September 2000
Fundraising-India September 2000
Welcome to the inaugural issue of the monthly e-mail newsletter of
MURRAY CULSHAW ADVISORY SERVICES
Murray Culshaw Advisory Services functions from Bangalore serving the voluntary sector in India. We offer consultancy and training on fundraising and communication, undertake research on issues pertaining to the voluntary sector, publish books and maintain a highly reliable database of about 7,000 organisations in India. We are one of the promoters of Bangalore Cares – an initiative to help specifically the voluntary sector in Karnataka and India Cares , an online one-to-one fundraising service through the web portal www.indiacares.org (yet to be launched).
IN THIS ISSUE:
Special features:
In this issue:
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Special Feature
Voluntary Sector: Income Survey
mcas set out to analyse the quality of Annual Reports prepared by voluntary agencies, concentrating on income sources. 126 agencies were invited to participate in the study . These were subsequently categorised into Grant-making, Advisory and training and Direct service agencies. 50 agencies sent in their reports for 1997-98. Seven replied saying that they do not prepare Annual Reports and two replied saying that they did not wish to join in the study.
Analysis has focussed on two broad areas – qualitative and quantitative. The qualitative analysis has led to our being able to rate the quality of the Annual Reports and recommend how to produce better Annual Reports. The more detailed quantitative analysis has resulted in some interesting facts on income and sources
Key quantitative findings
1 Grant-making agencies reporting the highest income were:
- – Sir Ratan Tata Trust Rs14.64 crore
- – HelpAge India Rs12.95 crore
- – World Wide Fund for Nature Rs10.16 crore
Two of the agencies are heavily reliant on corpus interest: Sir Ratan Tata Trust (100%) and Rajiv Gandhi Foundation (90%). Their reports do not show any fundraising expenses nor indicate any strategy for raising funds.
Child Relief and You reports the highest income from the public of Rs6.54 crore, HelpAge is second at Rs2.84 crore. This explains the high name recognition and respect that these organisations enjoy.
The lack of support from the corporate sector towards this group of specialist grant-making agencies is disappointingly low at Rs1.04 crore, just 2% of their income.
2 Even though Advisory and training agencies set themselves up as leaders in the voluntary sector, as a group they only ‘self-generate’ 10% of their income; and are 77% reliant on international sources. However two agencies were found to be different. Development Associates generates 99% of its budget from the sale of its publications and Co-operative Development Foundation raises 52% of its income from consultancy services.
The complete lack of corporate support (0%) to Advisory and training agencies is disappointing. And so is the minimal Rs39 lakh support from the government towards these agencies. Does it reflect a lack of initiative from these agencies to make approaches in this direction – or what?
3 Direct service agencies lead the way in raising funds within India… Lok Kalyan Samiti, and Gandhi Memorial Leprosy Foundation, raise 100% of their requirements from within India; Association for the Welfare of the Handicapped, and Mujahid Education Trust, raise 98% and 99% respectively within India. Overall Direct service agencies are 46% reliant on international income.
A few of the Direct service agencies, which are known to raise public donations do not report income in a way that this important contribution can be identified; for example Deepalaya, Spastics Society of Eastern India and Amar Jyothi.
|
Category of Agencies |
Sources of Income (in lakhs) |
|||
|
Self-generated |
Indian |
International |
Total Income |
|
|
Grant making |
491.27 (08%) |
4162.64 (67%) |
1552.49 (25%) |
6206.40 (100%) |
|
Advisory and training |
190.84 (10%) |
249.93 (13%) |
1465.58 (77%) |
1906.35 (100%) |
|
Direct Service |
370.74 (12%) |
1257.73 (42%) |
1365.23 (46%) |
2993.70 (100%) |
|
Total |
1052.85 (10%) |
5670.30 (51%) |
4383.30 (39%) |
11106.45 (100%) |
An analysis of the income source shows that, 39% of income is raised from international sources. Another way of looking at the income is that 57% is grant income from national and international sources; 10% is donated by the public and 33% is self-generated.
If you desire to have a copy of our research titled ‘building credibility’ please write to us. Price: Rs 200 Add Rs 50 for handling and postage. Send DD in favour of Murray Culshaw Advisory Services, payable at Bangalore, to send a copy on request. For queries contact: mcas@fundraising-india.org
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Article
Tips on Donor Relations
Research has shown that the most satisfied donors are those who have complained and who were responded to appropriately –
Prof Bob Worcester, MORI Research Institute
We have observed that voluntary organisations respond less professionally than commercial organisations when it comes to satisfying their customers (donors). They are much more likely to experience good, efficient, planned, friends customer service at the hands of their bank or their favourite airline or their petrol bunk even their local restaurants than they are likely to experience at the hands of their favourite charity.
The truth is that people really care about the causes they support and it really matters to them. Here are a few practical hints:
- Be committed. You have to believe in donor service. If you are not committed your committed donors may find an organisation that may do better personal service to them.
- Be properly resourced. You need adequate staff or volunteers and adequate materials to operated a donor relations department. So budget for all those costs.
- Be consistent. Donors and supporters should know what to expect and be able to rely on it. Do not confuse them by shifting priorities drastically. For example, if your previous appeals were on child development, don’t shift the programmes to old age homes.
- Be quick. Don’t let your donors wait, wondering what’s happening. A prompt response is a response from someone who cares. If you can’t respond immediately, or within hors, at least you can get a letter sent within two days.
