National Library of New Zealand
Harvested by the National Library of New Zealand on: Jul 3 2006 at 4:42:47 GMT
Search boxes and external links may not function. Having trouble viewing this page? Click here
Close Minimize Help
Wayback Machine

New Zealand Department of Internal Affairs : Resource material : SECTION H: Funding Skip to Access Key assignments for this site
Skip to the content of this page
Skip to other pages in this section
Skip to site wide navigation
Skip to links for help with this site
Logo of the New Zealand Department of Internal Affairs

Home

Services

About us

What's new

Legal

Forms

Resources

Other pages in this section

Community Development Resource Kit

SECTION A: Community Development Practice

SECTION B1: Setting Up A Community Group - Introduction

SECTION B2: Setting Up A Community Group - Legal Structures

SECTION B3: Setting Up a Community Group - Incorporated Societies

SECTION B4: Setting Up a Community Group - Charitable Trusts

SECTION C: Planning and Managing

SECTION D1: Employment Matters - Agreements

SECTION D3: Employment Matters - Support

SECTION D2: Employment Matters - Recruitment

SECTION E: Running Meetings

SECTION F: Project Management

SECTION G: Financial Management

SECTION H: Funding

SECTION I: Keeping Good Records

SECTION J: Technology - The Internet

SECTION K: Political Processes and Submissions

SECTION L: Legislation

Return to top of page Content area

SECTION H: Funding



Funding and Sponsorship

Fundraising Programmes, Consultants and Portfolios

Many community organisations need to raise funds in order to continue their work in the community, or to develop and carry out special projects. Seeking funding is one of the most important tasks these organisations face.

For a number of them it is a difficult task - but it does not need to be.

Some people enjoy this type of work, and they are the people who should be on the funding team or sub-group organising the fundraising (those who dislike it are better off working for the organisation in some other way).

Securing funding should be planned, and the strategies for achieving this should be incorporated into the organisation's overall income plan.

Some hints:

  • establish funding needs clearly
  • make sure that the organisation agrees and understands how funds will be obtained
  • spread the work load
  • ensure timelines are set and met
  • choose fundraising methods that relate to your organisation and what you want to achieve
  • make sure it is fun - engage the goodwill of your community
  • budget for income, expenses and profits
  • check all legal responsibilities (e.g. if you run a raffle - for some raffles you need a licence from the Department of Internal Affairs).
  • have positive relationships with those who are likely to invest – ensure that you take the time to look after your members and those who have interests in the work of the organisation.

Establishing the Programme

First Steps

  • identify the purpose of obtaining funds;
  • check whether it is necessary (What is available now?); as part of this, consider whether there are other ways of achieving what is desired (Does another group have the equipment that you could use? Rather than money, could you seek the donation of the actual service or item?)
  • think about who will gain from it (Will your target group benefit?).

Once you have decided to raise funds:
  • describe the exact purpose
  • set goals (make the fundraising job interesting and varied)
  • develop a list of needs and wishes
  • brainstorm a list of ideas
  • start selecting: think of the positives, the difficulties, the possible strategies, the potential returns
  • carefully estimate the amount of work that will be involved
  • list the resources needed, and check them against the resources available: people, equipment, transport, facilities and money
  • decide who will need to be consulted before any decisions about the fundraising venture are made
  • make long term plans (but set short term targets you will reach on the way).

Set a Budget
  • work out how much money you need
  • work out the running expenses you will have (What will you need to buy? Will you need money for professional help e.g. salaries, rent, phone, power, printing, cleaning, stationary, transport, auditing, special equipment?)

Discuss the best way to secure the funds.
Income for voluntary agencies can be obtained through:
  • local fundraising projects
  • membership fees or donations
  • public funding programmes e.g. government departments and local authorities
  • grants from philanthropic trusts and foundations
  • sponsorship by businesses and corporations
  • professional fundraising consultants.

