Fundraising Strategies for Neighborhood Networks Centers and Consortias

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Fundraising can be a powerful and effective tool for accessing financial resources and cultivating relationships that help Neighborhood Networks centers and consortia become more self-sufficient and sustain their programs or the programs at their members' centers. For a Neighborhood Networks center or consortium to achieve self-sufficiency, the organization must tap into the financial resources that exist within its community.

Starting a Fundraising Program

Whether your organization is carrying out its first fundraising project or beginning a new initiative in an established fundraising program, always start your fundraising campaign in the same way--by asking those closest to your organization for support.

Picture your center or consortium as a dartboard. In the center is your board of directors and in separate, concentric circles moving away from the center are staff and volunteers, vendors, community businesses and individuals, and finally foundations.

Not all Neighborhood Networks centers and consortia will have the same circles. However many circles your organization may have, always seek support from those who are closest. They are the most likely donors, and are essential to building additional support. As you move away from those closest to your organization, it will take more time to convince each potential funding source to support your initiative.

If you approach someone who is unfamiliar with your organization, one of the first questions they will ask is, "What other sources of funding do you have?" They will look to see if those with a stake in the organization have come forward with support. The goal is not to raise a great deal of funds from those closest to your organization, but rather to build a high percentage of participation at each level. This show of support from stakeholders can help convince potential funders that your organization is dedicated to the initiative and its people.

Reaching Out to Vendors

Once you have contacted those closest to your center or your consortium for support, reach out to the vendors with whom your organization already does business. Some have policies against giving to organizations with which they already do business, but some do not. The bottom line is that it is always worthwhile to ask. Sometimes you will be surprised to find that contacting a vendor may lead to a gift from a larger corporate foundation. Other times it may lead to a reduction in price for services or products you already receive from the vendor. In either instance, more funds will be available for your center or consortium to use to work toward its mission.

Local Business and Community Leaders

Local businesses and community leaders have the next closest stake in your organization and should be contacted next. Present the value of your work in the community and be prepared to discuss ways that you can help publicize their generosity to the local community. While philanthropy is a primary motivation, businesses and politicians are pleased to have opportunities for good public relations.

Seeking Funding from Local and National Foundations

Finally, foundations should be approached with grant proposals. Start with local foundations first before moving on to national foundations.

In recent years, letters of inquiry have become an important part of the fundraising process. Many foundations now prefer that funding requests be submitted first in a letter format instead of a full proposal. Others are using preliminary letters of inquiry to predetermine if they have an interest in a project before accepting a full proposal. In either instance, it is important to recognize that a well-written letter of inquiry is crucial to securing funding for your project. An effective letter of inquiry is often more difficult to write than a full proposal.

The letter of inquiry should be brief-no more than three pages-and must be a succinct but thorough presentation of the needs or problems you have identified, the proposed solution, and your organization's qualifications for implementing that solution.

The letter of inquiry should include the following:

	An introduction.
	A description of your organization.
	A statement of need and your methodology for meeting the need.
	A brief discussion of other funding sources.
	A final summary.

Keep in mind that your organization should make personal contact whenever possible. Often, simply contacting a foundation by phone can be an effective way to start a relationship between your organization and a potential funder and will plant a seed that can germinate and grow once a letter of inquiry and proposal are submitted.

Fundraising Events

Special events can be an effective means of attaining financial resources for your Neighborhood Networks center or consortium. When planning a special fundraising event, remember that the event should fit your cause. Be creative, and consider an event or venue that would interest your particular constituency group. Decide what your financial goals are and begin to calculate your potential revenue sources. Set your sights high but not so high that those you want to get involved will not be able to participate. Consider who can help underwrite and sponsor your event. By donating products and services, they can help defray the out-of-pocket costs to your center or consortium and increase the profitability of the event.

Good fundraising programs provide more than just funds--they also provide the opportunity to promote a positive image of your organization and its projects to the public. Financial resources are essential to the sustainability of any Neighborhood Networks center or consortium, but establishing a good reputation in your surrounding community can also go a long way toward increasing sustainability and self-sufficiency. Fundraising special events can help raise awareness about the mission of the organization to those who may be unfamiliar with its work.

Selecting the Event

When planning a special fundraising event, remember that the event should fit your cause. Consider an event or venue that would interest your particular constituency group. Your overall goal should be planned upfront. Are you trying to raise money, awareness, or both? If your main priority is raising money, your organization should place special emphasis on planning the budget for the event.

Added Benefits of Fundraising Events

Ultimately, the most valuable resource available to any Neighborhood Networks center or consortium is the surrounding community. To carry out successful fundraising campaigns, your organization must begin to develop relationships with people in your community. No matter what the fundraising project, be prepared to prove that you have done all you can with the local resources you have before seeking additional support from afar. As you build relationships with funders, ask those who make gifts to also become fundraisers by recommending others who may offer support or open doors for Neighborhood Networks centers and consortia.

Fundraising Links

The following Web sites offer information about fundraising strategies and opportunities.

General Fundraising Information:
1. Fundsnet Services Online--Fundraising Resources

Information on Local and National Foundations:
1. Foundation Center
2. Philanthropy News Digest