance the information offered here
different ways, and very often the 'advisor' with their organisation's overall context and
or the 'expert' being used can have little or priorities and form their own judgements.
no knowledge of the charity and its Nevertheless, we would caution ICF
fundraising practice. It is therefore timely members and affiliates to pay attention to
that charity fundraisers are given some the fact that managing your
guidelines on best practice and the charity's Internet presence
opportunity to take a full and informed role and fundraising is also
in the development of their organisation's about managing your
online conduct. charity's reputation and
risk. Charities have been
The committee which developed this guide known to mischaracterize
brought together a wide range of relevant their relationship with a dotcom as
skills. These included legal, consultancy, philanthropic or to fall into unrealistic
online donation handling, online event contracts but, as with any contract for
management, trading, research, and web service, charities should consider all their
publishing. Fundraisers and online agreements carefully and enlist the
suppliers/agencies were both represented. advice and expertise of relevant people
where they have any doubts or concerns.
The guidelines presented here address There can simply be no replacement for
Internet fundraising in two parts. Firstly, due diligence in both the short and the long
they cover your charity's own organisation's run for any charity embracing the web.
web presence in terms of its web site(s)
and e-mail communications. Secondly, they Finally, these guidelines focus explicitly on
cover relationships with third parties who fundraising using the web and e-mail and
provide charities with a wide range of online do not specifically address other new media
services. They are designed to be used by issues and channels such as digital TV,
all members and affiliates of ICF. mobile telephones and handheld devices.
The advice here is intended to be general
A basic awareness and experience of the enough to be useful when considering other
Internet is assumed but otherwise the media. We have made every effort to avoid
guidelines are designed both for those new built-in obsolescence wherever possible.
to using the Internet to fundraise and for
those with more experience. We would
encourage
Many of the guidelines will be familiar, since anyone who
rules covering data protection, trading, has a query, an issue or an addition to
contracts and other legal requirements these guidelines to contact the ICF. It is our
apply as much to online fundraising as to intention to ensure this document is
traditional fundraising. Ethical updated at appropriate intervals, to keep
considerations are included also but for the pace with the inevitable changes in online
largest part the guidance is of a practical fundraising practice.
nature.
FUNDRAISING USING YOUR CHARITY'S
The Internet is a vast INTERNET PRESENCE
field and, whilst not
every aspect can be OnLine handling of personal data

The capture and cause donor resentment and damage
handling of public confidence in the sector.
personal data
online can be a Acceptable Use Policy
sensitive area, particularly when it comes to
the methods used to capture information on In using the Internet to fundraise and
visitors. Transparency is usually the best conduct other activities charities will give
policy. The Data Protection Act 1998 Internet access to paid staff and volunteers.
specifically covers the handling of personal In doing so charities should act to protect
data using the Internet. both the organisation and individuals from
any use or misuse of this access. Charities
Do not use should seek legal advice on establishing
unencrypted such an Acceptable Use Policy.
pages for taking
credit card payments or donations. Do not Such a policy could include the following
use unencrypted e-mail to send or receive issues:-
credit card payments or donations and
actively discourage people from e-mailing Whether personal use of the Internet is
their credit/debit card numbers to your acceptable, and if so at what times.
charity. State clearly on your Web site, e- Instruction in responsibilities with regard to
mail list or other communication how you adhering to copyright and other intellectual
will use individuals' personal data e.g. to property legislation. Whether access to
mail or e-mail supporters with information certain Internet resources e.g. pornographic
related to your charity or other Web sites are not permitted from a charity
organisations' sites, products or services to PC/Mac or other access device. Staff
contact supporters in the event of a should be expected to monitor and respond
necessary communication exchange to e-mail messages within a set period.
requested by you or initiated by your Compliance with requests to remove e-mail
charity, such as to confirm or check addresses and other personal data from
supporters' donation details to use in your charity's database. The transmission
aggregate form, that is not personally of e-mail that may be deemed harassing,
identifiable, for analysis to help your charity libellous, defamatory, obscene, threatening,
improve its services and products. Ensure abusive or hateful to recipients. Avoidance
that any consent obtained complies with the of propagating chain e-mail letters, virus
Data Protection Act 1998. Explain clearly "warnings", and other inappropriate
how individuals may edit or delete their attachments.
details at any time, or request such
changes. Personal data should either be The more advanced the site, the more
held offline and not on the live Web server chance that all sorts of different
or be held securely behind a firewall or in a copyright works have been used e.g.
non Web-accessible database to prevent photographs, music, film, sound,
unauthorised access. ICF recommends graphic design and animation. Check
that you be as transparent as possible, you have the necessary global
for example in declaring how you intend permission to use any copyright works
to use personal information collected by not created by employees of the charity.
your charity's Web site. Cover how your If your Web site has been designed by
visitors' movements/activities are an agency, get them to warrant that the
tracked (if at all) and whether income is site does not infringe any third party
generated simply by clicking through rights and that you have the necessary
links to commercial participators. licences to use all the software involved
Fundraisers should at no time use or in running the site. Some specialist
encourage unsolicited commercial e-mail software companies will give permission
(spam), where individuals have not given free of charge to charities.
their consent for their details to be released
or used. Fundraisers should understand Check as well that all assets and integral
that currently even the use of legitimate e- components e.g. scripts, used to create
mail lists purchased from third parties can the sites are assigned to you on