Some Local Fund Raising Projects

These use the organisation's resources. They may include:

  • food and or entertainment: e.g. balls, socials or shows, wine and cheese parties, fancy dress or hat parties, picnics
  • sales: e.g. t-shirts, bumperstickers, fridge-magnets, ballpoints, tea towels (these can also promote your organisation), puppets, art works, auctions, garage sales, cake stalls, sausage sizzles (many supermarkets encourage them and even provide a barbecue), market days, calendars, cookbooks, published histories of the organisation
  • money for labour: working bees, gardening, painting, labouring, section clearing, home delivery
  • sponsored activities: e.g. swims, walks, games
  • exhibitions or demonstrations e.g. a celebrity match, pottery demonstration and "have a go";
  • community services: e.g. rubbish collections, bottle drives (where there isn’t a regular recycling service), information pamphlets, community directories
  • competitions, e.g. sports days; "top town" team events, quizzes, beach games, treasure hunts

Raising Money through Membership

You may wish to consider the following:

Membership Fees

You could charge a membership fee for your organisation. Some organisations have a "sliding scale" of fees according to whether the member is unemployed, on a low income, a student, employed, or a corporate or government organisation.

Having Patrons

Patrons can be selected for the status they bring to the organisation - or in acknowledgement of their financial support (in this case you could consider setting a Patron Subscription)

"Friends of the Organisation" Membership

"Friends" are usually people interested in the organisation but not directly involved with it It is a good idea to offer something to your "Friends" (e.g. open days, newsletters, cheaper entrance fees, preferential booking) in return for their paying a subscription or a donation (you can suggest the amount) to the organisation.

Business Membership

This is similar to "Friends" but is directed at commercial organisations.

Local Authority or Government Agency Membership

Where this is appropriate you could charge a higher membership fee.

Major Sponsors

Similar to business sponsors but the contribution to the organisation might be substantially higher (for more information about sponsorship refer to Business Sponsorships). Could you put their name on a plaque in a prominent place?

- from Seizing the Moment II: How to Raise Money Through Membership by Colin Gunn.


Public Funding Programmes

The NZ Lottery Grants Board:
This board distributes the profits from the Lotteries Commission. It does this through national and regional Lottery committees (e.g. Lottery Youth, Lottery Welfare) The emphasis is on supporting community initiative rather than supporting or providing primary social services (that is seen as the responsibility of government).

For further information contact the NZ Lottery Grants Board, PO Box 805, Wellington. Phone 0800 824 824, email: lotterygrants@dia.govt.nz

Philanthropic Trusts and Foundations
Funding is available from Trusts and Foundations for projects that meet their criteria for eligibility.

Government Departments:
A number of Government departments and local authorities also offer funding for programmes in specific areas such as justice, Mäori development, Pacific peoples, employment, etc.

Check the Funding Information Service database for more information (refer to Funding Information Sources).

Developing An Application For Funding

A well-presented application is important.

These suggestions can be altered to suit your group and the funding body. If you have already developed a funding portfolio (refer to Developing a Funding Portfolio), you can use the information that you have gathered. Most organisations require the following information:

  • Introduction to your organisation, its staff and volunteers, services provided, community served, numbers
  • Legal structure: are you an incorporated society or charitable trust? Do you have an umbrella organisation willing to receive money on your behalf? Are you registered for GST?
  • The problem your project seeks to address. (Enclose any needs analysis, evidence or statistics.)
  • Objectives: These should be specific, achievable and able to be evaluated
  • Procedure: who will implement the project, how and with what?
  • Evaluation: how do you intend to measure whether the project will have been worthwhile?
  • Budget: list all items of anticipated income and expenditure, including staff salaries and administration costs. Note any other sources of funding which you have approached for this project and when you expect a response. Attach professional quotes
  • Request: ask for a specific amount of money which is realistic in terms of the project budget and of the size of the grant usually made by the funding body. In many cases it will be less than the total expenses identified in the budget
  • Contacts: list address and phone numbers of two people who can provide the funder with any further information or clarification
  • Referees: list two or more referees from outside your own organisation who understand the project and support it
  • Attach any letters of support and other materials that support your case - media releases, annual reports, brochures, annual accounts etc.

