SANBI Biodiversity Series 20 Fundraising and marketing: tools for biodiversity conservation and development projects The third in a series of project management handbooks, dealing with fundraising and marketing as a pathway to learning in a people-centred development context compiled by CapeAction for People and the Environment SANBI t ra% BiodiversityforLife Pretoria 2011 SANBI Biodiversity Series The South African National Biodiversity Institute (SANBI) was established on 1 Sep- tember 2004 through the signing into force of the National Environmental Manage- ment: Biodiversity Act (NEMBA) No. 10 of 2004 by President Thabo Mbeki. The Act expands the mandate of the former National Botanical Institute to include responsi- bilities relating to the full diversity of South Africa's fauna and flora, and builds on the internationally respected programmes in conservation, research, education and visitorservices developed bythe National Botanical Institute and its predecessors over the past century. The vision of SANBI: Biodiversity richness for all South Africans. SANBI's mission istochampiontheexploration, conservation, sustainable use, appre- ciation and enjoyment of South Africa's exceptionally rich biodiversityfor all people. SANBI Biodiversity Series publishes occasional reports on projects, technologies, workshops, symposia and other activities initiated by or executed in partnership with SANBI. Technical editor: Alicia Grobler Design & layout: Elizma Fouche Cover design: SANBI Graphics How to cite this publication CAPE ACTION FOR PEOPLE AND THE ENVIRONMENT. 201 1. Fundraising and marketing: tools for biodiversity conservation and development projects. SANBI BiodiversitySeries 20. South African National Biodiversity Institute, Pretoria. ISBN 978-1-919976-67-9 Obtainable from: SANBI Bookshop, Private Bag XI01, Pretoria, 0001 South Africa Tel.: +27 12 843 5000 E-mail: [email protected] Website: www.sanbi.org Printed by: Digital Express, PO. Box 59, Newlands, 7701 Cape Town. , Copyright©2011 bySouthAfrican National BiodiversityInstitute (SANBI) All rights reserved. No partofthis book maybe reproduced in anyfrom withoutwritten permission ofthe copyrightowners. The views and opinions expressed do not necessarily reflect those of SANBI. The author and publisher have madetheir besteffortsto preparethis book, and make no representation orwarranties ofanykind with regardtothecompletenessoraccuracyofthecontents herein.All imagesinthisbook havebeen re- producedwiththe knowledgeand priorconsentoftheartistsconcerned and no responsibilityisaccepted bythe publisheror printerforanyinfringementofcopyrightorotherwisearisingfromthecontentsofthis publication. Everyefforthas been madetoensurethatthecredits accuratelycomplywith the information supplied bytheauthor. Contents Preface vi Message vii Acknowledgements viii Acronyms ix Glossary of non-profit terminology x Using the CD xii INTRODUCTION 1 WHYTHIS HANDBOOK? 1 1 2 HOW THIS HANDBOOK CAN BENEFIT YOUR ORGANISATION 2 3 HOW THIS HANDBOOK IS STRUCTURED 2 4 LAYOUTAND ICONS 2 5 CASE STUDIES 3 Section 1: PREPARATION 4 1.1 IS YOUR ORGANISATION READY TO FUNDRAISE? 4 1.2 VISION, MISSION AND VALUES 5 1.3 THE CONSTITUTION 7 1.4 FROM CBO TO NPO—THE LEGALITIES 7 Section 2: STRATEGIC PLANNING 10 2.1 INTRODUCTION 10 2.2 THE PLANNING PROCESS 12 2.3 STRUCTURE OF NARRATIVE PLAN—PUTTING ITALLTOGETHER 15 Section 3: PROJECT FUNDING 21 3.1 WHAT IS A PROJECTAND HOW DOES IT DIFFER FROM A PROGRAMME? 20 3.2 WHY DONORS FUND PROJECTS 21 3.3 WHY PROJECTS GUIDE POTENTIAL DONOR RESEARCH 22 Section4: SOURCES OF FUNDING—STATUTORY 24 GOVERNMENT 4.1 24 4.2 THE EXPANDED PUBLIC WORKS PROGRAMME 24 4.3 OTHER GOVERNMENT FUNDING 27 4.4 THE NATIONAL LOTTERY 29 Section 5: SOURCES OF FUNDING—COMPANIES,TRUSTSAND FOREIGN FOUNDATIONS 31 5.1 WHYTHEY GIVE 31 5.2 DONORS’ RIGHTS 31 5.3 THE EVOLUTION OF CORPORATE SOCIAL INVESTMENT IN SOUTH AFRICA 32 . . 5.4 TRUSTSAND FOUNDATIONS 34 5.5 FOREIGN FUNDRAISING 37 iii Preface We are pleased to present the final in a series of three handbooks that form part of the C.A.P.E. Partners Toolbox, and follow on from the previous two publications, Project planning: tools for biodiversity conservation anddevelopmentprojects and Monitoringandevaluation: tools forbiodiversityconservation anddevelopmentprojects. We hope thatthis third publication,focusing on Fundraisingand Marketing,will be ofuse to organisations and projects across the C.A.P.E. Partnership. This resource provides practical tips fromA to Z:from researching and approaching new donors,to develop- ing a funding strategy,to writing a funding proposal and,finally,developing a marketing plan. I believe it will be ofuse to anyone mobilising resources for their project or organisation. I wish you the best ofluck in using this handbook,and hope that,used in conjunction with the other C.A.P.E. Toolbox handbooks,this will strengthen your project development,funding and evaluation. Onno Huyser Chair:C.A.P.E.Implementation Committee January 20 1 I VI Message The Critical Ecosystem Partnership Fund (CEPF) has supported the production of this handbook. It is a re- sourcethataddsvalueto ourinvestmentin biodiversityconservation in the Cape Floristic Region biodiversity hotspotand in other biodiversity hotspots where CEPF is investingglobally. Organisations that do thorough research on donors’ criteria before approaching them and tailor-making theirapplications to meetthese criteria and areas offocus where appropriate are more likely to be success- ful in securing funds for their projects. This resource provides the tips and steps necessary in planning for, and implementing a fundraising and marketing plan,as well as writing a good fundraising proposal. Coupled with the Project Planning and Project M&E handbooks,this handbook will equip current and future grantees with an invaluable set oftools that will assist in making projects more relevant, more impactful and more sustainable. We welcome the addition ofthis handbook to the C.A.P.E.PartnersToolbox and encourage readers to apply it to their own projects and programmes. Dan Rothberg Grant Director Critical Ecosystem Partnership Fund January 20 1 I VII Acknowledgements This handbook is preceded by and builds on the material contained in the Project planning:tools for biodiversity conservation anddevelopmentprojects and Monitoringandevaluation:tools forbiodiversityconservation anddevelop- mentprojects handbooks prepared bythe SouthAfrican National Biodiversity Institute (SANBI)forthe C.A.P.E. Partnership and published by SANBI in 2007 and 2008 respectively. The complex process of project development,fundraising, implementation and monitoring has highlighted a number of constraints for project planning in the biodiversity conservation sector. The Fundraising and mar- keting:tools for biodiversity conservation and development projects handbook concludes the series of handbooks in the C.A.P.E. PartnersToolbox which guide project developers and other practitioners through the project cycle. SANBI’s C.A.P.E. Coordination Unit managed the process of producing the material for the handbook. Ma- terial was developed and compiled by Jill Ritchie, an accomplished fundraiser and writer of fundraising and NGO marketing resources for the South African community. In the course of developing this handbook, a numberofother peoplealso madevaluable contributions.Caroline Petersen, Azisa Parkerand Mandy Barnett provided a clearfoundation forthe developmentofthe handbook.Lesley Richardson and Onno Huyserwere effective sounding boards throughout. Representatives from three non-profit organisations generously provided time and insightforthe purpose of generating case study material. They are: • CapeWest Coast Biosphere Reserve Company • Eden toAddo Initiative • Friends ofthe BaviaanskloofWildernessArea SANBI’s Publications Unit was responsible for technical editing, design and layout, and cover design for the handbook. Financial supportwas provided by the Critical Ecosystem Partnership Fund. The C.A.P.E.Programme is hosted