FUNDRAISING

MEANING OF RESOURCE MOBILISATION

Resources
Elements necessary for the running of an organization. These elements are materials, money, human (man and woman), means and time are that are used group, organization and individuals to fulfil their objectives.
Mobilization
This entails efforts of pooling together resources.
Resource Mobilization
Resource mobilization is a process whereresources both financial and non- financial resources are mobilized either externally or internally to support organization activities. Refers to ways and means of reaching out to actual or potential sources of inputs required for
project implementation. Resource mobilization is the process of getting resource from resource provider, using different mechanisms, to implement the organization‘s work for achieving the pre-determined organizational goals.
Resource mobilization may be defined as “a management process that involves identifying people who share the same values as your organization, and taking steps to manage that relationship”.
Features of Resource Mobilisation
 Resource identification
 Identification of Resource Provider
 Identification of mechanism to receive resource
 Expansion of relations with the Resource Provider
 Right use of resource
 Knowledge and skills to Resource Mobilization
 Human skills, service, information, equipment
 Seeking out new resource
 Thought of institutional sustainability
 Lower financial risk
TYPES OF RESOURCES
Resources is a very broad term, it is basically anything that can be considered a valuable addition.
The two broad types of resources – natural resources and man-made resources.
Natural resources-Anything and everything that is available naturally on earth is a natural resource. We can further divide them into:
Biotic & Abiotic
Any life form that lives within nature is a Biotic Resource, like humans, animals, plants, etc. In contrast, an abiotic resource is that which is available in nature but has no life; like metals, rocks, and stones. Both biotic and abiotic resources can be renewable or non-renewable.
Renewable & Non-renewable
Renewable resources are almost all elements of nature which can renew themselves. For e.g. sunlight, wind, water, forests and likewise. While, non-renewable resources, are limited in their quantity. Like fossil fuels and minerals. Though these resources take millions of years to form, they would eventually get over within our lifetime if we use continuously..
Potential, Developed, and Stock Resources
Natural elements which are already easily available but humans are yet to discover their real power are Potential resources. For example, solar and wind energy are two natural resources, which have a high potential for human life. Though we are using it, we can use these even more in the future once we understand their true potential.
In contrast, a developed resource is that which humans have discovered and developed over a long time. Most of the water, fossil fuel, minerals, plants and animals that we use for our need today, are developed resources.
There are some resources present in nature, which have enough potential, but we do not have adequate knowledge or technology to develop it. As a result, these remain in nature as stock resources. For example, Hydrogen and Oxygen gases can be used as rich sources of energy but we still do not know how.
Man-Made Resources
When humans use natural things to make something new that provides utility and value to our lives, it is called human-made resources. For instance, when we use metals, wood, cement, sand, and solar energy to make buildings, machinery, vehicles, bridges, roads, etc. they become man made resources. Likewise, technology is also a man-made resource. Man-made resources are mostly renewable. One can re-build a building or fixed a broken machine, because humans have the skills, intelligence, and knowledge, and use technology to transform a natural resource into usable and valuable things, they themselves become a resource. That is what we know as Human
Resource.
Resource Conservation
All human-made resources are dependent on the availability of the natural resource/s. We need to understand the value of each natural element and then need to conserve those resource/s.
Because we should be able to use them throughout our lifetime and also save them for our future generations.
Resources for Project Management
Money/Cash: (Financial resources such as capital)
Wealth/Cash is essential in order to run the existing programs, pay cost of goods and salary and to carry out new works. Wealth/Cash can be increased through various means like membership fees, grant received as per or without request, local fund, donations and various
other sources such as NGO or external funding.
Technical Assistance/Cooperation:
Every Organization will not have people essential for carrying out various types of activities, project and programs. Apart from that, every organization may not have the necessary fund to appoint essential efficient employees. Technical cooperation can be made any Organization providing the amount essential for appointing such efficient employees for a special project or the efficient employee helping for a fixed timeframe. Some organizations provide technical cooperation through trainings.
Human Resources:
Every type of Organization will require people/personnel to ensure that the Organizational role and works are fulfilled. For essential human resources, the Organization will make different provisions. The Organization can appoint some permanent employees while the
remaining appointments are made as per requirement. The permanent employees are taken as internal resources of the Organization while employees appointed for a specific time period are regarded as external resources. Many Organisations utilize dedicated and regular
volunteer groups in order to fulfil the need of human resource.
