RESOURCE MOBILISATION AND UTILISATION: Ideal Funding and Fundraising Techniques

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RESOURCE MOBILISATION AND UTILISATION Ideal
Funding and Fundraising Techniques

• Presented by B Mugerwa

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The Concept of Resource (What is a resource?)

• A Resource is a tangible/intangible item of
  value that can be utilised as an input for
  production of desirable results. (I.e. assets,
  funds, property, funds, capital, and/or
  investment possessions)

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Major Types of Resources
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The concept of Resource Mobilisation

• Resource mobilisation is a process of
  identifying, acquiring, organising, assembling
  resources for a particular purpose.
• Mobilising inputs need inputs too.
• What appear to be inputs for one project might be
  outputs for the other.

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Major Sources of Resources (Financial Resources)
For Local NGOs

• Official Aid from Governments (Bi-lateral/
  Multi-lateral tax-based aid)
• Gift Economy (direct/indirect personal giving)
• The Market (local/foreign corporate support NGO
  enterprise Investment)
• Northern NGOs (Non-governmental donors e.g.
  Mother NGOs, IMF/ UNO)
• Refer to attachment for illustration.

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Advantages of using locally available resources

• More income is generated for the locals, hence
  more acceptance of the NGO.
• A community/NGO is more independent
• Resources are readily available
• Resources can be relatively cheaper
• Resource utilisation is less controlled by
  outside forces.

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Planning for a Resource Mobilisation Exercise

• Problem Identification Analysis
• Establishing alternative solutions
• Choosing the best solution for the problem
• Identify the required resources
• Identify the target group/sources- those who will
  give
• Set the required resource- mobilisation
  activities in a logical sequence and identify the
  implementer/s
• Draw a timetable for the resource- mobilisation
  events/activities
• Implement the resource mobilisation
  events/activities
• Follow up do not forget those who have made the
  event a success.

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Challenges to Resource mobilisation

• Government attitudes (Governments view NGOs as a
  threat/competitors)
• Increasing competition among NGOs (Vs few and
  decreasing sources)
• Various stringent demands of resource providers
  (donors varied requirements)
• Existing increasing bulk of needs
• Poor planning/strategies (e.g. inadequate
  proposals in ability to make a good case bad
  methods of asking)
• Poor strategies and methods of asking
• Poor governance of the mobilisation process
• Wiser donors (once bitten, twice shy)
• Corruption (wasted and misallocated resources.
• False expectations

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Major Techniques of Managing Multiple Donors
(Strategies of mobilising and utilising Resources
from Various Donors simultaneously)

• Having multiple donors is both an advantage and a
  disadvantage
• Advantages of Multiple Donors Multiple donors
  provide NGOs with
• Reduced Vulnerability
• Greater operating independence (dominance
  dictates by a few donors are avoided)
• Disadvantages of Multiple Donors They can be a
  burden to management by increasing costs in form
  of
• Time
• Reporting accountability
• Administration management

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Strategies of Managing Multiple Donors

• Emphasize the constituency you want to work in
  your plans activities
• Focus on building a relationship of mutual trust
  and shared ideas, rather than concentrating on
  money .i.e. treat money as an instrument NOT the
  object of interaction.
• Always assess the total cost of each donor
  relationship. I.e. avoid costly relationships
• Keep promises, especially with respect to
  accountability and timely reporting. Never agree
  on deadlines you cannot deliver
• Learn to appreciate and incorporate donor ideas
  but say no when necessary.
• Remember that donors need NGOs as much as NGOs
  need donors.
• Use common sense and make ethical management
  principals your guide

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MAJOR NGO ALTERNATIVE FUNDRAISING

• The 3 major components of NGO finance are 1)
  Self-Finance, 2) Local Fund-raising, 3)
  External Financing
• 1) Self- financing This is usually generated by
  
• Sale of products and services which used to be
  free, including sale of expertise
• Fees and subscriptions
• Interest from investments e.g. treasury bills.

