1. Fund Development – Standard 3.1-6

Purpose: The purpose of Fund development is to solicit and gather monetary and in-kind donations to cover the expenses of the organization in a structured strategic manner.

Responsibility:Executive Director/CEO, Fund Development Coordinator, Board

Reports to BBBSI: Financial Report

Grant Invitations from multinational Donors

Sample Templates:Fund Development Plan

Proposal Writing/Template


The Affiliate needs to compose and implement a fund raising plan that supports the income expectations as outlined in the Annual Budget to ensure financial sustainability.

Building a broad base of individual donors gives an organization freedom to pursue their mission, as no one entity can control a group. With a broad base of support an organization does not need to determine its priorities based on what foundations, corporations, or government agencies will fund. A broad base of donors also equals political support. Groups that can not get a range of individuals to give do not have the community support.

As outlined in the Standards:

An Affiliate has exclusive accessibility to funding sources operating entirely within their territory.

If the funding source is a local operation of an International or multinational entity headquartered outside the Territory, the Affiliate is required to coordinate with BBBSI.

If the funding source is not within the AffiliatesTerritory, the Affiliate does not fund raise without prior written consent of BBBSI.

It is of value to the Affiliate to work with BBBSI to secure funding to support BBBS operations on a regional and international level.

Affiliate shall co-operate when and if revenue sharing agreements are instituted by BBBSI.

The Affiliate agrees not to take any actions which might conflict with other Affiliates or with BBBSI. If there is a question, please contact BBBSI.

Where Does Funding Come From

Fundraising is one of the most important activities your organization will undertake.

Proper fundraising means the difference between a viable organization able to carry on

its mentoring services and youth advocacy efforts, and one that is not. This document will take you through the steps of developing a fundraising plan by setting organizational goals,evaluating your current fundraising program, establishing new fundraising goals, formulating a

financial development budget, developing an action plan, and, finally, evaluating yourefforts.

What are your organization’s goals?

Without setting organizational goals and without outlining strategies to meet thosegoals, the everyday task of fundraising will have no direction. Indeed, organizationalgoals and fundraising goals must be set at the same time; each affects the other. In otherwords, your fundraising strategy is dependent on what your organization plans to do.

Your organization should carefully answer the two questions below:

1) What programs and services do you currently provide?

2) What programs and services do you plan to provide in the future?

(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising Basics

Revised May 2005)

Both internal and external considerations will further determine what programsand services your organization is reasonably equipped to provide:

Internal considerations

• Organization’s mission

• Available financial resources

• Available staff time

• Staff expertise

External considerations

• Current and potential future economy

• Programs and services provided by similar organizations

• Government regulations

Setting realistic fundraising goals

Again, fundraising goals and organizational goals must be set at the same time; eachimpacts the other. Too often, an organization sets program goals that require funds far toogreat for the organization to generate.

When setting fundraising goals, many questions need to be answered, including:

• How much money is needed to fund specific programs and services, as well aspay for day-to-day operations of the organization?

• Which current income source generates the largest share of income? Is that source

expected to shrink? to grow? to remain the same?

• Which income sources are the most reliable? What can you really count on?

• Which income sources are the least reliable? What might be “here today, gonetomorrow”?

• Which income sources, regardless of size, have the most growth potential for yourorganization?

(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising Basics

Revised May 2005)

How effective is your current fundraising program?

Evaluating the strengths and weaknesses of your current fundraising plan will point you in

the right direction for making any necessary changes.

To evaluate the effectiveness of your current fundraising plan, you must identifystrengths, weaknesses and opportunities in various areas:

• Planning

• Board of Directors

• Volunteers

• Development Staff

• Financial Resources

• Donor Research

• Fundraising Support Systems

• Fundraising Techniques

• Public Relations

Appendix A provides Robert F. Semple’s Resource Development Assessment. Use this

tool in order to develop a quick evaluation of your organization’s ability to compete for

charitable dollars.

The role of the Board of Directors and of volunteers

In the majority of non-profit organizations, board members are required to makepersonal contributions and to solicit contributions as well. In order for board membersor other volunteers to commit themselves willingly to raising funds, they must beinvolved in all aspects of the fundraising planning process including: organizationalgoal setting, development assessment, and fundraising goal setting (National Consumer Supporter Technical Assistance Center Fundraising BasicsRevised May 2005)

Setting the fundraising budget

It is often said, “It costs money to raise money.” At the same time, the general publicexpects non-profit organizations to raise funds in the most cost-effective way possible.

Your organization must set a realistic budget for both the income generated fromfundraising and the expenses entailed in fundraising.

