Executing a project requires financial resources. The process of organising financial resources is called fundraising.
The executing institution may participate in the financing by providing the infrastructure and other resources necessary to implement the project free of charge, facilitating project work within the context of regular employment or by investing equity. This equity is usually not sufficient to cover the costs of a project. In this case, it is possible to apply for financial support from lending organisations such as funds, foundations or private sector companies.
Lenders usually prefer mixed financing for projects. When drafting the concept and relevant project budget, multiple lenders should therefore be considered from the outset in addition to equity.
Depending on the lender, the terms and criteria for financial support can vary and some flexibility is required to adapt to their requirements. Multi-thematic projects have the advantage of offering a broader spectrum of potential lenders. Projects that are embedded in superordinate strategies (policies, programmes) benefit from long-term financing.
In addition to lenders who support health promotion and prevention projects with public funds, under certain circumstances private sector companies may also be considered as financial sponsors. Sponsors often predicate their financial commitment on a service in return, such as the ability to advertise. These services must be critically considered.
The requirements for successfully raising third-party funds are always a plausible description of why you are carrying out the project, a clear objective, a well founded procedure and a comprehensible, appropriate budget.
Why you would disregard these aspects
- You assume your project will be sponsored by an execution institution.
- You put all your eggs in one basket and only make one request for financial support from a specific lender.
What you have to gain
If you have all the necessary equity and external capital, you can realise the project in the way you have planned it. You can attract other people and organisations to your project and perhaps retain them.
What you can actually do
Determine who might be a potential financial backer and who might be interested in your project. Ask people who have sufficient knowledge in this area and consult foundation directories, annual reports and guidelines of institutions and private sector companies. Ask for the assessment criteria and priorities of the various organisations.
When requesting sponsorship it is helpful to provide a brief, concise and appealing presentation of your project. Do not miss the opportunity to offer a convincing explanation of why your project deserves to be supported by the respective institution or company.
Questions for critical reflection
- Have all potential funding organizations or financial backers been contacted?
- Is a short hand-out of your project available for potential backers?
- Are you familiar with the requirements and criteria of potential lenders for financial support?