Resource Development Training

Module 1: Developing a Resource

Development strategy

Frederic Dupoux/HelpAge International

Ben Small/HelpAge International

Jonas Wresch/Age International

Kate Holt/Age International
Part 1: Introduction to Resource Part 2: Resource Development Part 3: Developing a Resource Part 4: Other considerations for a
Development g approaches and options g Development strategy g Resource Development strategy g
1.1 What is Resource Development? 2.1 What Resource Development approaches 3.1 What is a Resource Development strategy? 4.1 Resource Development for programme
1.2 The Resource Development cycle does an organisation want to adopt? 3.2 Developing a Resource Development costs and for core costs
1.3 Basic principles of Resource Development 2.2 Cooperation in Resource Development: strategy 4.2 Restricted and unrestricted funding
partnerships, consortia, networks and 3.3 What information should be included 4.3 Ethical Resource Development
platforms in a Resource Development strategy?
At the end of Part 1, you’ll be able to: 4.4 Evaluating a Resource Development
2.3 Entry points to donor partnerships strategy
• Understand what is meant by Resource Annex A. Template and completed example
Development for Funding Gap Analysis 2021–23
At the end of Part 2, you’ll be able to: Annex C. Ethical fundraising policy
• Understand the key elements of the Annex B. Donor mapping matrix template
Resource Development cycle • Describe a range of Resource Development
approaches
• Describe the basic principles of Resource At the end of Part 3, you’ll be able to: At the end of Part 4, you’ll be able to:
Development • Understand different types of cooperation
in Resource Development: partnerships, • Describe what a Resource Development • Describe what core costs are and ideas
networks and platforms strategy is and who needs to be involved for how to fundraise for them
in creating one • Describe what restricted and
• Understand the different entry points for
organisations to donor partnerships • Understand what steps need to be unrestricted funds are – and the
undertaken before writing an organisational advantages and disadvantages of each
Resource Development strategy • Understand what is meant by ethical
• Understand the information that should be Resource Development
included in a Resource Development • Describe some methodologies for
strategy evaluating Resource Development
Registered charity no. 288180. Copyright © HelpAge International 2021
 Resource Development Training
Module 1: Developing a Resource Development strategy

Part 1.
Introduction to
Resource
Development
Ben Small/HelpAge International

Registered charity no. 288180. Copyright © HelpAge International 2021

 Resource Development Training < Prev Next > 2
Module 1: Developing a Resource Development strategy

Part 1. Introduction to Resource Part 1. Introduction to

Resource Development

Development
1.1 What is Resource
Development?
1.2 The Resource
Development cycle
1.1 What is Resource Development? It is important to ensure an organisation’s Resource Development
plans are linked to the organisation’s overall strategy and vision.
1.3 Basic principles of
Resource Development
An organisation must be confident in articulating how the funds
Resource Development refers to the advancement required are connected to achieving its vision and mission, as well
Part 2. Resource
of assets and resources that enable an as why they are best placed to do this.
Development approaches
organisation to function, and work effectively It is also helpful to think of Resource Development as ‘friendraising’ and options g
and efficiently to deliver its aims and help achieve (rather than fundraising) as relationships are at the heart of Part 3. Developing a
its vision. Resource Development in any organisation. This is true not only Resource Development
of relationships with individual donors, but also of representatives strategy g
of large institutional donors. The more a donor knows about the Part 4. Other
HelpAge’s Resource Development Training Modules will focus on work of the organisation and employees personally, the more likely considerations for a
how organisations (specifically Civil Society Organisations (CSOs)) that a relationship of trust will develop, and they will want to invest Resource Development
can strategically plan and raise funds to become sustainable in a project and the organisation you represent. strategy g
organisations. The Modules look at how organisations can evaluate
their needs, understand their operating environment and resources
in order to develop Resource Development plans and build strong
collaborative partnerships with donors.

Make your motives clear

Ensure your Resource Development
plans are linked to your organisation’s
vision and mission.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 3
Module 1: Developing a Resource Development strategy

1.2 The Resource Development cycle Part 1. Introduction to

For the successful progression of a Resource Development strategy, Resource Development
an organisation needs to take a holistic approach to ensure that 1.1 What is Resource
it can stand out and deliver for a donor as well as meet its own Development?
objective. As such, it is essential for an organisation to gain a clear 1.2 The Resource
understanding of the Resource Development cycle and how to Development cycle
implement it. This will in turn help map actions, against which 1.3 Basic principles of
activities and goals can be established. Resource Development

Figure 1: Key components of the Resource Development cycle Part 2. Resource

Development approaches
and options g

1. 2. 6. Part 3. Developing a
Analyse Analyse the 7. Stewardship Resource Development
Evaluation strategy g
organisational funding of the
funding environment funds Part 4. Other
gaps received considerations for a
Resource Development
strategy g

3.
4. 5.
Establish
Cultivate Ask for
good
relationships funding
matches

Reg charity no. 288180

© HelpAge International 2021
1 2 7 6
 Resource Development Training < Prev Next > 4
Module 1: Developing a Resource Development strategy

Key components of the This information is sometimes difficult to 6 Stewardship: Once a contract has
Part 1. Introduction to
Resource Development cycle find and analyse, but it is essential to put time been awarded, the organisation has a duty Resource Development
and resources into this stage of the cycle. to manage the funds. This will involve
implementing the project and using the 1.1 What is Resource
1 2 7 6 3 Establish good matches: Explore Development?
funds in line with the contract; updating
linkages with the donor’s interests and 1.2 The Resource
donors on the progress of the project –
strategy – and the organisation’s interests Development cycle
through reporting and showcasing the
3 4 5 and strategy. More information on this and
impact made. Stewardship is important 1.3 Basic principles of
how to cultivate donor relationships is Resource Development
and supports the cultivation of donor
covered in Module 4.
1 Analyse funding gaps: Organisations relationships.
need to look forward and project their funding 4 Cultivate relationships: Build Part 2. Resource
needs for at least the next three–five years. relationships to engage with prospective A lack of stewardship of donations Development approaches
This will involve looking at the funding donors. This can include: is the main reason why two-thirds of and options g
required to implement the organisation’s • Developing an engagement strategy for CSO donors do not continue to fund Part 3. Developing a
programmes against income that is already the donor with specific focus areas and an organisation.1 Resource Development
committed from existing donors as well as actions – what areas of cooperation strategy g
meet its operational costs/core costs (now could be of interest to the donor – policy?, 7 Evaluation: The evaluation of a Part 4. Other
and in the future). This step is important to technical cooperation?, Resource Resource Development strategy provides considerations for a
give the organisation a sense of the funding Development? Resource Development
an opportunity to review the impact of the
strategy g
required to achieve its aims. If this step is not • Developing partnerships with potential actions taken and reflect on what has worked
completed there is often a tendency for an implementing partners or coalitions on and what has not, and learn lessons for the
organisation not to understand what it needs the ground may support efforts to be future. More on the evaluation process is
to fundraise for, and react to the agendas of included within wider donor interests. covered in Part 4 of this Module. g
donors, rather than be driven by its own
5 Approach donors and ask for All seven components are important in
vision and Resource Development strategy.
funding: This could be in the form of developing and implementing a successful
2 Analyse the funding environment: a concept note, proposal, Expression of Resource Development strategy, and
After analysing funding gaps, the next step Interest (EOI) or a direct request (i.e. a letter each component demands resources of
is to analyse how the organisation will meet requesting funds). Information on developing an organisation – primarily the time
these gaps from diverse sources. proposals and concept notes is covered in of staff (or Board Members/volunteers).
Modules 2 and 3.
Questions to reader: Organisations
need to research donors and ask Once a request has been submitted to the
themselves the following questions: donor – organisations can add this to a
What are the possible donors in country, pipeline of projects which acts as list of
or outside the country that may be Resource Development requests submitted
interested in supporting the organisation’s and also save the funding asks/proposals
cause and work? What are the trends to a pipeline of projects to ‘market’ to other
among these donors and how is the donors – so that when an organisation finds
organisation best placed to meet these? a good donor match they have something
ready to offer to the donor.
Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev Next > 5
Module 1: Developing a Resource Development strategy

1.3 Basic principles of Resource Development Part 1. Introduction to

Resource Development
Basic principles of Resource Development 1.1 What is Resource
that organisations should consider Development?
1.2 The Resource
• Ensure your resourcing requests are consistent with • Build relationships based on shared areas of interest with Development cycle
your mission and values as you are raising funds in order donors (including technical staff) and communicate with a
1.3 Basic principles of
to implement your programme strategy. personal touch.
Resource Development
• Understand the donor’s priorities and show how your • Share your news. If your organisation or the issue you are
project aligns with and contributes to their strategy and working on is in the news for some reason – take advantage
Part 2. Resource
goals. To do this, you need to research the donor, their and use the free publicity to engage with donor, build a Development approaches
history, priorities and who else they have funded. relationship and raise awareness. and options g
• Understand how your organisation’s work is connected • Brand and reputation. The public reputation of an Part 3. Developing a
to and supportive of broader national or international organisation is crucial; you can build your credibility by Resource Development
strategy g
objectives. Have a good understanding of national policies engaging in a particular area – such as policy work or
and priorities, and how you can relate your work to ensure technical work on older people and ageing or working Part 4. Other
these are delivered, as well as how they relate to global policy directly with older people. Media work may also be crucial considerations for a
Resource Development
developments such as the Sustainable Development Goals and can be positive in supporting to build awareness of
strategy g
(SDGs). You will need to not only understand these but also your brand – but engaging with the media can also be risky
demonstrate how your organisation’s work contributes to if there is an anti-CSO agenda in your country. It pays
achieving these. to invest in good media relations (invite them to see your
organisation’s projects and understand your work). Anyone
• Showcase your organisation’s areas of expertise,
associated with your CSO (staff, board members, volunteers)
especially around the rights and needs of older people,
are ambassadors for the organisation, and need to be aware
ageing and inclusion. Ensure others have an understanding
of the importance of what they say and do and how it will
of the work your organisation does, how important your work
reflect on your CSO. Reputations are difficult to build, but
is, and how you are best placed to work with and for your
easy to destroy.
beneficiaries, as well as how your organisation’s work can
also contribute to achieve the overall objectives of the donor, • Retain donors. This is more cost effective than recruiting
and where relevant, national/global policy frameworks. new ones. Ensure accountability mechanisms are respected,
you engage donors and that donor reports are high quality
and submitted on time.
• Be organised! Keep a good database both of donors and
Engage effectively your projects pipeline.
with donors • Be accountable and say thank-you! It makes a big
Not with an open hand, but with difference – never take donors for granted – they have many
an invitation for partnership.
alternatives to you!