delivery; this should be clearly stated in Company registration number • Privacy
the contract. For example, components policy • Security statement (on personal
could include copy, code, programs, data handling) • Copyright statement.
images and sound files. However, this
may not be always possible. Some Terms and conditions of use, and
companies share code across clients, disclaimers e.g. regarding accuracy or
and therefore cannot assign the currency of data, and external links to third-
intellectual property rights to a single party Web sites.
client. In these instances, you should
insist that your charity is given a lifetime Charities should also consider displaying
licence to use the code and develop it prominently and consistently their logo or
'for non-commercial gain'. It is also trademark, together with the logos of any
handy to ask for a detailed style sheet of relevant membership organisations or
the site's design so that you know which kitemarks to which they belong or
fonts and colours have been used. subscribe.

You could should not infringe someone Copying from Web sites happens all the
else's intellectual property in other ways time and is difficult to prevent. However, if
e.g. words used as "metatags" can you use the © symbol on all your pages, it
infringe registered trade marks (so shows that the charity is the copyright
ensure that you have permission to use owner of material on the site and acts as a
them) linking to other sites without warning against copying. On the other
permission could give rise to copyright hand, there are some pages you might
infringement claims. It is good practice want actively to encourage visitors to copy
to seek such permission. You might e.g. sponsorship or donation forms, so
also choose to ensure that external sites make it clear which pages can be printed
linked to on your charity's site should off.
open in a new, separate browser
window, so that you do not alter the If your organisation is a registered charity
external site's page layout in any way. with gross income in the last financial year
of more than £10,000, then its status as a
If your Web site includes a chatroom, or registered charity must be stated in English
noticeboard, guestbook, or archived copies on all documents soliciting money
of e-mail discussion lists, then you could be (Charities Act 1993 Section 5). It is
held liable if you allow libellous statements sensible to assume that documents
to be published on the site, however soliciting money include web-sites and
temporarily. emails soliciting money. Anyone who
designs a site and fails to include this is
ICF recommends that you speak to your guilty of an offence and liable to a fine of up
legal advisor and your charity's to £1,000. The charity number should also
insurance company to establish what be included as a matter
kind of AUP best suits your charity. This of course, as this will
will help you to identify areas where you give some donors a
need to protect yourself or your staff sense of security that
and limit any liability you may have. In their money is going to a
most cases you can assume your regulated charity. Of
Internet activities are excluded from course, some charities
your insurance cover unless you have may wish to have the site owned by their
asked explicitly for them to be assessed. trading subsidiary.
Minimum legal statements for a Web site
ICF recommends that all applicable Remember that codes of practice such as
items from numbers 1 to 6 should be the British Codes of Advertising and Sales
included on your web site and that a Promotion apply equally to the Internet.
copyright symbol should appear on Charities that are companies should also
every relevant page. show their registered company number,
status and registered office address.

Setting up secure/encrypted online of what particular clauses could apply and
donation systems ask if any cases have arisen already.

