Your effectiveness and cost effectiveness
This page contains information on how fundraisers can show that they represent a good investment for funders.
Most funders are vastly over-subscribed and could easily spend their money many times over on the basis of the applications they receive. You need to show that you represent a good investment, that money spent on your project gives maximum benefit for an appropriate cost. There are a number of ways in which you can do this: -
Can you demonstrate that your work is effective?
Have you got a good track record? Have you gone from strength to strength? Or at least, have you done one thing really well? Can you show that you have achieved real results before? If so, what were they and why were they so great? (Do you have a quote to support this?)
Can you show that your plans are a cost effective way of dealing with the issue?
How many people will be helped? How many will use the facilities? And what costs per person and with what results? Ideally, you should be able to show high numbers at low cost, for example; ‘a school’s pack will only cost £5,000 to produce but will be seen by over 20,000 children over the next 3 years’.
Funders like to know exactly what will happen as a result of them giving money – how many people will be helped, by whom and by when? These kinds of outputs are increasingly important in persuading the funder that your ideas are well thought through.
What will be the outcome of your work?
Outcomes are what will happen as a result of your work – not just what you do, but the impact this has and the changes that take place. For example, in an employment training project, it is not just the number of people trained that is important, but the number of people who get proper employment as a result – and the number that continue to be in employment after a year.
Does your work represent value for money and does it compare well (or better) to alternative approaches to dealing with the problem?
Showing value for money is increasingly important; especially to the trusts and the lottery who will want to ensure that they are getting the maximum benefits from the money they spend.
You could show:
- how much money will be saved as a result of your work
- how your work brings lasting benefits to your users and put a value to this
- that by spending money you will generate money
Not everything needs to be done at the lowest cost; you do need to balance value for money with quality. However, if your work appears expensive make sure you explain why this is still the lowest realistic cost for meeting this really important need.
Other Plus Points…
Your use of volunteers
Time is precious. If people willingly give you some of their’s then this must be a point in your favor. You may also be giving volunteers transferable skills and training opportunities as well as saving the cost of having to pay people to do the work. Certainly, recent programmes released by the Lottery have set criteria to incorporate the use of volunteers, and equally the private sector has shifted its preference towards staff volunteering programmes.
Your ability to mobilize support in kind
Show that you can think around a problem, that you are not just cash-obsessed.
Your ability to attract support from other sources
And particularly from the statutory sector.
Your financial security and sustainability in the medium and long-term.
Show that you are a safe bet.
The proportion of funds you generate or propose to generate yourselves.
Self-help at every level is very attractive to funders.
The support you get in membership or donation from the local community.
Having community support is another strong plus point.
Collaboration with other organisations.
Show how you avoid unnecessary duplication and over lap, and that between you provide a comprehensive service.
Leverage
That is being able to demonstrate how large an impact can be produced from a relatively small amount of support. You can also show the grant will be used to mobilize further support.
Reigate & Banstead Borough Council
Town Hall
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Reigate
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01737 276000
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