Income can come from:

1) The Annual Fund

Gifts Solicited by Mail

Gifts Solicited by Telephone

Major Gifts

Board of Directors Gifts

Unsolicited Gifts

Memorial Gifts

Commemorative Gifts

2) Corporate Gifts



3) Foundation Grants

4) Government Grants

5) Special Events

6) In-Kind Gifts

(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising Basics

Revised May 2005)

Expenses should include:

1) Personnel (including benefits and training)

2) Supplies

3) Printing (including design)

4) Postage and shipping

5) Telephone, fax and internet

6) Photocopying

7) Travel

8) Food/Entertainment

9) Professional services/consultants

10) Professional organization dues (e.g. National Society of Fundraising Executives)

11) Equipment (computers, fax machines, printers, copiers)

12) Subscriptions (e.g. Chronicle of Philanthropy, Non-Profit Times, Contributions)

13) Charities Registration Fees

(Please check your countries charitable laws).Many states/provinces/counties require non-profit organizations to register with and pay fees to their appropriate Attorney General in order to solicit charitable contributions. The fees are often small, yetsizable fines can be levied for failure to register. If you are unsure of whether or not yourstate requires registration, please contact your countries Attorney General’s office.Certain industry standards apply to the return on investment for different fundraisingmethods.

Setting an action plan

As you set your goals and budget, and take into account the different fundraising methods

available to you, a formal plan of action will begin to develop. When setting the action plan, be sure to make your goals realistic.

For example,planning to solicit 10,000 people through a telephone campaign is unrealistic if thereare not enough staff and volunteers to make the calls.(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising BasicsRevised May 2005)

Writing a case statement

A case statement is a concise document explaining your organization’s activities andfunding needs to potential donors. The case statement tells potential donors who you are,what you do (and are trying to do), and why. It shows that your organization will stewardthe donor’s contribution in a responsible manner. Every prospective donor will (orshould) ask, “Why should I support your organization?” The case statement will providethe answer to that question in a concise, convincing manner.

The case statement also serves as a useful tool for self-assessment. The process of writing

your case statement forces you to examine your organization’s programs and to develop

convincing arguments that those programs are worth supporting.

You may wish to writeseveral versions of your case statement for different audiences. A corporate prospect andan individual donor may view giving to your organization very differently.

Evaluating your successes and achievements

The most obvious measure of your fundraising success is the bottom line. Did you

reach the fundraising dollar goals you set?

It is important to remember, however, that there is more to evaluate than just the amount

of dollars raised. Many issues that either contributed or detracted from the process of

meeting the financial goal need to be evaluated as well. For example:

• How did staff, board and volunteers perform?

• Was new leadership discovered?

• Was the budget realistic?

• How diversified is the funding? Are funds being raised from many differentsources or just a few? Are there one or two sources that account for the majorityof funds raised?)

• Are front-end systems (prospect identification, research, solicitation materialsproduction) running properly?

(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising Basics

Revised May 2005)

• Are back-end systems (gift processing, donor acknowledgment, donorinformation tracking) running properly?

It is also important to look at achievements that might not be considered successes.

Consider this example:

If a goal was to raise $100,000 and only $80,000 is raised, it is not considered asuccess. However, if only $64,000 was raised during the previous year, theachievement is a 25% increase in funds raised over the previous year.

Once you have evaluated your program, use the results to improve your fundraising

planning in the future: Based on the results, how will the next set of goals bedifferent? What budget items need to be changed? What could be done moreeffectively in the action plan?


Fundraising is an ongoing activity for a non-profit organization. Each fiscal year, afundraising budget should be drawn up and a fundraising calendar should be planned.

And for your organization to be successful in its fundraising efforts, you must constantly

coordinate fundraising plans with program plans: the fundraising committee must know

organizational goals in order to set funding goals, while the board of directors must be

aware of fundraising constraints in order to set organizational goals.

(NationalConsumerSupporterTechnicalAssistanceCenter Fundraising Basics

Revised May 2005)

Successful Funding Proposals – 5 tips

Are your proposals piling up in the bins of potential donors? Here are five steps to "making the cut:"

1. Is your prospective donor interested in you? The number one reason for rejection is that the donor's interests lie elsewhere. Determine your prospect's funding interests quickly by reviewing the organization's profile and grant history. Be sure to follow up with a brief call to the organization to clarify criteria.

2. Is your information correct? While you're on the phone, double-check the contact information, including the organization's address, the title of the appropriate contact person and the spelling of his or her name. The last thing you want to do is to misspell the name of an executive director or to send your proposal to the wrong person altogether. Those kinds of errors will abandon your proposal to the bin forever. Always confirm the information before sending your proposal on its way.

3. What are your funding requirements? Do you need deficit funding, matching funds or gifts-in-kind, and does your prospect provide the type of funding you require?

4. Do they have the funds?Confirm your prospective donor's budgets, deadlines and if they have the funds for your proposal. In the absence of specific deadlines, proposals sent just before or after the organization's year-end tend to be the most successful. Submitting your proposal just before year-end may allow you to snatch up any unallocated funds, while sending your proposal right after year-end can put you first in line for a spot in the donor's new budget. Either way, you win.