Authorising payment by credit or debit card Trading - selling goods or services via
securely on the Internet requires expensive, the Internet
complex hardware and software systems. It
is much easier and substantially less Current legislation prohibits the sale of
expensive to contract a third party to charity society lottery tickets via the
authorise credit and debit cards online for Internet. This is because the lotteries
your charity. legislation prohibits sale of society lottery
tickets "by machine". If you are selling
Before you can accept credit/debit card goods via the Internet (for example, you
donations via the Internet you should have:- have included your usual catalogue on the
charity's Web site), then you must make
• A bank business account sure you comply with The Consumer
• An online merchant ID (arranged by Protection (Contracts Concluded by Means
the bank) of Distance Communication) Regulations
• Optional online BACS authorisation 2000. These came into force on 31st
for paperless direct debit October 2000.
• A Web site
If you are advertising fundraising events run
These are not essential, but will reduce by the charity's trading subsidiary (such as
costs and increase the number of suppliers challenge events) or if you are advertising
who will deal with you if you have them. merchandise sold through the trading
Once these elements are in place, you will subsidiary, you do not necessarily need a
need to set up a secure payment system, separate site for the trading company's
where credit/debit cards are authorised activities (though there may be VAT
online. benefits to doing this). But the relevant
pages should make clear they are activities
There are more than a dozen companies carried out through the trading company.
that securely authorise credit card The charity should recover from the trading
payments/donations via the Internet in the subsidiary a proportion of the costs involved
UK. Some companies will charge a set up in setting up and servicing the site.
fee (anywhere from between £100 to
£2000), others will not. Most companies will Global issues
charge between 0% and 5% of each
donation to maintain the service: 5% is the One of the difficulties with the Internet is
commercial rate and 2% is the average that while you could (and should) make
charity rate. If you receive sure that your Web site complies with all
a free service, you might relevant UK law, it currently seems an
not be entitled to much impossible task to ensure a Web site
support. complies with the laws of every country
from which it could be accessed. However,
See Appendix 1 for a checklist on selecting some countries (and in particular some US
a secure online credit card handling states) are taking active steps to require
supplier in terms of range of services, Web sites accessible by their nationals to
security, handling of fraud, administration be compliant with their local laws.
and reporting. ICF recommends that you
read the contract with your Internet credit Ways to minimise risk include:-
card payment provider carefully. Check to
see where you are required to indemnify or • make clear that your site is only
otherwise protect the company against any intended for fundraising in the UK
legal action or injury. Consider your rights • ensure you can react quickly if a
and responsibilities, the company's and the problem arises and you need to
customer's. Do not sign anything with which change the content of your site.
you are not entirely happy. If in doubt, ask
the service provider to give you examples

FUNDRAISING USING A THIRD- organisation's bank and from other
PARTY'S INTERNET PRESENCE participating charities and business
partners where possible. What does the
Practical
organisation ask of participating charities in
Charities are receiving terms of marketing? Is the marketing
offers from third-party planned by the organisation realistic and
organisations such as sustainable? Avoid organisations that
companies and non- expect charities to conduct all the marketing
profits to provide online activity on their behalf. Can the organisation
fundraising services. These include online provide you with statistical reports on the
shopping malls, cause related marketing number and quality of visitors generated by
programmes, online events management, its marketing? How will you allow your
donation handling services and many other charity's name and brand to be used by the
services. organisation in its efforts at audience
acquisition?
To assess the benefits of proposals from
such third-party organisations it is worth Is there a limit on the
considering the following:- number of charities or
the number per market sector? On some
Avoid signing exclusivity agreements as sites this will increase income for
these can limit your charity's options. Is the participating charities, on others it will limit
organisation's contract flexible enough to it. Does the organisation's site take other
cover your charity's requirements and forms of online payment in addition to credit
concerns? Will the organisation adapt it to cards e.g. direct debit payments from bank
meet your needs? Would you as an accounts? This could expand the number of
individual buy in to the proposed service? supporters likely to make an online
Can you work with the staff at the transaction at the site. Have they taken into
organisation? With new start-up companies account tax efficiency issues and are they
without a track record, this can be one of able to offer online tax reclamation of any
the few key elements on which you can donations? What is unique about the
judge them. Will the site be accessible to organisation's offer? Why should your
people with disabilities using the Web? Do charity work with them and not similar
not deny yourself a large market: for online fundraising companies? With regard
example, 1.7 million people in the UK have to trading Web sites, does the organisation
serious uncorrectable sight loss. Is the offer a customer charter covering issues
organisation aware of the Web site such as their delivery commitments and
amendments required to address this issue, their returns and/or refund policy? Is this
and will they undertake to address them? acceptable? What is the revenue split in
Promote accessibility of all fundraising shared revenue schemes between the
materials to all Internet users irrespective of organisation and your charity? How long
disability. Ensure reasonable backward will it take the money to reach your bank
compatibility of material with regard to account? Does your charity incur any
browser software and type of hardware. costs e.g. for marketing, bank fees, receipts
This is most easily done by providing a text of acknowledgements to donors? Does
only version of the site. RNIB publishes your charity need to consider acquiring
guidelines at www.rnib.org.uk/access. insurance or indemnities with regard to
Alternatively, sites can be checked using a liability? Consider preparing a response to
free service from CAST at offers and enquiries from Internet
www.cast.org/bobby. fundraising companies. Set out your
fundraising plans and minimum
Conduct due diligence requirements from organisations you are
checks to find out if the prepared to work with. For example, do you
organisation and its business are have ethical trading criteria? What
sustainable. How is it funded? What documents do you expect to see from an
commitments does it owe to its financial organisation? This checklist will help you
backers and shareholders? Is its business assess approaches made. A response to
plan realistic? Seek references from the an approach from an online fundraising