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 6
Module 1: Developing a Resource Development strategy

Qualities of a successful fundraiser 2 Part 1. Introduction to

Resource Development
• Passionate, confident and creative: A fundraiser must • Belief in networking: Raising funds involves engagement
1.1 What is Resource
believe in the cause they are supporting or are raising funds in all directions and it entails reaching out to people who Development?
for and understand how a donor’s money will transform lives matter and building good and strategic relationships with
1.2 The Resource
for the beneficiaries they are working with. Be creative and them. A fundraiser needs to understand the importance of Development cycle
constantly willing to learn about new ways of connecting networking, building relationships and maintaining regular
with people, asking for what is needed and explaining why. and meaningful communication with donors and prospective 1.3 Basic principles of
Resource Development
donors too.
• Story-telling craft: People love hearing stories of
transformation in the lives of others, rather than just • You are a go-getter: You set goals and targets for yourself
Part 2. Resource
problems they face. While it is important to explain the and your team, with the focus on end results. While you Development approaches
cause, it is actually the hope of ‘bringing about the change’ know that it is not just your efforts which will bring in the and options g
that makes a donor listen and engage. Develop short funds but many other factors also come into play, you
Part 3. Developing a
attractive case studies to support with engaging potential acknowledge the fact that Resource Development is a skill to Resource Development
donors. be acquired, and you diligently work towards mastering it! strategy g
• You know what to ask for: Understand the cause and Part 4. Other
the work of your organisation completely. Be aware of the considerations for a
resources (funds or technical expertise or partnership for an Resource Development
strategy g
event etc.) required, and for what purposes. Be prepared to
answer the donor’s queries about how you are going to make
use of the resources you ask for.
• Humility and honesty: Be humble while sharing the work Belief in networking
and successes of your organisation. It is always best to be Raising funds involves
engagement in all directions with
honest rather than misrepresenting facts or providing
donors and prospective donors.
incorrect information.
• You understand the donor: You undertake meticulous
research about the donors you are approaching, and
understand their requirements, portfolio, and business values
too. Prior to approaching a donor, you conduct a detailed
planning exercise with mapping of potential donors.
You know how to make a business case for your proposal,
whilst also making sure it meets their expectations and
fits into their business ideologies.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 7
Module 1: Developing a Resource Development strategy

Challenges of Resource Development Part 1. Introduction to

Resource Development
Some of the current challenges to Resource Development that • Funding Resource Development: Resource Development
1.1 What is Resource
should be considered include: rarely happens without investment, even if it is small scale Development?
time investment of one person asking for funds. Small
• Increasing competition: In most countries there is an organisations cannot often afford to invest large sums of 1.2 The Resource
ever-increasing number of CSOs looking for resources. money or staff in Resource Development, so the strategy
Development cycle
But the size of the ‘resource pie’ is not necessarily increasing has to take this into account and they have to plan 1.3 Basic principles of
and donors are becoming more cautious about investments. accordingly. Sometimes it might be prudent to do joint Resource Development

• Shrinking space for civil society: Despite the increasing Resource Development with other organisations – though
number of CSOs, many governments are making the due diligence assessments and a relationship of trust needs Part 2. Resource
operating environment more difficult. This creates to be in place first. Development approaches
uncertainties and therefore planning for the future is more and options g
• Brand and reputation: Organisations need to spend time
difficult. building up their brand and reputation to support with their Part 3. Developing a
Resource Development
• Unpredictable funding: Donors generally do not commit Resource Development efforts. strategy g
to long term funding. There are exceptions to this but
Part 4. Other
commitments of over three years from a donor are becoming considerations for a
rare, and funding now concentrates on delivering short term Resource Development
projects. Organisations will need to design and develop strategy g
programmes in line with their overall aims to help achieve
impact and sustainability required.
• Increasing donor demands: Every recipient of funding
has to be accountable for what they receive and spend.
But the demands of some donors in reporting can be very
burdensome. It is important to understand the contractual
obligations and ensure organisations have the systems
Azzam al-Zubairi/DEC

in place to meet the donors’ expectations.

Endnotes
1. Donor Centred Fundraising – P. Burk
2. Adapted from Funds for NGOs

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training
Module 1: Developing a Resource Development strategy

Part 2.
Resource
Development
approaches and
options
Frederic Dupoux/HelpAge International

Registered charity no. 288180. Copyright © HelpAge International 2021

 Resource Development Training < Prev Next > 2
Module 1: Developing a Resource Development strategy

Part 2. Resource Development

Part 1. Introduction to
Resource Development g

approaches and options Part 2. Resource

Development approaches
and options
The options available can be very contextual and may not be 2.1 What Resource
This section outlines the different types of available in every country. There are sometimes legal or cultural Development approaches
Resource Development approaches to consider constraints that prevent a particular method being used. With these does an organisation want
to adopt?
when developing a Resource Development issues in mind, each CSO needs to undertake a context analysis
strategy. and identify the different types of income that it wishes to target 2.2 Cooperation in
and for what area of work. Resource Development:
partnerships, consortia,
networks and platforms
2.1 What Resource Development For further information on some of the approaches
2.3 Entry points to donor
more popular with HelpAge global network members, see
approaches does an organisation Module 5.
partnerships

want to adopt?
Part 3. Developing a
Ideally, CSOs should never rely on just one form of Resource Resource Development
Development, however lucrative or secure it may seem at the time.
Grant income from institutions such as strategy g
When dependent on just one source of income it significantly bilateral donors, multilateral donors, commercial
Part 4. Other
increases the financial risk faced by an organisation. Having a contracts considerations for a
balanced mix of different income streams is essential for stability, Grants are normally sums of money that are designed to fulfil a Resource Development
resilience and sustainability. Creating the right mix of income strategy g
specific CSO need or implement a specific project. Support for
sources is also a major factor in encouraging other donors to development projects is normally secured by an application process
contribute to a cause, especially over the long term. Major grant to a grant making organisation that details what your CSO plans to
making organisations, corporate business and increasingly do, how it will do it, what difference it will make and how much it
individuals will be reluctant to contribute funds to a CSO if the will cost. Grant applications vary from just a short, unsolicited letter
organisation is too reliant on a single type of income that could end through to much larger and more demanding, technical and
at any point. A healthy mix of income sources reduces the likelihood multi-stage proposals than can take up to two years to generate
of financial collapse and also encourages donors to invest more a result. Grant income is often targeted by CSOs due to the size of
in an organisation than they might not otherwise do. contributions which can kickstart new projects, support to purchase
All organisations are different and operate in their own unique equipment and generally provide a large financial injection into
environments, but a general rule is if any income streams account the organisation. Due to the significant sums involved, most grant
for more than 30% of the total income there is a potential risk. opportunities are oversubscribed with rival competition meaning
The theory behind this rule is that CSOs give themselves a better that a significant amount of work and skill is required to be
opportunity to adapt without significant consequences if they successful.
suddenly lose 30% of their income, but if they lose much more it
becomes exceptionally difficult to survive in a meaningful way.
Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev Next > 3
Module 1: Developing a Resource Development strategy

International NGOs (INGOs) Trusts/Foundations Part 1. Introduction to

Resource Development g
INGOs operating in low and middle income countries are often Trusts and foundations are generally organisations with private,
looking for local partners to work with and help implement projects. sustainable income. They make grants to support individuals and
other charitable organisations. The type of funding they offer can Part 2. Resource
Tasks for reader: Explore which INGOs are operating differ for different trusts and foundations, but can include capital Development approaches
where your organisation works and the areas of work they funding, to core or project funding. Examples include Bill and Melinda and options

focus on. Gates Foundation, The National Lottery and The Wellcome Trust. 2.1 What Resource
Development approaches
There may be trusts and foundations where you work that offer
does an organisation want
By partnering with an INGO, a CSO can start implementing a grants. In the UK, USA, Canada and Europe HelpAge’s Supporting to adopt?
collection of projects that reach beneficiaries, build up the CSOs Members (HelpAge USA, HelpAge Germany, HelpAge Canada and
2.2 Cooperation in
reputation, as well as bring in a source of income, whilst the INGO Age International) will share funding opportunities with HelpAge
Resource Development:
takes on some of the administrative burden of donor compliance International who will circulate these with HelpAge network members. partnerships, consortia,
and reporting. networks and platforms
Major individual donors (sometimes called 2.3 Entry points to donor
Corporate High Net Worth Individuals – HNWIs) partnerships

Corporate funding comes in a wide variety of forms with the biggest A number of CSOs owe their existence to just a single individual
being corporate grants, employee fundraising and gift matching. who has either provided seed money or repeat injections of funding Part 3. Developing a
Throughout the world more corporations are investing in Corporate to support the organisation’s activities. Some individual donors Resource Development
strategy g
Social Responsibility (CSR) and ensuring they meet Environmental, will be sufficiently invested and supportive of an organisation’s
Social, and Governance (ESG) standards. In some countries such as mission as well as having the financial means to make significant Part 4. Other
India, CSR is enshrined in law. Similar to funding from grant making contributions. Attracting and nurturing these individuals involves considerations for a
Resource Development
organisations, securing corporate support can be extremely a different approach to smaller public donations or institutional
strategy g
competitive and generally it is best to approach companies that donors, with a greater investment required in building up a strong
your organisation has a synergy with. For example, a company relationship, including requiring the organisation to invest in one-on-
that specialise in products (such as spectacles) and services for one time to secure major gifts, often over several months or years.
older people (assistive devices) are more likely to support a cause
related to older people. General public
Sponsorship is another option for CSOs who can include a For many CSOs, especially in the developed world, individual donors
company’s name on a building, vehicle, promotional materials or have long been and continue to be the greatest source of funding
some other form of recognition in return for their support. HelpAge available. This is also common in countries with an established record
India teamed up with IEX as part of its CSR programme to sponsor of philanthropy. CSOs in India for example have reported that 75.7%
HelpAge India’s mobile medical vans and this included having their of them receive much of their income from individuals whereas just
logos on the vans for the period of partnerships. 24.3% reported that they receive the bulk of their income in the form
of grant funding. Individual donors can be targeted in many ways and
may be a less intensive form of Resource Development depending on
the context. It also allows a more personal approach to be taken with
key messaging around ageing and older people tailored to the specific
target group.
Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev Next > 4
Module 1: Developing a Resource Development strategy