Funding Application Checklist

  • Be aware of the philosophy of the funding organisation, their criteria, priorities and the average size of grant they make.
  • Only apply for funding if you meet the eligibility criteria of the funding organisation. If in doubt, visit the Funding Information Service database or ring up the funding organisation and ask.
  • Stick to your priorities. Don't significantly change your activities or project to meet the requirements of a funding provider.
  • Check the closing date for applications, and that you have the correct application form.
  • Prepare your application well in advance.
  • Complete all the relevant sections of the application form.
  • Answer all questions on funding application forms by following instructions and providing all information.
  • Attach all the documents you were asked for.
  • Invite the funder to visit the project or to request further information.
  • Be aware that networks between funding organisations and within communities are usually quite good. If you don’t have a good record, or you overstate your activities in an application, or you apply for funding when you do not meet the criteria, other funders are quite likely to find out.
  • Mark any items you have excluded (or included as extras) in your funding application and footnote them.
  • Include any appropriate notes to budget explanations and breakdowns.
  • Include, if you have them, 3-5 year development plans
  • If you need help developing a proposal, ask for it
  • List other organisations you have applied to and when you expect to hear back. Funders aren’t jealous about your application (but if you hear back from other funders after the application was submitted and before it is considered, tell the body being approached of any outcomes. This is particularly important if the other source turned you down.)
  • Type or print out your application rather than hand-writing it, because it will probably have to be photocopied
  • Get your application in well before closing time
  • Keep a copy of the application
  • If you don’t get an acknowledgement of your application after two or three weeks, ring the funding organisation and check that they have received it
  • Be aware that most funding schemes are wildly oversubscribed, often by millions of dollars. If you are turned down, try again. It didn't necessarily mean they think your project is no good - they may have just had some particularly good competing projects. Choose another organisation, rewrite the application and keep trying
  • Develop a funding calendar for your organisation which highlights all those funding bodies you can apply to on an annual basis
  • Don't forget to acknowledge your funders publicly.
    Remember

    Government agencies, corporations, Foundations and Trusts tend to prefer to fund finite projects that will come to an end when their aims have been achieved, rather than core costs such as salaries and rents which are ongoing. A strategy for dealing with this is to build salary and overhead components into the cost of projects.

    There are usually special terms and conditions attached to project funding, e.g. many organisations require you to have raised a proportion (commonly one-third) of the money you need for your project before you apply to them.

    Some funders will only fund organisations with a legal structure. For example, they have been registered as an incorporated society or a charitable trust, they have some other legal structure; or they work in partnership with an umbrella group (for more information about becoming a legal entity refer to Section B: Legal Structures). Other funders may put limits on the size of any grants they make to groups operating without a legal structure (e.g. they may fund up to $5,000).

Business Sponsorships

Sponsorship is a business relationship of mutual benefit to both parties - and it must give value to both parties.

Sponsorship provides an opportunity for corporations and companies to advertise directly to their target group and enhance their community image.

Your task is to create a project, event or activity that meets the needs of the sponsors, and it is your organisation's responsibility to follow through and deliver what you have promised.

While money is the most obvious benefit of a sponsorship, voluntary groups can also gain much from gifts in kind such as printing, transport and equipment; space for offices; payment for publicity; and volunteer work paid for by companies that have corporate volunteering programmes.

Developing a Sponsorship Plan

As you develop your sponsorship plan, you need to:

  • seek advice from experienced people in your community
  • undertake thorough research to
1. identify potential sponsors

2. gain an understanding of their businesses so that you can identify the best matches between businesses or agencies and the activity that you are seeking funding for;
  • identify your worth to them - define what you have to offer, how much of it you want to offer, and what your bottom line price is
  • define the sponsor’s opportunities
  • identify a sponsor who will value what you are selling
  • find out what they have sponsored before - research and preparation are important
  • make informal contact with the sponsor - find out what they most value. Be positive about your proposal and its benefits
  • check: do you have to take on a particular image? How would this impact in the service you offer?
  • prepare the proposal: make sure you can deliver what you promise in it, and also that you are clear about the way the sponsor will deliver sponsorship benefits - cash, or in kind?
  • formally present your proposal - amended if necessary - to the sponsor
  • sign a formal agreement (or, if declined, find out why and ask who you should approach)
  • be committed to looking after your sponsor and involve them in your activities. Inform them about what you are doing. Invite them to events.

