Trends in Philanthropy

August 30, 2011 Leave a comment

Philanthropy UK published an article about trends in philanthropy which got me thinking about how many of these trends were being recognised and, more importantly, acted upon by charities. 

So first of all, what are the trends?

1. Private wealth is increasing – The number of wealthy individuals, particularly those who are self-made, has increased.

2. A new type of donor is emerging, altering the giving landscape – Donors are younger, self-made and socially conscious.  They want to be engaged, use their expertise and take risks.

 3. More people are giving during their lifetime – They want to experience the joy of giving.  More people are talking publicly about their giving, providing role models to new givers.

4. Views on the amount of wealth parents should pass on to their children are changing – More individuals are choosing to give much of their wealth ‘back to society’.

5. Givers increasingly want to see the impact of their donations – long term outcomes and not just outputs.

6. More donors are giving together – ‘giving circles’ such as The Funding Network, as well as funding vehicles such as ARK and the Private Equity Foundation.

7. Innovation in charity financing is growing – Venture philanthropy, loans and grants for charities and charitable banks are enabling social investors to help disadvantaged communities achieve sustainable economic growth.

8. There is a growing range of charitable services that help donors to give effectively – Helping donors to take a more informed and strategic approach to giving. Meanwhile, private banks are expanding philanthropy services to high net-worth clients.

9. Information flows are improving – Publicly available information on charities is more readily available to donors and potential donors.

10. Individual giving is becoming increasingly important to third sector organisations – Private individuals provide charities with unrestricted, sustainable income, playing a critical role in maintaining the independence of the voluntary sector.

So what does this mean for charities and social enterprises?  Well, to begin with, organisations need to review the way they communicate the messages about their brand to make sure that it appeals to this new audience.  That doesn’t mean that you should alienate your existing donors but is there potential to develop new income sources and if so, will you be in a position to do this effectively with your current donor communications.  If you want to engage with new, younger donors, you may need to consider different methods and approaches to fundraising.  That doesn’t mean throwing out what’s already working well for you but is about adapting to take advantage of changes.

Be flexible.  Be creative.  Think about how you can communicate with this new audience.  Do you have existing networks – such as board members, staff or volunteers – who can help you reach these high net worth individuals.  Do you need to adapt your donor communications strategy to include social media?

It is also worth considering whether your organisation and the work that you carry out could be funded differently.  Many organisations have lost significant levels of public funding – either by losing public grants or contracts.  Can you look to these new trends in philanthropy to help you bridge the gap?  Perhaps it’s worth considering a grant or a loan to invest in a new project that will generate income for you in the longer term – effectively enabling you to pay off the loan in the future.  Charitable banks and social loans can help organisations to achieve positive outcomes where traditional grants won’t necessarily provide the same level of support.

Donors are increasingly sophisticated.  They want to engage with causes that they believe in and to make a difference – not just through their financial investments but through their personal involvement.  They want to work with organisations that are forward thinking, take a creative approach to achieving their aims, and who have a vision and values that they believe in.  Wealthy individuals have the power to make a sustainable difference to society both now and in the future.  Where once public funding was the answer, in these lean times, charities and social enterprises need to develop to take advantage of the new trends in philanthropy.

Is your organisation ready to adapt to the changes in the funding landscape?

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Good fundraising advice

August 9, 2011 Leave a comment

Over the summer I’ve been more than a little bit quiet on this blog.  Mainly because I’ve been juggling childcare and managing clients rather than because I’ve been sunning myself on a long relaxing holiday I should add.

However, I have managed to read the occasional blog post from others and there are a few that I thought worth a mention.  The ever informative SOFII blog as been a mine of useful info (as usual) and I found Damian O’Broin’s post particularly interesting.  In it he provides a checklist of 12 key points to consider that will help to supercharge your fundraising appeals.  As we come out of the summer you might be considering your own fundraising appeals for the autumn (and of course, the pre-Christmas period – sorry, I shouldn’t mention the C word this early in the year, I know).  If you are about to launch a new appeal or write out to your donors, it’s well worth a read.

