On March 20, the SID-US community gathered to learn about the European fundraising landscape. Speaker and facilitator Han Valk from HVFC International presented his perspective on fundraising trends and shared his expertise on how to best harness them.
Can US-based nonprofits get fundraising from Europe? Are certain sectors prioritized over others? How can longstanding relationships be built with the fundraising community? Valk addresses these questions by providing his three-step strategic plan: Focus, Analyze, and Strategize. This plan coupled with HVFC’s specialized knowledge, provided the audience with an abundance of useful information to move forward with their respective projects.
During the event, Valk explained that HVFC serves as an extension of fund-seeking organizations by focusing on three key features—fundraising, impact, and talent. Through these pillars and its impact portfolio, HVFC can help any US-based NGO acquire more funds and help mobilize them to create a greater impact.
3 Step Plan
Although Europe is typically viewed as one region, it cannot be treated as such when searching for fundraising. Across the region there are differences in factors such as language, philanthropic legislation (including tax rules), and motives for giving (religion and history). However, once understood that European fundraising efforts should be treated on a case-by-case basis, the 3-step plan can help NGOs derive the most value from their pursuits.
The first step is to focus and ask, “where is the most potential for our organization”? As previously mentioned, there are many types of fundraising landscapes in Europe and subsequently, many types of funders. Governments (bilateral and multilateral), foundations (private foundations), the private sector (corporate foundations), and individual donors can all be sources of funding. Therefore, once a funder has been established, it is important to understand how to best build a relationship with it.
The second step deals with analyzing what is needed to be successful in European fundraising. In terms of understanding the legal framework, knowing whether the area, from which an NGO is requesting money, runs under a system of restricted, partial, or full access is key.
Lastly, the third step to strategize. To fully utilize a fundraising partnership to its potential, it is necessary to understand the 3 dimensions of a successful fundraising campaign: organizational capacity, uniqueness, and donor demand. When these dimensions are met, sustainable and long-term success can be achieved.
European Priorities
Although coming up with a sound plan for an NGOs fundraising campaign is important, it is just as important to make sure that the plan falls within Europe’s list of priorities. Every seven years, the European Commission lays out a plan of strategic areas that it will be focusing on. From 2021 to 2027, the main ones will be the Green Deal, “digital/scientific/technological innovation”, “alliances for sustainable growth and development”, “migration partnerships”, and “government, human development, peace, and security”.
Foundations
Currently, there are over 186k registered public foundations, 647 billion euros in assets and endowments, and 54 billion euros in annual expenditure from these foundations. Organizations like Nationale Postcode Loterij, the Oak Foundation, the IKEA Foundation, and The LEGO Foundation are all examples of foundations that contribute heavily to these statistics. However, with the number of foundations that are willing to contribute, it is not always necessary to catch the eyes of these large and well-known organizations.
According to Valk, it is key to be seen locally and that people hear about the NGO and talk about it. In other words, in order for foundations to see the NGO, the NGO must be seen by others first.
Proactive Fundraising Approach
HVFC's unique approach to fundraising is one that helps build long-term relationships with the organizations which NGOs are partnering with. It is built on the idea that fundraising should not be a purely transactional way to ask for money, but rather an opportunity to sustainably connect two organizations with aligning missions. When NGOs change their mindset from simply needing money to acknowledging that their mission cannot be completed alone, genuine relationship building with like-minded funders can be fostered and lifetime funding can be secured through partnerships.
In Conclusion
Although seeking European investment can be daunting for US-based NGOs, Mr. Valk conveyed its accessibility and emphasized its potential. When applying HVFC’s methods and ideologies, NGOs can create a trusted network of partners, have visibility in Europe, access sustainable fundraising, and increase impact throughout the process.
About the Author
Emiliano Torlasco is a Spring 2024 Program Associate with SID-US. As a current junior at the University at Albany, SUNY, pursuing a Bachelor of Science in Quantitative Economics and a Bachelor of Art in Political Science, Emi aspires to foster a career in the realm of international development.