Funding Advice and Support

Prepare Well in Advance     
Funding applications can be a lengthy process. If you have a time frame for when the funding is needed, make sure the application is timely. It is worth noting that many applications are submitted, and funding can be over-prescribed.

Funders and Agencies Can Provide Support – Ask
VSGWL can offer support by proofreading completed applications. It is good practise for someone from outside your organisation to look over an application prior to submission.

Build a Relationship With the Funder
Contrary to popular belief, funders want to provide financial support to organisations. If you are unsure if your project fits the funding criteria, or, you have any questions, contact the funder who will be happy to advise. There is usually an application guide provided with the application form, this is a valuable tool when completing the application.

Be Clear and Decisive
Be clear and realistic about your costs. Be clear about the goals, aims and outcomes of the project. Describe how the project will be delivered.

Introduce your Organisation
A brief, clear explanation of your group can be a valuable asset when seeking funding. Consider preparing this information in advance to streamline your application process.

Use Plain Jargon Free Language
Avoid using internal jargon or overly complex language when explaining your project to funders. Focus on clearly stating the funding request and the positive impact it will have on your target community.

Using Funding Effectively
New organisations may find it challenging to secure large grants. Establishing relationships with funders and demonstrating your ability to manage projects effectively can help build trust and increase your chances of future funding.

Check Your Project Costs
Funding applications can fail if the project costs do not add up. Getting someone to look over your budget can help to ensure that the funding amount applied for will cover your projections.

Managing a Grant
External grants that you receive may be restricted funding for the project. Monies must be spent on your application proposal. Contact the funder for any underspend or questions you may have about the project grant.

Recognise and Appreciate the Funder
This is sometimes a condition of a grant even if it is not, it is good practice to recognise your funders. This may be achieved by adding their logo to communications.  Ask them what they expect.

Donors to community organisations or social enterprises can often specify how their donations should be used. For instance, they might want their funds allocated to a specific project, such as purchasing a new minibus.

Unrestricted funds are donations that the organisation can use for any purpose within its mission. These funds often cover operating costs or expenses that are difficult to fund through other means.

Only a funder can decide if a donation is restricted or unrestricted. This can be indicated in a letter or through a formal agreement. While an organisation might choose to “earmark” some of its own unrestricted funds for a particular project, these funds remain unrestricted because the decision was made by the organisation, not the donor.

Fundraising for Charities in Scotland

Welcome to our guide on fundraising for charities in Scotland! Whether you're a small local organisation or a larger charity, there are many ways to raise funds and engage your community. Below, we’ll explore different types of fundraising and provide practical examples to inspire your efforts.

Types of Fundraising

• Community Events
  Organising events can be a fantastic way to bring people together and raise funds.
  Example: Charity Fun Run
  • Host a fun run in your local park. Participants can pay an entry fee, and you can encourage them to seek sponsorships from friends and family. Offer prizes for top fundraisers to motivate participation.

• Online Crowdfunding
  Leverage online platforms to reach a wider audience.
  Example: GoFundMe Campaign
  • Create a campaign detailing your charity’s mission and needs. Share your story, use compelling visuals, and encourage donations through social media. Highlight how funds will make a difference in the community.

• Charity Auctions
  Auctions can generate excitement while raising significant funds.
  Example: Silent Auction
  • Partner with local businesses to donate items or services. Set up a silent auction during an event, allowing attendees to bid on items throughout the night. This encourages friendly competition and increases donations.

• Sponsorship Opportunities
  Engage local businesses for mutual benefit.
  Example: Corporate Sponsorship
  • Approach local businesses to sponsor an event or initiative. In exchange, offer them advertising opportunities at your event or on promotional materials. This can enhance their visibility while supporting your cause.

• Merchandise Sales
  Selling branded merchandise can be a fun way to raise funds and promote your charity.
  Example: Charity Merchandise
  • Design t-shirts, mugs, or tote bags featuring your charity's logo or mission. Sell these items at events, on your website, or in local shops. Profits can directly support your programmes.

• Regular Giving Programmes
  Encourage donors to set up monthly contributions.
  Example: Direct Debit Donations
  • Promote a monthly giving programme where supporters can sign up to donate a fixed amount each month. Share stories about how consistent contributions make a significant impact over time.

• • • Workplace Giving

  Involve local companies in your fundraising efforts.
  Example: Payroll Giving

• Collaborate with local businesses to establish payroll giving programmes, allowing employees to donate a portion of their salary directly to your charity.
• This can be an easy way for employees to contribute to a cause they care about.

• Challenges and Adventures
  Encourage supporters to take on personal challenges.
  Example: Sponsored Challenges
  • Organise or promote challenge events like trekking the West Highland Way or climbing Ben Nevis. Participants can raise sponsorships for their efforts, encouraging them to push their limits for a good cause.
  • Larger challenges, like desert walks across the Sahara or cycling challenges to Paris, appeal to adventurous supporters. There are companies that can help organise these events.

• Grant Applications
  Explore funding from larger organisations.
  Example: Applying for Grants
  • Research and apply for grants from foundations or government bodies. Prepare detailed proposals that clearly outline how the funds will benefit the community.
  • Find out more here

• Social Media Campaigns
  Utilise social media to engage supporters.
  Example: Hashtag Campaign
  • Create a social media challenge using a unique hashtag. Encourage supporters to post photos or stories related to your cause and donate. This can go viral and attract new donors.

Summary

Fundraising can take many forms, from community events to online campaigns. The key is to engage your supporters creatively and authentically. Remember to share the impact of their contributions and express gratitude for their support. With the right strategy and community involvement, your charity can achieve its fundraising goals and make a real difference!

Regulation

Fundraising is a key contact between charities and the public. Get it right, and your charity secures funding and public goodwill. Get it wrong, and you risk undermining public confidence in your charity and the wider sector.

It’s up to your charity’s trustees to ensure that they – and any fundraisers working on their behalf – observe the legal requirements and, importantly, uphold the kind of fundraising practices that will encourage continued public support, rather than harming your charity’s reputation.

More information can be found here.

More Information

• Scottish Fundraising Adjudication Panel
• OSCR Guidance
• Institute of Fundraising
• Trustees and Fundraising – A Practical Handbook
• Data Protection Rules
• Fundraising Regulator Code of Practice

he Scottish Fundraising Standers Panel were established to oversee self-regulation of fundraising in Scotland. They are also responsible for fundraising standards in Scotland and to handle fundraising complaints related to Scottish registered charities, a list of which can be found on the OSCR website​

Code of Fundraising Practice

The Code of Fundraising Practice and its associated Rulebooks for Street and Door Fundraising outlines the standards expected of all charitable fundraising organisations across the UK. The first copy of the Code was published over 20 years ago and since then it has been developed by the fundraising community, through the work of the Institute of Fundraising (IoF) and Public Funding Association (PFRA).
​
http://www.fundraisingregulator.org.uk/code

If you have a good idea why you want funding, you will be aware of problems or gaps in your community. Careful research of the need is an important first step when planning your project. This will help you decide how best to tackle the problem. It will also keep everyone involved in the project focused

When identifying need some questions to ask are:

• What is the problem or issue you want to address with your project?

Why are you doing what you are doing, what needs to change?

• What evidence is there that this need exists?

This can be from your own research or using information that others can provide, local area statistics, census records etc.

• What are the reasons for the need?

Why is there a gap? Has a service been removed? Is this an ongoing issue over time?

• Have you carried out any research?

How do you know there is a need?

• Why have you prioritised this need?

There may be a number of needs not being addressed in a local area so why is this one important? Is it a service that you can provide, is change achievable?

• Why is your project an appropriate response to the need?

Why are you the best people to deliver the project?

• Have you consulted with the people your project will benefit and other relevant stakeholders?

Are you going to be working in partnership with other organizations who have you spoken to about the project and do they think it will benefit them?

• Do you know about relevant local strategies or initiatives, or other projects working in this field and how your project will fit in?

​There is no point reinventing the wheel if there is similar project to you.   Why are you not working together if there is there a capacity issue? How do you feed in to strategies and the bigger picture locally and nationally?

More information on ways of defining need and how to evidence need can be found on the Big Lottery Scotland website.