- Be appropriate. Tailor your responses to your donors. They cannot comprehend highly philosophical details nor complicated economic jargons.
- Be personal. Use your donor service strategy to build relationships. Use your database to record personal information for future use. People universally liked to be noticed, they like to be remembered. People like people who are nice to them
- Be known. It pays to advertise. Put your telephone numbers and contact addresses on all your publications. And show your people. Give them names and faces. People relate to people.
- Be meticulous. Keep good records. Always do what you say you will. Live upto your organisation’s ideals
- Be there. Improve your supporter service. Be on call. When they want to visit the programme site, be a good host.
- Be open. If something has gone wrong or if you can’t deliver, admit it.
(Tips outline source courtesy: Ken Burnett)
If you think more points that can be added to this list please send it to us. We invite your comments which will be published in this newsletter. Write to mcas@fundraising-india.org
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In the next issue, read on:
Relationship Marketing and Fundraising
"Relationship Marketing is not about delivering superior customer service, however important that might be. It is about forecasting the potential future value of a donor and taking whatever steps that are necessary to build a successful relationship ."
Graeme McCorkell, Direct Response magazine
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BOOKS ON SALE
Just Released
Getting Started in Fundraising (* Please see the write-up below)
Published by Sage Publications, New Delhi.
Authors: Michael Norton and Murray Culshaw;
Price: Rs225 Pages: 158 Published: August 2000
A Guide to Resource Mobilisation for Voluntary Organisations in India
(include information on support organisations, publications, websites, techniques, experiences – a very valuable collection of information)
Published by South Asia Fund Raising Group, New Delhi
Price: Rs180 Pages: 80 Published: June 2000
Directory of Voluntary Organisations in Karnataka
Published by Bangalore Cares(includes information on over 500 voluntary organisations in Karnataka)
Price: Rs250 Pages: 245 Published: December 1999
For all titles add Rs50 for handling and postage charges.
Send DD in favour of ‘Murray Culshaw Advisory Services’ payable at Bangalore.
Mailing Address: mcas, ‘Vijay Kiran’ 2 nd Floor 314/1 7th Cross Domlur Layout Bangalore 560 071 IndiaTel: 080-5560003 email mcas@fundraising-india.org
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Getting Started in Fundraising – A summary
This book starts by showing the reader the importance of fundraising, and then goes on to cover:
- Key elements of a successful fundraising strategy;
- Fundraising sources including individuals, companies and institutional sources, donor agencies fundraising events, overseas contacts, tourism and support in kind;
- How to write an effective fundraising proposal;
- Specific legal and tax matters which must be kept in mind during fundraising and
- The importance of communication and public relations – the need to effectively communicate to a potential donor and the public at large, what you are doing why your work is important and why funds are crucial.
The book is replete with case studies and real life examples, which illustrate the practical advice that the authors give. There are also exercises and checklists to help the reader relate the advice in the book to the specific situation of their own organizations The book concludes with an appendix which provides information on useful organizations and networks in Indian and a lot of publications for further reading.
This timely and valuable book will be of interest to non-governmental and other voluntary organizations involved in development work or charitable activity, training organizations and networks, international development organizations and donor agencies, and organisations involved in advocacy and campaigning.
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Short-term workshops offered by mcas
mcas conducts short term workshops on communication and fundraising on the following topics:
- Basic skills in publishing an annual report
- Improving your newsletter
- Building donor relations
- Brochure designing
- Media relations
- How to organise a direct mail campaign
- Good governance – involving Boards in fundraising
- Event management
- Database management in Access 2000
- Starting up fundraising
- Internet communication and fundraising
- Ideas into words – plans and proposal writing
- Introduction to the voluntary sector
All the courses have a duration of two-and-a-half days and the course fee is Rs 1,500 which includes three days lunch and snacks; course materials and faculty charges. Accommodation will be arranged on request which will be charged extra. Medium of instruction will be in English.
Please let us know if you are interested in any of these topics so that we can keep you posted on the dates and venue. training@fundraising-india.org
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Upcoming Event
SEVA SETHU 2000, Bangalore
Rotary International - District 3190 through Rotary Bangalore West and Bangalore Cares are organising Seva Sethu 2000 a confluence bring together the voluntary organisations in Karnataka, on October 14 th and 15 th at the J N Tata Auditorium, Indian Institute of Science Campus, Bangalore. This is the first-of-its-kind that will give you an excellent opportunity to interact with people in the corporate sector, government agencies, mass media and groups such as the Rotary, Lions, and Round Table. Professionals will provide valuable inputs on subjects like goal setting, fundraising, product marketing, liaison with government departments, role of media and tax issues. We will seek extensive publicity for the event so that the public get to know the good work being done by voluntary organisatons
The programme will assist voluntary organisations in three ways by:
- creating a common platform for interactions and networking
- providing an opportunity for learning and sharing experience, and
- offering table space and display boards for exhibition
Already over 100 organisations have registered. What about YOU? For more information on SEVA SETHU 2000, write to mcas@fundraising-india.org
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- Compiled and edited by Jacob C. Varghese
This e-newsletter goes to more than 1,000 email ids (voluntary organisations) in our database. If you find the information useful to friends or any other organisations, please recommend them to write to us. We require their full mailing address and the email id to avoid duplication.
mcas ‘Vijay Kiran’ 2nd Floor 314/1 7th Cross Domlur Layout Bangalore 560 071 India Tel: 080-556 0003 mcas@fundraising-india.org