organisation could be: Compare the formal agreement should specify the
proposal with your charity's checklist e.g. degree of liability which the Internet-based
exclusivity, financial data, ethical concerns, service provider assumes to the donor, the
your fundraising priorities. Educate them charity and third parties for information,
and request that they submit a proposal transaction handling and losses related to
specifically for you. Evaluate the proposal the Internet-based service provider's
and decide on the options available. If you administration of a donation. Consider
decide to continue, perform due diligence financial losses and brand reputation.
and sign a contract that reflects your Include a termination clause in the Service
charity's requirements. ICF recommends Level Agreement, such that the contract
that you take care not to confuse offers and can be terminated if customers are not
arrangements with dotcoms or commercial receiving a sufficiently high quality of
services providers as philanthropic service. Immediate termination should
initiatives. Avoid services where the come into place if the partner brings the
company cannot offer you some evidence charity's name into disrepute, and income
of its sustainability and audience potential. from existing customers should still be
These things can be more time-consuming protected even though the active
and wasteful than they appear at first! agreement fails. Contracts should specify
explicitly data ownership, not only of
Contracts standard personal data but also of related
Contracts can be time- data e.g. tracking of individuals'
consuming and difficult to preferences and movements throughout a
understand. The Internet arena is no site via "cookies" and other methods.
exception. All the more reason to exercise Contracts regarding licensing or syndicating
due diligence and consult with others to content should include delineating
ensure that you are comfortable with what responsibility for a charity's content on an
you are signing up to and that you are external/third-party site. In certain cases,
being treated fairly. service level agreements should be
established. These should make clear
ICF recommends that you show any issues such as:-
agreement to your charity's compliance
officer, financial director, legal firm or • Will you have a dedicated account
insurance company before signing. manager?
Consider drawing up your own contract • If yes, how many other accounts
or seek amendments to the standard does he/she manage?
contract offered by the organisation. • Can you speak directly to the
technical support team?
Avoid signing • What levels of service are
Non Disclosure guaranteed?
Agreements. Consider offering written • How are you compensated if they
confirmation that all conversations, whilst are not met?
active, are commercial and in confidence • How important is your organisation
and will not be shared. Contracts with to the supplier? If your business
online fundraising organisations may need accounts for less than 0.1% of the
to comply with the Charities Act 1992 and supplier's turnover, you are unlikely
its definitions of "commercial participator" or to receive a premium service so you
"professional fundraiser". In these cases, might do better with a smaller
the obligations to make statements and supplier.
have agreements covering minimum terms
will apply. Some relevant legislation

Be clear - Computer Misuse Act 1990
what your - Data Protection Act 1998
charity's Copyright Designs and Patents Act
liability 1988
could be should anything go wrong. A Consumer Protection (Contracts
Concluded by Means of Distance

