Taking stock

Understanding what has happened with fundraising in the past, why people donated and what comparable organisations are doing gives us the best chance of success. However, a brilliant audit and fundraising plan won’t make a difference if you don’t understand what your organisation does and why it does it.

You need to explore your organisation’s past. If you don’t look backwards you risk dismissing partners, people, relationships and programmes that could be cultivated to bring more money into the organisation. Scour the accounts, budgets and brochures as well as the database and talk to people who have been involved with the organisation.

If you don’t look backwards you risk dismissing partners, people, relationships and programmes that could be cultivated to bring more money into the organisation

Consider whether the things you focus your fundraising energy on are the best use of your resources and are likely to achieve results over the required timeframe. If you are facing a dip in cashflow you will need to consider the quickest and easiest routes to unrestricted money. That may include approaching existing funders and donors for emergency support.

If your organisation is to be viable in the long term, you will need sustainable income and funding from a number of sources. Look at the organisation’s longer-term financial needs and how you will achieve them.

A programme strategy

A programme strategy outlining what you aim to do, for whom and with which partners is the starting point of your fundraising strategy. Be ambitious but realistic with your ideas and your programme. Money will follow if there is good quality work delivered with creativity and passion and an audience or need for it.

Make sure you understand why people support you. Ask your donors, funders and customers. They will feel listened to and you will gain invaluable insights about what you are doing right and what you could do better.

Consider the wider arts landscape and what is happening with fundraising in comparable organisations. Are there trends? Are others succeeding where you are not? Don’t limit your search to the arts. There are great examples from the university sector, where fundraising campaigns are breaking donations records. If you are interested in membership schemes look at how American theatre and visual arts organisations do them.

Roles and resources

Consider who is best placed to develop your identified fundraising routes. What roles and resources do you have and are you using them efficiently? Some staff or board members may be great speakers but not strategic or good with written bids. Play to everyone’s strengths.

Try to split out your time into the types of fundraising activity you are doing and what the corresponding return is. If you are spending 60% of your time on corporate sponsorship but it is only delivering 10% of your income, then something is not right. If one day a week on trust applications delivers 80% of your income then consider whether a greater focus here would be beneficial.

Many trustees are willing to provide fundraising support. Don’t be afraid to tell your board where they can most usefully help. They could be in a position to donate or to introduce others who can. They may be able to help with strategy, hosting events or being a critical friend on funding bids. Ask them what they can contribute.

As well as capacity, consider what tools you need to do the job properly. Potential interest can be wasted if you have a poor database and don’t manage your records well. Make sure you have the right tools, information and ammunition to convert a donor.

Working together

It’s no accident that many successful arts organisations have marketing and fundraising working seamlessly together. Marketing and development share the same endgame: to get as many people as possible interested in and connected to what the organisation is all about.

Some organisations don’t mine their audiences or visitors for donors but many of us have people who would give. We need to get them excited about being part of our organisation and share all the good things we are achieving on a regular basis to keep them interested.

Some of the most successful fundraising campaigns are borne out of a marketing or PR-led initiative. The arts organisations that have the most success with crowdfunding tend to be those with a large and well-served online network already in place. People are more likely to give when they feel like they are part of our world and benefit from being close to our work.

Share the findings

Put your audit away for two weeks and then revisit it. Share your findings with colleagues for comments and additions. Then consider holding a session to discuss your findings with staff, trustees and volunteers.

Summarise your key findings by the type of fundraising and resources needed and make recommendations for each. This will be a useful reference for you, your trustees and colleagues. End with a clear action plan detailing who will do what and by when.

Wendy Smithers is an independent arts and heritage consultant specialising in fundraising.

This is a summary of ‘How to Conduct a Fundraising Audit’, which can be found at CultureHive. CultureHive is managed by the Arts Marketing Association in partnership with The Audience Agency. It is part of Arts Council England’s Audience Focus programme supported by Lottery funding. Fundraising resources are produced in partnership with the Arts Fundraising and Philanthropy Programme.