Nick Beanland helped William Sutton Trust tenants to raise £650,000 last year alone
Raising money is tough. There are many full-time professional fundraisers out there competing for the same cash, but tenants' groups shouldn't be put off: it is possible to compete with them.

Following a few basic rules can make up for lack of experience.

Take time to plan
First of all, ask these questions:

  • What are the overall aims of your group?
  • What does your group presently do?
  • What does the group need money for?
  • Where could the money come from?
  • How can you raise the money?
  • How will you manage the money when you get it?

No matter how little you need, a budget is essential. It has two main elements: normal running costs and the extra money for the new project.

Your budget must be realistic. Include your treasurer from the start and don't forget to include a contingency fund.

Seek out advice
You need to draw on skills as well as money. Start with those that are close to hand, such as your landlord, the local library or the Council for Voluntary Service. Keep an eye on local noticeboards and newspapers.

The internet is the next stop. Start with the website of the Tenants Participation Advisory Service (www.tpas.org.uk).

Use www.open.gov.uk to look for the relevant government bodies. Also, try searching the whole web using a broad term, such as "community grants UK".

Prepare a fundraising strategy
A fundraising strategy describes your funding needs and outlines how you intend to meet them. For security, you should try to combine at least two sources of funding.

Consider imaginatively what your group can raise by itself and look for local organisations that can help with money, time, buildings or equipment. Lots of organisations can be persuaded to give to a good cause. Some are even set up to give.

When you know what your shortfall is likely to be, ask yourself how much you can look for from each source of funding and when you will need it. Remember that each source of income will require a different approach. Some are especially tricky:

  • Charitable trusts – each regards itself as having a distinctive role. Find out whether they operate in your area, are interested in your field of work and make grants of the right size. Be prepared to wait.

  • Lotto funding – of the organisations distributing Lotto money, the one most likely to give to tenants' groups is the community fund. Read your application pack carefully. Say how well your group manages itself and its money, plans ahead, achieves targets and works with others.

  • Central and local government funding – the website of the Office of the Deputy Prime Minister (www.odpm.gov.uk) should list central government grants available, but be careful – it is not always up to date. At local government level, getting funding can be particularly complicated and your local advice network is invaluable.

    Never give up
    Don't give up immediately if your project is ineligible for a specific grant. Look for other organisations that can prepare a partnership bid with you. Don't be put off when "matched funding" is required. "Invisible" contributions, such as free use of office space, mentoring, gifts in kind and the time given by volunteers, can have a high value. The 86,000 hours given by William Sutton Trust's community groups in 2001 were worth £560,000.

    Finally, never sit back and relax. Keep records of successful and unsuccessful activity. Evaluate what worked best, in terms of most money, effort and profile: you will always need more money.