Funding Application Help

OK, so you'd like some financial help to run your group. There are grants out there, local councils etc have money to give to local community organisations so don't think it is impossible. It can be entirely possible if you follow a few guidelines.

Nationally, Freegle has difficulty in attracting funding. So, if you are thinking of applying for funding from a source that is available for more groups, or even nationally, then please let the Board know in case there is a conflict of interests. Having said that, don't be put off! The following will help:

Preparing your Case

Before you start, think about what your potential funder might want from you:

• Your selling points - the importance of the work you do.
• Facts and figures to support your proposal.
• The track record of your organisation.
• A well thought out project plan and budget.
• Evidence that you can carry out the proposed work.
• Good research into potential funders or donors.
• Back up literature.
• Good presentation.

Gathering information

The more information you have prepared in advance, the easier it is when it comes to writing your application. Good preparation will mean that writing an application is just a matter of choosing the right information and presenting it in the right format to each funder.

Information about your group or organisation

You will more than likely need to provide the following information:

• A statement about what your group does; its main purpose and aims. This could be your ‘mission’ statement.
• Do you have a constitution? Some funders will only consider constituted groups. Have a look at Group Constitution for a template on what you might decide to adopt.
• The people involved in your group i.e. volunteers and your members.
• How long have you been going? Where are you based?
• A statement about why your work or cause is important; why funders should want to support you; why your group is best placed to do what it does.
• What funding your group receives now and in the past, and where from. (This is not always needed)
• Any recent growth in your organisation or in the demand for your services. (Keep a graph of membership growth, you can get the history of growth of your group from the weekly report sent out to central)
• Copies of your last annual report and accounts (if you are a constituted group), and any other relevant material such as press cuttings, photographs, leaflets, quotes from users.
• Bank account details. If you don't have a group bank account or the funder won't pay into a private bank account, you can arrange to use the central Freegle account very easily.

An anonymised example of a business plan/case provided by one group to their local funders is shown on page Local Business Plan. This shows a good format for presenting information.

Information about the problems and needs you want to address

You may think the answers to this are obvious,but you have to be able to prove need. Funders will want to know what the problem is and what their money can help to do. So, rather than just asking for money to buy a gazebo for your group, explain the problems that having a gazebo would help to overcome.

You need to provide facts and figures or copies of research documents to support your case. Think about your area of work and who you might approach to get statistics to back up your arguments. You may need to conduct your own survey to demonstrate need and lack of provision or to produce a ‘community map’ showing those features which are valued locally but do not appear on ‘official’ maps. Think about what facts you need to know about the area you serve to help you make your case.

Information about your group’s credibility and competence

Your reputation and track record will be very important to some funders. When deciding whether to make a grant, funders not only need to believe in your ‘idea’, they also want to know that they are giving money to a competent organisation with the ability to manage that money, people and projects. You will need to show some if not all of the following:

• Will they have heard of you?
• Are you a member of, or affiliated to a larger organisation. (ilovefreegle) Note: Remember, you are applying for your group, not for Freegle as an organisation!
• If you receive support from government sources or charitable trusts or companies this will give new funders an indication that you are worth supporting.
• Could you provide statements or quotes from any of these supporters to show that they value your work? (member feedback/testimonials) Can you provide referees? (Some funders ask for these.)
• Can you show evidence of recent successes and achievements? Impartial comments from users or any press or media coverage will show support for your group and your work.

Information about your proposed project

Most funders want to fund specific pieces of work rather than general costs (sometimes called ‘core costs’). So you need to package your funding needs into discrete projects in order to attract funding. Thinking of your work in project terms and designing attractive projects is the basis of successful fundraising.

Information about potential funders

You need to gather information about those funders who are most likely to support your proposal. Once you have identified who to approach you need to find out as much as possible about them - who to contact, their policies, their funding timetables and so on. Try to tailor your application to meet the requirements of the funder.

For information about different sources of funding look for your local Voluntary Action groups. A list of some of these can be found on Local Funding Opportunities along with some local grant sources.

