Theology of Fundraising in Christianity

Theology of Fundraising

• Disagreement exists on the Biblical model for fundraising, with some advocating against it and others towards manipulation.
• Examples of fundraising are found in both the Old and New Testaments.
• Numbers 18, the Levites were funded by the tithes of the people.
• 2 Corinthians 8-9, Christians are encouraged to give to those in need.
• 2 Corinthians 9:6-15 discusses giving, highlighting the giver's rewards (dependence on God, more giving) and impact on others (meeting needs, glorifying God, proving faith, fostering love and prayer).
• The church's ministry, as depicted in Acts, encompasses various needs (handicapped, widows, orphans). However, many of these roles are now assumed by parachurch organisations or the government.
• Missionary NGOs are often parachurch organizations and largely operate independently from local churches.
• Christians should prioritize giving to their local church before supporting parachurch organizations.

The Problem

• 87% of US charitable giving goes to religious causes in the past decade, reflecting a similar trend in South Africa.
• South African Christian NGOs often lack professionalism in their fundraising planning.
• Expenditure planning is usually robust, but income planning is often lacking. This includes crucial aspects such as: defining the organization's business, specifying needs, defining objectives, developing fundraising methods, assessing fundraising expenses, and planning for NGO operations.
• Many South African Christian organizations often indirectly request funds by mentioning financial needs in letters and newsletters.

The Solution

• Fundraising is a demanding, systematic process.
• Any organization, large or small, can develop and implement a sound fundraising plan.
• A fundraising cycle provides a framework for planning, especially for new NGOs.
• A book titled Making Volunteering Work (ISBN 0-9583948-7-3) by Michele Williams is recommended for volunteer engagement.

The Fundraising Cycle

• Step 1: Examine the Case – Document the organisation's mission, needs and reasons for support. Not fundraising proposal but an in-depth case statement to support it.
• Step 2: Analyse Market Requirements – Assess if the cause and financial needs are worthwhile and supported by the community.
• Step 3: Prepare Needs Statement – Detail the organization's needs, verified by all stakeholders. Translated into programme plans including a budget.
• Step 4: Define Objectives – Clearly defined goals and measurable objectives for each project, leading towards broader goals. Directly tied to the project budget and fundraising.
• Step 5: Involve Volunteers – Engages volunteers in the planning process to foster commitment.
• Step 6: Validate Needs Statement – Gather input and feedback from all relevant stakeholders to ensure the needs statement accurately reflects current needs.
• Step 7: Evaluate Gift Markets (Sources) – Identify potential donors from individuals, trusts, corporations, and government. Assess the capacity and interest of each source.
• Step 8: Select Fundraising Vehicle - Choose appropriate fundraising methods (annual funds, direct mail, special events etc).
• Step 9: Identify Potential Giving Sources – Evaluate potential donors in terms of their capacity, interest, and accessibility.
• Step 10: Prepare Fundraising Plan – Transform research and conclusions into a structured plan. Address important questions (case, soundness, objectives, needs, budget, available resources).
• Step 11: Prepare Communication Plan – Craft a strategy to effectively communicate the organisation's needs to potential donors. Includes feedback and questions.
• Step 12: Activate the Volunteer Force – Involve volunteers in face-to-face interactions with potential donors to help secure donations.
• Step 13: Solicit or Ask for the Gift – Someone proactively seeks donations from potential donors.
• Step 14: Renew the Gift – Follow up with past donors proactively to maintain the relationship and build repeat giving.

Fundraising Preparation

• Effective planning is critical for fundraising success.
• Organizations should develop a strategic plan encompassing not just operational details but also a broader scope examining potential opportunities and threats.
• Public relations plans, consistent with overall organizational objectives, should be developed.

Fundraising Preparation - Fundamental Organisational Issues

• Identify the organisation's current position (personnel, projects, services, operations, facilities)
• What kind of business is being operated? Understand organisational mission and objectives.
• Conduct a SWOT analysis (identifying strengths, weaknesses, opportunities, and threats).
• Be mindful of the relationship between the NGO's business and its surrounding conditions, especially considering the need to maintain a consistent belief system (like if the NGO is religious).

Environmental Scanning and Forecasting

• Regularly assess external factors impacting the organisation.
• Monitor economic conditions (interest rates, inflation, unemployment, commodity prices).
• Be aware of changes in laws, regulations, and the political climate.
• Track technological advancements to leverage and adapt to changes.
• Be attentive to trends in social, demographic, labor markets, etc.
• Track and understand competition for donations and funding.

Organisational Identity Issues

• Develop clear statements of mission and philosophy, identifying stakeholders.
• A well-defined mission statement concisely communicates the organisation's purpose and should be used in all communication with donors. Stakeholders' analysis helps identify the ideal donor base.

Organisational Values and Philosophy

• Craft a philosophy statement clarifying the organisation's core beliefs and principles.
• Identifying stakeholders allows a better understanding of whom serves and how donations will be used to achieve their needs.

Goal Development

• Translate issues from the internal and external scans into measurable organizational and divisional goals.
• Communicate goals clearly and with measures of success.

Organisational Goals

• Establish priorities for the entire organisation.
• Align divisional goals with the overall organisation's mission.
• Set a reasonable number of goals for each planning cycle.

Divisional Goals

• Align with the organisational goals.
• Provide guidance for operations and measuring performance.

Fundraising Goals and Plans

• Set realistic revenue goals dependent on community, past giving, project needs, and other external factors.
• Develop long-term strategies to build a stable donor base (e.g., annual giving programmes).

Developing Action Steps and Schedules

• Operationalize the plan with specific, measurable action steps and timelines.
• Allocate responsibility for each objective.

Tying the Plan to The Budget

• The plan must correlate to the budget.
• A budget should communicate expected expenses.

Budgeting Phases

• Preparation: Finalize policies, plans, and goals before budgeting.
• Comparison: Regularly compare actual results against anticipated results.
• Reaction: Have response mechanisms to address deviations between planned and real outcomes.

Budgeting Methods

• Incremental: Build on the previous year's budget with adjustments.
• Zero-based: Create a completely new budget, meticulously accounting for every expense.

Types of Budgets

• Revenue (Income): Detail all sources of income.
• Expense: Categorise and account for expected costs.
• Cash: Predict inflows and outflows of funds.

The Budgeted Income Statement and Balance Sheet

• Integrate all sub-budgets into the overall picture.

Tracking and Measuring

• Monitor progress towards goals.
• Respond to issues promptly and adapt as needed.
• Employ systems to ensure accuracy and relevance in the information collected.

Public Relations Programme

• Actively engage with stakeholders.
• Craft effective communication strategies.
• Develop procedures for programme evaluation and modification.

The Case Statement

• Develop a thorough and detailed case highlighting needs, solutions, and justifications for support.

The Fundraising Proposal

• Communicate the organization's story, needs, and the value proposition for prospective donors.
• Tailor proposals to the specific interests of each audience.