Session 3.3: Resource Mobilization

1. Session 3.3:Resource Mobilization Module 3:Persuasive Communication & Resource Development Leadership and Management Course for ZHRC Coordinators and HTI Principals, and ZHRC/HTI Management Teams

2. Learning Objectives By the end of the session, participants will be able to: • Define the term income generating activity (IGA). • Describe how to use the SOAC process to create IGA ideas. • Describe common elements of a grant proposal. • Identify the stages in the grant application process. • Identify strategies for resource mobilization that they can implement in their organizations.

3. Why do we generate or raise funds? • Fill gaps in operating costs • Purchase necessary equipment, supplies, materials • Fund building improvement projects • Implement specific programs or projects • Others?

4. Strategies for Resource Mobilization • Income generating activities (IGA) • Donations • Supplies, equipment, money • Grants from development partners • Sub-grant relationships • Loans

5. What is your experience? • Do you have any experience with fundraising? • Professional? • Personal life (church, community, harambee)? • Does your organization have experience with resource mobilization or IGA? • Has anyone applied for a grant?

6. What is an income generation activity (IGA)? IGAs are schemes for incorporating some form of revenue generation into an institution’s operations. IGAs are any activity that can be initiated by a ZHRC/HTI for the purpose of providing supplementary income.

7. Types of IGA • There are two key types of IGA: • Cost Recovery (One-time approach) • Recovers costs related to delivering a specific service. It is a one-time approach – once the program or project ends, the cost recovery activity ends. • Earned Income (Ongoing approach) • Provides a stream of unrestricted revenue to the organization. This approach is ongoing, and is not tied to a specific program, service, or event.

8. Parameters of IGA

9. Creativity • The act of turning new and imaginative ideas into reality. • Involves two processes: • Thinking • Producing

10. Innovation • A change in the thought process for doing something. • The useful application of new inventions, discoveries, or approaches. • All organizations can innovate! • Innovation is the successful implementation of creative ideas within an organization. • Innovation transforms ideas into: • New or improved products • New or improved services or processes • New ways to compete and differentiate in the market

11. Entrepreneurship • Institutions and individuals who stimulate economic progress by finding new and better ways of doing things. • Entrepreneurs need: • Courage to take calculated risks • Perseverance through setbacks and challenges • Skills at problem-solving • Motivation to change difficult situations

12. IGA Examples • Hostel • Operating hostel in dormitory while school is not in session • Equipment Rental • Renting LCD projector, other equipment for a fee • Facility Rental • Charge fee to use space for conferences, weddings • Consultancy Services • Stationery Shop, Book Shop • Selling papers, supplies, and books to conference participants, students, etc. • Raising Domestic Animals for milk or food

13. Advantages of IGAs • Increase operating revenue • Provide supplementary income • Provide funding for small projects and repairs • Can provide funding for large improvement projects • Example: using an IGA scheme to raise funds for building a safe parking lot.

14. Challenges of IGAs • Require resources to operate and manage • Human resources, operating resources (electricity, space, etc.), time, infrastructure • May require “seed money” or capital to start • Requires accounting & management of funds • Tracking revenues, expenditures, and profits in a clear, transparent manner • Requires periodic review and evaluation • Is this IGA scheme still successful/profitable? • Is it worth our investment of time and money? • Require a viable idea and plan

15. What makes a viable IGA? • Novel thinking (innovation & creativity) • What service or good can you provide that will meet a need in your area, or for your clients? • Management buy-in • Is it OK for the organization to take this risk? • Is the process and management transparent? • Sense of ownership • Workers and staff are supportive, willing to help make IGA successful • Not resource-intensive • Simple ideas that do not require additional staff, high start-up funding, or have high operating cost

16. How to Identify Viable IGAs • Internal and external factors can help or hinder the initiation of IGAs. • Potential IGAs can be identified using a process called SOAC: • Strength • Opportunities • Areas of Improvement • Challenge

17. SOAC: Strengths • Strengths consist of areas that facilitate initiation of IGAs. • These include the resources of ZHRCs/HTIs that can be used to develop IGAs: • Employee’s skills • Buildings and equipment that can potentially be used to generate additional income.

18. SOAC: Opportunities • Opportunities are areas where the organization may have a competitive advantage over other organizations. • Examples include: • Customer base • Land • Buildings and equipment of the ZHRC/HTI.

19. SOAC: Areas of Improvement • Areas of improvement includes areas where the organization has the potential to maximize their income through perhaps minimal additional effort. • Examples include charging user fees for hall and conference rentals, copy machine use, etc.

20. SOAC: Challenges • Challenges are issues that could be detrimental to the organization or IGA. These can be: • External threats • Competitors or policy changes that negatively impact a ZHRC/HTI. • Internal challenges • Unfilled management positions which may cause a lack of leadership.

21. Starting and Managing an IGA (1) You need to have the following in place for starting and managing an IGA: • Plan • What is the product/service? Who will you serve? • How will the IGA benefit your organization? • How will the IGA be staffed and managed? • What is the timeline for implementation? • Do you need start-up funds? How will you get them? • Budget • Simple budget with expected operation and implementation costs, expected revenue

22. Starting and Managing an IGA (2) • Capacity • Accounting and financial management capability • Operating costs • Management and Stakeholder Approval • Review viability of IGA proposal • Ensure system for recording, analysis, and review

23. Activity: Planning an IGA • Work in small groups to develop an IGA plan. • Use Worksheet 3.1 to guide your discussion. • You will have 5 minutes to present your idea to the class.

24. What is a grant? • A sum of money, given by a government, non-profit organization, philanthropic foundation, charity, or other agency for a specified purpose. • Usually, a grant is awarded a result of a formal decision-making process involving a written or oral presentation and review. • Do not include terms of repayment. • Grants usually involve accountability to the funder or development partner • Financial reporting, progress reporting, etc.

25. What is an in-kind contributions? • In-kind contributions are gifts of goods or services, other than cash grants. • Common types of in-kind contributions include: • Goods • Computers, software, furniture, equipment • Services • Meeting space, administrative or financial support • Expertise • Legal, tax, or business advice; marketing, advertising, or website development; strategic planning, etc.

26. What is a development partner? • An organization that gives funds for projects of a development nature. • Development partners include: • National governments • Multilateral agencies • Non-Governmental Organizations (NGOs) • Philanthropic/charitable foundations • Faith-based organizations

27. What is a loan? • A sum of money which an individual, group or other organization borrows from another individual, group, agency or institution on the condition that it be returned or repaid at a later date, often at interest. • Microloans are common in developing countries. • Microfinance is a type of lending involving small, non-collateralized loans to low-income, typically self-employed, workers who do not have access to traditional financial lending services.

28. Types of Grants • Grant funding is available for many different purposes and types of activities. • Basket Funding • Capacity Building Grants • Capital or Building Grants • Challenge Grants • General Operating Support • Matching Grants • Project or Program Grants • Seed Grants • Technology Grants

29. How to find Grants • Newspapers • Announcements from NGOs and Development Partners • Networking with colleagues & partners • Governments • Foundations • Private companies • Private individuals • Internet searches/online

30. Identifying Grants • Be strategic. • Applying for grants is a time and labour intensive process. • Find the grant that is the right fit for your organization. • It is better to find a grant that is a good match for your organization than to re-shape your organization to apply to a grant! • Look for grants that you have a good chance of winning.

31. Is it the right grant? • Before applying, ask key questions: • Are we eligible? • Is it really competitive? • Who else is applying? How do we measure up? • Do we have the capacity to manage the grant? • Do we have time to successfully apply? • Is it worth the effort? Does the funding level make sense? • Does it support our mission and priorities? • Is it the right type of grant for our project?

32. Research the Development Partner • It is useful to research the development partner or funding agency. • What are their priorities and values? • What types of projects have received funding in the past? • Where have they funded projects? • What are the proposal guidelines and due date? • What budget levels will they fund?

33. Key Terms: Grant Application Process • Concept paper • Cost Sharing • Direct Costs • Indirect Costs • Letter of Inquiry • Letter of Intent • Matching Funds • Operating Expenses • Overhead Costs • Program Announcement • Proposal • RFP/RFA • Solicited Proposal • Unsolicited Proposal

34. Common Elements of a Grant Proposal • Cover page & Table of Contents • Executive Summary • Narrative • Justification/Need Statement • Goal and Objectives • Activities • Monitoring & Evaluation Plan • Key Personnel • Budget • Supporting Materials

35. Timelines for Applying to a Grant • How much time do you need to write & submit a grant application? • Timeline depends on: • Complexity of application • Stakeholder and partner involvement • New or existing information • Outside information or materials needed • Availability of staff resources to write • Outline detailed steps, and set target deadlines Leave enough time!!

36. Stages in the Grant Application Process

37. Preparation • Define project • Scope of work, goals, objectives, beneficiaries • Identify funding sources • Contact donors • Letter of Intent • Acquire proposal guidelines & review carefully • Seek clarification on guidelines, if needed. • Confirm submission deadline • Determine personnel needs • Create a project timeline • Outline steps, and assign internal deadlines

38. Write the Proposal • Structure the proposal according to the guidelines. • Be specific, and include examples and evidence. • Be clear and concise. • Proposals must conform to a specific number of pages – it can be challenging to include all the information. Focused writing is essential. • Be persuasive. • Work as a team. • Ask colleagues for review and feedback. • Revise your draft to make proposal stronger.

39. Developing a Budget • The budget includes cost projections for your project. • All activities, staff, etc. mentioned in the narrative should be reflected in the budget. • Be sure to only include costs that the funding agency is willing to support. • Grant application should include: • Summary Budget • Budget Narrative/Budget Notes

40. Submit the Proposal • Use a submission checklist. • All forms are completed. • Proposal has correct number of pages, format, number of copies, signatures, etc. • Submit your proposal on time, on or before deadline. • Deliver it in the way the funding agency has requested. • Print, electronic, etc. • When possible, submit in person. • Verify that the proposal was received.

41. Follow-Up • Follow-up on application status after submission. • This may be an opportunity to get feedback on the strengths and weaknesses of your proposal. • Remember this feedback for next time! • You can contact the funding agency about: • Status of application • Evaluation results • Outcome/Decision

42. What makes a strong proposal? • Match funding agency’s interests • Innovative and interesting ideas • Evidence of scientific reasoning & technical skill • Follows the guidelines • Correct formatting, number of pages • Includes all requested information • Includes your contact information • Articulates your strengths and qualifications • Clearly written, focusedand concise

43. Activity: Resource Mobilization Strategies • Reflect on ideas presented today related to IGA and grant writing. • What ideas align with your organization’s strengths? • Select two ideas for resourcemobilization, and describe themusing the Worksheet.

44. Key Points • ZHRCs/HTIs can develop IGAs through creative, innovative, and entrepreneurial efforts. • SOAC analysis can be used to develop IGA ideas. • IGAs require planning, systems, and resources to operate and maintain. • The grant application process entails preparation, writing, submission, and follow-up. • It is critical to carefully review the funding guidelines at every stage of the grant application process.