And of course, if you’re interested in finding a rich source of information without having to plough through various searches on the internet, you can visit Beth’s Blog, which has a great article on sourcing curated articles (i.e. someone else has done the research for you, which I have to say, appeals hugely particularly given my current lack of time resources!).  Beth has added a list of her favourite curated lists using Scoop.It with posts that non-profits might find useful – from crowdsourcing to storytelling; non-profits to using Facebook.  Definitely a good read if you’ve a spare 15 minutes and a cup of tea.

Back to SOFII and there’s another great piece about dabbling in fundraising  by Christiana Stergiou- and why dabbling just doesn’t work.  I’m often asked by people to fundraise for them in some of the circumstances outlined in this post and I always stress the need for a fundraising plan; the need to recognise that fundraising is a long-term, relationship building activity and not about quick wins; and the need to see fundraising as part of the overall fundraising mix and not just a panic, knee jerk reaction to filling an income void.  For these reasons I this post is well worth a read – if nothing else as it gives some good advice on what to do and what not when considering fundraising.

These are just a few of the good posts that I’ve managed to pick up over the summer – in between short bursts of working and refereeing the sibling squabbles in the house.  Let me know what you think of these and if there are any other posts that you think would be of interest to non-profits.

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August Funding News

August 8, 2011 1 Comment

The Scottish Government have announced the launch of two significant funds which will provide funding of £7m for the social enterprise sector in Scotland – Just Enterprise and the Enterprise Growth Fund.

The People’s Postcode Lottery Dream Fund is a new initiative developed by the People’s Postcode Trust team to give organisations the chance to deliver the project they have always dreamed of, but never had the opportunity to bring to life.  The Dream Fund will offer £600,000 over two years, with £300,000 available for 2011, and £300,000 for 2012. Registered charities and community organisations in Scotland can apply for up to £100,000 to deliver a new and innovative 12-month project that meets one of the following funding criteria: Helping Communities Lead an Active Life; Helping to Involve Volunteers; Helping to Tackle Climate Change

The Wellcome Trust have recently announced their People Awards – where organisation’s can apply for up to £30,000 in funding towards projects that introduce biomedical science to the public.  If you have a project that will encourage public debate and understanding of biomedical science, take a look at their website to see whether you are eligible for funding.  The next deadline is 28th October 2011.

The Wellcome Trust also has an arts awards programme that seeks to engage the public in biomedical science through creative arts programmes and again, awards grants of up to £30,000 imaginative and experimental arts programmes.

Flytipping Small Grant Scheme – The flytipping small grant scheme is being administered by Keep Scotland Beautiful on behalf of Zero Waste Scotland to support landowners/managers  and community groups in Scotland who have experienced persistent problems of flytipping. The total grant fund is £50,000.

The Sita Trust’s Enhancing Communities programme funds community improvement projects that make physical improvements to community leisure facilities and historic buildings / structures with grants of up to £60,000 available.

Coastal communities across the United Kingdom will receive a multi-million pound boost each year from a new Coastal Communities Fund, financed by the Government through the allocation of funding equivalent to 50 per cent of the revenues from the Crown Estate’s marine activities.  This new fund is designed to support the economic development of coastal communities and will support a wide range of projects, including those that support charities, the environment, education and health. Examples could include support for developing renewable energy, improving skills or environmental safeguarding or improvement.

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Facebook preferred Social Media for Fundraising

May 17, 2011 Leave a comment

The result of our recent poll on LinkedIn showed that Facebook used more for fundraising than other social media. Having read Pamela Grow’s blog on yesterday’s SOFII post, this is perhaps an area that more organisations should look into, as one charity has enjoyed phenomenal success using the basic Facebook platform effectively.