Methods of public Resource Development: Part 1. Introduction to

Resource Development g

Part 2. Resource
Development approaches
and options
2.1 What Resource
1. Face to face fundraising 2. Online fundraising 3. Events fundraising Development approaches
does an organisation want
F2F as face-to-face funding is known, can An ever-increasing number of CSOs are Events are another source of funds for to adopt?
be a cost-effective way for CSOs to find turning to the internet to raise funds to many CSOs. From sponsored runs and
2.2 Cooperation in
new donors to their cause but is not support their work. The methods vary selling tickets for gala balls or concerts,
Resource Development:
appropriate in every country context. hugely from the basic donate button on CSOs often use events to raise both money partnerships, consortia,
This type of fundraising is characterised an organisation’s website through to and awareness of their work which help networks and platforms
by a representative requesting a donation crowdsource fundraising tools such as them to reach new audiences and attract
2.3 Entry points to donor
either on the street, in shopping centres, Kickstarter, Global Giving and Indiegogo. donors to other income streams. partnerships
at events and by visiting people’s homes. New opportunities are emerging all the Often organisations provide further
Either one-off donations or regular gifts via time with an ever-greater proportion of opportunities to donate in other ways at
credit cards can be solicited with the former charitable income stemming from online the event, whether through a simple Part 3. Developing a
Resource Development
often generating a better response and the sources. donations box, text giving, auctions, raffles
strategy g
latter offering greater returns over the long or sponsorship in the event program.
term. This tactic demands the ability to Events can be quite time consuming and Part 4. Other
considerations for a
sell the benefits of your CSO quickly and there is often competition so CSOs should
Resource Development
powerfully as the window to secure a be aware of what is demanded of them strategy g
donation is limited. CSOs will need to before deciding to raise money through
have a clear pitch of what their cause and events. It should be noted that events
mission are and how the funding will often need payments to be made before
help achieve this. it has happened, for a venue for
example. Therefore the ‘profit’ can only
be calculated after those costs have been
paid – and there is a risk of losing money
if not enough money is made.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 5
Module 1: Developing a Resource Development strategy

Social enterprise Campaigns Part 1. Introduction to

Resource Development g
Most Resource Development opportunities involve securing a Fundraising campaigns are conducted to raise a significant sum of
donation to support a project with little or no tangible return for a money, often for a specific cause, whether it is to provide support in
contribution. However, through a social enterprise, organisations are an emergency situation (such as earthquake or flood) or make major Part 2. Resource
able to trade and produce products and services at a cost. This is the purchases such as buildings and medical equipment. Campaigns are Development approaches
mainstay of most social enterprises who work to be sustainable by designed to encourage both new donors to support the organisation and options
selling something of value. This may be as big as a major service for the first time as well as encourage regular donors to make either 2.1 What Resource
to a government or as small as charity beneficiaries making small additional or larger donations than they would normally. Campaigns Development approaches
but regular contributions to support the organisation who provides can be conducted privately in person or among a smaller selection does an organisation want
services to them. FOPDEV is a great example of a HelpAge network of targeted donors as well as opened up to the greater public at large. to adopt?
member who have initiated the Buddy HomeCare social enterprise 2.2 Cooperation in
(a volunteer home-based care system for older people in Thailand). Resource Development:
HelpAge India, partnered with New Delhi Television partnerships, consortia,
Charity shops that sell second-hand goods are another notable
Limited to support senior citizens, who were the worst networks and platforms
example of CSOs using for profit tactics to support their non-profit
hit by the COVID-19 pandemic. The campaign aimed
activities. CSOs may also consider selling services such as training 2.3 Entry points to donor
to highlight the physical and mental impact on older partnerships
and consultancy (if they have an expertise that others need).
women and men and the importance of continued
inter-generational bonding, whilst also raising funds
Part 3. Developing a
to support the most vulnerable.
Resource Development
strategy g

In-kind gifts Part 4. Other

considerations for a
Contributions in the form of goods or professional services can Resource Development
be a great asset to a CSO and operates as a cost-effective way for strategy g
a business or corporation to offer effective support. Examples of
In-kind gifts include a telecommunications company donating
either phone handsets or discounted airtime to a CSO. This serves
to reduce costs for the CSO and allows them to spend a greater
proportion of their income on supporting their beneficiaries.
Another example could be a lawyer who is willing to give free legal
advice. Free gifts could come in any form and could include gifts
FOPDEV

for the organisation (such as office furniture) or gifts for the

programme (such as free medicines). In any of these cases, the
CSO will need to check if there are any conditions attached
(like promoting the company’s products in project materials) and
assess if this is an acceptable price to pay. For In-kind gifts, an
organisation will need to be comfortable that these are allowed
under the CSOs ethical Resource Development policy/guidelines
(see part 4 of the Module g) and relevant national legislation.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 6
Module 1: Developing a Resource Development strategy

2.2 Cooperation in Resource c. Networks and platforms are usually a group of organisations
with a common cause. The network may be a formal or informal
Part 1. Introduction to
Resource Development g
Development: partnerships, group of organisations that share information, support each other
consortia, networks and platforms technically, or do joint advocacy. Platforms are similar but would
have a focus on advocacy around a defined issue(s). Although there Part 2. Resource
It is important that a CSO considers partnerships, consortia, may be some rare exceptions, donors are unlikely to give funds to Development approaches
networks and platforms and how they will plan to work with others and options
networks or platforms directly unless they are legally registered as
when developing a Resource Development strategy as they may such, since the organisation would need to have the ability to open 2.1 What Resource
enhance (or hinder) the ability to attract funds from donors. a bank account. In these cases, it is more likely that one organisation Development approaches
does an organisation want
a. Partnerships may be with implementing agencies, or agencies would be appointed the ‘lead’ and would manage the funds on to adopt?
giving technical support. An organisation may either be the senior/ behalf of the network/platform.
2.2 Cooperation in
lead partner or the junior partner. In most instances, the senior/lead In any of the cases, an organisation will want to explore whether Resource Development:
partner will have direct responsibility for donor accountability and they want to be in the partnership, consortia, network, or platform. partnerships, consortia,
lead on donor engagement. The junior partner may see the senior networks and platforms
one as the ‘donor’ and the relationship is often defined by a sub- 2.3 Entry points to donor
contract i.e. the senior partner has a contract with the main donor; Questions to reader: partnerships
and in turn they will sub-contract the junior partner. As junior In each case, the type of questions to ask yourself include:
partners will often not hold the donor relationship they should
ensure that they have a trusted relationship with the senior partner, • Do we already have relationship with them? Part 3. Developing a
Resource Development
and are clear with them on what they are able to deliver and the • What value are you adding to the relationship? Be clear on strategy g
resources required to do so. your organisation’s role and your contribution to the Part 4. Other
b. Consortia are where there is more than one partner i.e. a intended partnership. considerations for a
minimum of three organisations. The contractual arrangements Resource Development
• What can they offer to us? strategy g
often vary, but like partnerships there is often one lead agency
(sometimes called the ‘prime’) and others who have a sub-contract • Do we have common interests? Common values?
(sometimes called ‘sub’). HelpAge network members are often the • Is there complementarity?
‘partners’ or ‘subs’ bringing expertise in older people’s rights and
ageing into a consortia. Consortia can be complex and time
consuming as there are many relationships to manage. But donors As with any partnership, an organisation will not want to formalise
increasingly like funding consortia as they can pass much of the it until it is satisfied that it will be comfortable in it and that there is
contractual administrative burden to the consortia lead and cover a enough trust to make it work. The level to which this ‘due diligence’
wider range of beneficiaries for increased social impact. As ageing (investigation and research into the organisation) is taken will
issues are often still seen as a niche area of work, there may be depend to some extent on the resources, and on the level of risk the
more opportunities for smaller CSOs to work in consortia and organisation is willing to take.
offer technical knowledge and expertise of ageing and inclusion
issues (e.g. disability, gender and other intersecting
characteristics).

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 7
Module 1: Developing a Resource Development strategy

2.3 Entry points to donor Part 1. Introduction to

Resource Development g
partnerships
Most donors like to think that they are more than givers of money.
They have their own policy related agendas and want to ensure that Part 2. Resource
Development approaches
their funds are used for effective social impact. Therefore, the entry and options
point to developing a relationship with a donor is often best not by
2.1 What Resource
asking for money, unless responding to a specific grant or funding
Development approaches
request. Many donors (especially the institutional donors) may does an organisation want
be more impressed if they know that your organisation can also to adopt?
contribute to their own knowledge of a particular topic. For example,

HelpAge International
2.2 Cooperation in
a UN agency may have a strong interest in social change but may Resource Development:
have little knowledge of the situation of older people, especially partnerships, consortia,
in parts of a country where they rarely (if ever) visit. networks and platforms
2.3 Entry points to donor
partnerships
It can therefore be a good ‘entry point’ to engage with a
donor at a technical and/or policy level by offering your Figure 2: Spheres
knowledge of the situation of older people and their rights of donor entry
Part 3. Developing a
and experiences. This may take the form of a one to one Technical Resource Development
cooperation strategy g
meeting, or sending them your latest research report, or
inviting them to your forum, or inviting them to visit the Part 4. Other
villages where you work, or any other method that they find considerations for a
Resource Development
convenient to learn more about older people. The key is strategy g
help them understand what issues older people are facing, Resource Policy
and how they can support. mobilisation dialogue

Often receiving a small grant from a donor leads to opportunities

to engage with them on policy issues, or leads to a greater degree
of technical cooperation and possible future funding. The main point to note here is that it is not always appropriate to
In this way, the entry point to accessing donors could be through dive into the relationship and ask for money straight away. It can
any one of these three spheres – funding leads to influence, be more prudent to establish common ground based on policy and
technical programme cooperation leads to policy dialogue and technical issues, and find out where your organisation can really
policy engagement leads to funding. add value, really contribute to support the donor in fulfilling their
mission (whilst at the same time fulfilling your organisation’s).

