Spend more on fundraising training, says IoF paper

The Institute of Fundraising document says there should be a ‘concerted drive’ to expand fundraising mentoring and advice services to smaller charities

The Institute of Fundraising has called for more money to be spent on providing fundraising training for smaller charities.

In a paper published today, the umbrella body says central government, local authorities and charitable and corporate foundations should increase the support they provide in this area.

It says the Department for Culture, Media and Sport should significantly increase the funding it provides for training in this area from its current level of £100,000 a year.

The scheme, announced in the Budget in March 2015, has been providing fundraising training to charities with annual incomes of up to £1m.

The IoF paper calls for a “concerted drive across the charity sector and funding bodies to expand mentoring and ongoing fundraising advice and support for smaller charities”.

The umbrella body said in a separate statement that it was working to arrange a meeting between small charities, funding organisations and infrastructure bodies to identify ways to increase fundraising support for smaller charities.

It said it hoped the meeting would kick-start a concerted drive across the voluntary sector to expand mentoring and ongoing fundraising advice and support for smaller charities.

The IoF paper says smaller charities have experienced a dramatic reduction in funding from government sources in recent years, while the level of individual donations has remained relatively flat.

“Central, devolved and local governments should produce a long-term vision and plan for how they will provide support for capacity-building and fundraising to the charity sector, with a particular focus on capacity-building support for smaller charities,” it says.

The paper calls on all funders to consider ensuring that when grant, contract or project funding is provided to a charity it includes funding for capacity-building, including fundraising, and overhead costs.

Mike Smith, head of external affairs at the IoF, said: “Fundraising is one of the most effective ways for many small charities to raise the money they need to continue their amazing work. However, they need more help and support to do so.

“By launching this campaign and holding the summit later in the year, we want to kick-start action to ensure the long-term support for smaller charities to be able to raise funds in a sustainable way for the causes they work on.”

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Charities ‘must spend more on leadership and infrastructure’, report concludes

The ICAEW report says charities have shied away from making good investment decisions because of a fear that it might negatively affect public perception

A fear of how the public will view investment in charities’ internal infrastructure has led trustees and managers to “shy away from making good decisions”, a new report warns.

The report, Positive Impacts in Challenging Times, published this week by the Institute for Chartered Accountants in England and Wales, says charities must invest more in leadership and infrastructure in order to retain public trust and operate effectively.

“Trustees and management have often shied away from making good investment decisions because they believe that it will impact negatively on how they are perceived,” it says.

“This has resulted in underinvestment in vital areas such as information technology, skills training, income-generating processes and governance and management.”

The report says charities should be prepared to spend more on infrastructure and support functions if it will improve their efficiency and effectiveness.

“Investments in training, evaluation, internal systems and fundraising are important as they enable charities to improve their performance,” it says.

“The risk is that under-investing in infrastructure can actually lead to a deterioration in a charity’s performance and the resilience needed to be able to sustain effective delivery.”

It says charities are to blame for “perpetuating the myth that reduced overheads mean the charity is more effective” and that “this leads to a vicious cycle of underinvestment and the belief that more can be done with less.

“Charities should be ready to make the necessary investment in infrastructure based on what is needed rather than how it may be perceived. Expenditure decisions should be governed by what is in the best interests of achieving objectives effectively, which may require more investment in infrastructure.

It notes that cost ratios of how and where funds are distributed are flawed “in almost all cases” and “lead to inaccurate conclusions”.

The report also says charities should focus more on the selection, induction and training of trustees to ensure they have the correct skills and experience to carry out their roles.

“All trustees should be able to confirm that, before taking up their appointment, they have received sufficient information about the activities of their charity and their role as a trustee, and that they understand the responsibilities that come with being a trustee,” it recommends.

The report says charities should also be more discerning about “unviable” payment-by-results contracts to deliver public services, the report says.

“The practice of winning the contract at any price can be harmful to charities and the causes they serve,” it says.

It says charities are likely to be better off bidding for such contracts as part of a consortium, so participants can be more efficient by sharing logistics and infrastructure. 

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