Ways of Recognising Sponsors

You could put the sponsor's name on:

  • clothing
  • all stationary. (This can be done cheaply with a self inking stamp)
  • all promotional material such as entry or registration forms, posters, tickets
  • noticeboards at clubrooms
  • cups, medals and ribbons
  • a display by the sponsor in the clubrooms
  • the club banner

You could also:
  • advertise the sponsor's wares or activity in programmes and club newsletters
  • promote and foster the sponsor's name and products at or during an event, in your annual report, at the AGM
  • have the organisation or its members become involved in promotional activities for the sponsor
  • give the sponsor the opportunity to market products at the venue or to the participants
  • distribute the sponsor's advertising material at clubrooms or to all participants
  • have the sponsor's advertising on your venue
  • have the sponsor use photos of events for their own promotions

Professional Fundraising Consultant

Consultants advise, plan and organise events and activities with the support of and from the organisation. It pays to ask around other similar organisations who have used them and get a referral. The Fundraising Institute of NZ can help with advice on consultants specialising in particular areas. You may want to receive their bi-monthly magazine FINZ on Fundraising.

Developing A Funding Portfolio

A funding portfolio is a file describing a group’s identity, activities and projects, which can be mixed and matched for different funding applications. Funding organisations ask for different combinations of information, and have different criteria, application forms, reporting requirements and closing dates.

If your group is applying to more than one funding organisation, a funding portfolio saves considerable time and makes funding applications easier to prepare.

Create a set of headings which are relevant to your group. Here are some examples of headings and what information could be included:

History of the Organisation

  • Why did your group start?
  • Who was involved at the beginning - and who has been since?
  • Where did the group begin?
  • What has the group achieved?
  • What changes has the group experienced?

Aims and Objectives
  • What are the group’s aims?
  • What are the current objectives?
  • What is the kaupapa of this group?
  • If you have a mission statement, what is it?
  • What are you trying to achieve?

Management
  • What is the management structure?
  • What are the names and contact addresses of the office-holders, management committee/trustees?
  • How often are meetings held?
  • How are decisions made?
  • What powers do management have?

Legal Status
Include:
  • copies of Certificate of Incorporation, Trust Deed, Umbrella Agreements
  • evidence of Charitable status with IRD
  • copies of the Constitution and the Rules
  • trustees’ names and addresses

Financial Information
Include:
  • copies of audited accounts
  • certificates of Income and Expenditure
  • business plans
  • bank account details
  • treasurer's name and contact address
  • GST registration number
  • details of sources of funding
  • yearly budgets

Support
  • Which groups do you work alongside to complement your work?
  • Include copies of letters of support
  • Do you meet with any networks?
  • Do any other groups offer a similar service?

Funding Timeline

Here is a sample funding timeline. Each item is ticked when it is completed

January
Agency report for Department of Internal Affairs (DIA) funding for previous year completed
DIA Monitoring visit arranged
Copy of accounts
Audited accounts back
February
DIA Monitoring visit completed
Reports sent in to DIA
Hillary Comm. Application
- proposal, letters
- budget
- accounts
- GST forms
March
Hillary Comm. application posted
March 10



April






May
Fletcher Challenge Trust application
- proposal
- budget
- accounts
Management Comm. mtg to approve


June
Fletcher Challenge application posted by June 15.
Lottery Youth
- proposal
- budget
- accounts
- letters
Management Comm. mtg
Arrange July visit by Loss Co-ordinator.
July
Lottery Youth app. posted by July 1st.
Get Logo forms
Logo co-ord visit
Logo application completed and
posted July 20
Youth Worker Training Fund (YWTF) application posted July 27.
August









SeptemberOctoberNovemberDecember


Funding Information: Sources

The Funding Information Service

Profile
New Zealand’s primary source of information about funding for voluntary organisations and individuals in the community.

The Funding Information Service is an independent, not-for-profit organisation maintained by income from subscriptions to its databases and services.

The organisation manages three funding information databases.

FundView
Fundview is a searchable computer database of funding information for not-for-profit organisations and community groups. It includes specific sources of funding, such as corporate, philanthropic, government, local government, statutory trusts, local trusts and service organisations.

There are 690 funding schemes representing in excess of $1 billion of available funding on FundView, with the largest proportion in a general category where most projects are eligible. Other categories to which funds are allocated include youth and children, family, women, physical disabilities, sexual abuse, seniors, poverty, health, domestic violence, rehabilitation, self-help, counselling, refugees, housing, alcohol and drug abuse, intellectual disability and ex-prisoners.

