Sustainable funding is not a source of funding or income, nor is it concerned with being able to fundraise better or more effectively. It's about changing your approach to funding, being open to new ideas and planning for the long-term future.
When organisations depend on a single funder or one or two
sources of income it causes problems when a funding application or
income source fails. Thinking about adopting a diverse funding
mix can help your organisation become more financially
sustainable in the long-term.
Sustainable funding is concerned with an organisation exploring
opportunities to diversify its income -
examining the viability of adopting new funding sources to develop
the right funding
The key to ensuring financial sustainability is the diversification of income
streams underpinned by effective management and
It is important to remember that achieving financial
sustainability does not happen overnight. Working towards
sustainability is an ongoing process that takes time, effort,
commitment and a shared vision.
There are three main steps involved in achieving
1. Income diversification - organisations
must be able to explore and adopt a sustainable and diverse mix of
income sources, which often means adopting new income streams. It
is important that organisations do not rely heavily on a single
income stream; if one source of income diminishes an organisation's
overall viability should not be threatened.
2. Organisational skills- working towards
sustainability often means making considerable changes within an
organisation. It is vital that organisations are equipped with the
right skills and knowledge before considering organisational
change. Income diversification often requires new skills for
example marketing, negotiation or employment law. Organisations
must be fit for purpose before considering these avenues.
3. Planning - the key to ensuring financial
sustainability is effective planning and management. Forward
planning is vital to the ongoing success of any organisation.
Thorough planning can assist an organisation to focus attention on
its long-term future and how it is going to get there.
If you would like to know more about sustainable funding or
ideas on how to diversify your funding
mix please contact us or your local county voluntary