Physical Goods (Man-made resources)
They are physical goods resources. For example, the Organization’s activities or availability of the project are taken ahead together the tools. It is essential for the Organization to spend on such goods in order to train on main activities of the project/organization. Examples of resources like office tools, furniture, training tools and raw goods, vehicles and other machines
have been classified under the Physical Goods.
Free Service and Facilities/Information technology resources
Non-profit-making Organization gives many physical goods, service and facilities only in minimum cost. As a result, provisions for free services in the Project/Organization should be made through community support. Apart from this, other Organizations provide the non profit-making Organizations to use these facilities (Eg. Computer, Telephone, Photocopy Machine and Internet). Which is a form of free facility. The kinds of resources could differ and change as per the various phases of the project. For example, in the preliminary phases, active participation from all the organizations is essential for leadership and management of the organization. Maintenance service and resources to make it sustainable is essential. This condition or need has a big impact on the kind of human resource and accordingly on assisting tools and equipments.
Natural resources
Natural resources are natural assets (raw materials) occurring in nature that can be used for economic production or consumption. The naturally occurring assets that provide use benefits through the provision of raw materials and energy used in economic activity (or that
may provide such benefits one day) and that are subject primarily to quantitative depletion through human use. They are subdivided into four categories: mineral and energy resources, soil resources, water resources and biological resources.
Time timely decision and capitalising on opportunities and prioritising needs
IMPORTANCE OF RESOURCE MOBILISATION
 To diversify and expand resources.
 Resource Mobilization helps to formulate an independent budget. To break the tradition of running the specific programs of any donor agencies only.
 To spend in the program of the Organization’s liking.
 To decrease dependency on others.
 To save oneself the chance of becoming contractors of foreign donor agencies.
 For sustainability of the Organization and program.
 For maximum use of domestic capital and skills.
 To expand deep relations with the stakeholder and community.
 To clean the image of the Organization and expand relations.
 To fulfil responsibilities towards the community.
 To run programs based on the genuine needs of the community.
 To disseminate the good practices of the Organization.
 To develop new thinking and challenge the old traditions.
 To enhance the dignity of one’s Organization
IMPORTANCE OF BUILDING PARTNERSHIPS FOR RESOURCE MOBILISATION
Partnerships are voluntary and collaborative relationships between the organisation and one or several other partners from different sectors of society.
In a partnership, all participants agree to work together to pursue a common objective or undertake a specific task and to share risks, responsibilities, resources, competencies and benefits to achieve their own objectives, the objectives of their partner(s), and the overall
objective of the partnership.
Resource mobilization is a coordinated process of identifying programmatic areas within the organisations approved programme for which voluntary contributions (money and in-kind contributions) are needed, initiating and maintaining appropriate contacts with the relevant donor(s), and planning, carrying out and managing resource mobilization activities, including outreach activities needed for the resource mobilization efforts, all with the aim of closing the funding gap means of building new and enhancing existing relationships with donors.
ETHICAL AND LEGAL ISSUES IN RESOURCE MOBILISATION
1. Laws of the land
-fundraising is always subject to the laws of the land e.g the constitution of Kenya 2010 stipulates some does and don’ts in regard to fundraising. Besides the constitution there are so many other laws that govern fundraising e.g. Public civil servants should not participate in fundraising Those campaigning for elective seats can’t campaign within a set period of time
.QUIZ-Which chapter of Kenya constitution deals with the issue of fundraising and what does it say?
2. Percentage Compensation
Professionals who aid in fundraising may seek compensation. The seeking or acceptances of charity revenue should not result on the personal benefits of any employees, contacts of representative of charity organisation. The purpose of these issues is to ensure that these
individual or entities engage in the fundraising sector are compensated for their experience expertise the value of the product delivered and the work they perform on behalf of the charitable organisation that employ their services and not for work done others
3. Incentive Compensation (Incentive compensation is such as bonus)
Its compensation based on the accomplishment mutually agreed upon .Pre-established overall goals related to members responsibility as an employee or a service or product provides .This must meet the following conditions to be acceptable
1. Members of organisation must have a policy that awards performance based
compensation
2. The policy must have the approval of the organisation governing body
3. It must include the members’ area of responsibility
4. The criteria for determining eligibility for such amount of such compensation excludes any consideration of a percentage contribution.
5. Criteria is restricted to mutually agreed upon predetermined overall goals
4 .Finder’s Fee Finders is a fee for bringing a donor or revenue in any form to a non-profit organisation
5. Conflict of Interest
A typical conflict exist whenever a member or someone in that members immediate family has relationship with actual/prospective donors or an interest in a firm that is an actual or potential vendor to the member
Other examples of conflict interest include
 Failing to report once employer, knowledge of being a beneficiary of a donor
 Holding an ownership interest in a vendor firm to once employer without reporting such interest
6. Donor Information
Information on the donor should remain confidential and should be shared with other if the donor so requires
7. Use of Funds
It is unethical to use money from a restricted gift for a purpose other than the one solicited for.