5. Should we send a letter of introduction and enquiry? Definitely yes! This step will show the prospective donor your professionalism and, if the donor responds positively, confirm your eligibility for funds. It's a simple gesture that won't waste your time or theirs. Let's face it, no one wants to read - or write - a twenty-page eye-straining proposal unnecessarily.

Motivations of Donors

Why do Donors give away money? Donors are vitally concerned about social problems, injustices, or inequities. They are so concerned, in fact, that they are willing to invest their money to address these problems. In essence, they see a gap between what is and what ought to be. Another name for the "gap" in grant parlance is the "need." The gap represents their view of the world. Donors exist because gaps exist; their goal is to close these gaps.

Successful grant writers understand the donor’s view of the world and express that view in the grant proposal. Successful grant writers are able to reflect the "priorities" of the sponsor. Too often, grant applicants focus on their own need for funds instead of matching their projects with the sponsor's priorities. You should select sponsors that share your view of the world and tailor your proposals to them. Sponsors view grants as investments in an improved future. Proposals are funded when they express the same priorities shared by the sponsor. Projects are rejected when they do not precisely reflect the priorities of the sponsor.

Getting Started

There are three main steps to follow in successful grant seeking. First, you must identify potential donors who would be interested in supporting your Organization.

Second, after you have identified your list of potential prospects, you must contact key people who can help you plan your proposal before you start writing. In essence, you must do your homework if you are going to be successful. A sure way to experience failure in acquiring a grant is to write a proposal without talking to key people who can maximize your possibility of success.

Third, after you have qualified your prospects and planned an effective approach, you must produce a carefully written, well-reasoned proposal. Some grant proposals are rejected because they contain bad ideas. Most grant proposals are rejected because they contain good ideas poorly written.

There are basically two types of grant proposals: (1) long proposals to government agencies, and (2) shorter proposals to private donors.


Find out about Public Grants which are tendered in the newspapers and also listed on their individual websites.

There is no single source of information about all government grants. There are different pools of funds from the municipal, provincial and federal government agencies which can be applied toas advertised.

Besides awarding grants, the government also awards contracts. A grant is a mechanism to support a project whereas a contract is an instrument to procure a project.

The announcement of intent to procure a project is called a Request for Proposal (RFP). It represents the official "shopping list".

Find out about Private Grants.

Private grants come from both foundations and corporations and are listed on their web pages, corporate annual reports and newspapers.

©BBBSA and Osborne Group

The materials contained in this toolkit are the copyrighted property of The Osborne Group, Inc, and Big Brothers Big Sisters of America. None of the material or tools can be used for any other purpose than the work of BBBS. Nor can any of the material or tools be sold or given away without written permission from both BBBSA and The Osborne Group, Inc.

Appealing to Foundations. Foundations award grants to those organizations presenting a convincing case that they will help the foundation reach its long-term goals. The grant appeals can assume several different forms. Some foundations make their money available for specific purposes, e.g., building funds, operating support, equipment, or seed capital. Some foundations make their money available to serve specific populations, e.g., school age children, youth within diversion programs. Some foundations make their money available to specific types of organizations, e.g., Children’s Homes, Orphanages, Youth HIV/Aids initiatives. Some foundations make their money available to specific geographic areas, e.g., a city, a county, a province, a region. Some foundations have their own specific priorities and interests, which determine the types of programs they support. With these considerations in mind, cast your project in a way that appeals to the foundation's self-defined mission.

Overview of Corporate Philanthropy. Most companies follow a concept of "profitable philanthropy." They often fund projects that will bring them better products, happier or healthier employees, lower costs, or an improved public image -- all things from which they benefit. Your challenge is to describe your project in terms that will benefit them. If your organization doesn't have a history of attracting corporate donations, start small and request larger grants as you establish credibility. You may wish to request nonmonetary support as a first grant. Companies are very cost conscious. They must feel they are getting the most for their money.

Appealing to Companies. Companies exist to make a profit. When you are asking for a corporate grant, you are asking for the stockholders' income. When profits increase, corporate giving increases -- slightly. When profits decrease, corporate giving decreases -- dramatically. When companies make grants, they look for something in return. What can you offer them?

  1. An improved corporate image? Will they have a better community reputation by funding you? Will funding your program make the local residents more productive or satisfied?
  2. An improved environment around the corporation? Will your proposal offer improved communities, children’s educational opportunities, lessen the crime rate?
  3. An improved benefits package? Will your project offer new or better employee incentives through community services?
  4. An improved pathway to attaining corporate goals? Will your project offer new staff, staff training, or availability of resources?

Your presentation to corporate funding officials must emphasize what they are "buying" with their grant -- prestige, employee satisfaction, or increased profits. As a result, your request should involve a project/program that is related to their business. For instance, corporations often feel they are unfairly taxed to provide the public services required to deal with many social problems, such as illiteracy and high dropout rates. You can argue that their support will reduce long-term tax liabilities for such problems. Corporations often support those organizations with which they already have a relationship. Don't give up if you don't make it on the first try. Use any business contacts your board, staff members, or volunteers have to help advocate for your project.