Fundraising for your organisation

This section will help you understand all the issues about fundraising and covers the following topics:

  • What are the stages in fundraising?
  • What is a grantmaker or donor?
  • How can I find out their funding criteria?
  • How can I find out about potential donors?
  • What will help my organisation get funding?
  • How do I talk to donors?
  • How many donors do I need?

Every one of the many thousands of Non-Profit Organisations (NPOs) in South Africa relies on local and international funding. Without this funding, these organisations would not be able to function effectively. Potential donors receive requests for money every day, and they are not able to help everyone who asks. However, understanding what is required and good preparation can make the difference between successful fundraising and being rejected.

What are the stages in fundraising?

  • First plan the work you would like to do
  • Write a brief description of your idea and work out a budget
  • Find out about donors (often called grantmakers or funders) who could possibly finance your project
  • Ask the donors (by telephone or email) for information, application forms and guidelines
  • Write a funding proposal (using the guidelines on this website or the donor’s specific guidelines)
  • Send the proposal in time for the deadline
  • Follow up on your application by telephone or email
  • After you have received the funding, keep up a good relationship with the donor by reporting regularly on your progress

What is a donor or grantmaker?

Donors or grantmakers provide financial donations or grants to help non-profit organisations function and/or achieve certain projects. Most donor or grantmakers are corporates, foundations or trusts but can also include other groups or organisations and private individuals.

How can I find out their funding criteria?

Donors usually specify which areas they are interested in and what their priorities are for funding, as they cannot give money to every organisation that applies. So it is important to research which donors you should approach, based on the type of your project and the donor’s funding preferences.

Some donors, for example, prefer to fund specific projects, or components of projects; they will not fund an entire organisation. Other donors prefer to fund HIV and AIDS-related projects that focus on education, children, prevention or treatment. Many donors do not fund individuals or research projects. So before you spend many hours writing up a funding proposal, first contact the potential donor or visit their website to find out their criteria for funding (the kinds of projects they fund).

How can I find out about potential donors?

Begin with the general NPO networks, such as the South African Non-Government Coalition (SANGOCO), the AIDS Consortium and WC NACOSA. It is also useful to speak to other NPOs doing similar work and find out who their donors are. You will also find ideas for donors on this website.  

Please click here to read more about donors

What will help my organisation to get funding?

  • A worthwhile project
  • A good reputation
  • Accountability and openness (good record-keeping and annual reports, audited financial statements)
  • A good proposal for your organisation’s project
  • Effective partnerships and/or networking with other NPOs and government agencies working in the community

How do I talk to donors?

When you contact donors remember they will not decide to give your organisation money unless they are sure they can trust the organisation to do the job. They also need to know that your organisation can manage money efficiently and report back reliably. So it is important to make the donor agency feel confident that your organisation will be able to do what it plans to do.

To do this you must make sure that you are honest, reliable and efficient in all your dealings with them – even with things that might seem small to you, such as being on time for meetings. Find out who deals with funding requests and contact that person when contacting a donor agency for the first time.

How many donors do I need?

Identify and approach three or four potential donors for the main activities of the project. Also identify and approach a few donors who may finance specific items, such as equipment or a vehicle. It is unlikely that you will receive money from them all, although many donors prefer to be one of several (they do not like to think that your organisation’s future is completely dependent on them).

Donors usually prefer to fund a part of a project rather than the whole organisation. So you might end up with a number of donors financing different areas – for example, one might fund your organisation’s rent, another your organisation’s food parcels and another your administration costs. This may create more administrative work for you, but it also makes it easier for you to get funding if part of your project is funded already.

Further information and support can be obtained from the South African Institute of Fundraising.
Tel:
011 794 5224
Fax: 011 794 8054
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Website: www.saifundraising.org.za
Street address:   374 Boundary Road
                                North Riding
                                Randburg
                                Johannesburg

Postal address:
  P O Box 2913
                                North Riding
                                2162

 
How to write a funding proposal

It is important to take time and care in writing a funding proposal as this is your chance to convince potential donors that your organisation is run efficiently, that it is accountable, that it can achieve the objectives it sets, and that it is of benefit to the general community.

