View
1.145
Download
0
Category
Tags:
Preview:
Citation preview
The hallmarks of a model grant-maker in the eyes of charities Cian Murphy and Elin Lindstrom
December 2012
Finding what an ideal grant-
maker looks like
Survey, telephone
interviews, open forum with charities
- Free report: Taking nothing
for granted - Powerpoint presentation with detailed
results
The research S
TA
GE
1
ST
AG
E 2
Grant-makers’ point of view
Interviews Report in
January 2013
Finding new sources of funding in tough times
3 CM
Trusts income is still growing in the recession
4 Source: NCVO, What is the voluntary sector’s total income and expenditure?, http://data.ncvo-vol.org.uk/almanac/voluntary-sector/finance-the-big-picture/what-is-the-voluntary-sectors-total-income-and-expenditure/
0.5
2.4
13.9
14.3
1.3
1.6
0.6
2.1
National lottery
Trading subsidaries
Private sector
Investments
Voluntary sector
Statutory services
Individuals
Income from grants
Trust-fundraising sees quick rewards with high return
5 Source: Gimme, gimme, gimme – A guide to fundraising for small organisations, 2011
Putting the grants where
they’re needed
Making grants go the furthest
Improvements to the application
process
EL
5%
30%
13%
17%15%
20%
Nothing <£100,000 £100,000-£150,000 £150,001-£300,000 £300,001-£500,000 £500,001+
All respondents
Income from grant-making trusts
Average income from grant-making trusts: £411,000
7 Base: 300 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q14: “What is your approximate total income from grant-making trusts (in the last 12 months)?”
Small charities rely the most on trusts income
£82,000
£283,000
£452,000
£978,000
Charities with less than 500k
total income
£501k - £2.5m £2.51m - £15m Charities with more than
£15.1m total income
Mean income from grant-making trusts
2%
8 Base: 300 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q14: “What is your approximate total income from grant-making trusts (in the last 12 months)?”
33%
Smallest charities % of income from trusts
Largest charities % of income from trusts
24%
3%
19%
10%
20%
15%
None Very little/ not
much
£500 or under £501-£1000 £1001-£5000 £5001+
All respondents
Average amount spent: £5,400
9 Base: 279 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Amount spent on fundraising from grant-making trusts
Q14: “How much do you spend on fundraising from grant-making trusts, excluding staff salaries?”
Staff salaries for grant fundraising
11%
23%
15%
12%10%
6%
17%
Nothing £15,000 or under £15,001-£25,000 £25,001-£30,000 £30,001-£40,000 £40,001-£50,000 £50,001+
All respondents
Average amount spent on salaries: £36,000
10 Base: 290 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q14: “How much do you spend on staff salaries for people working on grant-making trusts?”
24%26%
27%
23%
None Less than 1 1 (1-1.49) More than 2 (1.50+)
All respondents
Few charities have large trust fundraising teams
11 Base: 307 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Average number of staff: 1
Q14: “How many full-time staff (FTE) are devoted to grant-making trusts?”
Larger charities outperform smaller ones
12 Base: 279-307 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
All respondents
The largest charities
The smallest charities
Average grant income
£411,000 £978,000
£82,000
Average costs
(salary plus non-salary)
£41,600 £86,600
£13,800
Income per pound invested
£9.9 £11.3
£5.9
The story so far......
• Smaller charities much more dependent on grant-making trusts
• But smaller charities have the lowest return on investment
• What can grant-makers do to make sure funds reach those who need them most?
Putting the grants where
they’re needed
Making grants go the furthest
Improvements to the application
process
CM
Imagine a grant-making trust had just offered you £1 million as a grant for a restricted project…
15
…They then offer to give you a grant which you can spend on any of your work but for a lower amount than £1 million…
What is the smallest sum you would accept in place of the £1 million restrictive grant?
