Understanding key fundraising principles to ensure program sustainability

Article icon

Abstract

Fundraising is one of the cornerstones of program sustainability. Besides persistence and the right attitude, knowing basic principles can go a long way in devising a strategy that works for your program. This effective practice is from the Toolkit for Program Sustainability, Capacity Building, and Volunteer Recruitment/Management (2004) developed from material provided by Campaign Consultation, Inc., with assistance from Aguirre International for AmeriCorps program applicants.

Back to top

Issue

The Corporation for National and Community Service (CNCS) views its grants as investments, expected to yield results significantly beyond those attributable to the specific federal funds provided. Experience has shown that to foster and sustain effective programs, organizations must be both viable and well managed, demonstrating skill in mobilizing resources for its activities.

Back to top

Action

According to Campaign Consultation, Inc., the following fundraising principles are valuable for AmeriCorps grantees:

1. Don't make your organization dependent on government funding. Sustained government funding can cause over-dependency and distortion of an organization's mission. Studies routinely demonstrate that non-profits that rely solely or primarily on government funds become, over time, subject to the changing priorities of the funding agencies.

2. Place your eggs in many baskets. Your organization will be more financially protected if it raises funds from many different sources, including individuals, corporations, foundations, and the government. An organization should avoid relying on a single source to support most of its activities.

3. Fundraising begins at home. It is vital to demonstrate that your board members, staff, volunteers, and the community at-large have made gifts to your organization.

4. Focus on individuals. Despite all the attention given to foundation grants and corporate giving, individuals contribute the majority of philanthropic dollars (approximately 84 percent in 2001).

5. Don't neglect other sources of income. Earned income - fees for service, sale of products, royalties, endowment income - provide nonprofit organizations with substantial revenue.

6. Gain control of as many different revenue sources as posssible. Commercial or earned income is preferable to foundation grants or government grants because it is self-generating income (i.e. the organization has control of the production of this resource and does not have to rely on the decisions of others).

7. Demonstrate improved performance in program quality and efficiency. Providing regular updates on activities and outcomes is important in terms of being accountable to your AmeriCorps program's current investors and for attracting new funding partners. It is a good strategy to develop a public relations plan highlighting your program's outcomes and organizational effectiveness to help spread the word on the value of your program to the community.

8. The timeframe for capacity building and assuring progam sustainability will vary from program to program. Factors such as an AmeriCorps program or its sponsoring organization's age, size, and history will determine how easy it will be to build capacity or assure program sustainability.

9. A sustainability plan is needed before a grant is awarded. Unfortunately, too many nonprofits develop a sustainability plan only in the final months of a three-year grant - when there may be insufficient time left to assure success. CNCS calls for applicants to develop their plans and strategies before a grant is awarded.

Back to top

Context

To foster and sustain effective programs, organizations must be both viable and well managed. Regardless of how imaginative a program's design may be, its effectiveness will be largely dependent on a variety of other factors, including the skill of the organization in implementing the program, its financial feasibility, its capacity to establish effective quality controls, its ability to measure program performance, its skill in creating partnerships and mobilizing volunteers and resources for its activities, and its ability to provide various forms of administrative support. CNCS encourages programs to address issues in the program planning process including how the program will be continued, in dollars and time, after AmeriCorps resources (including members) end.

Back to top

Citation

The Toolkit for Program Sustainability, Capacity Building, and Volunteer Recruitment/Management (2004) was developed from material provided by Campaign Consultation, Inc., with assistance from Aguirre International for AmeriCorps program applicants.Campaign Consultation, Inc. works with individuals and organizations at local, state, national and international levels to achieve community development, fund raising, diversity utilization, issue advocacy, media and marketing, public policy as well as organizational and business development success.

Back to top

Outcome

In assessing program performance and evaluating applications, CNCS considers how programs deal with a range of activities related to capacity building and assuring program sustainability. Programs with a sound fundraising plan are more likely to be successful in garnering future Corporation funding.

Back to top

Posted On

April 28, 2004

Back to top

For More Information

Campaign Consultation, Inc.
2819 Saint Paul Street
Baltimore, MD 21218-4312
Phone: (410) 243-7979
Fax: (410) 243-1024

Back to top

Source Documents

Related Practices

No related practices

Back to top

Related sites

Topic Areas

Back to top