1.
PM1: Developing a
funding strategy
Richard Sved, NCVO Associate

2.
PM1: Developing a
funding strategy
Richard Sved
• NCVO Consultant
• Interim head of fundraising
• Director, 3rd Sector Mission
Control

3.
• Help you to identify how to plan a
fundraising strategy
• Introduce you to key tools to monitor
progress
Aim of this workshop

4.
• @richardsved
• 20+ years in charity sector
• Have led the fundraising function of three
national charities
• Fundraising experience includes Corp.,
Events, Govt., Lottery, Major donors, Trusts
• Serial volunteer and Trustee
• Freelance consultant and interim manager
(NCVO, 3rd Sector Mission Control)
About me

5.
• What are the key issues for you in
developing your organisation’s fundraising
strategy?
or
• Why did you book to attend this session?

6.
What is strategy?

7.
Just part of the process

8.
How fundraising fits in

9.
• Be clear about the need
• What will you change?
• Think about why people give
• Get buy-in
• With Trustees
• Within organisation
What do you need to do first?

10.
• Nature of problem/issue
• How can you change things?
• Why is it important? Why this area?
• What if nothing was done?
• Will problem increase?
• Who will be helped?
• How can the donor help you?
Do first: be clear about the need

11.
Do first: what will you change?

12.
Cause
Conscience
Prestige
Personal experience
Tax
Guilt
PR
Social contacts
To feel good
Peer pressure
Spur of the moment
Because asked
Knighthood etc.
Market needs
Benefit community
Increase sales
Employees
Recruitment
Do first: think about why people
give

13.
• From trustees
• Within the organisation
Get buy-in

14.
• The gear, the brake and the steering
wheel
The role of Trustees

15.
• SWOT
• PESTLE
• Stakeholder analysis
• Sustainable funding kite
• Evaluating your funding mix
• Ansoff matrix
• The Sun tool
Planning tools

16.
Planning tool: SWOT analysis

17.
• Political
• Economic
• Social
• Technological
• Legal
• Environmental
Planning tool: PESTLE

18.
Planning tool: stakeholder
analysis

19.
Planning tool:
Sustainable
funding
kite

20.
Planning tool: Sustainable
funding kite
• Where are we?
• Where do we want to be?
• How do we get there?

21.
1. Split your income into categories: e.g.
gifts/donations, grants, contracts, traded
income
2. Broadly analyse these income streams
• How many separate funders/donors do you have?
• How much of your total income are they?
• How risky is your portfolio ?
3. What risk factors underlie your funding?
• Are there any risks that could impact on a large
proportion of your income?
• Which areas are impacted by government policy?
• What about your ability to deliver outcomes?
Evaluate your funding mix

22.
Planning tool: Ansoff’s matrix

23.
Planning tool: The Sun tool

24.
Planning tool: The Sun tool
A. Strategic approach
B. Income diversity
C. Financial management
D. Communicating success
E. External positioning and marketing
F. Relationships

25.
Planning tool: The Sun tool
A. Strategic approach
B. Income diversity
C. Financial management
D. Communicating success
E. External positioning and marketing
F. Relationships

26.
• Recency bias
• Misunderstanding averages
• Sunk cost fallacy
• Copycat tendencies
But beware of:

27.
• You just rolled a six
Beware: recency bias

28.
• What’s the difference between the mean
and the median
and
• Which one is more important?
Beware: misunderstanding
averages

29.
“We’ve always done it this way”
Beware: the sunk-cost fallacy

30.
“Look at what they’re doing!”
Beware: copycat tendencies

31.
• Not a book on the shelf – return to it!
• Tracking your pipeline
• Use of milestones
• Internal reporting
• Reporting to trustees
• The dashboard
Monitoring progress

32.
Tracking your pipeline

33.
Internal reporting

34.
• Mitigating risk
Risk register

35.
• This week’s gifts
• Month so far?
• Last month?
• Year to date?
• Targets?
• To-do list?
What do you need on your
dashboard?

36.
• What are the key issues for you in
developing your organisation’s fundraising
strategy?
or
• Why did you book to attend this session?
Did I answer your questions?

37.
• What you do is great
• You are not begging
• Convey your passion
And remember: Do not be afraid

38.
• Funders don’t support organisations, they
support people you help or work that you
do
And also remember: people
give to people

39.
• Funders will back organisations that ‘sell’
their strategy to them well
But having said that: