Case - Fund Raising

There are significant differences and similarities in fundraising strategies for humanitarian aid versus development aid. From previous experience it appears to be somewhat easier to raise private funds for humanitarian causes. Especially when it is related to natural disasters (tsunami, earthquake, flood, etc.) or armed conflicts. People tend to give donations to support immediate and visible humanitarian actions. The media is also interested in such activities and provides space to communicate the message. On the contrary, gaining private support for development projects in developing countries appears to be extremely difficult. Development projects tend be more costly and many times provide intangible results. It is more difficult to measure their effectiveness, and to communicate development goals and their achievements to the public. Overall, while humanitarian aid organizations are able to mobilize some private funds, development NGDOs are far less successful in their fundraising initiatives. Consider the case of Yemen. Yemen is challenged by poverty, declining water and oil resources, rapid population growth, natural disasters and latent conflict. Political, tribal and cultural divisions within the social fabric add to the complexity of its context in addressing the widely prevalent poverty. With a population of more than 28 Million and GDP per capita of $1200, Yemen is considered one of the poorest Arab countries, yet it has more than 7,000 registered NGOs and charitable CBOs who play a significant

role in the provision of services and protection of citizens rights. Active NGOs in partnership with Yemeni private sector and Diaspora constitute a safety net for the poor and vulnerable against the prevailing weak economic and social conditions. The Humanitarian Forum Yemen is a network of 21 Yemeni humanitarian organisations registered in September 2009. Its mission is to help people in need by building trust between communities and improving humanitarian action in a network of peer organisations. The focus of the Forums programmes centres around: 1. Provide training to improve the operational and institutional capacity of Yemeni NGOs in humanitarian work; 2. Improve coordination between the member NGOs and other humanitarian groups in relief and recovery projects; 3. Strengthening the links of the member associations with the government, donor institutions and other local and international agencies; 4. Promoting shared understanding of international humanitarian standards and charity work in Islamic culture and traditions; The private fund raising activity of the forum is explained below: 1. Begin by making a list of people and organizations that you know and trust, because these people will be the first to help you out in achieving your goal. You should ask everyone you know (and even some you do not know) to contribute to your cause after all you never know who will be willing to donate. 2. Write a letter stating your goals, purpose of the project, and reasons for your volunteering for the cause . When writing your fundraising letter, explain how their donation will make an impact by allowing you to join humanitarian trips that aim to construct/build schools and orphanages. Please remember to be as short, clear and precise as possible when writing your letter. Emphasize on the fact that it is not a volunteer vacation but a real humanitarian trip. This will help donors to understand the project and your motivation to collect aid from them for a good cause. 3. You may find that asking for a specific amount of money is the most successful approach. Let them know the total amount that you are hoping to raise. You may even want to outline the specific cost, perhaps daily expenses of your program, etc. Please let donors know that the raised money will go directly to the project. 4. When approaching companies, express a sense of urgency. This limits their time to decide as to whether or not to donate - you will find this easier because you will get indication as to whether you should keep trying with other organizations or not. 5. Please acknowledge all contributors with a thank you letter, which recognizes and praises their contribution. You will want to be as polite and thankful as possible, so you may choose to write a thank you letter and include a printed list of your supporters' names. Some volunteers like to host a small open house before they leave on their expeditions to publicly recognize and thank their supporters.

6. Promise to reward your contributors with a follow-up presentation about what occurred during your volunteer work. Offering to give a presentation upon your return is a great way to secure funding from religious organizations, civic groups, alumni associations, educational institutions, and other contributing organizations. When you are away on your humanitarian journey, keep in touch with your donors by writing e-mails or reports from your field. Evidence, like pictures of the school/orphanage project that you worked with or the children that you taught, and your other humanitarian work abroad help people to better understand and see where their money has been used. Pictures of you working in your humanitarian project can be good reminders on how their money made a positive impact in one part of the world. 7. Always remember to stay in contact with your contributing organizations. Remind them and assure them of their importance to you - by telling them that you do need and appreciate their support. Despite of all these efforts, the forum has not been very successful in raising sufficient funds for humanitarian and developmental aid.

Case Questions: 1. What do you think are the reasons behind the failure of the forum to generate sufficient funds? Are there problems in the fund raising process of the forum? If yes, list them. 2. How can effective and sustainable fund raising be done in developing and underdeveloped countries especially from the private sector? Build a roadmap for the same.