TAO/Handbook/Sponsorship and Fundraising
Money Makes The World Go Round
Sources of Revenue
Every organisation and project needs some revenue sources to implement activities irrespective of whether the activities will be face-to-face or online. From the point of view of a business model revenues result from value propositions successfully communicated and offered to the customers.
Other funding options are donations, sponsorship and fundraising. They are particularly adapted to new organisations without a mature business model or for institutions with non-profit character (e.g. Wikipedia).
Difference between Donation, Sponsorship and Fundraising
A donation is an altruistic gift, either with a general charitable purpose or for the support of a particular project.
Sponsorship means supporting events, activities, persons of organizations financially or through the provision of products or services. It is based on reprocity ["On the basis of a written agreement, the public sector receives cash or goods in kind and in exchange the sponsor receives publicity designed to enhance its reputation (e.g. flyers, posters, advertisements,…)."].
Fundraising means acquiring these contributions.
Successful fundraising implies a strategic plan. Strategic planning and activities of sponsorship are closely related to marketing, press and public relations. It aims at communicating a positive image of one's own institution in order to prepare and acquire fundraising.
Steps to develop a concept for fundraising
- analyze the specific situation (organisation, market, trends)
- define the objectives
- identify the target audiences
- derive the specific strategy
- develop specific measures
- implement measures
- evaluate and further develop alternative measures
Below, you will see an overview of different sources of fundraising. Public sources, other funds, donations, a variety of fees and generated funds can be distinguished. Each of these sources need adapted strategies and measures.
|Sources of Fundraising|
|Public Sources||Other Funds||Donation||Fees||Generated Funds|
|EU funds||Public trusts||Single donation||Full membership||Sponsoring|
|National funds||Foundations||Donation in kind||Sponsoring member||Entrance/participation fees|
|Regional funds||Lottery||Permanent donation||Sale of products|
|Local funds||Administrative fines||Personal sponsorship||Charity event/run|
Public funding programmes exist on different levels and address different topics and target groups. Depending on your objectives, it may be expedient to request funds on local, regional, national or European level. For example, if you only have local or regional goals, it doesn't make sense to ask for European funds. Objectives can concern economic, social, research or political issues. Besides these aspects, it is important to know who will get public funds, e.g. small or medium-sized enterprises (SME), non-governmental organisations (NGO), public bodies or individuals. Below you will find some additional information about EU programmes.
Public trusts and foundations will facilitate only projects which are in line with their own objectives. That's why requests and applications must be well-directed. To get an overview of the different European foundations you can use the members' list of the European Foundation Centre. Gains from the lottery and administrative fines are also distributed for intentions which are charitable and serve the public good. This process is regulated by national and regional public institutions.
Donations are given as a gift by physical or legal persons (companies, institutions, etc.). Donations aren't necessarily monetary, but can also come in other forms like services or goods. You can distinguish single donations, donations on a regular basis and legacies.
Fees can be charged for full or sponsoring membership. Full membership is often more expensive, but will also give more power and influence.
Funds can be self-generated by participation fees, sale of products or sponsoring. Such funds are often generated by events like charity runs oder raffles.
The European Commission allocates a part of the EU budget to companies and organisations in the form of calls for tenders, grants or funds and other financing programmes. To get an overview of the financial rules and funding opportunities, the "Beginners’ Guide to EU Funding"  can be useful. Here's a list of EU grants, funds and programmes, which could be interesting for online communities and other online services:
Lifelong Learning Programme
The European Commission's Lifelong Learning Programme (LLP) consists of different funding areas. Adult Education is summarized under the so-called sectoral programme "Grundtvig". Grundtvig supports different target groups: institutions, education staff and learners. There are different measures such as e.g. multilateral projects, in-service trainings, workshops, learning partnerships and others.. Other sectoral programmes within the LLP like "Leonardo da Vinci" may also be considered for some projects. Please always keep in mind the application deadlines for the different measures. For further information about the LLP the National Agency of the own state should be contacted. The LLP lasts until 2013. From 2014 on a new programme is planned: "Erasmus for all".
Hints for Fundraising
Hints for successful fundraising of non-profit organizations: What's necessary?
- a structural, financial, personal base
- profile, awareness and image (internal and external)
- messages and statements: to capture the very essence of a statement with limited means
- definition of attractive offers and prices
- good reputation and credibility: transparency of aims/objectives, tasks and finances
- recognition culture: thanks and involvement generate repeated donations
Checklist for drawing up an application
- What is the project title?
- Who is responsible for the concept (contact name, address, phone/fax, email)?
- Why is the project needed (starting position)?
- What are the aims/objectives of the project? What do we want to achieve?
- Which target groups are addressed (age, ethnicity, etc.)?
- What are the strategies and measures? Which innovative methods and concepts are used?
- How will the project be implemented?
- Which steps and milestones are planned in which period?
- Who is responsible for what (to-do list)?
- Which results and long-term effects will the project have?
- What are the international impacts of the project?
- What is the project's cost structure?
- Which costs are planned (e.g. personnel costs, ongoing operating costs, additional costs, if necessary planning costs)?
- Which revenues are planned(own funds, grants by donations, sponsorships, grants of public and non-public organizations)?
- Which press and public relations are needed (media relations)?
- How do we report on the project before, during and after the implementation?
- Alexander Osterwalder & Yves Pigneur: Business Model Generation 2009 p.30ff.
- Federal Chancellery Austria (Publisher): The RESPONSibility rests with me: Code of Conduct to Prevent Corruption, 2010
- Deutscher Fundraising Verband: Die wichtigsten Hintergrundinformationen zum Fundraising
- [ http://www.efc.be European Foundation Centre www.efc.be]
- EU Homepage for Public contracts and funding
- Beginners’ Guide to EU Funding (2007-2013)
- Grants, funds and programmes by EU policy
- European Commission: Lifelong Learning Programme Overview
- ECORYS (British National Agency): Grundtvig Funding Opportunities
- Léargas (Irish National Agency): Grundtvig
- List of National Agencies in the EU's Lifelong Learning Programme
- Daniel Kraft und Gerald Prell: Checkliste zur Konzeption eines Antragskonzepts