The 'BRIC' countries (Brazil, Russia, India and China) are the
fast developing economies of the world. Their GDP growth
has improved and the income level of at least the middle class
is rising. Some of the erstwhile traditional countries in the
west's support to NGOs in the developing countries are
declining. Some overseas donors feel that countries like Africa
need financial support rather than fast developing countries
like India. There is also pride in standing on our own legs. Till
recently NGO's were managed by people without much
professional background. But the scenario has changed. Now,
increasingly more and more professionals are joining or
LEGAL ISSUES IN-FUND RAISING
Does your organization's constitution permit you to
Once we have decided to fund raise, it is better to check
the legal situation to see whether the legal provisions in
the country allows you to raise funds.( FCRA act)
It is also better to understand, the existing tax situation in
the country to take advantage.
( Under sections, 10, 11,35AC and 80(G) of Income Tax
If need be it is better to consult a consultant on this.
TECHNIQUES OF FUND RAISING
Every fund raiser must first and foremost be completely
convinced of the value, integrity and benefits of the
organization, and the activities for which the raised funds
will be used.
These guidelines must be modified in each community so
as to be adapted to the differences that characterize every
community and context.
Principles of Fund Raising:
Acknowledgement of Donations
Integrity: ( Honesty)
The Importance of a Positive Attitude
Calculating and Recording Project Inputs
Principles of Fund Raising:
The principles of sincerity and ethical integrity especially apply
to fund rising. Fund raising should be the responsibility of all
members of the organization
Acknowledgement of Donations:
Acknowledgement is a must,
Many donors use their donations to gain prestige and honour in
their communities. It is a small price to praise every donor.
Ensure that communities we assist are aware of the need to
acknowledge all donations.
Praise the donors for their loyalty to the community and their
much needed and appreciated donation.
The most important two words in obtaining funds, and running a
successful NGO, or community project, are the words, "Thank
Donors want to know what was achieved with their donated
Donors are less interested in your activities; they are more
interested in the results of your activities.
Have you reached or partially reached ? And the objectives you
stated when you asked for the donation?
Integrity: ( Honesty)
A high level of integrity must be maintained at all times.
specifically to its fund raising activities. An important aspect of
that integrity is full accountability & transparency.
All actions must be accountable; all funds must be accountable.
This means accurate, complete, understandable and honest
narrative reports and financial reports, available at any time to
any member of the public.
The Importance of a Positive Attitude:
Do not give up. You cannot allow yourself to be discouraged; it
is a luxury that YOU, your organization and your community
cannot afford. You may experience eight rejections; do not give
up because the ninth and tenth may bring the needed donation.
Calculating and Recording Project Inputs:
It is important to maintain accurate records of all resources used
in a community project.
An accurate estimate of the cash value of donated resources in
kind like, donated skilled labour, time spent by community
members and leaders in meetings for planning, or non cash
physical donations must be made by the community.
METHODS OF FUND RAISING
The following are some of the time tested methods by which
the NGOs world over raise funds for their projects. They are
1) Individual donors
2) Fundraising events
3) Corporate donors
4) Trusts, foundations and other grant-making agencies
5) Overseas non-resident communities
6) Tourists and Visitors
7) Government sources
1) INDIVIDUAL DONORS
There is a wide range of potential donors for any worthy
cause. Each donor has different reasons to give
Potential donors include the following:
The rich and the upper middle class; the young and the
Men and Women.
Professionals such as lawyers, Doctors, IT Professionals
and so on.
Family and Friends.
Students and Members of Charitable Organizations
ORGANISING A FUNDRAISING EVENT
Organizing an event can be a wonderful way of raising
money for a good cause. The events attract a wide spectrum
of people in the social and is the perfect place to present
your cause for fund raising. There is an enormous I range of
events you can organize. These include:
(Sporting events and tournaments, Musical and cultural
events, human chain formation etc )
Management of Events
3) CORPORATE DONORS
Here are some reasons why they give:
To create goodwill in the local community;
To create goodwill amongst employees;
To be associated with certain good causes;
Because certain honest leaders approached for a cause
Because the Chairman or his wife is personally interested in the
Publicity for their products and for their 'corporate image
There are tax reliefs on giving.
What companies can give?
Sponsor an event
I Sponsor promotional and educational materials
Make company facilities available and provide expertise and
advice; They would like to be a Board Member.
TRUSTS AND FOUNDATIONS
Trusts and foundations are grant making bodies set up
specifically to give money for charitable purposes. They
distribute the income earned on this each year in grants. Here
are some active foundations in India
1) Ford Foundation, Aga Khan Foundation which are
International foundations with offices in New Delhi.
2) The National foundation for India, Delhi
3) Rajiv Gandhi Foundation, Delhi
4)The Indian Foundation for the Arts, Bangalore
5) Child Relief and You (CRY)
6) Concern India Foundation
7) Sir Ratan Tata Trust
8) Infosys Foundation
5) RAISING MONEY THROUGH OVERSEAS
There is a large chunk of Indian population spread
throughout the world. They could be your contact for
raising money for your projects. ( NRI - non-resident
6) VISITORS AND TOURISTS:
Visitors can be people passing through, who have heard
about your work, or people coming on a tour organized by
a donor agency for its committed supporters to see some
of the projects they are helping, or if you run a conference
or training centers.
Apart from the foreign donors who have been providing
much of the funding for development work, there will also
be government sources at national and state level (and
local government sources at district or Panchayat level) that
are available for your work.