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The key to successful fundraising is a strong strategy which ideally has a mixed portfolio of sources of income so you are not dependent on any single source. Each source has distinct characteristics – they require different levels of resource to exploit them and have different timeframes to deliver a result.
You need to decide which make most sense for you, matching your ambition to available resources. We have given an overview of the main options here but you can find information on different types of income generation on the Chartered Institute of Fundraising and NCVO sites as well.
01. Trusts and foundations
Organisations new to fundraising often start with trusts and foundations, seeking grants from organisations that exist specifically to give grants.
Pros - substantial chunks of money at relatively low cost from organisations whose job is to give away money
Cons - trust grants are usually for specific projects or specific causes – so rarely unrestricted and reporting requirements are usually high
How to find funding
A great way to find funding opportunities is through online funding directories, such as Bucks Funding Search and Grantway. These searchable databases allow you to tailor your searches and sign up for email updates.
How to use the Bucks Funding Search
- Registration is free – register on the Bucks Funding Search website.
- To get the most of the portal, read the user guide to get step-by-step instructions.
- For visual learners, use the Help tab which has helpful videos demonstrating how to run a search, download items and save items for future reference.
- If you come across any unfamiliar terms or jargon, use Jargonbuster – a handy tool designed to help you understand ‘funderspeak’.
- Visit the ‘News’ tab to stay up to date on the latest funding opportunities.
To find out about other funding directories, download our Funding Directories guide.
Steps to creating a successful funding application
- Do some initial research to find suitable organisations to apply to
- Create a budget plan – download our guide to creating a budget
- Plan ahead as many funders consider applications on a 3 monthly or 6 monthly cycle
For more help with applying for grants, download our Top Ten Tips for Writing a Funding Application and our guide to writing a funding application.
Local funding opportunities
In addition to grant makers, trusts and foundations, there are other local organisations that offer funding to the community. These include:
- Buckinghamshire Community Boards: each Community Board has funds available to support projects that meet the agreed priorities for their area – that could be anything from support for older people to health and wellbeing, transport, youth initiatives, improving the environment or supporting economic recovery.
- If you want to Community Boards to get involved in your area or action group, or have an idea for a local project, contact your local Community Board Coordinator.
- Buckinghamshire Council grants: from time-to-time Buckinghamshire Council is awarded government funding to support local businesses and/or voluntary groups. Details of available funding can be found on the Buckinghamshire Council website.
- Parish and town council funding: some town and parish councils have funding available for organisations that support their local community. Contact your local parish or town council for information about community-based funding and grants for projects such as activities for young people, volunteer programmes and development of communal facilities. To get parish council details, visit the Buckinghamshire Council website.
- The Clare Foundation charity grants and loans: The Clare Foundation has seed funding up to £5,000 to initiate and set in motion initiatives and opportunities to help people in Bucks. Its grants and loans are open to all Bucks based charities and community projects. Get in touch with The Clare Foundation to discuss further.
How to get funding for core costs
Some funders will specifically support core costs as part or all of a funding application, but this tends to be the minority.
Remember to include an appropriate amount of running costs (full cost recovery) in your applications for projects to build financial sustainability. Several useful resources can help you with this:
- Cost Recovery toolkit from Cass Business School
- Helping your charity understand cost recovery workshop from Cass Business School
- Community Fund Full Cost Recovery from the National Lottery
- Full Cost Recovery webinar from Moore Kingston Smith
Public sector tender opportunities
With government at all levels increasingly contracting rather than giving grants to the voluntary sector you may want to consider public sector contract opportunities.
For an overview on this income stream, visit NCVO’s information on delivering public services and read the Voluntary, Community and Social Enterprise Guide on the government website.
Places to search for opportunities are listed below:
Demonstrating your Impact
Demonstrating the difference you make is critical for charities and voluntary organisations to be able to secure funding. The resources below will help you develop an approach that is right for your organisation.
- Access a wide range of resources to help you plan, understand, communicate, and improve your not-for-profit organisation on the Think NPC website
- Review and improve your organisation’s impact practice by using NCVO’s guide and self-assessment tool
- Have a look the tools available to gather and use evidence on the National Lottery website
- Find out what digital tools are available to help measure impact in Charity Digital’s blog and The Guardian’s guide
02. Major donors and high net worth individuals
High net worth individual (HNWI) is a classification used by charities to denote an individual or a family with high net worth. The cultivation of this type of income takes time and is not a quick win.
Pros - five donations of £10k or £20k could transform your organisation’s financial fortunes
Cons - high net worth individual often want to meet and keep in touch with the CEO or senior staff or trustees. Like trusts and foundations, reporting requirements are usually high
Defining major gifts for your organisation
It is essential to first determine what constitutes a major gift for your charity before you approach a major donor – for some organisations it might be £500 for others it might be £10,000. Consider your organisation’s size, fundraising goals, and donor base to establish a clear threshold for major gifts.