No matter what the media, I’ve always said that fundraising doesn’t have to be expensive to work.  You don’t have to have heavyweight paper, embossed in gold with expensive print and design any more than you need a database that can do everything but make the tea (although you do need a database!).  Often you can adapt what you already have to reach donors by thinking creatively and using a bit of imagination.  I think that Pamela’s blog outlines this beautifully, as the Soi Dog charity shows how it harnessed Facebook properly, using a little bit of work and imagination – without breaking the bank!

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Funding Update

May 15, 2011 Leave a comment

New charitable funds that have recently been announced or with deadlines coming up include:

Esmée Fairbairn Foundation Museum Collections Fund – a collaboration with the Museums Association, this fund focuses on time-limited collections work outside the scope of an organisation’s core resources. There are two deadlines this year – 31st May and 31st October 2011.  Through this fund the MA will award approximately £800,000 per year to museums, galleries and heritage organisations.  Organisations can apply for sums between £20,000 and £100,000.

EventScotland – The National Funding Programme complements the International Funding Programme and plays an integral role in developing domestic tourism across Scotland. By supporting events which take place outside the cities of Edinburgh and Glasgow, EventScotland is also growing Scotland’s wider events portfolio which forms the backbone of our events industry.  The deadline for the next round of funding is 3rd June for events from January 2012.

The Institute for Small Business & Entrepreneurship – Research and Knowledge Exchange (RAKE) fund is an initiative that aims to encourage and support research  activities from academics, third sector organisations, consultants and  practitioners with the ambition of drawing together and generating an  entrepreneurial community of practice to facilitate knowledge exchange  and transfer.  Funds of up to £12,000 are available and the next funding deadline is 3rd June.

Voda Grassroots Funds -The Grassroots Grants programme is to make £51,180 available to North Tyneside groups.  The Government has made a one off sum of £168,648 available to grassroots community and voluntary groups in Newcastle, North Tyneside and Northumberland. Grants are available for constituted groups that have a turnover over of less than £30,000, have been going for over a year and have a full set of accounts. Applications for equipment and summer activities are particularly welcome, but all funding awarded must be spent by the September 2011.  The deadline for submitting applications is Friday, 27 May 2011.

Cashback for Communities – The Small Grants Scheme has been established to support local volunteer led groups, who may not previously have had access to external funding, to enhance their programmes for young people and get positive projects off the ground.  Funding of up to £2,000 is available and the next round of funding closes on 1st June 2011.

Clore Social Leadership Programme – This programme is a unique, offering fully-funded Fellowships tailored to meet the individual development needs of aspiring leaders in the social sector.  Applications to the 2012 Fellowship programme opened on 18th April 2011.

First Light’s Young Film Fund opened on 3rd May – funding is available for Pilot Grants (up to £5,000) and Studio Grants (up to £30,000) to projects that enable young people to participate in all aspects of film production.  Deadline for this round of applications is 14 June 2011.

The Wellcome Trusts Arts Awards – support imaginative and experimental arts projects that investigate biomedical
science.  The scheme aims to: stimulate interest, excitement and debate about biomedical science through
the arts; examine the social, cultural, and ethical impact of biomedical science; support formal and informal learning; encourage new ways of thinking; encourage high quality interdisciplinary practice and collaborative partnerships in arts, science and/or education practice.  Small grants of up to £30,000 are available while the large project programme is for applications of £30,000 or more.  There are various deadlines throughout the year with the next on 29 July.  All art forms are   covered by the programme: dance, drama, performance arts, visual arts, music, film, craft, photography, creative writing or digital media.  The Trust invites applications for projects which engage adult audiences and/or young people.

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The Rise of the Social Enterprise

April 26, 2011 Leave a comment

With an increasing number of my clients operating as social enterprises, rather than solely as charities, I read Noam Kostucki’s post on the SOFII blog with interest.  Noam has put together a list of suggestions to help organisations – charities in particular – look at how they can become more entrepreneurial in their outlook and generate their own income.  And that has to be something that is not only worth considering but becoming increasingly important in these trying economic times. 