You should advice your institution that such a use would violate the principal of honouring donor intent and would be a violation of ethics
N/B Legal documents which must be read project managers
1. Constitution of Kenya 2010
2. BBI Report
3. County Governments Act
4. EMCA[environmental management and coordination act]
5. Occupational safety and health act
6. Employment act
7. Procurement act 2015
8. The NGO act
CHALLENGES IN RESOURCE MOBILISATION
Internal Challenges
1. Capacity Limitation within Organizations
There is significant capacity limitation in terms of human resource and due to having insufficient staff then to pursuing appropriate funding or resources remains elusive to many
2. Accountability and Transparency Many organizations fail in the two central pillars of good governance that is transparency and Accountability
3. Founder Syndrome Many local organizations’ leadership face this syndrome. This is wherethe founder or founders tend to control and manage the affairs of the organization with minimal participation from other members
4. Inadequate Strategic and Operational Plans No strategic plans that guide the organization to know what the objectives are and enable the organization identify the resources needed. Most strategic plans developed are for donor purposes only and do not reflect the actual needs to be addressed the communities.
5. Inadequate Networking Skills Networking is a common term frequently used Organisations sector in many African countries, but rarely practiced. Many organisations lack networking skills and instead are seen competing for resources than working together towards common interest. Many donors are currently looking to fund organizations that are in networks or working together.
6. Inadequate Awareness on Available Opportunities There are windows of opportunities that exist within countries that sometimes organisations fail to exploit due to lack of awareness that the opportunities exist.
7. Minimal Communication and Branding Many organisations are not able to communicate effectively who they are, what they do, and their achievements. This inability to communicate means the visibility of the organization is poor and they are not able to effectively market their programs. This eventually affects their capacity to mobilize resources many at times organizations lose the opportunity to get resources as donors or stakeholders are not aware of the presence of the organization within the area, sector or country.
External Challenges
8. Donor Country Priorities Changing Many at times organisations face dictation of priorities from donors hence organizations shift focus or are not eligible to apply for the funds as they are not meeting the donor priorities.
9. Criteria being Used/Applied to Organizations Donor’s preferences have continued to change and they have become increasingly selective. One notes that different donors apply different conditions on aid, for example specify projects that can be supported
within their budget, working in partnership or collaboration with others, geographic cover, sector and a properly constituted organization
10.Donors Conditional Ties In the donor world the funding trends are changing. We see donors are using basket funding or sometimes shift in funding from organisations to focus on government institutions and hence the Organisations end up competing
for the same funds with the government institutions that have resources and capacity to mobilize for resources.
11.Political Interference Government policies and political climate increase bureaucratic red tape for organisations mobilizing resources externally. Where there is political instability donors will either not release funds or they reduce or enforce stringent
measures.
12.Rules and Regulations within a Country for Accessing Government Funds The rules and regulations that govern accessing and applying for government funds and resources make it difficult for organizations to access resources
13.Donor Prejudices Organizations that have a good track record can easily access resources. Cases of funds or resource embezzlements are very serious and donors talk on who has done what and good track record is important.
14.Natural and Manmade Occurrence e.g. Floods, Earthquakes, Wars. Countries that are experiencing conflict experience a decrease in resources
Factors that influence the success of Resource Mobilization include:
(a) Clarity and commitment to the vision and mission;
(b) Availability of competent staff
(c) Having programmes with the potential to yield results;
(d) Good previous achievements;
(e) Evidence of effective management and leadership;
(f) Having in place financial systems to manage the resources raised;
(g) Having a good reputation and credibility;
(h) Demonstrating mutual respect and knowledge sharing with stakeholders and
(i) Ability to attract, create, and sustain new resources.
(j) Having or establishing an evidence base that supports the requirement and process for the intended change.
Some Mechanisms of Resource Mobilization:
1. Submitting grant proposals: This mentions the response of the request of proposals made various organisations , Government, National and International Organizations.
2. Organizing special events: These events are ways of receiving money which will be carried out organisations relating to the field or community. These occasions will be held in order to celebrate any special festival. The occasions may or may not be related to the programs. For example of events related to the program, organize rallies related to the program and examples of events not related to the program would be cultural events, exhibition for assistance, exhibition.