For each particular funder you need to find out:

• What sort of work they normally fund, for instance disability or housing or arts projects. Do they have policies, or guidelines you can get hold of?
• Do they only fund groups in a particular geographical area?
• What size of grant do they normally make? If the maximum grant they make is £5,000 there is no point asking them for £10,000.
• How long will they make grants for?
• Do they fund new, innovative ideas or do they normally play safe?
• What is their procedure for dealing with applications? Is it by letter or application form? When are their deadlines for receiving, and making decisions on, applications?
• The correct name and address of the funder and the name and title of the person to write to.
• Is there a contact person you can talk to before making your application?

Putting together an application

Some well-known funders like the National Lottery and BBC Children in Need have application forms. However, the most usual way to apply to charitable trusts is by letter.

Writing a letter

Think about the purpose of the letter. Firstly you need to interest the funder in your project proposal, and then you need to supply all the information they will need in order to make a decision.

What needs to go into a letter?

• Project title. Try to think of a snappy title for your proposal.
• Introduction to your group. What you do; what your goals and objectives are; how long you have been going; how many members you have; why you are special; any significant achievements; what support you have received from other bodies or well known people.
• A summary of the project proposal. In a few clear, concise and specific sentences, spell out what you are applying for and how much it will cost in total.
• Why you want the money. Give specific information about the nature and size of the needs you have identified, supported with some key statistics or other factual evidence. Say who will benefit from you tackling these needs.
• A description of your proposal. What you intend to do to meet the needs you have identified; how you will go about it (your methods); what it will achieve (your objectives). Outline the timescale - six months/one year/two years; and how you will measure its success - your evaluation methods.
• A breakdown of the costs involved - your budget. If it’s relatively simple you can do it within the letter. It is important that you ask for a specific amount of money. If you are only asking for part of the costs tell them where the rest is coming from. (don’t forget to factor in V.A.T)
• Why should they fund you? How does your proposal fit within their funding policy? Have they supported you before? You may need to emphasise different aspects of the work for different funders, for instance some may be interested in you because you are working in their geographical area, others because the project falls within their area of interest.
• Who your other funders are. Funders like to follow other funders.
• Sign off positively. Don’t grovel! Offer more information if needed or invite them to join your group or even meet with you to discuss things further.

Someone in your group who will be able to answer questions about the application should sign the letter.

Make sure your letter is

• Short and to the point. Don’t go into unnecessary detail but do make sure you give enough information to allow the reader to understand your area of work, what you want to do and why it’s worth funding. Try to keep your letter to two sides of A4. You can always attach more information to your letter.
• Attractively presented. Type your letter on your headed paper, if you have any. Divide the text into short paragraphs to make it easier to read. Make sure it doesn’t look so ‘flash’ you seem to be throwing money away on fundraising, or like a circular - it may well get filed in the bin along with the junk mail.
• Free of jargon and abbreviations. Use straightforward, plain language to avoid misunderstandings. You know your own field of work very well but don’t assume that the reader will know. Charitable trusts are particularly likely to be put off by jargon and abbreviations.
• Addressed personally to the named correspondent of the funding body. Never write Dear Sir/Madam. Always find a name and check the spelling.
• Back up information as funders receive hundreds of applications and do not have the time to read lots of information, keep your letter to two sides of A4 and attach relevant supporting evidence, such as facts and figures supporting your case; visual material such as photographs; press cuttings; a detailed budget and plan for the project; a list of financial supporters; a fundraising plan if you have one.
• Rather than trying to put lots of financial detail in your letter, attach a separate sheet with a clear breakdown of all the costs involved as below.
• Check with your printers or suppliers of goods regarding VAT. For instance, sometimes if you are having some A4 posters printed, by calling them A4 fliers you won’t have to pay VAT on them.

Costing for Promotional Materials

(August 2010)

Gazebo £100.00

10,000 A5 Leaflets £500.00

Pop Up Banner £100.00

Total £700.00

Have a look at Vistaprint for examples of the type of promotional materials you could purchase for your group.

Lastly

Please don't be put off by all this, other groups have been there and done it, so do ask for help and examples of their successful applications.

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