I’ve blogged many times about the need for charities to take a more creative approach to diversifying their income and generating income can certainly help to provide more sustainability for an organisation.  Noam’s tips include:

1. Look at what you’re best at and capitalise on that – don’t try to completely reinvent the wheel but use the skills and experience you have available to you to help diversify your income.  What do you currently offer clients/service users/the community you’re based in, how does that help them and can it be adapted to  provide an income for you e.g. by providing the same service but to an audience who can afford to pay for it? 

2. What is your current business model and can it be adapted in such a way to earn you an income without your current beneficiaries suffering as a result?  Are there income generating opportunities that ‘fit’ with what you do already?  TOMs Shoes is the example given where, for every pair of shoes sold, the charity sends a pair to a child in need – a nice and obvious link between what the business does and the charitable aim.

3. Use technology to make your life easier – an area which I already advocate to enable organisations to make their fundraising work smarter not harder through crowdfunding, Facebook, Twitter and the use of social media to ‘spread the word’ about your organisation, raise awareness and ultimately, raise money.  Noam suggests using social media to harness that free PR and publicity to help you grow your business and promote your business services to a broader audience.

Noam’s post offers good suggestions as to how to think creatively about adapting your charity into a social enterprise model by thinking out of the box, working smarter not harder and harnessing the skills and experience you already have – thereby turning a change in your organisation’s income generation model from something scary into something achievable, flexible and, most of all, sustainable.

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Diversifying your Income

April 11, 2011 2 Comments

Any client I’ve ever worked with could testify to the fact that I often ‘bang on’ about diversification of income streams.  Trying to ensure that your income comes from a number of sources – preferably a mixture of earned income – from commissions or training that you offer, philanthropic income, sponsorship and perhaps statutory funding.  Within that, I’m also keen to encourage that organisations diversify their philanthropic income to include a mixture of Lottery, trusts, individuals, corporate giving – and perhaps EU and third sector grant funding.  The more you can diversify your income, the greater protection your organisation has if and when one of your income streams dries up or reduces.  It’s basically common sense and the old ‘don’t put all your eggs in one basket’ theory but it’s easy to see how an organisation, particularly with the limited resources that many charities have, can focus on the one source of income that works for them to the detriment of other funding – until it’s too late. 

So try to broaden the net and move outside your comfort zone or away from the obvious or usual suspects when researching potential supporters for a new venture.  Is there an element that could be self funding or could generate income for your organisation?  Or similarly, is there an aspect that you simply cannot deliver without the support of the Lottery or trusts but which will add considerable value to what you are trying to do.  Try to look at your project from all angles – not just the tried and tested perspective.  What do other organisations do that you could adopt?  Look beyond your own niche area to organisations that you admire – or envy!  And involve others in the organisation in helping to assess the potential for your products and services. 

It’s also an adage that I’ve taken over into my business life – working with a range of organisations from across a number of sectors and offering a variety of different services – from fundraising to strategic planning; mentoring to staff training & development.  Everything from arts organisations to social enterprises, international aid agencies to local charities – and if I’m honest, that suits me just fine as it gives me the opportunity to work with an interesting range of very different organisations, while helping me to diversify my income sources too.

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Fundraising News and Mothers’ Day Ideas too!

April 1, 2011 1 Comment

I’ve just published April’s edition of Effective Fundraising, which announces the launch of Sharper Marketing & Fundraising – a great new service we’re offering with marketing consultants, Strategy Point, to help you gain more from your organisation’s marketing and fundraising.  There’s also info on new funding opportunities and a wee round up of how you can help charity while spoiling mum this Mothers’ Day (yes, it is this Sunday!).

If you’d like to receive our monthly news, ideas and fundraising tips, please subscribe.  And let us know if there’s any fundraising aspect that you’d like us to include in our regular updates.