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 8
Module 1: Developing a Resource Development strategy

Some examples of entry points and donor engagement Part 1. Introduction to

opportunities are detailed below (these will be covered in more detail Resource Development g
in Module 4). It is worth looking down these 11 examples of donor
engagement since you may be able to build some of these into your
Resource Development strategy. Part 2. Resource
Development approaches
Figure 3: Entry points and options
2.1 What Resource
Development approaches
Technical Policy Resource does an organisation want
to adopt?
cooperation dialogue mobilisation 2.2 Cooperation in
Resource Development:
partnerships, consortia,
Learning and exchanges Joint advocacy and communication Fund management networks and platforms
2.3 Entry points to donor
partnerships
Joint programmes Research evidence for policy debates Grants, tenders and
cooperative agreements
Part 3. Developing a
Knowledge management Shared policy platforms
Resource Development
Building the capacity of partners strategy g
Norms and standards Issue specific engagement for resource mobilisation Part 4. Other
considerations for a
Resource Development
strategy g

Additional resources
A guide to different types of fundraising: Pros and cons:
https://donorbox.org/nonprofit-blog/different-types-of-fundraising/

NCVO specialist guides to safeguarding:

https://knowhow.ncvo.org.uk/safeguarding/checklists-training-and-other-support/specialist-guides/
safeguarding-for-fundraising-managers/types-of-fundraising-and-associated-risks

NCVO The 10 stages of consortium development:

https://knowhow.ncvo.org.uk/organisation/collaboration/consortia/the-ten-stages-of-consortium-development

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training
Module 1: Developing a Resource Development strategy

Part 3.
Developing a
Resource
Development
strategy
Kate Holt/Age International

Registered charity no. 288180. Copyright © HelpAge International 2021

 Resource Development Training < Prev Next > 2
Module 1: Developing a Resource Development strategy

Part 3. Developing a Resource

Part 1. Introduction to
Resource Development g
Part 2. Resource

Development strategy Development approaches

and options g

3. Build a brand and reputation: Beyond seeking funds, a Part 3. Developing a

Part 3 of this Module focuses on why a Resource Resource Development strategy allows an organisation to be clear Resource Development
Development strategy is important to guide an on what they would like to focus on to achieve their mission and strategy
organisation’s Resource Development efforts and helps to outline how they can do this. With a focused strategy, an 3.1 What is a Resource
focuses on the steps that need to be taken in order organisation can start to build a clear image of what it is doing, what Development strategy?
it wants to be known for, and develop a brand and strong reputation
to develop and implement a strategy. in delivery of its projects for donors.
3.2 Developing a Resource
Development strategy
4. Increase revenue sources and reduce dependency on 3.3 What information
3.1 What is a Resource Development donors: An organisation should avoid solely relying on one or two should be included in
a Resource Development
donors for support as there is a possibility that these organisations
strategy? could withdraw their support at any time. A Resource Development
strategy?

A Resource Development strategy is a written document that strategy enables an organisation to identify a broad base of donors Annex A. Template and
outlines an organisation’s plans to raise income and other needed to pursue, and more potential for securing funding from a wider completed example
resources for a set period of time. for Funding Gap Analysis
range of donors.
2021–23
5. Create a viable and sustainable organisation: Through a
Why does an organisation need a Resource Resource Development strategy an organisation can set goals which
Annex B. Donor mapping
matrix
Development strategy? can be measured and evaluated. This will help an organisation
A Resource Development strategy is essential for every organisation understand what works and enables it to determine what steps they
Part 4. Other
to: need to maintain their current operations as well as how to grow and
considerations for a
expand their operations. Resource Development
1. Support fulfil the organisation’s mission: A Resource
strategy g
Development strategy enables an organisation to develop a clear 6. Engage and encourage staff and other stakeholders:
plan on how to fundraise to achieve its aims and mission. A strategy and action plan can encourage staff to work together
to build a shared vision and understand what they are working
2. Survive: Raise funds to cover both core costs of an organisation, towards. It will also help support Trustees understand risks
as well as specific programme costs. associated with any Resource Development initiatives.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 3
Module 1: Developing a Resource Development strategy

Who needs to be involved in helping to develop Part 1. Introduction to

Resource Development g
a Resource Development strategy?
Part 2. Resource
A Resource Development strategy should be developed by a team Development approaches
(not a single person). Everyone has an interest in Resource and options g
Development success, and each team member will bring a different
perspective to the discussions. Depending on an organisation’s size,
it may not have all these specialist roles, but all staff can play a key Part 3. Developing a
role in developing a strategy: Resource Development
strategy
3.1 What is a Resource
Development strategy?
Finance staff Senior staff, including
3.2 Developing a Resource
can help with projecting incomes and
expenditure. They can also highlight
management and directors Development strategy
need to be involved throughout the process
where there will be shortages in core 3.3 What information
to ensure ownership at the highest levels
cost income. should be included in
of the organisation and to support with the
implementation of the strategy and plan. a Resource Development
strategy?

Annex A. Template and

Human resource staff completed example
can help with a skills audit and assess
whether your organisation has the Board members for Funding Gap Analysis
can bring knowledge of the donor market, 2021–23
skills ( or can get the skills) for different
types o  f Resource Development. and context and support with reaching out Annex B. Donor mapping
to donors through existing contacts etc. matrix

Programme staff Part 4. Other

can help with prioritising the work and
considerations for a
(with finance staff) projecting budgets.
Resource Development
Volunteers or interns strategy g
can support with conducting research
and analysis.
Resource Development/
fundraising staff
can coordinate the process of
developing the strategy and lead on
developing it.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 4
Module 1: Developing a Resource Development strategy

3.2 Developing a Resource Part 1. Introduction to

Resource Development g
Development strategy Part 2. Resource
Development approaches
Before developing a Resource Development strategy an organisation
and options g
must think through and understand some key areas to ensure the
strategy is appropriate, relevant and proportionate to its size. It also
needs to ensure it meets the objective set – achieving existing
Part 3. Developing a
funding needs, organisational growth to increase impact, or
Resource Development
maybe a specific goal. strategy
An organisation should consider, analyse and discuss the following 3.1 What is a Resource
four key steps before writing a Resource Development strategy: Development strategy?
3.2 Developing a Resource
Development strategy
3.3 What information
should be included in
a Resource Development
strategy?

Annex A. Template and

completed example
for Funding Gap Analysis
2021–23
1. What are your Resource 2. What is the context that your 3. Which donors are your 4. What resources can your
Annex B. Donor mapping
Development goals? organisation is operating in – targeting? – research and organisation commit to matrix
both internal and external? donor mapping is key to Resource Development?
successful donor prospecting
Part 4. Other
considerations for a
Resource Development
strategy g

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 5
Module 1: Developing a Resource Development strategy

Part 1. Introduction to
Resource Development g
Part 2. Resource
Development approaches
and options g

1. Resource Development goals 2. Context analysis – analyse the internal and

Part 3. Developing a
Your organisation needs to be clear about its ambition in line external environment Resource Development
with its mission and vision, and what it wants to achieve through strategy
A context analysis should be undertaken to analyse the
its Resource Development strategy. The focus should be on environment in which your organisation operates; focusing on both 3.1 What is a Resource
understanding your Resource Development targets. The following the internal and external environment. Development strategy?
questions can act as a starting point to support an organisation 3.2 Developing a Resource
in doing this: Internal Development strategy

• What funds does your organisation need to raise – How much? An organisation must undertake an internal context analysis – 3.3 What information
should be included in
For what? By when? to do this, you will need to review the organisation’s Resource
a Resource Development
Development targets as detailed in point 1 (left), whilst also being
• Does your organisation want to remain the same size as it is strategy?
clear on understanding what the internal situation of the
now? Annex A. Template and
organisation is:
completed example
• Does your organisation want to grow? If so, be clear on why and
• Undertake a SWOT analysis within your organisation for Funding Gap Analysis
by how much per year? In which areas would you like to see 2021–23
– analysing your organisation’s Strengthens, Weaknesses,
growth?
Opportunities and Threats Annex B. Donor mapping
• Are there areas that your organisation is no longer suitable to matrix
• Analysis of the CSO’s funding gaps. It is important to
or interested in working on?
divide the analysis into core costs and programme costs.
• What is the difference between your organisation’s restricted The programme cost projections should be based on your Part 4. Other
and unrestricted income? What would you like it to be? programme strategy. The gaps identified becomes your Resource considerations for a
Resource Development
• How much does your organisation need to support its core costs? Development target. See Annex A for a Funding Gap Analysis strategy g
template g
• What are your funding needs? Is it for core funding (to
support with your operating costs that do not directly relate to
a specific project (e.g. office rent, salary of non-project staff) or
is it funds for a specific activity or project. Part 4 of this Module
provides more detail on this g)
• Understand the resources you can commit to Resource
Development

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 6
Module 1: Developing a Resource Development strategy

