Before your organisation researches which trusts to apply to, it is important to bear in mind the following points:

The Fundraisers

Who is going to be responsible for the fundraising? Will it involve everyone or should you set up a special committee?

Raising money requires many different skills (e.g. written and verbal communication skills, enthusiasm, creativity, organisational abilities, confidence and commitment) and one of the first tasks should be to identify people within the organisation with such skills.

Similarly, you should identify any potentially helpful contacts your organisation already has (e.g. with local businesses, philanthropic organisations like the Rotary Club or the Women’s Institute, Trustees of local trusts) to help directly or indirectly with raising funds.

Charitable Status

An organisation which is not a registered charity will find it more difficult to raise funds from trusts than an organisation which is registered This is because the majority of trusts are themselves registered charities and must therefore confine their grants to purposes which are charitable in law.

When a trust is asked to give a grant to an organisation which isn’t a registered charity, it must take more care to satisfy itself that the purposes for which the money is intended are charitable. Some trusts will, if satisfied that your work is charitable, pay grants directly to non-registered charities.

If a trust specifies that it will only make grants to registered charities, you have two options:­ 

• investigate whether your organisation could be registered as a charity and, if so, decide whether or not to get registered

OR    

• find a registered charity which is willing and able to accept the grant on your behalf, on the understanding that this intermediary charity passes the grant on to you.

The Charity Commission produce a very helpful pack called “Starting A Charity and Applying for Registration’ which is available free of charge - www.charitycommission.org.uk. Registering as a charity is a relatively simple process and is currently free of charge. The process usually takes 3 - 6 months.

Your local Council for Voluntary Service (CVS) or Rural Community Council (RCC) can give advice on registering as a charity and can also accept grants on behalf of non-registered charities - Click here for contact details.

If the purposes of your organisation are not charitable at all, then there is no point in attempting to raise money from trusts.

Constitutions

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Do you have a constitution which sets out the aims and objectives of the organisation and the rules governing how the organisation is managed and run? This reassures funders that you are a responsible organisation and is a necessity if you want to become a registered charity or apply for funding from e.g. the Community Fund. Your local CVS or RCC can give advice on how to draw up a constitution.

Bank Account

You should open a bank or building society account in the name of the organisation before you start to fundraise. For security reasons, it is a good idea to have at least three signatories and to ensure that two people are required to sign each cheque.

Letter Headed Paper

Does your stationery include a contact address and, if applicable, your charity registration number? Is it clear from your name what your organisation does? Your local CVS or RCC may be able to help you design and print stationery relatively cheaply.

Raising Money Yourselves  

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Most funders want to see that an organisation is trying to raise some of its funds by its own efforts, no matter how small a percentage of the total income this provides. 

Organising a fundraising event is still one of the best ways of funding voluntary activity and can help to raise awareness of your organisation and its work. You could also consider charging for the services you provide to bring in additional funds.

It is important to get as many different sources of income as possible so that you are not relying on any one source, which would leave you in a very vulnerable position when that source comes to an end.

Raising money takes time. Forward planning is essential and a clear fundraising plan is a good way of clarifying what you need to do and when, so that you are not constantly raising money for the short term.

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A budget is simply your group’s plans for the coming year set out in money terms.  Don’t underestimate the time it will take to do the work needed to get accurate figures. Start work on the budget as soon as you can.

There are basic costs that nearly every group has, such as postage, stationery, rent, electricity and telephone bills. There may be other costs related to the work your group does, such as transport or catering.

If you can find out the precise cost of something – do it! If you need to buy a piece of equipment, get quotes from a few different suppliers or use catalogues. Ask other similar groups how much they spend each year.

N.B. Don’t forget to include expenses like training (for staff, volunteers, management committee members), National Insurance and pension contributions for paid staff, inflation in future years, volunteer expenses, VAT on goods, services, repairs, renewals, insurance etc.

Some funders will only make grants for capital costs (office equipment, buildings,  etc), while others are prepared to fund revenue costs (salaries and other costs associated with running the organisation or project) Divide your budget up in this way, to help you decide which funder to approach for what.

Budgets aren’t simply there to help your group raise funds - they are your guide to whether you are spending your money as planned You should compare your expenditure to the budget every month or so, to keep on top of how much you’re spending on what and to alert you early on that you may not have enough money later on in the year to do what you planned.

Unless you are a new group, funders will ask to see your previous years accounts to reassure themselves that you are financially secure and can manage any funds they give you. All registered charities need to prepare annual accounts, although the rules differ depending on the size of income or expenditure. Accounts can be prepared in different ways and may need to be independently examined or audited, depending on the size of your group. Your local CVS or RCC should be able to help you prepare accounts. Guidance publications are also available from the Charity Commission.

You need a system for keeping records of who you have applied to, when you applied and what the result was. For example, a trust may tell you that it doesn’t have any money left this year, but you should re-apply next year. If you don’t have a good system, you will probably forget! A system also means that if the person responsible for fundraising leaves, your organisation will know what they have done in the past.

If you do get a grant, remember to thank the funder and send them annual reports or press cuttings, showing them what you’ve done with the money, and perhaps inviting them to come and see what you do. It is important to try and build up a good relationship with your funders.

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