Identifying potential major donors
To build a strong pipeline of high net worth prospects, start by analysing your existing donor database. Use our network mapping exercise to uncover connections within your organisation’s network.
Top tip: A major donor does not necessarily need to give a large one-off donation, but rather give money over time. Look for individuals who have consistently given smaller amounts over time, as they may have the capacity to make larger contributions.
Crafting a personalised outreach strategy
High net worth individuals expect a personalised approach when being solicited for major gifts. Take the time to research their interests, giving history and philanthropic priorities. Tailor your communication to align with their values and demonstrate how their support can make a tangible impact on your cause.
Top tip: Consider assigning a dedicated team member to each major donor to ensure consistent and thoughtful engagement.
Implementing an ongoing stewardship plan
Securing a major gift is just the beginning of your relationship with a high net worth individual. To foster long-term loyalty and encourage future giving, develop a comprehensive stewardship plan. This should include regular updates on the impact of their contributions, personalised acknowledgements, and opportunities for deeper involvement with your organisation.
Top tip: Make your major donors feel valued and connected to your mission.
Collaborating with professional advisers
High net worth individuals often rely on the guidance of professional advisers, such as wealth managers, tax planners, and legal professionals, when making significant charitable contributions. Build relationships with these advisers and educate them about your organisation’s mission and impact.
For more information, read the Chartered Institute of Fundraising’s guide on working with major donors.
Top tip: Position yourself as a trusted resource to increase the likelihood of being recommended to advisers’ high net worth clients who are looking to support charitable causes.
IMPORTANT: processing of personal data
When researching existing or potential donors, you will be processing personal data of individuals and so need to ensure you are doing so according to data protection legislation. Organisations must process all personal data fairly and lawfully, using an appropriate lawful basis for the processing, appropriately informing individuals, and respecting their choices.
Take a look at the Institute of Fundraising guidance for more information on data protection and prospect research.
03. Corporate partnerships
Many companies allocate resources, which could be people’s time and expertise or money, to support charities and community projects.
Pros - there are lots of opportunities – in terms of companies to approach and ways they can help
Cons - companies typically give only a very small portion of their turnover to charity and want a lot in return so can be quite resource intensive. A corporation will also want a strong well-known brand which may be hard for a small organisation to have
While developing corporate partnerships is not easy, you can take some simple steps to build this source of income:
- Read our Guide to Payroll Giving to find out how to set up a Payroll Giving Scheme
- Download our Top Tips for creating a successful corporate partnership
- Have a look at the range of guidance published by national bodies: NCVO’s corporate fundraising , School for Social Entrepreneurs’ Understanding corporate social responsibility, and Chartered Institute of Fundraising’s Corporate Fundraising
04. Trading
Trading is the activity of buying and selling goods or services. Many charities trade products and services to help generate income, and sometimes they will set up a trading subsidiary to carry out the activity.
Pros - trading isn’t giving and it is easy to demonstrate a business case, making it easier to borrow money and carve out a unique niche
Cons - costs are usually higher than traditional fundraising activities, making margins vulnerable to changes in the economic climate
05. Community fundraising
Community fundraising is a way of mobilising support from your community by raising income and awareness about who you are and what you do.
Often the public face of a charity, it can mobilise large numbers of supporters, increase awareness and engagement of your cause, and it is possible to raise significant amounts of money for example through bag packs, street collections, fetes and fairs, or social activities such as quiz nights or concerts.
Pros - unrestricted income from volunteer-driven events from dozens of different activities
Cons - need to cover staff costs and poorly organised or inadequately publicised events risk financial loss
Download our event planning guide to help you get started
06. Lotteries and raffles
Lottery (or raffle as they are sometimes known) is the broad term used for a game where you pay to enter, where there is at least one prize, and winning is dependent only on chance. The set up and administration of lotteries is regulated by the Gambling Commission.
Pros - lotteries allow charities to raise money from the public in a way that appeals to a wide audience. The added incentive of a prize enables charities to engage with those who may otherwise not donate and gain new supporters
Cons - can be confusing with different lotteries having different regulations but Community Impact Bucks can advise you
Read the Gambling Commission rules about running a lottery
07. Challenge events
This involves people being sponsored to take part in a task – such as London Marathon or parachuting – with donations being paid to your organisation. These can be organised by event companies or your supporters organise their own fundraising activity.
Pros - challenge events usually attract a large number of people, and events also help raise your organisation’s visibility and brand
Cons - events can be unpredictable – for example can be ruined by poor weather, a supporter not showing up – which you have little control over
Here are some top tips:
- It can be easier to use someone else’s event. Download our Challenge Event Companies list to find organisations already running events and our Model challenge event sponsorship form.