Communication)
Regulations 2000 www.smartchange.org.uk/
Broadcasting Act 1990 - fundraising
Contempt of Court Act 1981
Universal Copyright Convention, www.justgiving.com
Geneva 1952 - Government sponsored fundraising
Berne Convention for the Protection site
of Literary and Artistic Works, Berne
1886 www.charitiesdays.net
- fundraising site
Useful resources
www.giftaid.org.uk
http://embark.to/fundraisingatgowenco & - All about Gift Aid
http://messrs-g-owen-co.websites.uk-
plc.net.master.com/ www.charitycard.org.uk
- Messrs G Owen & Co (e-Mail: - Donating via the Web
gowenanco@yahoo.com)
www.vouchers4charity.org.uk
www.computeruser.com/resources/dictionar - Buying gift vouchers for family/friend
y/ - % goes to charity
- High-Tech Dictionary from Computer
User http://www.hmrc.gov.uk/payrollgiving/
- Tax concessions on giving via the
www.cafonline.org Payroll
- Charities Aid Foundation (tel. 01732
520 000) www.premiumserve.com/donations
- Donating via the Web
www.charitycommission.gov.uk
- Charity Commission for England and www.charitiesdirect.com
Wales - Donating via the Web
(tel. 0870 333 0123)
www.dataprotection.gov.uk
- Data Protection guidance tel. (01625 www.charitasdata.co.uk
545745) - Details about charities & donors

www.fundraising.co.uk www.angal.co.uk
- UK Fundraising (tel. 020 8640 5233) - Fundraising collection boxes

www.horwathcw.com www.funderfinder.org.uk
- Horwath Consulting (tel. 020 7583 - fundraising database
1577)
www.freeserve.com
www.rnib.org.uk/access - Web Site ISP
- RNIB's advice on accessibility in
electronic www.hotwired.lycos.com/webmonkey/design
publishing (tel. 0845 766 9999) /graphics
www.scvo.org.uk - Graphics & Web Tutorials
- Scottish Council for Voluntary
Organisations www.tucows.com/
(tel. 0131 313 2488) - Graphics & Web Tutorials
www.the-dma.org/library/privacy/
- help in constructing an online policy www.pathfinder.com/adinfo/gifbuilder.html
document. - Gifbuilder – Web Animation

www.fundraising.co.uk/other_fr/scams.html www.download.cnet.com/downloads/0-
- possible fundraising frauds/scams 10215-108-

19334.html?tag=st.dl.10215.upd.10215- Gift Aid donations? Very few online
108-19334 credit card processing systems are
- Graphics & Web assistance designed with charities in mind - it is
advisable to ensure that the
www.stud.fh- company you chose can meet your
heilbronn.de/~jdebis/leechftp/download.html special requirements.
- Graphics & Web assistance
5. Do they offer paperless direct debit?
Very few online credit card
processors currently do. This may
also have a very high set-up and
running cost.

6. Can they process transactions where
donors have come straight into the
APPENDIX 1 donation page from an
affiliated web site (this
Choosing a secure online credit card can cause security
processor issues, so needs to be
carefully handled).
The level of service, security and customer
care offered by online credit/debit card Security
processors varies dramatically. When
choosing an online credit card processor, it 1. Do they process credit card
would be advisable to ask the following payments for gambling or
questions:- pornography web sites? The majority
of online fraud occurs in these areas
Range of services and charities may choose to avoid
1. Do they process both credit and online credit card processors that are
debit cards, including Switch cards? involved in these industries.
It is advisable to go with a supplier
that processes both. 2. When credit card payments are
processed, what kind of security is in
2. Can they process donations of any operation?
amount? Or is there a minimum Is online live authorisation of cards
amount? It's advisable to go with a (involving no storage of details) sent
company that offers a zero floor limit. over a Secure Sockets Layer-
Does the usage charge increase for encrypted (secure) link? Are all
small payments? card details inputted on their site
sent through both offline (expiry date
3. Do they process in multiple and hot/stolen card server) and on-
currencies? If you choose to process line (hot/stolen card server, sufficient
only pounds (you are charged for funds, authorisation) to prevent use
each additional currency), this does of stolen or lost cards on their site?
not mean that people using foreign
credit cards won't be able to donate, Can a maximum number of failed
it just means that all donations will attempts to make a donation with
be made in pound amounts and the one credit card be set?
donor will have to do the maths. Do
they charge extra for processing Can a maximum number of
multiple currencies? successful donations made with one
credit card be set?
4. Can they
process tax Can a maximum number of failed
efficient attempts to make a donation from
donations e.g. one IP address, which details the

location of a specific computer, be used in conjunction with different
set? credit card numbers.

