Fundraising is a priority for many foundations in Africa, Asia and Latin America. Even foundations that do not need to fundraise -- company foundations and family trusts, for example -- are often interested in promoting philanthropy and other sources of support for the causes and communities with which they work. They see that, however much support they can bring to bear, they cannot effect the fundamental social change they seek without a large and committed investment from many sectors of society. Many work, thus, not only to raise funding to cover their own annual budgets but also to establish and strengthen national philanthropy. Fundraising objectives are driven by mission and the capacity to manage resources. In general, the foundations in this chapter have sought to mobilize funding for:
- Programs: The cost of running programs show up in financial reports as grants and other program expenses. Some foundations include a "grant management fee" to recoup some expenses in managing their grantmaking
- Operating expenses: Like other organizations, the foundation must be able to cover its core costs from year to year
- Endowment or other income generating projects: Foundations are often well-placed to steward and grow investments that will pay off in a continued stream of financing
- Other support to partners: Some foundations seek to increase the support for and impact of their partners -- such as non-governmental organizations (NGOs) and community-based organizations (CBOs) -- by strengthening philanthropic traditions and linking them to corporations, government agencies and individuals. This support is not reflected in the foundation's budget or income.
How Are Resources Mobilized?
The resources that can be mobilized depend on what opportunities are available, the foundation's track record and the capacity of its staff, board and friends to raise funding. In the early stages, many foundations are built on the volunteer fundraising efforts of their founders and boards. Volunteers may take on these responsibilities without a single paid staff member to coordinate the efforts. At this stage, a staff member might not even add much value as so much is dependent on the knowledge, links and experience of a committed core. As the foundation grows, however, it may begin to feel the need for a development staff that can support fundraising efforts by coordinating the activities and follow-up of those involved and maintaining good communication with a potential donor.
What stands out from the experience of these foundations is that successful efforts are often aimed at involving potential donors and contributors in a long-term relationship. Such involvement can go beyond emergency or immediate needs -- although, many respond to these as well -- to focus on building a bridge for understanding and support between different sectors of society. The foundation functions as a catalyst fostering action and relationships in which it need not always be the central actor.
In addition to forging strong, sustainable links, the foundation is well placed to encourage a culture of accountability. In fact, its fundraising efforts will be severely hampered if either it or its partners are perceived as not being fully accountable. This important connection is one of the reasons that so many of the foundations in the following chapter stress accountability. Working hand-in-hand with accountability, many also promote transparency -- functioning in a way that is fully visible and accessible to one's partners and the public.
A number of elements of successful resource mobilization efforts have come up repeatedly throughout this chapter and bear repeating in a summary form.
- A clear mission and objectives that can be shared with potential contributors
- Access to professional fundraising skills
- A good track record and excellent programs
- National recognition and credibility
- Some resources upon which new resources might be leveraged
From Where Can Resources Be Mobilized?
Money, time and other resources can be released from both likely and unlikely places. A logical first place to start is with a natural constituency -- those who are closest to and most likely to understand and share the foundation's mission. At one point, a foundation may seek to broaden its reach into other constituencies through partner organizations and individuals. However, this is time consuming and often does not yield instant results. Knowing where efforts will potentially pay off in increased support assists in choosing and adopting a strategy that will maximize the resource mobilization efforts.
The foundations in this book have reached out to the following types of potential donors:
- Individuals: Friends of the founders, professionals, wealthy individuals, those who are to be assisted by the foundation and the public at large.
- Businesses: Primarily local and multinational companies working in the areas to be assisted
- International foundations: Foundations that extend their support to organizations in other countries
- Foreign aid agencies: Such agencies typically provide support to Southern governments, but increasingly provide support to non-governmental organizations working in the strategic areas they hope to assist.
This is by no means an exhaustive list and it should be noted that foundations have also raised funding from international non-governmental organizations, United Nations agencies, religious organizations, contracts with their own government and other sources.
The involvement of these donors with a grantmaking foundation, rather than with, say, a community poultry project rises from the advantages a financial intermediary can offer. If it does not already have one in mind, a potential donor may turn to the foundation to assist it in finding a good project. The donor may want to support a number of projects in a particular area, or to challenge other donors to match its gift. The donor might be concerned about the rising and falling fortunes of funding in a particular area and want to support a sustainable income source for it over the long run. Or the donor may simply be concerned that its donation is used in accountable manner and will turn to the foundation to monitor and evaluate the progress of the groups it supports. These are all advantages that foundations may be uniquely positioned to play:
- Capacity to bridge between donors and the groups and individuals who need them the most
- Ability to leverage additional resources from a contribution
- Understanding of and roots in the local context
- Strong accountability for the funds and programs they manage
- Long-term sustainable approach through endowment or other form of income.
Beyond financial and material resources, many foundations also strengthen the involvement and understanding of other sectors of society in the needs and initiatives of the communities with which they work. This involvement and understanding is an end in itself that can yield significant results. For example, the Abrinq Foundation for the Rights of the Child involves companies through its Child Friendly Company Program, which not only encourages companies to assist in improving the quality of life for children in the communities in which they operate but also ensures that companies comply with Brazil's poorly enforced child labor laws.
Many foundations believe that a crucial issue is mobilizing resources owned by their target communities themselves: labor, land, materials, ideas, and knowledge of tradition and successful practices.