Buliding Linkages with Donors

Building Linkages with Donors
Some Tips
Searching for the Right Donors
1. A diversity of income sources is the best way to become financially independent. Due to their non-profit status, many NGOs may not immediately be in the position to generate enough income to allow them to decrease their dependence on external funding, however cost recovery, volunteerism and money derived from private donations, for example, can be an important source of revenue. When drawing out a financial plan, consider alternative options to international donors. An ability to find some portion of funding through alternative sources will always strengthen your chances of raising funds with international donors.

2. Do not place all you eggs in one basket. There are several international donors from different levels and with different policies. Diversify your donor base and invest time in building relationships with more than one donor at a time. Spread your risks and build a more stable financial base. This way if one donors policies change or they are no longer willing to provide funds then you have other partnerships to rely on. At the same time working with too many donors can be time consuming and difficult to manage.

3. Identifying and even contacting donors does not necessarily have to wait for the completion of the proposal. You can start identifying donors as soon as the initial design, or the basic idea, is complete. The first stage in identifying a donor is to find out about as many agencies as possible that might have an interest in funding your project, especially those donors that have funded similar projects to yours. Understand the donors requirements and their priority interests before approaching them with concept papers or proposals. Most donors have web sites or information materials describing their sectoral interests and priorities. This directory also aids you to identify the areas of interest of donors.

4. Get donors to appreciate and understand your strategic choices rather then developing proposals aiming to appease donors and their priorities.

5. Allow for time. It is not easy to generate funds. Raising funds for small projects can take 6 to 8 months and for larger projects (of 3 to 5 years duration) over a year. It may be better to approach a donor with a one-year proposal, establish links and a rapport and then apply for a longer-term proposal.
Submitting Proposals
6. NGOs need to invest more in their own organizational development. This means more attention to research, learning, monitoring and evaluation, so that the all-important link between performance measurement and accountability can be strengthened. Above all, it means be clear about the over all direction of the organization and its function in society. Do not develop and raise funds for projects which are devoid of a larger programmatic goal.

7. Some donors (especially larger ones) do prefer submission of concept papers that can save time for all parties. Find out if the agency would be interested in a short (2-5 page) concept paper before submitting a detailed proposal.

8. Before making an application do read the donors requirements thoroughly and ensure that all are met through your application. Donors often reject proposals because they are incomplete. Before sending the proposal double check to ensure full compliance with the donor’s requirements.

9. Be specific and to the point in your communication with donors. When few sentences will suffice, do not write a page.

10. Once you have submitted your proposal do try and identify a contact persons and follow up periodically with them. However respect the donor’s procedures and norms.
Once the Proposal has been accepted
11. Wait for final approval of the grant, in writing, before embarking upon project activities.

12. Do not hesitate to negotiate the terms of the contracts. You are developing a partnership, the terms of which may be adjusted by both partners upon mutual agreement. One example of this is if there are multiple donors funding a programme then often joint reporting on the whole program, may be acceptable to the donors.

13. Develop written contracts. This ensures that there is a clear understanding of the roles and responsibilities of both partners. Most donors have standardized contracts or letters of agreement. Ensure that any adjustments that are made are done so in writing and approved by both parties.

14. Once a proposal has been accepted be fully aware and mindful of your obligations/ responsibilities. Ensure that contractual obligations are fully met. Your reputation with one donor is often communicated to others and your ability to perform and your effectiveness is the best way of increasing your chances for future funding. Work hard at demonstrating credibility and maintaining trust.

15. Be transparent. If savings are made in one sphere, request your donor to adjust budget lines elsewhere. If you have money left over then request no cost extensions. If you do not conduct certain activities explain why, and suggest alternative courses of action. Do not try and make such adjustments on your own without written approval from the donor.