Is the donor's e-mail address Many donations are made in rapid
validated before the credit card is succession from the same IP
authorised? address (an IP address details the
location of a specific computer).
Fraud
The donation is very small (£1
1. Credit card fraud is a major problem donations should be carefully
on the Internet. Fraudsters typically examined).
obtain credit from lists of stolen
cards published on the Internet, or A free web-based e-mail address is
by using illicit programmes to used, such as Hotmail. Many are
produce lists of algorithmically legitimate, but when combined with
allowable card numbers. Fraudsters any of the above the donation should
use charity sites to test stolen credit be very carefully examined.
card numbers, because they don't
have to go through the lengthy The e-mail address does not match
process of purchasing a product. the IP address of the machine the
Once they've used you to authorise donation was made from.
a card, they'll abuse it on other sites.
4. If credit card fraud occurs, what can
2. It is currently against the Data your online credit card processing
Protection Act in the UK and company do to stop it? Can they:-
Germany to capture and cross-
reference someone's postal address Block the fraudster's IP address?
with his or her credit card number on Remember that the computer could
the Internet. As a result the billing be located in an Internet cafe, or
address of credit cards used online large organisation such as AOL or
are not verified by the online credit FreeServe, where many computers
card processing company. Because can appear to have the same IP
this law has made online fraud in the address. Block the fraudster's e-
UK and Germany easy, the credit mail address? Most fraudsters’ use
card companies, banks and UK free, Web based e-mail such as
government are currently re- Hotmail -- some online credit card
evaluating the law. It may be processors will send you a warning
revoked in April 2002. In the mean when a donation has been made by
time, if you plan to ship goods to somebody using this kind of e-mail
someone who has purchased them address.
via your Web site, you should always
verify that the address provided is Implement an intelligent software
the billing address associated with system that develops a profile of
the credit card. typical donor behavioural patterns
and warns you if a donor's behaviour
3. When should you be suspicious that varies from this norm?
a donation could be fraudulent?
If fraudsters continued to use stolen
The same credit card number is credit card numbers to purchase
being used from different countries. products or make donations to your
organisation, can the online credit
The same e-mail address is being card processor implement what is
used in conjunction with different known as a deferred payment
credit card numbers. system? Deferred payment systems
ring fence funds that have been
The same postal address is being donated on the individual's credit

card -- but do not actually debit the provide you with?
card for five days. During this time Can you view reports about the number,
the charity can decide whether it quantity, and origin (donor details) of
thinks the donation is fraudulent or donations online at your convenience?
not. If the charity thinks the donation
is fraudulent, it can un-ring fence the Can you reimburse credit cards that have
funds. If it thinks it is genuine, it can been fraudulently debited via the online
debit the card. However, fundraisers system?
should be aware that this procedure Can you reimburse credit / debit cards for
could add significantly to the other reasons, not only due to fraudulent
administrative burden. use?
Can you utilise the deferred payment
Although online credit card system online to un-ring-fence or claim
processing companies are not liable donations?
for credit card fraud, it would be What kind of security at your charity and at
advisable to ensure that your the payment service provider is used to
contract with them states that they ensure that only authorised personnel have
will do everything in their power to access to the above systems? Passwords?
limit fraud and to co-operate with Certificates (digital)? Certain IP addresses
your bank and international police to only?
track down fraudsters, once they
have been identified. Reports