28%
7%
11%
8%
4%
15%
3%
5%
3%
18%
£1 million - same as the original grant
£900k
£800k
£700k
£600k
£500k
£400k
£300k
£200k
£100k
Base: 393 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Charities are willing to accept lower grants in exchange for income being unrestricted
The average lower amount accepted for an unrestricted grant was £630,000
16
Q5: “Imagine a grant-making trust had just offered you £1 million as a grant for a restricted project. They then offer to give you a grant which you can spend on any of your work but for a lower amount than £1 million. What is the smallest sum you would accept in place of the £1 million restrictive grant? (please select one option only)”
£488,596.49
£621,978.02£666,666.67
£766,292.13
£0
£200,000
£400,000
£600,000
£800,000
£1,000,000
Charities with less than
500k total income
£501k - £2.5m £2.51m - £15m Charities with more than
£15.1m total income
Mean score
But larger charities are far less concerned about getting core funding
17 Base: 393 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q5: “Imagine a grant-making trust had just offered you £1 million as a grant for a restricted project. They then offer to give you a grant which you can spend on any of your work but for a lower amount than £1 million. What is the smallest sum you would accept in place of the £1 million restrictive grant? (please select one option only)”
£627,480.92 £643,636.36
£557,692.31£586,666.67
£527,272.73
£582,142.86
£0
£200,000
£400,000
£600,000
£800,000
£1,000,000
All respondents Medical/
Health/
Sickness
Overseas aid/
Famine relief
Disability Arts/Culture/
Heritage
Environment/
Conservation
Arts charities are eager for core funding, while medical charities are least concerned
18 Base: 393 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q5: “Imagine a grant-making trust had just offered you £1 million as a grant for a restricted project. They then offer to give you a grant which you can spend on any of your work but for a lower amount than £1 million. What is the smallest sum you would accept in place of the £1 million restrictive grant? (please select one option only)”
“This is too hypothetical a question, as it entirely depends what the restricted project is - if it is of strategic importance then £1m restricted is as useful as £1m unrestricted.”
“I don't understand the question. Why wouldn't we accept the larger grant with the restriction?”
“Our clients need reliable and regular on-going support, they often tell us that it is far more valuable to them than short-term projects. This means that unrestricted funding - funding that we could use to sustain and improve these core services - is hugely valuable to us.”
19 Base: 166 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q6: “Imagine a grant-making trust had just offered you £1 million as a grant for a restricted project. They then offer to give you a grant which you can spend on any of your work but for a lower amount than £1 million. What is the smallest sum you would accept in place of the £1 million restrictive grant? (please select one option only)”
Different perspectives on unrestricted funds
32%
29%
46% 28%
64%
65%
0% 20% 40% 60% 80% 100%
I think it would be/is very helpful when
grant-making trusts allow multiple
applications for different projects from the
same organisation
I would like grant-makers to provide more
funds that were unrestricted or grants for
core costs
I would like grant-makers to give better
feedback on applications
Agree Strongly agree
93% of respondents were keen for more unrestricted funds to be offered
20 Base: 414-417 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q7: “Please indicate how strongly you agree or disagree with the following statements by ticking the appropriate box”
42%
45%
48%
23% 10%
18%
25%
19%
0% 20% 40% 60% 80% 100%
I would like grant-makers to provide more
support other than grants (e.g. fundraising
training, business planning support, comms
advice, etc)
We often have to manipulate existing
projects to meet grant-makers' guidelines or
restrictions
I think the two-stage application process is a
big improvement over a single-stage
application process
I like online application processes
Agree Strongly agree
‘Grants plus’ less of a priority
21 Base: 414-417 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q7: “Please indicate how strongly you agree or disagree with the following statements by ticking the appropriate box”
The story so far......
• Smaller charities much more dependent on grant-making trusts
• But smaller charities have the lowest return on investment
• Potential win-win to make sure grants reach those who need them the most?
• Unrestricted is worth more than restricted for many organisations
• And particularly for smaller organisations and those from certain sectors
• Charities think they can make grant-makers money go further if it is unrestricted
Putting the grants where
they’re needed
Making grants go the furthest
Improvements to the application
process
EL
Application process a high priority for charities
24 Base: 198 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q15: “Which charitable trusts do you think should be role models for others and why?” NB Please refer to verbatim document for full comments.