External Part 1. Introduction to

Resource Development g
When creating your organisation’s Resource Development strategy, it is essential to consider the surrounding business
Part 2. Resource
environment. To do this, you should undertake an analysis of the Political, Economic, Socio/Cultural, Technological, Legal
Development approaches
and Environmental (PESTLE) situation that the organisation operates in, to gain an understanding of both opportunities and and options g
threats that may affect its operations as well as those of the donors and other CSOs that are operating within the country.
Context analysis research will include asking and analysing the following:
Part 3. Developing a
Resource Development
P E S T L E strategy
3.1 What is a Resource
Political factors Economic factors Socio/cultural Technological Legal factors Environmental Development strategy?
Gaining an under- Economic status of the factors factors Understand laws and factors
3.2 Developing a Resource
standing of the political country in which the Social trends: Identify Consider any relevant regulations: It is Consider the impact Development strategy
environment your organisation operates current and future giving technological trends important to know of your operations
organisation is operating in: Is the country going trends in your country – that are occurring in and understand what on the surrounding 3.3 What information
in: How stable is the through a period of from governments, private relation to Resource legislation regulates environment or how should be included in
political environment? economic growth or sector and individuals. Development: For Resource Development the environment will a Resource Development
What political factors are decline? How stable Are there any specific example, advances in the country and impact your operations: strategy?
likely to affect your is the economy? social and cultural trends in online Resource how this affects the Organisations should Annex A. Template and
Resource Development Also consider whether that you should consider Development options organisation’s ability to consider environmental completed example
operations? What is the significant fluctuation in in raising funds with are evolving. Are these raise funds. Are there policies they need to for Funding Gap Analysis
government’s attitude to exchange rates or interest different groups? relevant to your specific restrictions adhere to or how the 2021–23
Resource Development? rates may have any effect organisation? And if so, on how money can be weather/climate will
Are there any national on securing grants from Understand attitudes: raised, especially from Annex B. Donor mapping
how can you maximize impact how they
or international policies international donors? What is the public’s the public? Be clear matrix
opportunities with implement their projects,
which promote the work attitudes to funding on what you are legally
Economic trends: Are technological advances? as well as consider the
you do? – specifically charities? How do they allowed to do. Are there
there any trends which ethics of supply chains
looking at age inclusive feel about ageing issues any restrictions to the Part 4. Other
may affect a donor’s ability in their environmental
policies at national or and your organisation’s types of donors that considerations for a
to fund your organisation? analysis. Trending
regional level (such as other causes? can operate within the Resource Development
– for example if looking environmental concerns
Protocol on the Rights country? such as climate change strategy g
at public fundraising – What is the knowledge
of Older Persons in of the issue your and commitments to
you should investigate
Africa or the Inter- organisation is working look at more sustainable
whether disposable
American Convention on: Do individuals and resources as part of
incomes are rising or
on the Protection of the donors understand the business operations
falling, and whether they
Human Rights of Older ageing agenda? How can should be considered
are expected to rise or
Persons) or international you increase awareness as well as specific
decline in the future?
policy frameworks such of this amongst potential environmental concerns
Or if you are looking at
as the SDGs. donors? Are there areas being raised by the public
international donors, will
they be subject to any of untapped potential that and others in the country
additional costs or taxes? your organisation could that you operate in.
be exploring?

... These questions will require research and should be used to build an understanding of the context in which an organisation, Reg charity no. 288180
as well as donors, are operating within. © HelpAge International 2021
 Resource Development Training < Prev Next > 7
Module 1: Developing a Resource Development strategy

Part 1. Introduction to
Resource Development g
Part 2. Resource
Development approaches
and options g

3. What donors to target and donor mapping • What are you doing to keep your current donors on board?
And what more could you do? Better reports? Stories for their
Research into potential donors (both existing and new donors) publications? Field visits? Meetings? Do you have a clear Part 3. Developing a
is a key exercise to enable an organisation to understand the communication plan? This topic will be revisited in Module 5.
Resource Development
background of donors, their giving history and preferred methods strategy
of funding. A donor mapping exercise will support an organisation • Can you increase funding from current donors? Generally, donors 3.1 What is a Resource
in identifying the opportunities that a particular donor presents want to start by giving small amounts, but may increase if they Development strategy?
to them and whether they are worth pursuing. are satisfied that their donation is having a good impact. 3.2 Developing a Resource
Development strategy
In this section, we will look at some initial questions to consider Who else do you want to target as a new donor?
when undertaking donor mapping but more details on how to Donor mapping is key to identifying new donors as it will help
3.3 What information
undertake donor mapping and donor engagement will be covered should be included in
you strategise and focus your Resource Development efforts by a Resource Development
in Module 4. identifying which donors fit your needs compared to others. strategy?

Who are your current donors? By mapping out donors, you should be able to identify:
Annex A. Template and
It is much more cost efficient to retain your existing donors than • Which prospective donors can be explored further? What completed example
for Funding Gap Analysis
to attract new ones. Never take your organisation’s existing donors opportunities are worth investigating and how will these help
2021–23
for granted – part of your Resource Development strategy is meet your organisation’s aims and vision?
Annex B. Donor mapping
‘stewardship’ and ‘cultivation of relationships’. Although the latter • What are the short term and long-term timelines for these matrix
had a place in the Resource Development Cycle, in reality the donors? Are they easy wins or will it require longer term
process of developing/maintaining relationships is ongoing. engagement plans?
So, whether your current donors are members of the public, or Part 4. Other
corporations, or large government institutions, these questions • Do you have any existing relationships or contacts with these considerations for a
donors that you could maximise? Resource Development
will apply to all:
strategy g
• How loyal are they? What is their history with you? Have they • How will you connect to and reach out to the donor?
been with you a long time? How long? An example of a donor mapping matrix to support your mapping
• Do you take them for granted? Do you assume that they will efforts can be found in Annex B of this Module g.
always be with you? Is there a danger of complacency?
• How are you accountable to them? Are you giving them want
they want such as reports (narrative and financial) and success
stories – and are they of good quality? What you give may differ
according to type of donor e.g. institutional, corporate, trust,
individual. Have you checked with them that they are satisfied
with your reports?

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 8
Module 1: Developing a Resource Development strategy

Part 1. Introduction to
Resource Development g
Part 2. Resource
Development approaches
and options g

4. What resources do you have in place for your • Board Members: small organisations often rely on their Board
Resource Development strategy? Members to support Resource Development. Some ways in which
Board Members can support Resource Development include: Part 3. Developing a
To develop and implement a Resource Development strategy you Resource Development
need to ensure your organisation has resources in place to support • Advocacy: Board Members may have contacts within the strategy

your plans. Key areas to consider include: government which can be used for advocacy in support of 3.1 What is a Resource
older people’s causes. Development strategy?
Organisational systems
• Involvement with donors: Some Board Members, passionate 3.2 Developing a Resource
• Do you have the systems in place to monitor and evaluate your on the cause of older people and their rights, may devote their Development strategy
Resource Development? time freely to engage with donors. 3.3 What information
should be included in
• Do you have methods in place to track donations and report • Networks: Board Members will have their own networks and a Resource Development
impact even before you seek support? may be able to connect your organisation to potential partners strategy?
• Evidence and documentation: does your system produce the for implementation, technical cooperation etc.
Annex A. Template and
evidence that you need to demonstrate success? Case studies, • Diverse expertise: Your board might have highly completed example
personal stories, statistical data, evaluation reports. These can knowledgeable people from diverse fields and backgrounds for Funding Gap Analysis
provide the evidence that convince potential donors that their 2021–23
e.g. lawyers who will give free legal advice.
money will be well spent. Annex B. Donor mapping
• Volunteers: in addition to Board Members, there may be people matrix
Human resources with a passion for your organisational mission and the rights of
Smaller organisations often cannot afford to appoint full-time older people, who may be willing to support you in Resource
Part 4. Other
Resource Development staff, so therefore need to be more creative Development, even if they are not paid. Some ways in which
considerations for a
than those who can. It is impossible to guide every organisation in volunteers could be used include: Resource Development
this type of training as initial capacities are so variable, but these • Bringing in passion and enthusiasm: volunteers are strategy g
are some general issues to consider in developing a strategy: passionate people who are contributing their time towards
• Staff: your organisational structure should enable you to a cause. They often bring a lot of new ideas to the table.
designate the tasks to people within the organisation as per their • Undertaking research: volunteers can support in undertaking
capacities and skills. You may also need to invest in developing research and analysis on your behalf.
their Resource Development skills.
• Spreading the word: being associated with a cause makes
them happy. And most volunteers are happier in spreading the
word about a cause they are associated with. This can really
work well if you have a campaign or any specific Resource
Development events or activities.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 9
Module 1: Developing a Resource Development strategy

• Multiplying donor network: this is a much hidden and lesser Financial resources Part 1. Introduction to
explored aspect of volunteer fundraising. You might already Resource Development g
Most donors do not want, and do not allow, their project funds to be
have a donor network, containing several donors who have invested by you for further Resource Development. In this way, the Part 2. Resource
contributed to your organisation in past, and some may also cost of Resource Development must be covered from unrestricted Development approaches
be continuing their support. Some of these donors would have and options g
funds which have not been allocated to a particular cause. These
been one-time contributors, while some would have been types of funds are scarce, and therefore the question of how they
recurrent donors and ardent supporters. Some of these donors are used is crucial. Even if you have enough to employ a fulltime
can be turned into fundraisers. This could work for example if ‘Resource Development Officer’ there is still the question of which Part 3. Developing a
you were organising a sponsored event to raise funds where Resource Development
skills you want that person to have – for example, writing a solid strategy
these volunteers would help by getting sponsors. project proposal requires quite different skills to running a public
3.1 What is a Resource
• Exploring platforms and ideas: volunteers can bring creative Resource Development campaign. Or you may want to allocate some
Development strategy?
and innovative ideas to communicate impact, success stories of your budget in developing a good brochure to give to donors, or
to develop an attractive website or social media platform. All types 3.2 Developing a Resource
and use as a Resource Development pitch. One example may Development strategy
be, students putting up a stall for creating awareness about a of Resource Development requires a degree of financial investment
cause or campaign, in their college/university. unless you have Board Members and volunteers who are willing 3.3 What information
to donate their time and expertise free of cost. should be included in
• Contributing to other activities as required: your volunteers a Resource Development
are good at multi-tasking, and they possess a lot of skills too. strategy?
Next steps:
These skills can be beneficial if used. For example, if an Annex A. Template and
accounts person is among your volunteers, you can always 1. Analyse the research and information gathered in the above steps completed example
take his/her advice about your accounting processes, even as a team, consider what options are best for your organisation for Funding Gap Analysis
and the best methods to pursue these (Modules 4 and 5 can 2021–23
guidance and training to your staff.
support by providing more information on donor scoping and donor Annex B. Donor mapping
• Volunteers can also support you in running events. engagement, as well as different types of funding opportunities). matrix

