Stop Violence Against Women
Diversification Strategies
last updated September 1, 2003

As the availability of international funding in CEE/FSU gradually decreases and competition for that funding increases, it is increasingly important for NGOs in the region to develop innovative and diverse fundraising approaches. Diversifying financial support makes it easier to avoid donor-defined goals and may increase an organization's ability to define its agenda based on local needs. A diversified funding base also has the advantage of increasing stability and long-term sustainability. In the end, however, the most appropriate mix of fundraising activities will vary from organization to organization.

As USAID explains, in an effort to look for diversified funding sources, NGOs in the region are increasingly looking to governments as sources of financial support: "Given the weak economies and experiences with philanthropy, local and national governments are often looked at as key sources of domestic funding, and many countries are experimenting with different ways to tap into this potential source." Czech NGOs, for example, receive a portion of the funds that the government receives from state privatization. Local governments, as well, are a growing source of support. In addition to tenders, local governments are providing NGOs with in-kind support such as free or low cost office space. From USAID, 2002 NGO Sustainability Index for Central and Eastern Europe and Eurasia 5 (2002).

Developing a fundraising plan is the first step in strategizing about new fundraising approaches. General Guidelines for Fundraising, by the Management Assistance Program for Nonprofits (MAP), describes fundraising planning as the process of developing fundraising goals tied to the strategic goals of the organization, identifying funding sources for each goal, and creating fundraising strategies targeted to those sources. Such a plan can help ensure that fundraising activities will further the organization's strategic plan, and prevent donors from being contacted multiple times by different people in an organization. Finally, an organization that knows its strengths and weaknesses will be able to make better decisions about what fundraising strategies are right for the organization, select target audiences, develop a fundraising strategy, and more effectively market the organization.

Tony Poderis offers a basic outline of a fundraising plan that can be used to set goals and allocate responsibilities. His website also offers an array of articles on various fundraising topics, including organizing, managing and evaluating a fundraising campaign. The Global Fund for Women's Women's Fundraising Handbook includes an excellent and thoughtful list of potential fundraising sources, strategies, and ideas, as well as an interesting discussion on women, money and empowerment. Other useful resources are Mal Warwick's How to Write Successful Fundraising Letters (2001), and his presentation at a 2001 fundraising conference in the Netherlands.

Topics Under
Diversification Strategies

Related Subjects