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• 2) Local Fund- Raising This often occurs
  through
• The general public mailing, appeals, special
  events, campaigns, games/lotteries
• Corporate support, including deductions from pay
  rolls, corporate philanthropy, acting as a
  supplier of parts or expertise, social investment
  , sponsored projects
• National governments support as grant aid ,
  project financing , tax exemption s, capital
  goods expertise
• Local governments support - similar to national
  governments but are public resources locally
  controlled
• Local charities and foundations, including
  helping new ,local funders come into existence
  and persuading welfare oriented bodies to
  support long term development

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• 3) External finance for sustainability Types of
  suitable external finance are
• Revolving loan and credit funds which produce a
  surplus as income
• Repayable venture capital to help an NGDO engage
  in a viable commercial activity, purchase a
  subsidiary or build on land as an investment
• Capital required for an endowment fund

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The Process of Resource Mobilisation (Getting
started Steps/stages of mobilising resources)

• Without a benefactor, NGOs will need to build
  their own capital fund by a combination of
• Local fund raising from subscription contacts
• Reducing funding levels though cost recovery
• Creative use of external funds, capitalising on
  exchange rate fluctuations , investing reserve
  on short term deposits
• Support from grants by educating donors to make
  lump-sum payments for recurrent costs, such as
  rent, salaries and consumable items this can be
  invested and the income allocated to a capital
  fund

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The Concept of Resource Utilisation (what is
Resource Utilisation?)

• It refers to how resources are used while
  carrying out activities in a given development
  activity.

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Three important elements is resource utilisation
(Efficiency, Effectiveness Cost-Benefit
Analysis)

• Efficiency
• The capability of utilising a minimum level of
  inputs to produce a maximum level outputs (goods
  and services) with the least amount of wastage in
  the shortest possible time.
• Effectiveness
• The measure of output produced which meets the
  required standards and the extent objectives are
  achieved especially when compared with what was
  possible.
• Effectiveness is the application of human effort
  to bring about the desired results. It is a
  function of method, technique, personal skill,
  knowledge, attitude and aptitude the ability to
  do.

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• Cost/benefit assessment
• The ability to ascertain whether the benefits
  from the activities justify the resources used to
  achieve them.
• Note The key to efficient and effective
  utilisation of resources is proper planning,
  heeding to plans, monitoring and control.

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EFFICIENCY IN RESOURCE UTILISATION (Striking a
Balance Between Self -Reliance and Autonomy)

• It is important to focus on strategies which
  finance the core business. If this is covered, an
  NGOs position towards donors can change for the
  better
• Reduce costs a first step in embarking on
  alternative fund raising for self reliance is to
  operate more simply using public transport
  instead of four wheel drive vehicles,
  standardising equipment, sharing facilities.
• Concentrating on covering administrative and
  overhead cost
• Recruit people with skills

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The Concept of Fundraising What is
fundraising?

• Fundraising is about selling an idea to someone
  who has the means to buy your idea (output-money,
  sponsorship support in kind).

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FUND RAISING PROCEDURE

• Define the purpose
• Analyse funding requirements
• Map the potential sources
• Assess potential contributors
• Define a strategy and plan
• Establish a collection system
• Conduct the collection drive (Implement)
• Allocate the resources
• Monitor Utilisation
• Communicate back to contributors

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PROJECT PROPOSAL WRITING A Common Resource
Mobilisation Technique

• What is a Project Proposal?
• A project proposal is a statement of intent,
  which gives a broad view of the
  operational/administrative steps to be undertaken
  to achieve the intended goal.
• It is a presentation of an elaborate case, which
  can be used as an application

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Importance of a Proposal

• It is a plan of action
• It can be used to solicit support
• It is a commitment to undertake a certain
  development activity
• Promote your organisation and its work

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Preparing For Proposal Writing

• Major Consideration to Make
• Your selling points i.e. the idea, why it is
  important and worth supporting.
• Facts and figures about your idea i.e. the extent
  of the need.
• Credibility of your organisation i.e. am I the
  right person to make the proposal building
  confidence
• Essential ingredients for the plan and the
  budgets
• Donor research i.e. a list of potential
  supporters, what they can give and what they
  cannot give. Identify any connections between you
  and the donor.
• Back-up literature i.e. brochures, annual reports