2. Pull the information together from the steps outlined and your
discussions to develop your organisation’s Resource Part 4. Other
Development strategy. considerations for a
Resource Development
strategy g

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 10
Module 1: Developing a Resource Development strategy

3.3 What information should be Part 1. Introduction to

Resource Development g
included in a Resource Development Part 2. Resource

strategy Development approaches

and options g
There is no ‘correct’ way to present a Resource Development The duration of the Resource Development strategic plan ideally
strategy – there is no ‘one size fits all’. A small organisation may would be the same as your organisational/programmatic strategy.
just need a simple projection of costs and a list of potential donors This is logical since you will want to know where the funds are coming Part 3. Developing a
that will produce an income to meet that level of cost. However, from to pay for the programme that you have planned. Typically, this Resource Development
a large organisation may need something a lot more complex. would be for a three – five year period, though it could be longer. strategy
The strategy document is not as important as the process of 3.1 What is a Resource
For the Resource Development strategy itself, there is no universal
developing it, i.e. the analysis and discussions that will take place Development strategy?
template. The example structure below, captures the essential parts
to develop it. 3.2 Developing a Resource
of a Resource Development strategy:
Development strategy
3.3 What information
should be included in
Resource Development strategy and action plan a Resource Development
1. Introduction – state the organisation’s mission and vision 6. Donor cultivation – present an action plan (refer to strategy?
as a reminder of what you are fundraising for Module 4 for more information) on how you will develop Annex A. Template and
relationships with selected donors and who will lead on completed example
2. Strategic Resource Development objectives – outline
each area/task (this will act as the Resource Development for Funding Gap Analysis
the fundraising objectives and the period that the strategy 2021–23
action plan)
covers
Annex B. Donor mapping
7. Stewardship – how you will ensure good management
3. Analysis of the current funding position and the matrix
and donor accountability (refer to Module 4 for more
funding gaps – outline the organisation’s current funding
information)
situation and any funding gaps (see Annex A for a template
Part 4. Other
for analysing funding gaps which can act as an annex to the 8. Risks – outline any risks associated with the Resource considerations for a
strategy g) Development plan and how you propose to mitigate these Resource Development
strategy g
4. Context analysis – a summary of the current funding 9. Ethical considerations – comment on the organisation’s
context based on the external and internal analysis (trends, ethical policy/guidelines and any donors you will not raise
successes and areas for development) funds from
5. Analysis of funding opportunities – which mix of donors 10. Monitoring and evaluation – detail how and when you
will you choose and why? (see Annex B for a template of monitor and evaluate the Resource Development strategy?
a donor mapping matrix g) This should be an ongoing process and you should be able
to learn from the different initiatives and the overall plan.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 11
Module 1: Developing a Resource Development strategy

Part 1. Introduction to
Additional resources Resource Development g
Part 2. Resource
Further reading Development approaches
and options g
How board members can play a role in resource mobilization:
www.fundsforngos.org/ngo-management-resources/board-members-can-play-role-resource-mobilization/

Organizational preparedness for resource mobilization: Part 3. Developing a

www.fundsforngos.org/featured-articles/organizational-preparedness-resource-mobilization/ Resource Development
strategy
Fundraising and marketing for CSOs (FHI360): 3.1 What is a Resource
www.fhi360.org/sites/default/files/media/documents/Fundraising_and_Marketing_for_CSOs.pdf Development strategy?
3.2 Developing a Resource
Videos
Development strategy
Fundraising strategy: 3.3 What information
www.youtube.com/watch?v=s3oVbU5A9Zs should be included in
a Resource Development
Internal fundraising environment: strategy?
www.youtube.com/watch?v=LuJ4klIIW8A
Annex A. Template and
completed example
Smart fundraising objectives: for Funding Gap Analysis
www.youtube.com/watch?v=ItaN0MvGOA0 2021–23

SWOT analysis: Annex B. Donor mapping

matrix
www.youtube.com/watch?v=Rrzl7SpV_nI

Part 4. Other
considerations for a
Resource Development
strategy g

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 12
Module 1: Developing a Resource Development strategy

Annex A.
Part 1. Introduction to
Resource Development g
Part 2. Resource
Template and completed example for Funding Gap Analysis 2021–23 Development approaches
and options g

Item Year 1: Year 2: Year 3: Total Potential

2021–22 2022–23 2023–24 remaining donor(s)
to be raised Part 3. Developing a
Resource Development
Total Committed Remaining Total Committed Remaining Total Committed Remaining strategy
required to date to raise required to date to raise required to date to raise
3.1 What is a Resource
Core costs Development strategy?

CEO 75,000 70,000 5,000 75,000 40,000 35,000 75,000 40,000 35,000 75,000 3.2 Developing a Resource
Swedish Development strategy
salary
embassy
corporates 3.3 What information
Finance 45,000 40,000 5,000 45,000 15,000 30,000 45,000 5,000 40,000 75,000
Dir salary should be included in
a Resource Development
Office 5,000 5,000 0 5,500 3,500 2,000 5,500 2,000 3,500 5,500 Project strategy?
rent core costs
Annex A. Template and
Total core 10,000 67,000 78,500 155,500 completed example
costs for Funding Gap Analysis
2021–23
Programme costs
Annex B. Donor mapping
OPA 50,000 50,000 0 50,000 40,000 10,000 50,000 10,000 40,000 50,000 UNDP matrix
project

NCD 150,000 130,000 20,000 200,000 130,000 70,000 200,000 130,000 70,000 160,000 HSBC Part 4. Other
project Bank
considerations for a
OP literacy 25,000 25,000 0 25,000 25,000 0 25,000 0 25,000 25,000 UK Resource Development
project Trusts strategy g

Projected 0 0 0 100,000 0 100,000 150,000 0 150,000 250,000 DFID

new project
on OP rights

Total 20,000 180,000 285,000 485,000

programme
costs

Total 30,000 247,000 363,500 640,500

funding
gap

Please note: the first column would need to be adjusted according to the reality of your organisation
OPA = Older Peoples’ Association
NCD = Non-Communicable Diseases Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev Next > 13
Module 1: Developing a Resource Development strategy

Annex B.
Part 1. Introduction to
Resource Development g
Part 2. Resource
Donor mapping matrix Development approaches
and options g

Donor name Donor type Contact details Donor’s priority Donor position on Known funding Actions
of existing areas and organisation’s area opportunities
relationships geographical focus of focus Part 3. Developing a
Resource Development
State the donor’s State type of donor Details of any List the donor’s What is the donor’s Detail any funding Note key actions you strategy
name i.e.: existing contacts priority areas and position on your opportunities or will take: 3.1 What is a Resource
• Institutional you may have geographical focus organisation’s area mechanisms which • Identify key contact Development strategy?
• Bilateral of focus? are relevant for your points
Multilateral Older people organisation – 3.2 Developing a Resource
• • • Develop an action
Trust/Foundation Ageing when will they be plan for engagement Development strategy
• •
• Corporate • Inequalities launched? • Send them 3.3 What information
• Public • Health information on should be included in
• Social income X project, older a Resource Development
• Emergencies/ people’s needs strategy?
humanitarian analysis, invite
them to project Annex A. Template and
Do they have a policy completed example
sights or engage
on older people’s for Funding Gap Analysis
them in designing
rights or rights in 2021–23
a new proposal
general?
Annex B. Donor mapping
Have they funded matrix
similar organisations
in different countries
or within your own Part 4. Other
country? considerations for a
Resource Development
strategy g

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training
Module 1: Developing a Resource Development strategy

Part 4.
Considerations
for a Resource
Development
strategy
Jonas Wresch/Age International

Registered charity no. 288180. Copyright © HelpAge International 2021

 Resource Development Training < Prev Next > 2
Module 1: Developing a Resource Development strategy

Part 4. Considerations for a

Part 1. Introduction to
Resource Development g
Part 2. Resource

Resource Development strategy Development approaches

and options g
Part 3. Developing a
Resource Development
4.1 Resource Development for • It is particularly important to understand each donor’s rules
and regulations around supporting core costs. When in doubt,
strategy g

programme costs and for core costs3 check with the donor.
Part 4. Considerations
For any organisation it is essential that the core Why is core funding important? for a Resource
Development strategy
costs are covered by its income. However, many • Core funding is important for the long-term financial
4.1 Resource Development
donors only offer grants for project activities and sustainability of a CSO and its effective functioning.
for programme costs and
only allow a small percentage for core costs. Donors will often state that they want their money to go to the for core costs
beneficiaries – but it is important to explain to such donors that
Your organisation should understand what its core without core funding the beneficiaries will not be reached at all, 4.2 Restricted and
costs are and identify how it will cover them. and certainly not with high quality services. It is key that donors
unrestricted funding

understand the importance of core costs, and the consequences 4.3 Ethical Resource
Development
of underpaying core costs. For example, it may result in project
What is core funding? staff being unsupported to deliver the activities, and the quality 4.4 Evaluating a Resource
of work will suffer. Development strategy
• Core funding is usually defined as financial support that covers
basic ‘core’ organisational and administrative costs of a CSO, There are important long-term benefits of core funding to consider: Annex C. Ethical fundraising
including salaries of non-project staff, rent, equipment, utilities, policy template
communications and other operational costs. These costs are • Improving project quality: Core funding improves CSO capacity
often required to support an organisation’s function and if you do to deliver high-quality projects by ensuring staff are trained and
not have income to pay for these core costs, then the organisation have the tools to perform. Core funding may also provide cost-
may cease to exist. saving over a period, as high-quality CSOs can deliver projects
better, quicker, and more efficiently.
• Core funding is sometimes called indirect funding, cost recovery,
administrative cost, or overheads. Core funding should be • Enable an organisation to develop good organisational policies
understood as covering expenses that are required to keep the and ensures their compliance. This could include good
CSO functioning independent of any projects being implemented. governance, financial control, human resource policy,
safeguarding etc.
• Donors may have their own specific definitions and rules
covering core funding. Some donors have strict guidelines on
how core costs should be reflected in the budget and spent, while
others are more flexible. Some state a fixed percentage of direct
costs can be charged as core costs (typically between 6% and
15% depending on the donor). Other donors insist on itemising Core funding
covers salaries of non-project staff and
core costs line by line – if so, do it based on the latest operational costs such as rent, equipment,
organisational budget (unless directed otherwise). utilities and communications. Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev Next > 3
Module 1: Developing a Resource Development strategy

