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By Wycliffe Nyafuanga ( By Invitation, Nairobi, Kenya)

July 9, 2024

Development, fundraising, Planning

How to remain competitive in the 21st Century: The Global Context of Fundraising, & Resource Mobilization

Now, more than ever before, the push for increased philanthropic giving and the need for (financial) resources for nonprofit organizations is almost at its peak. This uptick arises from several factors: inter- and intragovernmental conflicts and fractious states, exacerbating multidimensional human rights abuse, multifaceted pandemics, enduring human conflicts, war, and climatic shocks. Given that NGOs plug irreplaceable multisectoral social service deficit in government service delivery (and still stand out as the public watchdog against rights abuse as Civil Society Organizations do), the focus on resources for nonprofit organizations will continue to gain traction and attention.

In such a socio-political and economic context, resources either dwindle or remain the same, exacerbating the competition for grants. Yet, the known philanthropic donors largely remain the same. Philanthropic organizations give money, and/or resources, out of their performing businesses; and conflicts and political instability negate such businesses’ profitability. Studies have shown that when a society is critically affected by pandemics, conflicts and any manifestation of destabilization, the ripple effect negatively, invariably, affect businesses and the disposable income.

In the recent past, there has been a push by the international development organizations to nudge the world’s wealthiest to increase their philanthropic giving, given that 10% of the world evidently control 90% of wealth. Although this has gained traction, it has not reached the expected levels. From the World Economic Forum, to Consolidated appeals, to the UN Conferences on Financing for Development – FfD, there is an increasing push for philanthropic giving. Reports by the Global Auditing firm KPMG shows that many corporations are exploring new ways of giving which might involve directly implementing their projects. None underscored this urgency than the Gates Foundation CEO Mark Suzman who asked philanthropists to step up giving to save and improve millions of lives. Moreover, there is now push to invest substantial resources in Climate Action which may shift the sectoral giving. According to World Economic Forum 2023 reports, of the US $811 billion of [3]global philanthropic giving in 2022, less than 2% was directed towards climate mitigation action. Citigroup also warns that the 2022 giving was less impressive although the nature of giving is changing every so often given that “global economy is both less positive and less uniform.

These challenges come against a backdrop of ongoing global crisis; millions of children are starving in Yemen, Sudan, South Sudan and many other countries. The children in Palestine are displaced and facing crisis; the Sudan crisis is nearing genocide and demands action; Russo-Ukraine conflict continues to exacerbate and negatively affect people including women and children, etc.); The horn of Africa including Somalia is still in crisis and the black continent has not recovered from the economic and social effects of Covid-19 pandemic.  These are a small fraction of the global crisis. And they will require sustained actions and resources.

So how does an organization readjust their fundraising strategies and business development models to cushion against devastating cut in resources?

Align with SDGs and development priorities.

Donors still fund projects that align with global aspirations. Currently the Sustainable Development Goals (SDGs) are global commitments covering 17 SDGs. Aligning your development, and programmatic and policy,  priorities with SDGs not only demonstrates your commitment to a global order for prosperity, but also sustainability components. These SDGs are invariably cascaded to the regional, sub-regional, and nation-state level especially in the National Development Agenda (NDA) or development blueprint; again, these policies are adopted at the grassroot level. At any given point in time, every organization should design projects and activities that address, or are aligned with, global, national and local development priorities.

Leverage Climate Change Financing

If there was a word that has gripped the global imagination, from Beijing, to Delhi, then it is not sustainability; it is the climate change. Climate change is particularly important given its permanent and irreversible impact on human (see my article; Globalization of ruralized Food System in Africa is Dangerous and Unsustainable” available online. And billions of dollars have been direction for Climate Action. The recent El nino floods which hits different parts of the world is a classic example that climate change is here with us. According to the United Nations, the largely agropastoral horn of Africa has experienced repeated below-average rainfall failures stretching into the fifth season which was immediately followed by flooding in late 2023 and early 2024. Other parts of the world have some similar experience on climate context. An organization within such ecosystem should be keen in design project that responds to immediate needs aligned with climate action.