3. Applying for donations: This type of mechanism of Resource Mobilization requests for donation, fund handover or any precious things from various organizations like cottage industry, Trade and Individuals (both national and international) and private institutions.
4. Publishing the history of the Organization: Publishing good practices and achievements which will have an impact on the Resource Provider. Resource Mobilization is a courageous work. Anyone will not provide resources easily. In this connection, it is said that instead of hoping for anyone giving you resources, you need to fully prepare yourself for receiving resources. Rather than thinking of getting resources begging for it, resources can be received selling your Organization’s good practices, work, history etc.
6. Personal meetings: Receiving resource is to receive a friend. So, personal meetings plays an important role in receiving resources. So, for Resource Mobilization, you have to hold personal meetings with friends and resource providers, invite them to social occasions and accept their invitation as well.
7. Membership Campaign: Membership campaign in one important mechanism of Resource
Mobilization. By increasing its membership, the organization can expand its relations with membership from people with different capacities, and can mobilize every resource with them for the mission of the organization. For example, give membership to the businessmen of the district. Distribute members to representatives of the various sectors of the society.
8. Partnership: Partnership is another mechanism of Resource Mobilization. Partnership will help exchange the resources between two or more organizations.
Specially, if new or small organizations join hands with similar organizations there will be possibility of extensive mobilization of the resources at the local level and international resources.
Many types of resources will be mobilized if partnership is forged between the private sectorand Organisations or among various sectors.
9. By raising fees: An Organization can raise fees selling its technical skill, expertise to other organization, like becoming resource person of a training, raising fees from visitors to your Organization for the time given, and raising fees from individuals or organizations coming to you Organization for research. The Organization can spend such resources as per its wish. This is specially a very effective mechanism to gather and mobilize resources but for this the Organization need to have with it experts and resource persons specializing in various issues. Another opportunity to raise fees would be for the organisation to carry out social works like constructing canals, public resting place, roads, school, temple, monastery etc. and the local
body pay back .
10. Internal Mobilization: Those in possession of mediums like Hall, equipment (photocopy, telephone, fax ) etc. can give them on rent and make appropriate use of the available resources. Similarly, many organisations sell their training package while some sell software package in cheap price to other organisations.
11. Producing audio visual materials: Many organisations have been carrying out Resource Mobilization developing information, education and communications materials as per the requirements of other organisations . Such organization publish the report, guidelines, posters, leaflets and visual materials for other organizations.
12. Organisations can give its building on rent and gather resource.
Similarly, many organization purchase the handicrafts prepared their targeted groups and sell it in the market with some profit.
13. Self Contribution: The most effective tool of resource mobilization is self contribution. Before collecting resources from other organization, it would be good for every organization to start some work from self-contributions. An organization beginning with self-contribution can win the trust of the resource providers quickly. So, it would be appropriate to leave the tradition of starting any work after receiving resources from others and begin with self-contribution. Even if there is absence of big source or skills, organizations should begin programs to mobilize the community to run small programs (observing various occasions) and raising awareness/advocacy.
14. Formal party: Personal contact and get-together is an effective mechanism of resource mobilization. The organization looking for resources can host special tea party (in Kenya there is the popular ‘goat-eating’) for local and external resource providers on the occasion of a special event/festival of the place or country. Such occasions will be of a big help in expanding relations and contact. In such functions, the resource providers should be felicitated or provided small gifts from locally distinguished person. But if such functions are held frequently then their utility will gradually disappear.
15. Provision of advisors and ambassadors: For resource mobilization, people with access to resources or individuals with experience in the sector should be appointed as advisors or ambassadors. Such individuals will facilitate access to resources within and outside the country and help collect resources advocating the organization.
Such individuals may be individual with technical skills (like: proposal writing, expanding of relations) in resource mobilization and also may be people renowned in the national and international level. For example, celebrities have been made Ambassadors.
16. Income Generation: Among the various mechanisms of resource mobilization, income generation is also one important mechanism. Every organization should adopt every measures for income generation as per the its policy and regulations. Such schemes of local income generation would be sustainable and would to some extent help the organization to stop itself from becoming a parasite. For income generation, the organization can carry out various activities.
17. Network building/participation: The world today relies on relations, contact and mutual support. Information and communications network has been established. In this context, organizations small or big established in any part of the work cannot isolate itself and if anyone tries to do so, it is almost impossible. Organizations and countries can help one another through such networks. So one of the most important mechanism of resource mobilization is to build network or participate in the already existing network and exchange information and resources.

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