Charitable organisations and Community Amateur Sports Clubs (CASCs) can register with HMRC to claim Gift Aid, allowing them to claim an extra 25p for every £1 donation received (for basic rate tax payers).  Gift Aid will not cost you any extra.

​While charities and CASCs can claim Gift Aid on most donations, some payments don’t qualify. For donations from individuals, the donor must:

• Have paid the same amount or more in Income Tax or Capital Gains Tax in that tax year
• Make a Gift Aid declaration that gives you permission to claim it

How do I claim Gift Aid?

• You must maintain a list/database of all individuals who donate with Gift Aid as well as a signed declaration from each individual
• You make your claim on the HRMC websites portal for Gift Aid Claims https://www.gov.uk/claim-gift-aid-online or with on paper with a ChR1 form which can be obtained by calling 0300 123 1073

Your organisation can’t claim on donations:

• From limited companies
• Made through Payroll Giving
• That are a payment for goods or services or made because your charity or CASC bought goods and services
• That started as loans, but no longer need to be repaid
• Where the donor gets a ‘benefit’ over a certain limit
• Shares the charity may hold
• From charity cards or of vouchers, e.g. Charities Aid Foundation (CAF) vouchers
• Membership fees to CASCs
• Made before the organisation was recognised as charity or CASC

Note. There are special rules on claiming Gift Aid for:

• Funds from sponsored challenges e.g. overseas treks or marathons
• Charity membership fees
• Church collections
• Sale of goods on behalf of individuals, e.g. through a charity shop
• Charity events or to view charity property
  Charity auctions
• Volunteer expenses donated back to your charity or CASC
• Funds raised through charities involved in running schools

For more information on these special rules, and all other aspects of claiming Gift Aid, visit www.gov.uk/claim-gift-aid/overview.

“If you fail to plan, you are planning to fail!”
― Benjamin Franklin

We may all dread the evaluation forms at the end of any training that you attend, however by learning how to evaluate your activity’s you will discover what works or doesn’t.  How to make use of that learning to measure the difference you are making and make changes if required.

There are many different and creative ways to engage people in evaluation. But all evaluations follow the same basic format and is something that should be well thought out at the start of any project.

Aims Outputs Outcomes and knowing the difference

What Aims

Your overall aim tells everyone why your organisation exists and the overall impact you wish to have on your members or the people you work with
Example: “The Anytown community trust aims to improve the Quality of life for families living in Anytown”
Your overall aim should be focused and guided by your organisations vision, it should say your organisation would hope to achieve with resources but not a problem. A good way to think about your aims is to think of it as a magic wand question.

What are your outputs?

Next you need to think about the services that you provide some people call these outputs – the things you deliver.
Outputs are what help you to fulfil your overall aim.

Think carefully about how your activities can change the lives of the people you work with, the changes you make are your outcomes.

Example of Outcomes:

• Are about change or difference.
• Are not the activity- they are the result of the activity
• Must link logically to the activity
• Use words like improve, decrease, develop, and expand
• Should be realistic – achievable in a few years
• Should be (largely) in your power to deliver
• Should be simple
• Answer the “so what”? Question.
• Should be SMART Specific, Measurable, Achievable, Realistic and Time- related
  

  So What?

  If you’re not sure whether you’re looking at an outcome or an output asking the ‘so what?’ question may help:
  Any town community project runs a youth club – SO WHAT?
  30 Young people attend sport classes at the youth club – SO WHAT?
  These are important, but not outcomes so what came out of the youth club
  The young people learn about health and fitness Outcome
  Childhood obesity is reduced outcome
  Young people health is improved Outcome

Collecting evidence

There are many different and creative ways to collect the evidence to see what changes you are making from your project this could be traditional Surveys or case study’s or more creative ways like video rooms, photographs or blob trees.

Learn from & acting on your findings

Now you have all your evidence what are you going to do with it?

Hopefully your evidence will show that you are meeting your outcomes and the work you set out to achieve is on target however if this is note the case it is a good opportunity to rethink and look at how the service could be improved your evaluation is also a good piece of evidence to show your partners the work that you are achieving and can be good evidence to new funders that you wish to approach

More information and advice available form http://www.evaluationsupportscotland.org.uk/evaluation/