How can organisations get core funding? • Where possible, include ‘core costs’ as ‘project costs’. This will Part 1. Introduction to
depend on the donor’s rules, but it might be possible, to include Resource Development g
• Identify donors that are more likely to provide core funding or a percentage of the Director’s salary in the project budget. Part 2. Resource
indirect costs. When researching donors, many will state on their For example if there are five projects, 20% of the salary to the Development approaches
website whether or not they will provide core funding (some will project for their role in ‘human resources’ – this is especially true and options g
not). If unsure, organisations should ask the donor what their of smaller CSOs where the Director may be more ‘hands on’. Part 3. Developing a
policy is on core funding. Resource Development
strategy g
• Ask current donors for core funding. Donors that have provided What if a donor is not willing to pay for core
funding to you before are likely to be more receptive to requests funding?
for core funding.
• Do not be shy in pushing the donor to include core budget as the Part 4. Considerations
• Understand the amount of core funding you need. cost of excluding those can be high. Use some of the reasoning for a Resource
highlighted above to argue the case. Development strategy
One technique is to divide the annual core budget by the 4.1 Resource Development
annual total CSO budget. This will give you an average • Ask the donor if the core cost directly related to the project can
for programme costs and
percentage of the budget that is core funding. e.g. if you be included as specific budget lines. Stress that you have a for core costs
have a $100,000 annual total budget, and the core costs responsibility to cover your organisation’s core costs and that you
4.2 Restricted and
are $15,000, the average core funding percentage is aim for these costs to be met equally between donors. Be willing
unrestricted funding
15,000/100,000 = 0.15 = 15%. Knowing this, you should aim to walk away from a grant if it is detrimental to your CSO.
4.3 Ethical Resource
to include at least 15% or more core costs in every project • Look to see if there are ways of reducing the core costs without Development
budget. This is not always possible but where you fall short, the quality of programme work suffering. 4.4 Evaluating a Resource
you then know you must raise the balance from elsewhere. Development strategy
• Accepting too many grants that do not cover core expenses is
a major risk to smaller CSOs. Annex C. Ethical fundraising
• Any budget submitted to a donor should include the core costs policy template
associated with that project. In other words, the percentage you
have calculated as core (see above).
For example: if the budget request to the donor is $10,000 and
the core costs are 15% of the budget, you should include at least
$1,500 of core cost either as specific budget lines, an overhead Without core funding
percentage, or a combination of both. to cover operational costs, an
organisation could be put under major
• Develop funding proposals that focus on organisational risk of being able to operate.
development and sustainability – some donors are interested in
developing organisational capacity. Where this is not possible,
build such capacity development into all other proposals –
donors are often interested in building the human resource
capacity of CSOs based in lower and middle income countries.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 4
Module 1: Developing a Resource Development strategy

4.2 Restricted and Unrestricted An increasing number of donors are open to adaptive programming
so adjustments can be made to the project design as lessons are
Part 1. Introduction to
Resource Development g
funding learnt during implementation. There is more opportunity for Part 2. Resource
Whilst most funds have some restrictions or requirements attached organisations to suggest this to their donors from the outset and Development approaches
keep them engaged throughout the programme, building a strong and options g
to them, there are two types of income that a CSO may receive –
‘Restricted’ and ‘Unrestricted’. relationship with the donor. However, all organisations should Part 3. Developing a
strictly follow the guidelines in the contract otherwise the donor Resource Development
strategy g
Unrestricted funds may demand the repayment of funds.

Unrestricted funds are donations that an organisation can use

for any purpose, if it meets the aims and objectives of the
organisation as outlined in their governing documents. Many
4.3 Ethical Resource Development Part 4. Considerations
for a Resource
organisations use unrestricted funds to support operating costs or Development strategy
areas of work that are difficult to raise funds for. Only the donor can
What is Ethical Resource Development?4 4.1 Resource Development
determine if a donation is restricted or not and this can be outlined Ethical Resource Development attempts to balance the need of for programme costs and
in a formal offer or through another explicit agreement with the for core costs
organisations to raise money for their work whilst ensuring that the
organisation. funds or resources are secured in a fair way and from trusted and 4.2 Restricted and
legal sources. unrestricted funding
Unrestricted funding gives organisations more freedom to decide
4.3 Ethical Resource
how it can best use the money for the greatest impact or meet
an urgent need. For example, it may be spent on implementing Why is Ethical Resource Development Development

a new strategic programme, or on building up the reserves of important?5 4.4 Evaluating a Resource
Development strategy
the organisation, on co-funding requirements or on core costs.
It is the right thing to do
An organisation may decide to ‘ring-fence’ or allocate some of Annex C. Ethical fundraising
these unrestricted funds to a particular project but the money Organisations should ensure that their values are reflected in the policy template
remains unrestricted. way they approach Resource Development. This is important as it
builds trust, is honest and respects the rights of donors and those
Restricted funds benefitting from the funds.
Restricted funds are donations or grants that must be spent on It protects and enhances a CSO’s reputation
delivering a specified set of activities or a specific project to
achieve a set outcome or objective. If an organisation is caught up in a funding scandal it makes it much
harder to achieve the CSO’s mission, as it is possible other donors
Many donors want to know exactly what they are funding and for the may withdraw their support or not give further funding. If ethical
organisation to be accountable for a specific project. This may be Resource Development has been at the centre of Resource
true for members of the public who want to know that their donation Development practice from the beginning, it will be more straight
has contributed directly to changing someone’s life for the better, or forward to become established as a trustworthy organisation,
for large bilateral donors who are accountable to their taxpayers and reassuring donors to give and beneficiaries will feel comfortable
who therefore need to know exactly what impact their specific funds using your services.
have had.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 5
Module 1: Developing a Resource Development strategy

Better donor relationships, retention and development Your organisation should decide what its ethical Resource Part 1. Introduction to
Development principles are. Consider, would your organisation take Resource Development g
By establishing a CSO as a trustworthy organisation, organisations
will also be more likely to create better relationships with your money from donors who promote, or who make their money from: Part 2. Resource
Development approaches
donors. Potential sponsors will begin to support your organisation’s • Alcohol? and options g
mission without any doubts about how their money is being used.
• Tobacco? Part 3. Developing a
In fact, if your supporters respect your CSO they are more likely
to give repeatedly and give more. Ethical Resource Development • Fast food? Resource Development
strategy g
will ensure donor retention and the potential for developing the • Gambling?
relationship with your donors can expand. • Pharmaceuticals?
Save organisations money! • Arms industry? Part 4. Considerations
• Organisations that exploit women/girls? for a Resource
Ethical Resource Development practice will ensure that Development strategy
organisations are reaching the people that you want to connect with An organisation should bring together its staff to discuss and decide
4.1 Resource Development
and who are therefore more likely to pay attention to your appeal. what type, and sources, of funding is acceptable and what is not. for programme costs and
This may mean mailing fewer people, but if they are open to hearing This should inform the organisation’s principles for ethical Resource for core costs
from you, it will prove to be more cost effective. Development and the decision-making process for all funds raised.
4.2 Restricted and
An example Ethical Fundraising Policy Template can be found in unrestricted funding
Principles of Ethical Resource Development Annex C g.
4.3 Ethical Resource
Part of Ethical Resource Development is deciding from whom you Due diligence Development
are willing to receive funds. It is imperative that you do not accept 4.4 Evaluating a Resource
It can be difficult to identify the source of funds, but you can
donations that have the potential to impact negatively on your Development strategy
conduct a due diligence review on any new donors before
organisations integrity or reputation or conflict with your cause
agreeing to take money from them. This can be time consuming Annex C. Ethical fundraising
and values.
and the organisation must agree what process it recommends. policy template
If you know that the source of the funds conflicts with your There is always a judgement about how much time to invest in
organisational values, then by accepting the funds you risk the this activity. Websites are available which offer an ethical ‘rating’
reputation of your organisation. function for listed companies, sometimes they charge a fee or you
must subscribe to access full information. These should only serve
as a guide, but examples are:
• www.corporatecritic.org
Covers 50,000 companies worldwide.
• www.csrhub.com
Claims to be the world’s largest CSR and Sustainability ratings
Better donor database, covering 7,400 companies across 135 industries from
relationships 257 sources.
means your supporters are
more likely to give repeatedly
and give more.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 6
Module 1: Developing a Resource Development strategy

4.4 Evaluating a Resource How to evaluate a Resource Development Part 1. Introduction to

Resource Development g
strategy
Development strategy 6 Part 2. Resource
Development approaches
The importance of evaluating a Resource There are some basic questions for an organisation to consider and options g

Development strategy when evaluating its Resource Development activities: Part 3. Developing a
Resource Development
The final step in the Resource Development Cycle is the evaluation • What was successful and why? strategy g
of an organisation’s Resource Development strategy. This is • If your organisation is not meeting targets and securing
important since no strategy should be set in stone – and less funds than anticipated, then ask: What have we not
organisations should be willing to review and evaluate it at tried? What else can be done? Are the implemented Part 4. Considerations
different periods, to adapt the strategy and their actions as they strategies creative enough? Has anything changed in the for a Resource
learn more about what works and what does not. If a method is internal and external environment? Development strategy
not working well, it is important to learn and reflect upon this, 4.1 Resource Development
before continuing with it or even trying something new. • What is the return on investment for the different Resource
for programme costs and
Development income streams? for core costs
The value of measuring and recording an organisation’s Resource
Development performance increases over time. For example, data 4.2 Restricted and
By being critical and assessing all implemented Resource unrestricted funding
covering a few months can illustrate short term changes and trends
but data spanning several years can highlight critical long-term Development activities an organisation will learn how to improve 4.3 Ethical Resource
trends that may have a significant impact on an organisation and the process for future activities. This information should then be Development
its Resource Development strategies. incorporated into the Resource Development strategy for the next 4.4 Evaluating a Resource
period. Development strategy

If possible, organisations may wish to hire an external expert to Annex C. Ethical fundraising
undertake an evaluation and identify strengths and areas for future policy template
improvement. This will allow for objectivity and ensure development
of a new Resource Development strategy based on critical analysis.
However, where this is not possible, there are several tools and
strategies that an organisation can use to measure the efficiency of
its Resource Development, highlight strengths and weakness and
showcase opportunities to make a greater impact.
Ben Small/HelpAge International

Methods of measuring performance

There are different ways of measuring an organisation’s Resource
Development performance; and this will involve discussions with
staff to reflect on actions and can be supported by tools to help inform
decision making, planning, activities and deployment of resources.

