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Agile & robustly funded

This document discusses how NGOs need to become more agile and robustly funded to adapt to ongoing disruptions. It recommends that NGOs conduct a zero-based analysis of their funding needs, diversify their funding sources, and restructure their organizations to be more flexible and data-driven. Agile strategies that emphasize learning, collaboration, and removing bottlenecks will help NGOs better respond to changes and scale their impact. The mindset of accepting what cannot be changed and having the courage to change what can will be important for navigating ongoing uncertainties.

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Agile & robustly funded
NGOs need to find new ways to
survive and thrive
WHO
Christian Meyer zu Natrup
Managing Director
Carolin Gomulia
Senior Consultant
WHAT
We build better NGOs
We help them be better funded
TALKING POINTS TODAY
Challenge
ahead Why now? What now?
The NGOs we need
Agile
We need more agile organisations
to deliver the impact needed
Building a better working NGO
Funded
We need NGOs to robustly
funding themselves
Funding it better
We will never share client data
1. Where we mention a client‘s name, we
received advance, written permission
2. In all other cases lessons learned are
anonymized
The organisation we need
1. Covid-19 / 21 / 23
2. Digitalization 2.0 & accelerated
3. Impact due in 2020 (SDGs)
4. Climate change adaptation & reduction
5. Funders & Donors change drastically
6. