For hospices, securing income from trusts and foundations can be a game-changer. At Pebblebeach Fundraising, we’ve worked with many, many hospices across the UK and understand what it takes to run a successful trust fundraising programme. So, if you’re aiming to grow this income stream, re-energise your existing trust fundraising function or launch a capital appeal, here’s a look at what’s possible.
What Can Hospices Expect to Raise From Trust Fundraising?
For hospices with a well-developed programme, raising around £200,000 a year is often the norm, with many bringing in £225,000 to £250,000 annually. For a larger hospice with an experienced fundraising team, it could be possible to generate £300,000+ each year.
What Should Your Full-Time Trust Fundraiser Be Aiming For?
Most hospices have at least one dedicated trust fundraiser, who might cost around £35,000 per year (dependent upon experience and location, and inclusive of on-costs like pensions and NI contributions). Ideally, a well-established trust fundraiser should aim to raise £210,000 annually, which brings a 6:1 return on investment (ROI) – a clear indicator that the programme is doing well. Keep in mind though, that after covering expenses, this target translates into £175,000 of net income.
If you’re just getting started or rebooting your programme, it’s normal for initial ROI to be much lower – perhaps around 3 or 4:1 in the early stages. But over time, as relationships develop with funders and with your clinical and operational colleagues (who are key to providing information for applications), a solid programme should reach a 5, 6, or even 7:1 ROI.
Setting Realistic Expectations for ROI and Growth
Trust fundraising takes time to build – it’s rarely about ‘quick wins’. New programmes or those going through big changes often achieve a lower ROI, as relationships are just beginning to form, systems are being put in place and the case for support may not yet be fully honed.
At Pebblebeach, we’ve found that sustainable growth comes from mastering the basics: identifying the right funders, creating a strong application pipeline, crafting excellent applications and building effective relationships – internally with colleagues and externally with your funders.
Hospices are only likely to see a higher ROI if fundraising for a particularly appealing project or in the context of a major capital appeal. Frustratingly, funders tend to be drawn to new and exciting projects with clear, measurable outcomes; these can be easier to secure funding for than your day-to-day work. Having a highly skilled trust fundraiser in place can help you reach these more ambitious and challenging targets – but they will also know how and where to look for that vital unrestricted/core funding.
Hit Rates and the Importance of Quality Applications
With funders receiving more applications than ever, we’re seeing a typical ‘hit rate’ (the percentage of successful applications) averaging around 1 in 10 (10%). Achieving a higher hit rate depends on a broad array of interlinking factors, including:
+ Size and reputation of your charity
+ Fundraiser’s experience and skills
+ Quality of applications
+ Type and scale of the project or ‘ask’
+ Strength of your case for support – and the need
+ The ‘fit’ with each funder’s criteria
+ The size of your free reserves (too high or too low?)
Applications to ‘warm’ funders – those who’ve supported you before – often achieve a higher success rate than new or ‘cold’ funders. Requests for specific, restricted grants can also appeal more strongly to trusts and foundations than unrestricted funding asks.
If you’re looking to boost your hit rate, start by focusing on the quality of your applications. Each one should be clear, compelling and tightly tailored to the funder’s priorities, guidelines and charitable objectives. And, of course, building strong relationships over time with those who support you is essential.
Tips to Maximise Income and ROI in Trust Fundraising
Whether your hospice is new to trust fundraising or looking to breathe life into an established programme, here are some practical tips:
- Identify the Right Funders: Invest time in researching funders whose priorities align with your hospice’s work. Focus on those who support hospice care, end-of-life services or healthcare generally but also look further afield (e.g. at funder lists within other charities’ annual accounts) to identify potential supporters.
- Write Clear, Compelling Applications: High-quality, focused applications are a must. Make sure every application clearly addresses the funder’s goals, outlines the project’s impact, and makes a strong case for support. Consider asking a non-fundraiser to read your applications to check if they make sense and hit the spot!
- Build Lasting Relationships: Fundraising success isn’t just about maximising income. It’s about building genuine, long-term relationships with funders, which can lead to ongoing support and a solid, sustainable trust fundraising function. Regular thanking, updates, transparency and communication can all help to pave the way for your next application.
- Set Realistic ROI Goals: While high returns are occasionally achievable, set realistic expectations based on where your programme is at. Programmes often start with a lower ROI in the early years, so planning for a gradual increase ensures a more realistic budget and more sustainable growth.
- Invest in Expertise: If possible, bring in experienced trust fundraisers who know the ins and outs of healthcare or hospice fundraising. Their skills can help refine your approach and improve overall results – even if they, understandably, cost more!
Let Pebblebeach Help You Reach Your Trust Fundraising Goals
Whether you’re starting from scratch, revitalising a programme or wishing to maximise your hospice’s fundraising potential, Pebblebeach can help. We’ve been in the trust fundraising game for years and work closely with hospices to fine-tune strategies, find the right funders and write applications that get results. At a time when it can be so difficult to recruit experienced trust fundraisers, we can step in as your ‘critical friend’ and help transform your trust fundraising programme.
Interested in taking your hospice’s trust fundraising to the next level? Reach out to us at hello@pebblebeachfundraising.com for an initial chat. Let’s talk about your goals, take a look at your current programme and explore how we can work together to bring in the funding your hospice needs.
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