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The 5 Ws of Fund Raising

To be successful at fundraising, it takes training in special skill sets, conviction, motivation and real hard work. And, if you are just starting out, you need to ask yourself the 5 core questions of fund-raising in order to prepare yourself. Why am I raising funds and why would someone donate? The first step is to figure out why you need the money and why would someone donate. Is the need a short term one for an immediate requirement of the project or is it a fairly long term one to help sustain the program for a few years or is it for the corpus; so that you are able to use your discretion in spending the funds in your program? Once you’ve narrowed down your need, it will be easy for you to prepare your request accordingly. It is always good to understand why anyone would donate at all. People donate because they feel for a particular cause, because of the feel good factor and because their peers are donating. If your organisation has a good cause and a good reputation, you’re likely to find more willing donors. It is good to be transparent because not many people are sure of where their funds are going in a donation. When they hear about your organisation from other donors, they’re more likely to invest in it. What are my donors looking for? Donors are on the lookout for an NGO with a cause that aligns with their values. They usually don’t donate to any charity unless it’s something that they strongly believe in. They’re also most likely to donate to an NGO of repute, and one that’s different or has a unique mission compared to other institutions. Of thousands of NGOs working for a particular cause be it education, livelihood, hunger & malnutrition…… what makes your NGO different or special? Also, the donated amount is exempted from tax, and that’s a lucrative offer for donors trying to reduce their tax burden. Who is willing to donate and whom do I take money from? There are a number of sources from where you can procure funds. Some of these are corporations, individuals, foundations, living communities, government and international agencies, and various other institutions. When you’re deciding who to take money from, choose a donor who seems the most ethical. Not only will this create positive PR, but it will also reinforce the ethical standards of your initiatives. Where do I reach my donors? Instead of researching and contacting donors one by one, build a database of different kinds of donors and contact each of them separately. You can do this by visiting online directories to find their contact information. Compile a list of people you think would be willing to help and get in touch with them at the right time. When to ask? Most often, the way to guarantee funds is to ask your donor at an opportune moment. For example, festive seasons are a great time to put forth a request for donations. That’s when people are most likely to give you the money that you need. If you’re asking a corporation, it’s good to ask them while they’re preparing their CSR budget for the coming financial year, so that they can factor it into their annual spending. Keep in mind that you have to research your donor thoroughly and always keep donations on the record. Also, remember that these are just the basic questions, the mere first steps to creating an effective fund-raising plan that you will need to prepare, in order to raise funds for any Not-for- Profit organisation.
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CSR strengthening its roots in corporate India

Within business circles, corporate social responsibility is a term that’s often misunderstood. However, since the Companies Act 2013 was passed, every major organisation in India has had to put CSR at the top of its priority list. Many argue that the act ‘forces’ organisations to set up a CSR budget and consequently goes against the ‘spirit of CSR.’ But the bottom line is this—it works. Compared to 2013 and 2014, organisations have spent considerably more on CSR in the 2015 financial year. And whether this is voluntary or not, it’s actually happening. At one point of time, most of the private sector wasn’t concerned about CSR. As for the companies that were, CSR didn’t really form a major part of their budget. But with the 2% rule, the Companies Act has ensured that any organisation liable to engage in CSR is spending enough money to make a tangible difference in society. According to GayatriSubramaniam, convener and CPE at IICA, there has been a shift in the sands. From being an inconsequential part of anorganisation’s budget, CSR has become an important boardroom topic. With the regulations set by the government, the board needs to be actively involved in setting up CSR committees and approving the strategies conceived by them. Another thing to note is that the Companies Act directs organisations to take any profits from their CSR activities and put them back into the CSR budget. This encourages businesses to engage in innovative CSR programs with high ROI, making it easier for them to meet the required CSR expenditure in the next financial year. Most companies in India run their CSR activities through NGOs. This has has also managed to somewhat alleviate the funding problem faced by many of these institutions. A majority of CSR expenditure in 2015 went towards education, skill development, and healthcare. The Bharti Group, for instance, has committed to spending close to INR 100 crore on building toilets in Punjab’s rural households. Perhaps the most encouraging trend this year has been the exponential increase in the CSR budget of industry leaders. For example, Infosys has spent around 240 crores in 2015, compared to 9 crores in 2014. And Wipro has spent 132.7 crores, compared to 16 crores last year. Another thing that’s worth mentioning is that even though there is no penalty for non-compliance of CSR rules, most SMEs and larger organisations have done their bit to meet the 2% requirement. There’s still a lot of scope for innovation when it comes to CSR in India. However, it’s too early to gauge how companies will spend on CSR in the coming years. But one thing is for sure—CSR is no longer a vague corporate term. It’s a business priority, and it’s here to stay. References: Image References:
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CSR And Your Organisation: Bringing Responsibility Into The Boardroom

The onus of planning and executing a good CSR (Corporate Social Responsibility) strategy lies completely on the board of directors of an organisation. If the board members don’t have the right mindset and direction, it becomes quite difficult to run programs that will provide good returns while satisfying the basic criteria any CSR program should have.

Role And Responsibilities Of The Board

Since the passing of the Companies Act 2013, the board has a well-defined set of CSR duties to perform. Some of these duties include: ● Forming a CSR committee – The board is responsible for curating members and establishing a CSR committee according to the guidelines put forward by the government in the Companies Act. ● Approving The CSR Policy – Once the committee comes up with a tangible CSR strategy, the board has to review it and suggest changes (if needed), before giving them the greenlight to go ahead and implement the policy. ● Implementing The Policy – Just approving the activities finalised by the committee isn’t enough. The board needs to ensure that the plan is being implemented and that all the CSR activities are actually happening. ● Enforcing The ‘2% of profits’ Rule – According to new government regulations, any organisation which is liable to undertake CSR activities has to spend at least 2% of its net profit on them. So even if the committee has drawn up an impeccable CSR strategy, the board needs to make sure that it uses at least the minimum amount required.

Why The Board Matters

According to the 2011 Public Governance study conducted by the National Association Of Corporate Directors, only 1.5% of all board members who were surveyed put CSR in the top priorities of the board. Fortunately, over the last few years, CSR has become an extremely important part of running a business. The biggest advantage of the Companies Act is that it has transformed CSR by making it compliance, rather than choice. As a result of this, organisations have started to approach CSR in a more serious way. CEOs and CFOs have welcomed the solid set of guidelines and rules as it gives them an easy way to go about handling their CSR duties. Before 2013, many organisations in India were not sure exactly how and why they should go about a CSR strategy. Many were under the impression that CSR has little to no returns. However, major organisations like Tata, Infosys, and Coca Cola have run successful CSR programs, which not only helped to boost their brand image, but also generated sizeable returns. With the benefits clear for all to see, other companies have followed also suit.

A Question Of Specificity

So if the government has already laid down all the requirements, why does the board need to spend time on CSR? Despite being a comprehensive document, the Companies Act of 2003 only gives a general idea of how organisations should go about their CSR programs and where they can spend their CSR budget. It’s falls to the board to make sure that they put together a committee that thinks out of the box and designs CSR programs that are unique and engaging. With CSR, there’s a massive scope for innovation and the board should make it a point to encourage progressive ideas. Ideally, businesses should work on sectors which have not received enough attention from other organisations. They should also play to their strengths for maximum impact. At the end of the day, they need to make sure that society stands to gain as much from their CSR activities as their organisation does. References: Image References: