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The Core Fundraising Case

One common issue faced by every charity is how to create a case for core fundraising. These vital funds are integral to your ability to operate; it is these donations which will ensure that you continue to receive the income needed to keep computers and software up to date, the roof in good repair and the lights and heating on.

The ability to receive this breed of unrestricted income is what will increase the strength and sustainability of your organisation. It also provides you with the flexibility you need to direct support where it is needed most. Ironically, core funding is something many shy away from. So how do you get trusts to make contributions to your core funding needs? You do so by properly identifying your core costs and being deliberate about your fundraising.

Defining What is and Isn’t a Core Cost

Some of the costs of running your organisation may not actually be core costs. Often, organisations don’t take their management accounts apart and regroup costs into fundable and non-fundable chunks. The resulting lack of definition is one of the things which cause trusts to shy away from donating to core campaigns. Separating accounts in this way allows you to describe your expenses in an output/benefit manner as opposed to one in strict budgetary terms. This method also helps reveal which items are more appropriately considered under the accounting Statement of Recommended Practice.

Lower is Better

An organisation with low core costs is one that runs lean, and it’s these organisations which may stand the best chance of receiving vital core donations. Just like every other charity, your organisation is very likely to have added a few short-term items to its list of expenditures that are not really necessary, but that ended up staying over the long term. Is there any way you can reduce your core costs via outsourcing, changing suppliers or reducing the number of job hours? Being able to ‘trim the fat’ in terms of unnecessary costs will communicate much to potential funders.

Accurate Costing

The need for administration, management and infrastructure to be present for projects to occur effectively may be lost on some supporters. But the majority will understand that these ingredients need to be there. Unfortunately, this realisation won’t guarantee donations. What can is costing according to the percentage of your core costs, and not according to general groups like overhead or management. Costing according to the percentage of software or electricity required will show potential donors that you are aiming for full cost recovery as often as you can.

Deliberate Fundraising

Any proposals submitted should include a fair portion of core costs to be allocated. Any items of uncertainty should be included anyway. Also, if you’ve redefined any core costs as projects which can be of appeal to specific individuals or groups, new proposals should be created.

Knowing their Questions

There are several key questions that your core fundraising case needs to answer in order to reach your donation goals.

First, you must identify the need your organisation addresses and why this need is of importance. Next, you will have to explain why your organisation is the one best positioned to deliver a solution to this need. Another question potential donors are likely to ask is why your organisation needs money so urgently. They want to know not only why they need to give money now, but whether their gift will make something happen right away or stop something that’s unwanted from happening. Finally, they’ll want to know your organisation’s plans to meet the need they identified.

No core fundraising case is complete without telling potential donors what you don’t currently have that they could provide. Tell them what you need in order to reach your goal. Specifics will provide potential donors with the information they require to make an informed decision.