Challenge

• To raise local funds to supplement a CSO's income in the short-term;

• To become 100 percent self-financing in the long-term through income generation activities;

• To fundraise in a professional manner that will heighten the organization's visibility, and that of its income generation activity, thus increasing its chances of success.

Background

In the last twenty years, Traditional Medicine for Self-Reliance (TRSR), a CSO founded by Ashoka Fellow Rosana Tositrakul, has created a market for herbal medicines and organic products. This work is not only benefiting the environment – as years of pesticide use have proliferated weak top soil, human health problems, and the resurgence of pesticide resistant insects – it has also benefited farmers, providing them with a new market. The access to new markets has been key to giving farmer's the immediate economic incentive necessary to encourage them to continue to invest in alternative agriculture.

Though the organization was initially founded as TMSR, four years ago it strategically broke into two arms: the Thai Holistic Health Foundation and the Friends of Nature. The former is the non-profit arm of the organization, responsible for the advocacy, legal, and social campaigns that the organization designs to further the field of holistic medicine. The latter is the for-profit side of the organization, responsible for (1) creating an urban market in which to sell organic and herbal products (thus providing a sustainable income for farmers willing to engage in this work); and (2) generating income through the sale of these products to sustain THAIHOF's activities.

Currently, Friends of Nature generates 10 percent of the income necessary to sustain THAIHOF's activities. While the organization's long-term goal is to become 100 percent self-financing over the next 10 years, in the short term it needs to increase its income from other sources.

THAIHOF was originally funded by donor agencies but was warned 10 years ago that donor agencies would be moving out of Thailand. The agencies estimated that funding for NGOs in Thailand would be cut by 60-70 percent over the next few years. Further, like other environmental NGOs, THAIHOF is finding it difficult to fundraise locally for the environment. They have found that Thais are more inclined to give to children-related social issues.

Strategy

To meet the immediate financial needs of the organization, as well as increase their visibility – and thereby increase the visibility of their small enterprise – THAIHOF designed a fundraising strategy based on two key steps:

1. Hire a Fundraising Officer to manage, coordinate and expand the organization's existing and new resource mobilizations strategies:
   THAIHOF is planning a major fundraising drive for its environmental work and for the opening of the Holistic Health Center, scheduled for February 2000; it is also interested in raising funds towards the long-term sustainability of the organization.

   THAIHOF receives 10 percent of its income from its for-profit partner, Friends of Nature, and intends to use this small enterprise to become 100 percent self-financing. However, the organization does not anticipate achieving this goal for another 10 years, and is currently seeking to supplement its income with local donations. The organization recently reviewed its current fundraising strategies and plans, and has strategically identified the need to hire fundraising officer who will be responsible for the following objectives:

   • To fundraise for THAIHOF's environmental work;
   • To come up with new ways to raise funds from THAIHOF's activities;
   • To raise funds from THAIHOF members and the public;
   • To develop a model of fundraising which would be useful for other organizations.

   The decision to hire a professional is based on past experience. THAIHOF believes that in order for a project to be successful, it must have one dedicated member of staff. Secondly, THAIHOF recognizes that its weaknesses lie in marketing and communications skills – skills essential for successful fundraising. Accordingly, they believe that the best investment the organization can make now is in a skilled and committed, professional fundraising officer.

2. Develop a direct mail campaign to fundraise from TAIHOF's membership base.
   THAIHOF needs a fundraising campaign that will immediately raise funds, while simultaneously heightening the visibility of the organization. For THAIHOF, a fundraising campaign should continue to promote the benefits of holistic health products, while increasing publicity for their small enterprise.

   Through educational events – exhibitions, seminars, and environmental activities, THAIHOF has recruited nearly 2,900 members. These members come from the following sources: 743 newsletter subscribers; 1000 participants in monthly workshops and discussions; and 1,123 participants in their training courses.

   THAIHOF is planning to tap this group's support for their organization and use it to raise local donations for their work. Mailing is a low-cost, effective means to reach these potential donors.

Case Studies

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