Top 5 attributes
• Clear guidelines
• Easy, fast application process
• Good communications
• Relationship building
• Helpful, providing guidance
“Trusts that speak to the charities and help with the application process. Those that have good means of communication, encourage questions and exploration of relationship building.”
6%
12%
59%
11%
12%
0% 20% 40% 60% 80% 100%
No
restrictions/complete
flexibility
Few restrictions and
plenty of flexibility
Some restrictions
and some clear
flexibility
Quite clear
restrictions with only
very limited flexibility
Very clear restrictions
25 Base: 413 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Charities want a mix of restrictions and flexibility in guidelines
Q9: “What would your preferred approach be to the restrictiveness or openness of a grant-making approach?”
“Trusts that give very vague guidelines about their priorities and receive lots of applications and then reject most of them are annoying and a waste of everyone's time.”
Reporting back on grants is working well
Q10: “In general, how difficult or burdensome is the reporting back on grants once awarded?”
2%
14%
53%
29%
1%
0% 20% 40% 60% 80% 100%
Not sure/ Don't know
Not at all difficult
Not very difficult
Quite difficult
Very difficult
Base: 416 not-for-profit sector workers, Jan/Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Waiting for a decision
27
0%
0%
1%
57%
42%
0% 20% 40% 60% 80% 100%
Around a year
Around 9 months
Around 6 months
Around 3 months
A month or less
All respondents
Ideal time to wait for a decision on a grant application
28 Base: 417 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Average ideal time to wait: 2.2 months
Q8: “What would be your ideal length of time for a decision to made on a grant application?” NB the scale on this slide is 100%, whereas it is 50% on most other slides.
Guidelines and criteria
Contact and relationships
Fund core costs, continuity
Feedback, acknowledge applications
Similar priorities from the Open Forum for charities
29 Base: 60 fundraisers, 27 March 2012 Source: Open Forum on fundraising from grant-making trusts, nfpSynergy
We asked the 60 fundraisers taking part in the Open Forum to divide into groups and write down ideas for improvements in fundraising from grant-making trusts. We then asked them to rank their suggestions according to how important they thought they were.
“Feedback is really useful and important. It would also cut down on pointless applications. Acknowledgement of a failed application would also help planning.”
But charities could do better too!
30 CM
Success rates for the sector as a whole could be improved
31 Base: 289 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q14: “How many grant applications would you say you make a year? (approximately)” and Q14: “How many applications would you say were successful in a year? (approximately)”
125
41
Average number of unsuccessful applications
Average number of successful applications
The average charity makes 166 applications a year, a success rate of 24.7%
38
300
110
258
116
12
71
30
55 54
Arts Culture Heritage Disability Environment
Conservation
Medical Health
Sickness
Overseas aid Famine
relief
Average number of grant applications per year Average number of successful grant applications per year
Different sectors have different success rates
32 Base: 289 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Overseas aid and Famine relief had one of the highest success rates: 46%
Medical/ Health / Sickness had one of the lowest success rates: 21%
Q14: “How many grant applications would you say you make a year? (approximately)” and Q14: “How many applications would you say were successful in a year? (approximately)”
60
88
264
296
1124
55
93
Charities with less than 500k
total income
£501k - £2.5m £2.51m - £15m Charities with more than
£15.1m total income
Average number of grant applications per year Average number of successful applications per year
While larger charities have a much higher success rate
33 Base: 289 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Success rate for the smallest charities: 19%
Success rate for the largest charities: 31%
Q14: “How many grant applications would you say you make a year? (approximately)” and Q14: “How many applications would you say were successful in a year? (approximately)”
34 Base: 292 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
718
37
109
No FTE staff working with
grant fundraising
<1 1 (1-1.49) More than 2 FTE staff working
on trust fundraising
Mean number of successful applications per year
Q14: “How many applications would you say were successful in a year? (approximately)”
Professional fundraisers are crucial to the success of big charities
How charities can reduce the number of unsuccessful applications
35
Tailor applications to the trust
Avoid straying outside of guidelines
Consider collaborating with other charities
The story so far......