FundView is searchable by category, including geographic area, type of project, and description of activities requiring funding. The information is provided by funders, and is checked and verified annually. The database has monthly updates for the Internet version and six-monthly disc and CD-ROM updates for the Windows version.

BreakOut
BreakOut is a searchable computer database containing details of over 2000 awards, scholarships, and grants available to individuals, principally in tertiary, research, personal development, travel, primary and secondary school, sport and artistic fields.

Envirofunz
Envirofunz (
www.envirofunz.org.nz) is a searchable database specialising in environmental and conservation project funding and its information is sourced directly from FundView and BreakOut

Envirofunz is free to the public and was created by the Funding Information Service with support from the Ministry for the Environment.

Free Public Sites
The public can access both FundView and BreakOut at a large number of free public sites (eg public libraries, Department of Internal Affairs regional offices, REAP offices). There is information on the FIS website (www.fis.org.nz) to help you find out where you can use the databases free of charge close to where you live. There are separate maps for FundView and BreakOut.

For more information contact:

Funding Information Service
PO Box 1521
Wellington
Ph: 04 499 4090
Fax: 04 499 5367
Email: info@fis.org.nz
Website: www.fis.org.nz

CommunityNet Aotearoa (www.community.net.nz)

The CommunityNet Aotearoa website is a source of information and advice to support communities. Information is available on all aspects of setting up and running community organisations and projects, including funding.

Publications on Fundraising

‘Are you ready for funding’ Training Kit (1996)Department of Internal Affairs
Facilities Information
PO Box 805
Wellington
Phone: 04 495 7200
Email: info@dia.govt.nz
Website: www.dia.govt.nz
Bridging the Gap: a discussion paper on launching and maintaining a mutually beneficial relationship between voluntary organisations and commercial enterpriseChris Baty
97 Porritt Avenue
Auckland 10
FINZ on Fundraising (bi-monthly magazine) The Fundraising Institute of New Zealand
PO Box 11203
Manners St
Wellington
Phone: 04 499 6223
Email: finz@fundraising.org.nz
Website: www.fundraising.org.nz
Managing your Voluntary Agency in NZNZFVWO
Box 9517
Wellington
Ph: 04 385-0981
Email: nzfvwo@xtra.co.nz
Website: www.nzfvwo.org.nz
Philanthropy – Newsletter of the New Zealand Association of Philanthropic TrustNew Zealand Association of Philanthropic Trusts
PO Box 1521
Wellington
Ph: 04 499 4090
Email: info@philanthropy.org.nz
Website: www.philanthropy.org.nz
Seizing the Moment II
General Editor Colin Gunn and others
Community Work Training Advisory Committee,
c/- PO Box 1149
Nelson
Sponsorship Profile (A good resource document profiling sponsors)Foresee Communications Ltd
PO Box 46767
Upper Hutt
Ph: 04 528 0742
Fundraising Australia Online (email newsletter)Fundraising Institute of Australia
National Secretariat
PO Box 642
CHATSWOOD NSW 2057
Australia
Email: info@fia.org.au
Website: www.fia.org.au

Some Government Agencies

Community Development Group, Department of Internal Affairs.

Children,Young Persons and their Families Service Contracting Group

Creative New Zealand. Information on funding arts and cultural activities.

Sport and Recreation New Zealand (SPARC, formerly the Hillary Commission) Information on funding sports, recreation, outdoor education activities.

Te Puni Kokiri. Information on grants available to Mäori Groups.

Community Employment Group, Department of Labour. Information on funding community employment initiative.

Ministry of Women’s Affairs. Information on funding targeted for women’s projects.

Local Councils of Social Services. Some publish funding guides and directories for their area.

Local District Councils. Will have information about any funding schemes they have available, e.g. Mayor Fund, Community Services Funds.

Ministry of Research, Science and Technology. Information on science research funding including the Public Good Science Fund.

Ministry for the Environment. Information on sources of funding for environmental projects.


    Return to top of page
    Links for help with this site

Site map

Search

Help

Contact us

Email us

Govt.nz

Return to top of page

Last updated: 13/05/2005