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 7
Module 1: Developing a Resource Development strategy

Costs per dollar raised SWOT analysis Part 1. Introduction to

Resource Development g
For many organisations, ‘Cost per dollar raised’ or costs in your As part of your evaluation, organisations can undertake a SWOT
local currency equivalent, is one of the primary indicators of Part 2. Resource
analysis. This can be done at any time, and it is recommended that Development approaches
Resource Development performance. It allows you to calculate this is completed annually. This exercise can be done with all the and options g
how much money your organisation spends to raise just a single organisation’s key staff present and, would look at the strengths
dollar. This is often displayed as $X (i.e. $0.25) per $1 raised. Part 3. Developing a
and weaknesses of your organisation, and then the opportunities Resource Development
If your organisation already tracks expenditure and allocates and constraints (threats) presented by the outside environment strategy g
different costs to individual projects, schemes and activities, you connected to Resource Development.
should have little difficulty in working out your organisation’s These would be mapped into four boxes as shown in the example
ratio. It is simply calculated by dividing the total cost of Resource below: Part 4. Considerations
Development by the total of all grants, donations and contributions for a Resource
to the organisation against that specific area. Development strategy
Strengths Weaknesses
4.1 Resource Development
It is common practice to establish this figure and work strategically • Good reputation • Poor proposal writing for programme costs and
to introduce measures to reduce this ratio – evidencing increased for core costs
• Efficient office • No specialist Resource
value for money for the donors. An organisation can also use Development staff
this measure to compare the costs of different types of Resource • Enthusiasm of staff 4.2 Restricted and
unrestricted funding
Development e.g. institutional versus individual giving.
Opportunities Threats 4.3 Ethical Resource
Average gift size • Increasing media interest in • Increasing number of NGOs
Development

Another commonly used metric is the average gift size which is older people in the country, therefore 4.4 Evaluating a Resource
calculated by totalling all donations into an organisation over a more competition Development strategy
• New CSR fund opening next
specified period (for example a month or a year) and dividing it by year by one major corporate • Negative image of NGOs Annex C. Ethical fundraising
the total number of unique contributions. It can demonstrate both in media policy template
the average donation size as well as the average number of gifts
required to hit a given target.
After doing the exercise, your organisation can discuss these
Net income raised questions as part of your Resource Development strategy review:
The net income is the amount remaining after all Resource
Development costs have been subtracted for funds received from 1. How can we build on the identified strengths?
donors.
2. How can we address the weaknesses identified?
Response Rate Training? Recruitment? Abandon one income stream?
Consultancy support?
This is usually used to evaluate donations from individuals, and
is a percentage calculation of those approached compared to those 3. How can we take advantage of the opportunities
who give to the organisation. identified?
4. How can the threats be mitigated?

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 8
Module 1: Developing a Resource Development strategy

Part 1. Introduction to
Additional resources Resource Development g
Part 2. Resource
Further reading Development approaches
and options g
Fundraising essentials:
www.fundsforngos.org/free-resources-for-ngos/fundraising-essentials-evaluate-fundraising-performance/ Part 3. Developing a
Resource Development
How to measure fundraising success – here are seven steps to strategy g
evaluating your fundraising efforts:
www.snpo.org/readarticle.php?id=1956
Part 4. Considerations
8 ways to measure fundraising success for a Resource
www.networkforgood.com/nonprofitblog/eight-ways-measure-fundraising-success/ Development strategy
4.1 Resource Development
Videos for programme costs and
for core costs
Understanding restricted funds:
www.youtube.com/watch?v=DabTXXpWCK8 4.2 Restricted and
unrestricted funding
4.3 Ethical Resource
Development
4.4 Evaluating a Resource
Endnotes Development strategy
3. Information for this section has been adapted from an article on the ‘Funds for NGOs’ website
4. Adapted from BOND (British Overseas NGOs for Development) Annex C. Ethical fundraising
5. Adapted from Directory of Social Change (UK) www.dsc.org.uk/content/ethical-fundraising-important/ policy template
6. This section is informed especially by the FHI360 publication ‘Fundraising and Marketing for CSOs in Botswana’ and Funds for NGO website

Reg charity no. 288180

© HelpAge International 2021
 Resource Development Training < Prev Next > 9
Module 1: Developing a Resource Development strategy

Annex C.
Part 1. Introduction to
Resource Development g
Part 2. Resource
Ethical fundraising policy template Development approaches
and options g
Part 3. Developing a
The policy should: Resource Development
Text in italics are notes to guide the user and XXXXX shows
• Outline the approach to relationships with donors and partners to strategy g
where the name of the organisation should be inserted – make
sure you delete these. ensure clarity and openness for all stakeholders.
• Include the decision-making course the organisation will follow
Part 4. Considerations
The Ethical Fundraising Policy should be agreed and held by the when ethical dilemmas arise for a Resource
Board of Trustees. The Chair of Trustees should sign the Policy and Development strategy
be publicly accountable for upholding it. 4. Acceptance and avoidance criteria 4.1 Resource Development
for programme costs and
Acceptance criteria for core costs
1. Introduction to the organisation
XXXXX actively seeks opportunities to work together with external 4.2 Restricted and
• Share the vision and values of XXXXX organisations and individuals to achieve shared objectives. unrestricted funding
• Share a brief introduction to the organisation, its governance However, it is vital that XXXXX maintains its independence and
4.3 Ethical Resource
structure and the charitable objectives. does not allow any external partnership to bring the name of XXXXX Development
into disrepute.
4.4 Evaluating a Resource
2. Rationale for fundraising The Organisation therefore accepts financial support from, and Development strategy
partnership working with, companies and individuals on the
To help guarantee the availability of ongoing funds to pay for its Annex C. Ethical fundraising
following conditions: policy template
work, XXXXX aims to maintain a broad base of different sources of
funding. The purpose of this policy is to ensure clarity and openness • There are strong grounds for believing that it will result in
to all our stakeholders. a benefit to XXXXX beneficiaries
Identify what your organisation is hoping to gain from these • The Chief Executive and Trustees are satisfied that no adverse
relationships. This will primarily be project funds, but may also publicity will result from accepting such support
involve support-in-kind, or simply stronger local and national
• There is no attempt on the part of the donor to influence
partnerships.
XXXXX’s policy or actions either explicitly or implicitly

3. Key issues for the organisation to consider • That initiatives do not compromise the independent status of
XXXXX
• Set out the key reputational risks which they have identified
through accepting funding from, or partnering with, any external • Only XXXXX will have direct access to its database and
organisation or individual. These are specific to the organisation. beneficiaries

• Be clear that they have a responsibility to its stakeholders and • In order to ensure that all of XXXXX’s cause-related promotion
participants to consider the ethical issues that may arise in reflects its values, any potential initiative must come to the
working with, or accepting funding from, an organisation/ Chief Executive and relevant governance committee for approval.
individual and the associated risks. Reg charity no. 288180
© HelpAge International 2021
 Resource Development Training < Prev 10
Module 1: Developing a Resource Development strategy

Avoidance criteria XXXXX expects suppliers to accept responsibility for labour Part 1. Introduction to
and environmental conditions under which products are made and Resource Development g
• XXXXX will not accept any funding from companies directly
involved in activities that run contrary to its overall charitable services are provided and to make written statement of intent Part 2. Resource
objectives/vision/aims. Add detail specific to your organisation. regarding the company’s policy. Development approaches
and options g
• XXXXX will not accept financial support or partnerships XXXXX will maintain accountability and open and honest
Part 3. Developing a
with companies involved with any of the following activities: relationships with all its partners, by regularly monitoring and Resource Development
(examples are) human rights abuses; mining; nuclear power; evaluating its work. This statement of policy is meant as a working strategy g
the manufacture of tobacco; manufacture of environmentally guide for XXXXX.
hazardous products or chemicals; military contracts; and water Any final decisions will be governed by the Board of Trustees.
pollution. It is the duty of the Board to advise of any potential conflicts of Part 4. Considerations
interest with regards to funding or partnerships, and for the Board for a Resource
• When deciding whether to accept any particular donation, the Development strategy
Chief Executive and Trustees have a duty to demonstrate to the to act in the best interests of the Organisation at all times.
4.1 Resource Development
Charity Commission that they have acted in the best interest
for programme costs and
of the charity, and that association with any particular donor for core costs
does not compromise The Organisation’s ethical position, harm Agreed at the meeting
its reputation or put future funding at risk. The Organisation of the Board of Trustees on 4.2 Restricted and
unrestricted funding
complies with all relevant legislation, including money
laundering rules, the Bribery Act and Charity Commission 4.3 Ethical Resource
Development
guidance, including terrorism and political activity. Signed by
4.4 Evaluating a Resource
• XXXXX will not accept funds or support where the donation: (Chair, Board of Trustees)
Development strategy
• Was known to be associated with criminal sources and/or Date Annex C. Ethical fundraising
illegal activity policy template

• Will further a donor’s personal objectives, which conflict

with those of XXXXX Revised and updated
• Will impact adversely on XXXXX’s reputation
• Will lead to a possible decline in support for XXXXX, and
so risk a fall in the resources available to fund its work or
damage its longer term fundraising prospects
• Accepting a donation from any particular source is
inconsistent with Government policy
• Is connected to any form of inhuman, unreasonable or
discriminatory treatment of employees

Reg charity no. 288180

© HelpAge International 2021