The following topics are covered in this section:

  • How to write a detailed funding proposal
  • Summary of funding proposal tips
  • What happens if the funding proposal is successful
  • What if the funding proposal is not successful

Further topics that are discussed include what happens if your funding proposal is successful or rejected. A concise list of tips on writing funding proposals is also supplied.

How to write a detailed funding proposal 

Before you write a proposal, you must decide:

  • What the problem is that you would like to solve (for example, there are not enough organisations caring for orphans in your district).
  • How you plan to solve this problem (you plan to start a day-care centre).
  • How much this solution will cost

Your proposal needs to include in the following order:

  • A summary
  • An introduction
  • Project details
  • A conclusion
  • A budget
  • Supporting documents and materials

The summary

Include the following information:

  • The project’s title
  • Detailed information about the project, such as the location, the specific activities, the number of people involved, the founding date, etc.
  • The organisation’s name and full contact details (including the name of a contact person)
  • Your registration details – NPO number, PBO number, etc.
  • The total budget figure as well as the amount of money you are asking for
  • The organisation’s bank account details and fundraising number (if applicable)

The introduction

Provide detailed background information about the organisation, including when it was established, what it does, and what it has achieved since it started operating.

It should also describe the present situation in the community and how the project is relevant. For example, if your project is about orphans and vulnerable children, include details about how many children there are in your district, and how many of them are orphans.

Provide details about the problem you are hoping your project will help. Explain how you know that this is a problem in your community (for example, write about how you have researched the numbers of orphans, and how educators and church leaders in the area have informed you about the problem. You can even include quotes from community leaders who have given you information, as well as details you have obtained from the local government offices). Write about the people you hope your project will help, and give numbers, if possible.

Mention the names of other organisations that may also be helping to address this particular problem in your community or area.

Main points to be covered:

  • Details about your organisation.
  • Details about the problem you want to address.

Project details

In this section, describe exactly how your organisation plans to solve the problem you have explained. Provide details about your organisation’s goals. Remember that these goals must be realistic, and you must have a way to measure how much progress you are making.

Under each goal, write a few steps of how you plan to achieve this goal, and by which date you hope to achieve it. The steps must be realistic, practical and directly related to the goal.

In this section, also give details of all your resources (other than financial); for example, the number of staff and volunteers and the equipment and office space you already have. It is important to try and show that your project is well planned, that it is relevant, and how it will help the community. Finally, write how you intend to check (monitor and evaluate) whether your organisation meets its targets and goals.

Main points to be covered:

  • Goals
  • Steps to achieve the goals
  • All your organisation’s resources
  • How you will monitor and evaluate the project’s progress

Conclusion

In your conclusion, summarise the reasons why your project will help to address the problem described. Also, explain how the funds will be used and accounted for.

The budget

This is the financial plan that controls the allocation of funds for your project. You need to research your costs to work out your budget, remembering to allow for contingencies.

Supporting documents and materials

These can include anything that may help the donor or grantmaker understand the work of the organisation. You do not need to include all these supporting materials, only those that are relevant to your proposal.

Financial information:

  • A copy of your organisation’s latest audited financial statements
  • A copy of your organisation’s latest budget
  • A list of donors (grantmakers) and the amounts contributed
  • Reports to other donors
  • A list of other organisations you have approached for funding, and details about their answers, if possible
  • If you are appealing for materials and equipment, submit copies of quotations from local suppliers or contractors
  • A project budget for the current financial year

Legal information:

  • A copy of your registration certificate(s)
  • Documentation about ownership of the organisation
  • A copy of legal status (ie, if a Section 21 Company or Trust)
  • A signed copy of the organisation’s constitution with a list of trustees/management

Supporting material:

  • Annual reports
  • Minutes of meetings
  • A list of any other successful programmes or projects run by your organisation
  • Letters from community leaders or organisations that are familiar with the work of the organisation or project
  • If your organisation has recently been evaluated by an independent evaluation agency, supply a copy of the report
  • Details and copies of certificates and awards
  • Photographs of work done by your organisation, staff members, volunteers, etc.
  • A list of the organisations to which your organisation is affiliated to or networks with on a regular basis

Summary of funding proposal tips:

  • Make sure your project meets the donor’s funding requirements
  • Make sure that you plan your project before you write a proposal
  • Make sure you that you meet the donor or grantmaker’s deadline
  • Follow the donor’s proposal format or guidelines
  • Make use of headings and bullet points to structure your proposal
  • Write short sentences and keep to the point
  • Be sincere and realistic about what you think you will be able to achieve
  • Explain the problems and needs before you explain how you plan to solve them
  • Include social, economic and political information and figures to show that you understand the situation in your community or area
  • Include references for statistics and quotes (in other words, explain where you got all your facts and figures)
  • Show that you know about other organisations in your area, and that you will not be doing exactly the same work
  • Include a plan to show how you will monitor the project and check whether it is achieving its goals
  • Include a reasonable budget and make sure it adds up
  • Get a colleague to look at your proposal before you send it to the donor
  • Check your spelling and grammar
  • Follow up with the donor if you do not hear from them within reasonable time (three to four weeks)

What happens if the application is successful?

Wait for written proof that the money is coming before you celebrate.

Make sure that the conditions and reporting requirements of the grant are reasonable and acceptable, and that you will be able to fulfil them. Acknowledge receipt of the letter and thank the donor as soon as possible. Make sure that you understand how to claim your payments.

Start a file for the project containing all your correspondence with the donor, as well as the funding proposal, the guidelines, the budget, and any other relevant documents. Keep the file in a safe place.

You must then account for how you spend the money and submit regular reports to the donor, as required. 

Read more about Reporting for Donors. 

What if my funding proposal is unsuccesful?

Donors are unable to fund every application they receive. Remember that good proposals for good projects get rejected all the time. If your organisation does not get the funding, ask the donor to tell you why your application was not successful. This may help you to improve your next funding proposal. It is a good idea to write to the donor to thank them for considering your proposal. They will appreciate your response and remember it.

 

 

 
Useful Funding Websites
There are other websites out there where more information can obtained in regards to procuring funding. This section includes all their details.
Read more...
 
The National Lottery (LOTTO)

This section explains how to apply for a grant from the National Lottery Distribution Trust Fund.

Read more...
 
National Development Agency

This section explains what the National Development Agency (NDA) is, who the NDA funds, and how to apply for a grant.

Read more...
 
How to write a narrative report

These are descriptive reports about your organisation’s activities throughout a specified period. This section describes how to write a narrative report and gives useful tips on writing such reports for donors

Read more...
 
Financial Reporting & Accountability

This section explains this type of report, how to write one, and why they are necessary for the effective management and long-term sustainability of your organisation. 

Read more...
 
Department of Social Development

Toll-free helpline: 0800 220 250

Eligibility criteria / priority areas
The Department of Social Development will consider projects that aim to:

  • Strengthen the capacity of families
  • Strengthen community-based responses to helping children orphaned or made vulnerable by HIV and AIDS
  • Build the capacity of children
  • Create an enabling environment for children and their families
  • Link income-generating projects to support groups
  • Offer psycho-social support
  • Provide social relief
  • Provide peer education
Read more...
 
Department of Health

Toll-free helpline:  0800-012-322

Priority Areas 

The Department of Health will consider funding any NPOs whose work falls within any of the sub-programmes of the broad objectives of the National HIV and AIDS and TB Programme. This includes the following categories:

  • Prevention
  • Integration of HIV and AIDS and TB
  • Partnership support
  • Care, counselling and support
  • Youth 

For more information about these different programme areas click here.

Director: NGO funding co-ordination

Mr Collen Bonnecwe
Tel: 012 312-0136
Fax: 012 312-0921
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  

For information about how to apply for funding contact your nearest Department of Health Office or the relevant provincial HIV and AIDS Office.

Read more...
 
Expanded Public Works Programme

The Expanded Public Works Programme (EPWP) is one of the government’s short-to-medium term programmes aimed at the provision of additional work opportunities coupled with training.The EPWP aims to create additional work opportunities for a minimum of one million people (at least 40% women, 30% youth and 2% disabled) in South Africa between 2004 and 2009.

The EPWP, working with the Departments of Social Development, Health and Education, selected two programmes - Home Community-Based Care (HCBC) and Early Childhood Development (ECD) - as the lead pilot programmes for the social sector. This has led to the development of variety of training programmes in these fields. Read more about how this programme works on www.epwp.gov.za