5. If credit card fraud occurs, what - What kind of confirmation does a
should you do to stop it? donor receive after having made a
donation?
Report the stolen card numbers to - An e-mail sent instantly by the credit
your bank. card processing system?
- Can this e-mail be customised or
Reimburse the cards that have changed?
been fraudulently used. - Can your charity do this over the
Web?
Ask your online credit card - Is there a charge for this?
processing company to block the - How long does the change take to
fraudsters' e-mail and IP effect?
addresses. - Can different e-mails be sent to
different people?
Implement a deferred payment
system if the fraud continues How do they report back to you about
donations:-
Administration
- Is an e-mail sent to you every time a
What kind of online administrative systems donation is made?
are provided? - Is a daily report e-mailed to you
about all the donations that have
Can you edit the layout and content of your been made that day?
secure payment pages via the Internet? - Is a monthly report e-mailed to you
Can you use this system to launch one or about all the donations have been
more new appeals in a matter of minutes? made that month?
How many appeals can you run - What information is provided about
simultaneously? donors?
Can they be different e.g. one-off - IP address? Resolved IP address?
donations, prompted levels of giving, direct - How are the donation reports
debit/regular gifts? formatted? It is advisable to ensure
If you are a membership organisation, how that the online credit card processing
many membership ID numbers can they company can supply you with reports
in a format that is compatible with

your internal donor database so that
every record doesn't have to be Server: computer that is connected to the
keyed in by hand. Internet and on which documents are
stored. It serves or publishes these
APPENDIX 2 documents when requested by other
computer users.
Glossary
Style sheet: a standard method of defining
Encryption: a method of encoding how text and graphics should appear on
sensitive data, such as donor records and one or a series of Web pages, including
credit card numbers, so that it might be font size, colour and alignment.
stored or transmitted safely.
Web: see World Wide Web
Extranet: a private or restricted access
computer network usually operated by an
World Wide Web: a method of storing and
organisation. Unlike an intranet, an extranet
retrieving information, including text,
is made accessible to other relevant
graphics, video and sound. Relevant
organisations or individuals such as
documents on multiple computers are
suppliers as well as to the organisation's
linked using hypertext, a global standard
employees.
method of connecting.
Internet Protocol: a standard method of
naming and identifying a particular
computer connected to the Internet using a
unique series of numbers. The shorthand
"IP" is more common.
Intranet: a private restricted access
computer network usually operated by an
organisation. Information is stored and
retrieved in the same method as the
Internet but access is restricted usually to
company employees.

IP: see Internet Protocol.

Meta tags: "hidden" information within a
Web page that describes the content and
other qualities of that Web page. The
information does not appear when the Web
page is viewed, but is used by search
engines to interpret further the text content
of Web pages.

Offline: not connected to the Internet or
© GPO • 2002
other computer network.

Online: connected to the Internet or other
computer network.

Secure server: a server that features
encryption facilities. Documents stored and
information entered on a secure server can
be encrypted and protected from unwanted
access.

Secure sockets layer: a standard and
widely used method of data encryption.

FUNDRAISING - FINANCIAL
MATTERS
1. REPORTING TO FUNDERS
(1) Find out what they want:

(a) Application/Budget
(b) Regular reports and returns
(c) Annual Project accounts
(d) Parent Body accounts
(2) Does the funder understand the relationship between the individual Project and Parent Body.
2. APPLICATIONS/BUDGETS
It is essential that the application is based on fact land reality and not on "last year's application plus
a built-in element for contingencies.
This is not only to ensure that the figures and costings are reasonable and based on up-to-date
information, but also to ensure a consistency in the various figures supplied to the funder. Any
variances between the application and the accounts supplied ma, at best result in a query, and at
worst result in a withholding of funds.
(1) Is the expenditure in the correct cost centre?
(2) Is the income in the correct cost centre?

3. PROJECT ACCOUNTS/REPORTS

(1) How much detail does the funder require?
(2) Are all our expenditure headings acceptable? For example, are your on-costs, (e.g. audit fee),
chares to be included or re-categorised.
(3) Are annual accounts sufficient or do we need to provide quarterly accounts?
(4) Is the funder's financial year different to Project/Parent Body and do we have to adhere to this
rather then our own
(5) What is the funder's timescale for reporting?
(6) Are separate salary details required, if applicable.
(7) Does' the funder require the individual Project accounts to be separately audited or will they be
satisfied with an "extract from the audited accounts".

Fundraising from Companies + Charitable Trusts/Foundations & through the Internet

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