How to get funding for a charity digital initiative: A comprehensive guide

How to get funding for a charity digital project is a topic we frequently discuss with the charitable organisations with which we work here at DotProject. Securing funding for digital initiatives has become both essential and challenging.

The funding scenario in the UK has transformed significantly, with digital funding becoming a pressing need for charities. According to the Charity Digital Skills Report, 78% of charities now prioritise digital, with 49% urgently requiring funds for devices, software, and infrastructure.

In response to these challenges, we are sharing a comprehensive three-part series aimed at helping charities navigate the complexities of digital funding.

Part 1: Understanding Your Current Digital Costs

The first step in securing funding for a charity digital initiative is understanding your current digital costs. Taking a proactive approach to managing your organisation's digital expenses is crucial.

Here are some key strategies to consider:

Evaluate Your Current Spending

Compile a comprehensive list of your digital and technology tools, costs, and associated risks and opportunities.

By compiling a comprehensive list of these tools, along with their associated costs, risks, and opportunities, you will be able to present a clear picture of your organisation's digital landscape to potential funders. One helpful tool that can aid in this process is the Tech and Partner matrix which allows you to assess the effectiveness and relevance of your current digital tools and partnerships.

By evaluating factors such as cost, functionality, and potential risks, you can gain valuable insights into areas where improvements can be made.

When creating your list of digital tools, it is important to consider both the tangible and intangible costs associated with each tool. Tangible costs may include subscription fees, maintenance expenses, or hardware requirements. Intangible costs, on the other hand, may include the time and effort required to train staff or the potential impact on productivity.

Prioritise Essential Tools

Identify the tools essential to your organisation's functioning. Once you have done so, it is important to allocate resources to ensure their maintenance, even during times of financial constraints. This means setting aside a portion of your budget specifically for the upkeep and renewal of these tools.

However, when faced with limited funds, it may be necessary to find ways to reduce costs without compromising the functionality of your organisation. One way to do this is by considering renegotiating rates or downgrading subscriptions for non-essential tools. For example, if you have subscribed to a premium version of a software tool that offers additional features you don't necessarily need, you could explore the option of downgrading to a lower-tier plan that still meets your basic requirements. This can help you save money while still maintaining access to the necessary functionalities.

Additionally, it may be worth exploring alternative free or open-source tools that can serve as viable substitutes for some of the paid tools you currently use.

Verify Costs with Partners

Reach out to platform providers and digital partners to ensure you are getting optimal deals. Proactively manage contracts, and build strong relationships with partners who can provide valuable insights and support.

Remember, building strong relationships with platform providers and digital partners is also crucial because they can become long-term allies for your charity. They can provide ongoing support and advice, helping your organisation grow and thrive in the digital space. So don't hesitate to reach out and establish connections with these valuable resources for your charity's funding success.

Read more tips in our in-depth Catalyst post.

Part 2: Budgeting for Future Digital Investment

Planning for future digital investment is crucial for sustainability and impact. Here's how you can prepare for future digital costs:

Understand Evolving Service Needs

Analyse how your service users and staff interact with your digital tools. By examining their usage data, you can identify areas that require improvement and take necessary steps to enhance the user experience.

This could involve investing in external support, such as service designers or user researchers, who specialise in optimising digital platforms. These professionals possess valuable expertise in understanding user behaviour and can provide valuable insights into how to make your digital tools more user-friendly and efficient. By utilising their knowledge and skills, you can ensure that your digital platforms are optimised to meet the needs of your service users and staff, ultimately increasing engagement and improving overall performance.

Conduct a Value and Resource Analysis

Assess potential digital projects and internal opportunities. It is essential to choose projects that align with the strategic goals of the charity, as this ensures that the funding is being utilised in the most impactful way possible.

Once potential projects have been identified, the next step is to seek funding for them. This can be done by reaching out to potential donors, sponsors, or even government grants. It is important to clearly communicate the purpose and benefits of the projects to these potential funders, highlighting how they align with the mission and objectives of the charity.

In order to accurately estimate the costs associated with these projects, it is advisable to obtain quotes from relevant vendors or service providers. This will help in determining the financial requirements and budgeting accordingly.

Additionally, engaging with similar organisations that have undertaken similar projects can provide valuable insights into the potential costs involved.

Skill Development and Training

Conduct a digital skills audit to identify necessary skills within your team. By doing so, you can identify any gaps in knowledge or areas where additional training may be needed.

Once you have identified these areas, you can then invest in upskilling your staff or even consider bringing in new team members with the necessary skills. This could involve providing training courses or workshops to help your team develop their digital marketing abilities.

Additionally, you can also seek free support from trustees, volunteers, and support organisations that specialise in providing assistance to charities. These individuals and groups can offer valuable insights and guidance.

Read more in our in-depth Catalyst post.

Part 3: Integrating Digital Costs into Your Operating Budget

Effectively integrating digital costs into your operating budget is essential for funding success. Follow these steps to confidently advocate for essential digital funding:

Categorise Your Expenses

Organise your digital costs into categories related to operational areas. By categorising your digital costs, you'll have a clearer understanding of how much money is being allocated to each specific area.

This can be particularly helpful when it comes time to apply for funding or create a budget for specific projects or initiatives. For example, if you're planning to launch a new website for your charity, you can easily see how much money is needed for web design, hosting, and ongoing maintenance.

Map Costs to Strategic Goals

Align digital costs with your strategic goals to demonstrate their impact and importance. Clearly articulate how digital technology contributes to your mission.

For example, you can explain how having a well-designed website and a strong online presence can help raise awareness about your cause and attract more donors. You can also highlight how digital tools such as social media platforms and email marketing can help you reach a wider audience and engage with them in a more efficient way.

Additionally, it's crucial to demonstrate the importance of digital technology in terms of streamlining your operations and improving efficiency. This can include using digital platforms for volunteer management, online fundraising campaigns, and data analysis to measure the impact of your programs.

By showcasing the ways in which digital technology can enhance your charity's mission, you will be able to make a compelling case for funding and demonstrate that investing in these tools is not only necessary but also highly beneficial for the success of your organisation.

Justify and Stand By Your Costs

Be prepared to justify your digital costs to funders.

This means understanding the expenses that come with implementing digital strategies and being able to communicate their value to potential funders.

Ensure you have contracts with your digital partners that can help outline the specific services and costs associated with your digital initiatives. These contracts can also provide a sense of security for both parties involved, ensuring that the agreed-upon work is carried out and that funds are allocated appropriately.

Additionally, it's essential to think creatively when exploring various funding opportunities. This might involve researching different grants or sponsorship programs specifically geared towards supporting digital projects for non-profit organisations. By being resourceful and open-minded, you can increase your chances of securing the necessary funds to implement your digital plans successfully.

Furthermore, involving trustees, senior management, and teams in the process is crucial. This not only helps ensure that everyone understands the importance and potential impact of digital costs but also encourages their support and involvement. When key decision-makers within your organisation are knowledgeable about digital strategies and their associated costs, they can advocate for them more effectively when engaging with potential funders.

By taking these steps to justify digital costs and involve relevant stakeholders, you can strengthen your case for funding and increase the likelihood of securing financial support for your charity's digital initiatives.