by the SouthAfrican National Biodiversity Institute and is supported by 23 signatory partners. viii Acronyms C.A.P.E. CapeAction for People and the Environment CWCBR CapeWest Coast Biosphere Reserve CBO Community-based organisation CIPRO Companies and Intellectual Property Registration Office CSI Corporate Social Investment EPWP Expanded PublicWorks Programme FOBWA Friends ofthe BaviaanskloofWildernessArea M&E Monitoring and Evaluation NPO Non-profit Organisation PBO Public Benefit Organisation SA SouthAfrica SARS SouthAfrican Revenue Service SANBI SouthAfrican National Biodiversity Institute TMF Table Mountain Fund UNESCO United Nations Educational,Scientific and Cultural Organisation IX — Glossary of non-profitterminology — Accountability the duty ofa beneficiary organisation to inform donors ofthe use oftheir money,backed up by financial statements. — Activities the actions,tasks and services an organisation carries out to create its outputs and outcomes, and achieve its aims. — Appeal letter a letter,generally but not exclusively,to an individual askingfor a donation. — Attrition rate rate at which donors are lost due to their not renewing donations or subscriptions. — Bequest moneygiven by means ofa will (after death). — Campaign a planned effort to mobilise a specified amount of money, resources,volunteers or donations- in-kind within a certain period oftime. — Capital campaign a one-offintensive fundraising drive for a specific item,usually a vehicle or building. — Cause related marketing a marketing exercise in which a company uses the name and logo of an or- ganisation to assist in the sale ofits goods or services and provides the organisation with a financial reward. — Codicil an addition made to a will. This is often what donors do to include a bequestfor a charity in their existing wills. — Commemorative gift a charitable donation made to remember or honour someone or an occasion. Community-Based Organisation (CBO)—start-up group of concerned citizens addressing a problem. CBOs are not registered and later evolve into NPOs. — Core costs running costs or overheads;the day-to-day expenses incurred by organisations (including sala- ries,administrative costs and rent) but excluding the direct costs ofrunning projects. — Corporate governance (good) sound stewardship of donated funds (fiduciary responsibilities of board members),runningan organisation within the parameters ofits constitution,the laws ofthe land,morallyand ethically. — CSI (Corporate Social Investment) companies’ term for funding donated to organisations as well as for the upliftment ofthe communities where their employees live. — Development officer donor marketer,grants officer.Alternative terms for‘fundraiser’. — Discretionary trusts money left in trust or given to a trust to be used for charitable purposes but un- specified.Trustees can disburse such monies at their own discretion. — Donation-in-kind a gift other than money (often something, or even a service, produced or offered by a company (e.g.food,stationery,equipment or even expertise). — Endowment campaign a dedicated fundraisingdrive to raise orgenerate moneyforthe specific purpose of investing such funds in the interests ofthe long-term financial self-sustainability ofan organisation. Ideally, interestfrom such investments would pay all running costs in time. — Fundraising audit an evaluation of all aspects ofan organisation’s fund development functions, including staffcapability,computerisation levels,potential sources offunding and capital to spend on funding. — Fundraising cycle the functions of fundraising from planning to receiving donations often covering a twelve-month period. Grant-in-aid a term that has come to be associated with donations from various tiers ofgovernment as well as foreign missions. Grant-making criteria—policies of donors as to what type of organisation/projects they support and sometimes specifyinggeographical areas and/or profiles ofbeneficiaries (e.g.HIV/AIDS,environmental,health, education). x