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Funding Cuts & Philanthropy

March 30, 2011 Leave a comment

The Arts Council of England’s funding cuts have been the big news of the day with only around 650 organisations (out of 1330) being successful in receiving funding – although the success varies from funding increasing to funding continuing but at a lesser rate.  But it does beg the question, how will those who were unsuccessful raise their income and how many will disappear under the pressure of lack of funds? 

Obviously, philanthropy and sponsorship have a role to play – and I’ve blogged here before about the coalition government’s desire to increase philanthropic gifts for the arts, including their support for giving in last week’s budget.  But we can’t rely on philanthropy and sponsorship to plug the gap entirely.  It’s too big a gap and often it’s needed to cover core costs, which are just not that appealing to philanthropists who, in general, tend not to give to areas which have traditionally or previously been funded by government, preferring instead to provide the ‘icing on the cake’.

No-one is under any illusion that organisations will need to think creatively about diversifying their income if they have any hope of surviving and over the coming weeks and months we will no doubt see more mergers or organisations adapting by creating social enterprise/social fund models – combined with a creative and strategic approach to fundraising.  Although in a small, low resourced organisation this is going to be a huge challenge to say the least.

And this challenge doesn’t just apply to the arts in England but to the entire charitable sector as a whole.  Government funding is going to reduce if it hasn’t already.  It’s going to be tough but there are also real opportunities out there to engage donors, optimise service delivery and achieve sustainable results.

Or perhaps I’m just being overly optimistic and a bit too glass half full?  What do you think?  Are the challenges insurmountable for small, lean organisations whose resources are spent on providing their core services without having to concentrate huge amounts of time on income generation?

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New Funding Opportunities

March 18, 2011 Leave a comment

New Funding Opportunities:

£1m Poetry & Literature Awards
The Clore Duffield Foundation has launched a new £1m programme to fund poetry and literature initiatives for children and young people across the UK. The Awards are will run from 2011 to 2015 and will allocate amounts up to £10,000 in two funding rounds a year. Schools, FE colleges, community groups, libraries and other arts/cultural organisations are eligible to apply.   

BIG Lottery have launched Improving Futures fund
Every child deserves the best start in life, but we know that some grow up in difficult circumstances. Some families experience multiple and complex problems – for example, to do with poor health, unemployment, debt or housing problems – which can affect their children’s wellbeing and life chances.  The Improving Futures programme aims to improve outcomes for children within these families.  The deadline for submitting “Expression of Interest is the 12th May 2011.  Partnerships successful at this stage will have until the 30th September 2011 to submit full applications.

Hilton in the Community Funds
Organisations that work with young people can apply for grants up to £30,000 per year for up to 2 years that meet one of the Foundation’s chosen areas of focus: disabled children; children in hospital; homelessness; and life-limited children in hospices.  The next closing date for applications is the 3rd May 2011.

Easi-Drive launched £60,000 Charitable Fund for 2011 in February
The ‘wheelsforgood’ community fund was created by Easi-Drive’s Managing Director Simon Bellamy in 2009, to give something back to the community in which the business operates. The award-winning company, which celebrates its 10th birthday this year, donated £60,000 in 2010 to a number of ‘wheel’ based projects, which ranged  from buying a new wheelchair wheel for a 2016 Paralympic hopeful to donating £10,000 to the  Motor and Allied Trades Benevolent Fund (BEN).  Commenting on the launch of the 2011 fund, Simon Bellamy said: “It’s been great to see the difference wheelsforgood made to individuals, groups and projects in 2010. We see this as a long term commitment and a key part of our corporate strategy, and are delighted to be pledging £60,000 once again this year.”

Make a Splash!
As well as running a series of training events, the Make a Splash! project also has a small grants programme, offering small voluntary groups in Scotland the chance to apply for between £250 – £2,000 so that you can try something new and help even more people discover how good it feels to take part in arts and crafts activity.

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