Council and democracy

Funding Questions & Answers

Each month experts offer advice on general funding matters.

June 2006
What strategies are available to guarantee 'sustainability'?

• In the past, some groups achieved a level of sustainability with tri-partite support from the Community Fund, Europe and local authorities, this is less so now. Some replacement/continuation funding may come from income generation (selling goods and services) but this is not suitable for everyone and some work will (and should) always need to be grant-funded. A first step towards sustainability may come from us valuing ourselves more highly and more assertively 'selling' our skills and local knowledge . In reality, there is no strategy to guarantee sustainability. Increased financial security will probably come from having a mixed cocktail of funding and from consistently and cost-effectively meeting the ever-changing needs of our beneficiaries. Also communicate clearly why you're doing what you're doing and how well you're doing it.

May 2006
If you have a catchment area of relative wealth, how do you successfully justify your needs?

• Not all funders look at the location of the project or the socioeconomic make-up of potential beneficiaries. Some look at disadvantage in terms of age and ability rather than affluence. A struggling person is a struggling person! TheBig Lottery Fund does look at the Index of Multiple Deprivation across the country in its calculations for some of its programmes but is increasingly aware that pockets of deprivation might not be picked up by the Index. Awards for All grants are not allocated simply on the basis of deprivation.
  

April 2006
Has fundraising for a well worked out project got any harder in the last three years?

• A funding application for a well-worked project will probably be successful at some stage. However, in the current climate the money might not be available when the applicant would like it to be. Training and funders' expectations have raised the quality of applications, but tools have also developed to help fundraising (eg the internet for research) so fundraising by those with appropriate skills will be easier in that sense. While many project' budgets are ever-increasing, the fundraising effort expected/needed for smaller project applications may now be more proportionate to the sum being requested than in the past. Awards for All has developed a straightforward and accessible process and this financial year expects to support all fundable applications.

March 2006
How can we get around the perennial problem of many funders only being able to give short-term grants?

• The Big Lottery Fund recognises the value of longer term funding and some of the new programmes will fund for up to five years. With endowments and other investments suffering, funders may have less money to disburse and some have had to make up existing commitments from reserves (some have even been known to claw back allocated funds). Lloyds TSB and Herts Community Foundation give grants for up to three years. The downside of giving longer term grants is that it reduces the range of organisations being funded at any one time and reduces access by groups not already supported by that funder.

February 2006 With ever more charities of all types seeking funds, how can I give my application an edge and find backers others overlook?

• Research is an important part of fundraising (writing and submitting the application being the last stage) Computer-based searches and the internet (try the grantsnet search facility on the HERN webpages) will help you find possible sources of funds. Look at the annual reports of projects similar to your own and see who funds them! If in doubt about the suitability of a source, phone them and talk through your ideas. If you fit the funder's published criteria, the applications with an edge will be the ones that most clearly and convincingly demonstrate how they meet those criteria.

January 2006

How do you raise money from trusts that say they don't take unsolicited applications?

• Such trusts are usually very small (possibly no staff) and have specialist interests. Sometimes it's a matter of getting to know a trustee (networking is an important part of fundraising!) Find out who has been funded by the trust in the past and ask them how they did it. One foundation funds training courses and then funds the course participants to help turn their learning into action.

What is your advice about whether to send a covering letter with a funding application?

• If all information should be contained in your application (and any additional documents specifically requested by the funder) so a covering letter is unnecessary... A letter can help give your application a personal touch ... It might be used to give an alternative contact if the named applicant is going to be away for a couple of weeks... Unless the funder's guidelines say "no covering letters" you could use one to emphasise an important point or two from your application... it can also be seen as a "handshake" with the funder before you start your conversation with them. If in doubt about whether you should send a covering letter, ring the funder and ask!

What is the best funding source for salaries?

• A frequently asked question, which means "where can I obtain funding for my "core costs"? Salaries associated with new, or time limited, projects may be easier to fund than year-on-year staff costs however some funders e.g. Lloyds TSB will cover salaries and other "core costs". Salary costs can also be divided between different projects and this is an approach that Funders will often accept.

If you had one word of advice to give fundraisers what would it be?

• Before you put pen to paper, try to discuss your application with the funder. This will help you find out if it is appropriate and has any chance of success. Find out if a theme is over-represented in current applications (in which case, you might want to delay your application). Be sure to ask about the best timing to submit your application both for the funder and to tie in with the planned start dates for your project.

• Be honest and realistic about what you are hoping to achieve with your project. Be realistic about your project costs and don’t inflate the results e.g. how many people will benefit. Make sure you budget for the real costs of the project rather than aiming at the grant givers upper limit.

• Always aim to work in partnership with funders and other agencies as you can learn from their expertise and support.

• Be persistant, but not if the funder is clearly uninterested. Communication with the funder, funding advisers and your peer group is always key. Always make sure you listen to what they have to say even if it isn't what you had hoped to hear.

• Be passionate and try to convey that passion in your application. Passionate people can be very persuasive if they don’t let their hearts rule their heads and presentation of a rational case for support is always important.