• Smaller charities much more dependent on grant-making trusts • But smaller charities have the lowest return on investment • Potential win-win to make sure grants reach those who need them the
most? • Un-restricted is worth more than restricted for many organisations • And particularly for smaller organisations and those from certain sectors • Charities think they can make grant-makers money go further if it is
unrestricted – potential win-win
• Huge number of applications made, with quite low success rates
• Small charities struggle to get through and have a particularly low success rate
• Cutting the number of hopeless applications: clear, accessible and up to date criteria and guidelines
Things to think about
Putting funds where they’re most needed
More unrestricted and
core funds
Less wasting of time and
resources on application
process
Putting funds where they’re most needed
More unrestricted and
core funds
Less wasting of time and
resources on application
process
Putting funds where they’re most needed
More unrestricted and
core funds
Less wasting of time and
resources on application
process
What to do next...
38 http://nfpsynergy.net/free-reports-and-presentations
Grant-makers’ perspective
2-6 Tenter Ground Spitalfields London E1 7NH 020 7426 8888 insight@nfpsynergy.net www.twitter.com/nfpsynergy www.linkedin.com/company/nfpsynergy
www.nfpsynergy.net
Registered office: 2-6 Tenter Ground Spitalfields London E1 7NH. Registered in England No. 04387900. VAT Registration 839 8186 72
Appendix – Who responded?
Sample: 417 charity sectors workers
Methodology: We conducted the survey using an online questionnaire
Fieldwork: The fieldwork was conducted in-house by nfpSynergy
Fieldwork dates: 30 January 2012 – 9 March 2012
Methodology
41
7%
1%
1%
2%
2%
2%
3%
4%
4%5%
6%
7%
7%
8%
10%
11%
29%
A/o answers
Advice
Families/Family welfare
Justice/Rights
Religious activities
Elderly
Animals
Arts/Culture/Heritage
Relief of poverty/Social welfare
Economic/Community development/Employment
Education/ Training
Environment/Conservation
Overseas aid/Famine relief
Accommodation/Housing
Children/Young people
Disability
Medical/Health/Sickness
All respondents
42 Base: 403 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q2: “Which sector does your organisation primarily operate in? (e.g. animal welfare/environment/etc.). Please choose what best describes your sector.”
What sectors the respondents work in
34%
19%
13%
17% 17%
0-20% is restricted 21-40% 41-60% 61-80% 81-100% is restricted
All respondents
Percentage of restricted income
43 Base: 408 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q4: “What percentage of your income would you estimate is restricted in some way (e.g. comes from a grant-making trust, the Big Lottery or local or central government)?”
29%
11% 12% 11%10%
5%7%
5%
1%
10%
Less than
£500k
£501,000 -
£1m
£1.1m -
£2.5m
£2.51m -
£5m
£5.1m -
£10m
£10.1m -
£15m
£15.1m -
£25m
£25.1m -
£50m
£50m+ Not sure
All respondents
Income of the organisations taking part
44 Base: 415 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q3: “What is your organisation’s total income (approximately)?”
3%
3%
6%
8%
7%
10%
10%
35%
4%
7%
10%
7%
7%
11%
14%
18%
2%
3%
2%
4%
3%
1%
2%
1%
4%
1%
4%
Advice
Families/Family welfare
Justice/Rights
Religious activities
Elderly
Animals
Arts/Culture/Heritage
Relief of poverty/Social welfare
Economic/Community development/Employment
Education/ Training
Environment/Conservation
Overseas aid/Famine relief
Accommodation/Housing
Children/Young people
Disability
Medical/Health/Sickness
61-100% restricted income
0-60% restricted income
Sector of work by percentage of restricted income
45 Base: 403 not-for-profit sector workers, Jan-Mar 2012 Source: Fundraising from charitable trusts in 2012, nfpSynergy
Q2: “Which sector does your organisation primarily operate in? (e.g. animal welfare/environment/etc.). Please choose what best describes your sector.”
Recommended