21778 Chap.6 The Fundraising Audit: External Environment
The Fundraising Audit: External Environment
Reading the world outside
Week 3 introduces the fundraising audit, the “where are we now?” stage of planning. This chapter covers macro factors through PEST, using the lecture’s Australian political, economic and sociocultural examples, then the market: similar organisations, peak bodies, partners and donors.
It closes with ideology and seven global megatrends, and a worked judgement of which PEST factor matters most for a community cricket club.
Turning the audit into a short list
The Week 4 tutorial ends with a three-minute report back: the most significant PEST factor, the key competitor, the most promising collaborator, the most important market opportunity and one recommendation.
That structure is a useful discipline for the reports too, because it forces you to rank what you found instead of listing everything, and ranking is where analysis begins.
What this chapter covers
- 01
What a fundraising audit is
- 02
Macro factors and the PEST framework
- 03
Political and economic factors in Australia
- 04
Sociocultural trends in giving
- 05
Competitors and similar organisations
- 06
Peak bodies and partners
- 07
Ideology and global megatrends
Worked example · free
Choose the most important PEST factor for a wildlife zoo
- 1Classify: rising costs economic; the grant program political; winter visits sociocultural or seasonal; online sales technological.
- 1Filter: keep factors that change the revenue mix; all four do, but to different degrees.
- 1Judge: the grant program offers a new stream aligned with the conservation mission, so the political factor matters most for fundraising.
Key terms
- Macro Factor
- An environmental influence over which an organisation has little or no control, such as policy, the economy or social trends.
- PEST Analysis
- A framework that sorts macro factors into political, economic, sociocultural and technological groups.
- Ideology
- A set of ideas and ideals underlying economic and political theories and policies, including beliefs about what charity should be.
- Megatrend
- A broad, long-running global shift, such as the professionalisation of fundraising, that shapes the fundraising environment.
- Third Sector Partnership
- An arrangement in which not-for-profits share funding or resources with one another.
- Competitor Analysis
- A review of organisations competing for the same donations, sponsors, grants, members, volunteers or attention, and of what each does well.
The Fundraising Audit: External Environment FAQ
What is a fundraising audit?
The Week 3 reading defines it as a detailed review of any factors likely to affect an organisation’s ability to raise funds, both internal and external. It answers where the organisation stands now, read against its vision and mission, before objectives and strategies are set.
Which political factors does the lecture name for Australia?
The charity regulator and the views of a former commissioner, access to deductible gift recipient status, fundraising law that differs between states, neoliberal and new public management attitudes, outcomes-based funding that treats not-for-profits as service providers, and the National Disability Insurance Scheme.
What does a peak body do?
A peak body is a not-for-profit whose members are smaller organisations in a similar area. It lobbies government on their behalf, comments on policy and regulation, conducts research, raises awareness of issues in its field, and provides information, support and services to members.
How many competitors and collaborators should I analyse?
The Week 4 tutorial asks for at least three of each. For competitors, note what each does well, which fundraising methods it uses and its advantage. For collaborators, explain why each might partner, the benefits to both sides and the fundraising opportunities a partnership could open up.
Which sources should I use for the external audit?
The lecture recommends reliable material such as sector reports, government reports and academic articles. For Australian cases that means the ACNC register and its charity reports, Productivity Commission work, peak body research, giving bodies such as Philanthropy Australia, and the case organisation’s own annual and financial reports.
Assessment move
Build the audit in layers: four PEST boxes with only relevant factors, three named competitors with what each does well, three collaborators with the benefit to both sides, and a short note on the donor, sponsorship and grant markets. Use reliable sources such as sector and government reports, and cite the year of every figure.
Finish each audit with a ranked shortlist: one factor, one competitor, one collaborator and one opportunity.
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