Consolidated Funding Approach

The best way to conduct resource mobilization happens when your joint efforts with other organizations as consortia and make joint applications. The process gathers knowledge and leverages different expertise and demonstrates to any donor the economies of scale and cost effectiveness and efficiencies in project implementation. When two or more organizations come together and formalize their engagement, making consolidated appeal, first it addresses the experience components, and increases value for money. We strongly advise that much as some grant applications can be made as a stand-alone organization; an organization should make an effort to be part of a consortiums through which certain high-value projects can be applied.

Leverage Social Media

The traditional media is slowly losing its flavor and fervor and social media is where the game is being played. Through particular strategic social media messaging, an organization can demonstrate its true impact and attract donation and interest. Using social media can also produce valuable feedback and communicate organizational activities and experience to the donor(s). Training on content management should precede social media engagement. Developing and posting contents should attract necessary productive engagement. You can also use social media for online giving.

Digital Presence

Apart from social media, an organization should have a digital presence. Make use of an organizational website. Properly designed website is easily distinguishable from fake website. In my roles as M & E Consultant for one of the UN Agencies in Somalia, my work was to vet probable partners. After evaluating the technical narrative proposal, the second step for the organizations that passed the preliminary stage was to conduct the Due Diligence. And the website was the first stop. One can easily identify briefcase or poor managed organization on its website or digital presence and/or context. Poor quality content, poor pictures, lack of strategic direction, poorly written outcomes and lousy presence. A professional website contains all the necessary information including, but not limited to, past funders or partners, strategic plan, programmatic priorities, profile, outcomes, collaborations, organization profile etc.

Identify Long-term Multi-year Funding

Fundraising means raising Donors not Funds. Key to organizational sustainability is long-term multiyear fundings usually running from 3 – 5 years. Long term funding provides an organization with an opportunity to run while planning for operational and programmatic  sustainability, and creating space for additional resource mobilization. Short term projects, lasting 3 – 6 months are good, but  not operationally strategic or sustainable. These projects can augment long-term projects.

Communicate Impact; not the activities

An organization must adopt the Result-based management framework (RBMF), where focus is made on what was achieved and not done. Donors are not interested in activities but outcomes. This approach should define social media posting, grant applications and proposal developments etc.

Networking and Connections

Networking still host a better opportunity for fundraising provided it is strategic; reaching out to people, attending events and engaging through a clearly defined networking strategy, outlining what your organization does; the create meaningful relationship and go for it.

Digital fundraising and Business Model

The traditional fundraising is still king. Digital fundraising has also taken over. Depending on the part of the world you are reading this article from, digital fundraising can be structured to align with the local fundraising values, outlining what you want to do with the resources and demonstrating that the outcome will address the problems demonstrated.

Additionally, an organizations can develop and nurture specific business model within its activities i.e. selling t-shirts branded with clear messaging, running restaurant, and raising resources to address specific cause. This approach is very practical when the social media presence is adequate, and people are aware of the organizational mandate and its achievement.

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About the blogger:

Wycliffe Nyafuanga is an expert in Fundraising, Resource Mobilization and Grant management and works as a Fundraising consultant based out of Nairobi, Kenya. He is the author of the book titled “Fundamentals of Fundraising in NGOs” and has over ten years of experience in the same field. He has helped AFRICAN NGOS raise millions of dollars for projects in the Greater Horn of Africa. He regularly shares his thoughts on how organizations can strengthen their fundraising and Resource mobilization strategies to address social cause. You can connect with him here. He can be reached via email: nyafuas.nyoluoch@gmail.com, Tel +254725988862

Conclusion

Fundraising dynamics will continue to shift as buffeted by competing interests. Organizations must continuously learn and unlearn, developing and applying critical skills in their fundraising strategies. Improving institutional, operational and human capacity has no alternative. Organizations must identify, train and retain professional staff with knowledge and expertise in their operational, administrative and programmatic activities. Professionals make sense of the donors’ subventions. Experienced donors can easily detect unprofessionalism and clumsy organizations while reviewing documents, websites social media postings or the Grant Applications. Strategic inputs to continuously invest in staff and upgrading their skills will do a world of good to the NGO as they fight to show their relevance.

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