Financial Matters

FUND-RAISING

What is Fund-Raising?

Fund-raising is a systematic process to secure additional funds to a sport and recreation organisation's operating budget.

Fund-raising is usually required to fund special activities such as:

  • buildings
  • innovative events or projects
  • new programs.

Generally, resources raised through fund-raising should not be used for operational expenditure. There should be a separation between the operating budget and funds required for projects, capital, or events expenditures.

It is important to recognise that fund-raising involves costs to the organisation. Sport and recreation organisations need to ensure that the real costs of raising additional revenues do not outweigh the amount of funds raised.

Why People Contribute

Understanding the reasons why people donate or sponsor to sport and recreation organisations is essential if fundraising principles are to be employed to maximum effect.

Factors That Influence Contributors:

1. The right person or organisation asks them, at the right time, and in the right circumstances.It is important that potential donors are asked in the right way, at the right time, by the right person, and for the right amount.

2. People have a sincere desire to help other people.Sport and recreation organisations must present a clear and compelling case about how the funds will help people.

3. Individuals wish to belong to or be identified with an organisation. Donor recognition plays an important role in developing a donation tradition with these individuals.

4. Realising how vital their gifts are satisfies a need for a sense of personal power in many people. Recognising the donations will encourage greater and long-term giving.

5. People have received benefits, including personal enjoyment, from the services of the organisation and wish, in turn, to support it.

6. People give because they 'get something' out of giving. Giving satisfies a range of needs in these people.

7. Individuals and organisations receive tax benefits from giving. Fund-raisers should identify the ways in which a contribution is likely to result in specific tax benefits.

    Click here for link to The Australian Sports Foundation

8. Donors are strongly motivated if it appears they are likely to yield a good return on investment. Sport and recreation organisations should be able to demonstrate the value and benefit of continuing, expanding, or strengthening its programs.

Sources of Funds

Sport and recreation organisations generate funds from four main sources:

  • internally
  • grants from government
  • sponsorship from business
  • donations from trusts, foundations, businesses or individuals.

Fund-Raising Sub-Committee

The role of the fundraising subcommittee is to:

  • Determine the purpose of the fund-raising process.
  • Establish the benefits of fund-raising to the sport and recreation organisation.
  • Identify potential sources of funds (e.g. donors, grant agencies and sponsors).
  • Develop the fund-raising plan.
  • Determine whether more than one agency or sponsor should be approached. If only one sponsor is selected then they should be made aware of their exclusivity.
  • Write the grant application or sponsorship proposal (if required).
  • Ensure acquired funds are used for the designated purpose.
  • Maintain relationships with donors, granting agencies, sponsors and other stakeholders as appropriate.

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