The document discusses the importance of developing exit strategies when providing grants to organizations. It notes that exit strategies help ensure clarity, maintain a healthy relationship between the donor and grantee, and allow the work to continue after funding ends. Effective exit strategies involve transparent communication, realistic timelines, capacity building efforts, and planning to transition organizations to other sources of funding.
4. Grantmaking process simplified…
Plan:
EXIT Keep coming back to EXIT STRATEGY
Develop Call for Award Monitor Measure Refine …
strategy applications grants progress impact strategy
5. Underlying principles
Complex and deep-rooted challenges
Always be a disappointment
Certain element of reputational risk
Defining sustainability
6. Unpacking the “WHY”
Why fund an organisation for more than one year?
Advantages Disadvantages
Promotes sustainability Dependency and sustainability
Partnerships Limited flexibility to engage in new
funding relationships
Monitoring, evaluation and Financial obligation of the donor
reporting
Organic development and the
emergence of innovative models
7. Unpacking the “WHY”
Why would you want to exit?
Changes in the market
Declining assets
Changes in thinking
Changes in composition of leadership
Changes in project officer
Desire to keep strategy fresh and flexible
8. Unpacking the “WHY”
Why do we want to plan for exiting?
Ensure clarity
Healthy discipline
More specific around capacity-building efforts and needs
Closer working relationship between the donor and grantee
Cohesion between funders
9.
10. Unpacking the “WHAT”
What makes up an effective exit strategy?
Good business planning
A passionate champion
Continuity of staff and volunteers
An organisation that has several sources of funding
Involvement of potential continuation funders at an early stage
Agreed outcomes
Transparent ongoing communication
Realistic time frames
Realistic objectives
11. Grantmaking process simplified…
Plan:
Plan:
EXIT
EXIT Keep coming back to EXIT STRATEGY
Develop …
strategy
What are you hoping to achieve?
What impact are you trying to make?
What resources do you have available to you?
Do you consult organisations working in the sector in developing your strategy?
12. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Call for …
applications
Have you clearly stated what you are trying to achieve in your application forms?
Have you stated the time frames you are working on?
13. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Award
grants
Do you ask organisations to sign a contract?
Do you fund programme and operational costs?
14. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Monitor …
progress
Do you frequently meet with partner organisations to monitor progress, assess
challenges and acknowledge success?
Do you frequently assess progress with the targets laid out in the proposals and
contracts (including due diligence)?
15. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Measure …
impact
Are you frequently checking your impact against your targets?
Are you mobilising resources to reach your targets e.g. leveraging funding,
enhancing network opportunities, supporting advocacy, providing capacity-
building?
16. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Refine …
strategy
Are you asking for advice?
Have you assisted in developing capacity in your partner organisations?
Have you reached your targets?
17. There’s a trick to the Graceful Exit. It
begins with the vision to recognise when
a job, a life stage, a relationship is over –
and to let go. It means leaving what's
over without denying its value.
~ Ellen Goodman
18.
19. For discussion
You are currently funding seven organisations throughout the country: support for
bursaries for eight students in their undergraduate studies (through two bursary
service providers), one residential facility for children with special needs, and four
HIV/Aids prevention programmes. Your available budget is R8 million, of which
you have already committed R6 million to the operational costs of these projects.
There has been a change in leadership within your organisation, and you need to
refine your strategy to focus exclusively on HIV/Aids prevention programmes. You
have one year to refine your strategy, and you are given permission to utilise the
R2 million surplus to manage reputational risks.
In groups, please define the following:
Prepare a budget on how you will invest the R2 million.
How will you communicate the change in strategy to your current partners?
20. Every exit is an entrance
somewhere else.
~Tom Stoppard