- Read Chartered Institute of Fundraising’s guidance on the requirements for charities on challenge events.
Download our event planning guide to help you get started
08. In memory giving and legacies
Keeping the memory of a loved one alive through fundraising it is a great way for supporters to commemorate the life of a loved one and can be simple for you to set up for your supporters.
Online tribute funds offer a central space for remembrance, where supporters can post memories, share stories and fundraise, and allows you to build a personal connection to your cause. Funeral donations are another avenue, with tailored collection envelopes available to streamline the process and optimise Gift Aid benefits.
Legacies involve bequests left through wills. It is a challenging area of work but can be very rewarding.
Pros - large chunks of unrestricted income that can make all other sources of fundraised income pale into insignificance
Cons - legacy income is unpredictable and can take years and years from promotion to results
Information on managing legacies
The income from legacies can transform a charity’s funding landscape but requires navigating sensitive discussions and complex legalities. For comprehensive information on managing legacies, refer to the Institute of Legacy Management Guide to Good Practice and GOV.UK’s Raising Funds through Legacies Guide.
Tips on starting the conversation about legacies
- Download our Tips for Legacy conversations
- Download our Legacy Conversation Starters
- Read our Guide to Legacy Terminology to help you talk about these sensitive areas
- Understand how legacies can impact Inheritance Tax through our Guide to Inheritance Tax. Remember always recommend seeking professional advice before writing a will
Need guidance on in memory giving?
Book a free support session.
09. Regular gifts
A regular gift is a donation of a set amount given at regular intervals (for example weekly, monthly or annually).
Pros - regular streams of low-cost income allows your organisation to better plan and from which gift aid can easily be claimed
Cons - people need to be persuaded to give in the first place – lowering the barriers to signing a commitment is why charities are so keen on starting out on £2/month
Key ways to set up a regular gift
- Direct debit – this is an arrangement in which someone gives an organisation permission to transfer money from their bank account on a particular day each month. Your organisation can set up direct debits using an online service such as GoCardless or Peoples Fundraising, you can provide a link on your website.
- Standing orders – this is when someone asks their own bank to make a regular payment. You just need to give supporters your group’s bank details so that they can ask their bank to set it up.
You can find information on Standing orders vs Direct debits on the Charities Aid Foundation website
- Payroll Giving – this enables employees to give to any UK charity straight from their gross salary (before tax is deducted), giving immediate tax relief on those donations. For more information, download our guide to Payroll Giving.
- Regular text donations – some online fundraising sites, such as Donr, allow people to make regular donations to your charity or cause by text.
Top tip:
Subscribers to a regular scheme for a charity usually receive some benefits in return for their subscription. If the value of the benefit does not exceed certain limits the donation will still qualify for Gift Aid. If the benefit value exceeds these limits the donation will not qualify for Gift Aid. For more information, read Gift Aid benefit rules.
10. Easy ways to fundraise
Recycling and earn while you shop are a simple way to raise extra funds for your cause and a great way to get a school, workplace or local community involved.
Pros - quick and simple to set up and an easy way for your supporters to get involved at no extra cost to themselves
Cons - returns are small
Recycling: turn waste into donations
Recycling is a simple way to raise extra funds for your cause and a great way to get a school, workplace or local community involved. It is usually best to recycle for donations on top of other fundraising ideas as it can be quite time consuming and often relies on the public’s own efforts.
Find out how to raise funds through recycling:
- Ink cartridges – click on Recycle4Charity
- Mobile phones – click on Compareandrecycle
- Stamps – click on Recyclingforgoodcauses
- Cars – click on Giveacar
Earn while you shop
Another great way to earn extra funds is to ask your supporters to register with a service such as easyfundraising* and Giveasyoulive. When they make purchases online, your organisation will receive a percentage of what they spend. It is easy to set up and is at no extra cost to your supporters.
*If you register your not-for- profit organisation with easyfundraising, please register using this link so that Community Impact Bucks receives a small commission. This commission doesn’t come out of the money you raise – it is entirely separate and additional – and any money we raise will help us to support local organisations like yours.
11. Gift Aid
Don't forget Gift Aid
While not a form of fundraising, Gift Aid is a way to make extra money when you are fundraising
Gift Aid allows charities to reclaim an extra 25p for every £1 donated by UK taxpayers at no extra cost to supporters. What you need to know:
- Donors must submit a Gift Aid declaration which must include specific details – visit HMRC to access example declarations. Charities must retain these declarations for seven years following the last donation.
- Claim Gift Aid via the Government’s tax gateway. Not all donations qualify – check the Government website for exemptions and special rules.
- Your charity needs to be recognised by HMRC – visit HMRC to get this in place.
- Your charity will need to maintain robust records to support claims and potential audits.
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