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Funds & Fundraising

Updated 9 OctoberWeek 1Discussed

How do we reinvent political fundraising so money brings opportunity, not scandal?

Fundraising is critical for the SDP to grow

The political landscape has an SDP-shaped hole in it. But achieving any kind of wider recognition or growth will require funds – for staff, for campaigning, for comms, for research and more.

There is a catch-22. Traditional political donors tend to fund parties that are already large. Many insurgents grow based on donations or loans from one or two wealthy backers.

The SDP doesn’t have a ‘natural’ coalition like the unions, financiers or crypto bros… or does it?

Political fundraising, but not as we know it

While working with William on the fundraising pitch deck, I created four potential donor profiles that we haven’t even begun to test. I'll go over these in the call, but I believe that in a country of 70m people we can find new ways to finance a political party. These are my three initial proposals:

Changed after the surgery

Find the ‘seed’ donors

We take what we know so far, to find the people who will fund us before success is visible.

In startup terms, ‘seed’ donors are the investors who bring money to a venture when it isn’t yet fully proven. They back the team, the product, the vision and the plan.

We can use data from who currently donates to the SDP to find more of the same people, as well as expanding beyond this to signal to a wider donor pool (see the transparency pledge below).

See what’s changed

Build a backable team

At this size, the team is crucial.

If seed donors back the team, then losing William is obviously a blow.

That's why I will focus on building a strong team, including William himself, alongside other experienced, talented SDP members. I'll also invite people from outside the party to join us for more shoulders to the wheel! I'll work to send a clear signal to donors that we are serious and competent.

Create a ‘transparency’ pledge

To protect both the party and the donor, we will make it clear there are no shady quid pro quos behind any donation.

We'll ask people to sign a transparency pledge when they donate above a certain threshold. And we'll sign it too - confirming that we do due diligence on all donations, reject money that comes with dodgy conditions and make sure that their donation to our party never taints them by association.

This will free up people who don’t usually donate to political parties to feel secure that their reputation is safer with us than with any other party.

Read the article: How British politics is paid for

What members said

Members joined the first campaign surgery to discuss the question: how do we reinvent political fundraising so money brings opportunity, not scandal? Their questions tested whether fundraising formed part of a believable plan for growth.

Haven’t we tried this already?

We’ve tried to find donors, but not like this. Previous fundraising has understandably concentrated on established political networks. I want to widen the search and identify people whose experience and outlook already fit the SDP. Only 1.9% of donors change party. Many will only back a successful party. They prefer to jump on the bandwagon when it’s moving, rather than attach the wheels and get it cranked up! So we’re looking for a different type of donor now.

This is, let’s be clear, a hypothesis, and the next step is to test it properly.

Isn’t it more important to find members than donors?

We need an SDP with at least 20,000 members by the 2029 general election. The party should always be member-driven. But we need paid staff, and growth requires stronger systems for welcoming new members, helping them become involved and giving them reasons to stay. Early funding will help build that capacity; members can then make the party increasingly self-sustaining while bringing energy, ideas and active participation.

Seed donors? We’re not a startup. Besides, what are they getting in return? Why would they give?

‘Seed’ is an analogy that refers to the characteristics of the donor: someone who recognises the potential, believes in the ambition, backs the team and the plan.

People who build businesses tend to ask the same question: which lever can I pull to make the greatest difference? Some may look at the established parties and conclude that more support for them will simply produce more of the same dysfunction. But if they see in the SDP the right ideas, serious people and a credible plan to grow, they may decide that this is where their support could genuinely count for Britain.

Some people don’t believe that people will give money without getting something in return. Cynicism is justified – but only to an extent. Some people won’t – but many will and do when they believe in the cause. For example, many of our members give remarkable amounts of time. Those who cannot give time, but can give money, can have a meaningful way to help build the party too. Regardless, financial support mustn’t buy influence over policy, personnel or party decisions.

Donations or loans?

One member suggested that loans might be easier to secure. It’s a good idea and remains worth examining, but loans create obligations of their own. Any loan would need a prudent repayment plan that did not create commitments that might weaken future party growth or hamper a campaign period.

What would the money fund?

I am developing three costed options (a base, mid and high case). They will examine where dedicated capacity would make the greatest difference, including membership, communications and operations. The money would most likely fund a combination of people, tech and distribution.

The wider lesson

Members asked how money would translate into growth. Funding alone does not get the party across the bridge; progress across all six areas we’re discussing during this campaign does. But funding – and the operational effectiveness it can supply – helps turn good work and volunteer effort into lasting results, and does so much faster.

Creativity still matters

Members suggested ideas like cartoons, events and member videos (also known as ‘user generated content’ or UGC) to broaden the range of our communications. I absolutely agree. The great news is that creativity itself is free – and it’s a resource we already have. What we need to do is create the structures and capacity to turn creative ideas into action that can drive the party forward.

What's changed

This is why member engagement matters. Your contributions helped refine the thinking. The discussion changed one proposal and one important piece of framing: funding alone does not get the party across the bridge. Work across all six areas does.

  • Changed after the surgery

    Find the ‘seed’ donors

    I need to explain more clearly why someone would support a growing party without expecting improper influence in return. I will develop the two motivations set out under ‘What members said’, test the proposed donor groups and look at examples of political organisations that have raised substantial funding with clear safeguards.

  • Donations and loans

    Loans remain under consideration, but not as an automatic solution. I will examine the repayment timetable, legal treatment and effect on future campaigning before recommending them.

  • What the money would fund

    While I gave some indications of what the money would fund on the call, it wasn't clear that I was building a full budget/cashflow model behind the strategy. This will include a base, mid and high case, set to staged milestones. Each will show where dedicated capacity would make the greatest difference and what additional funding would make possible.

Could you help?

Experience in raising money? Ideas to share? Send me a message.

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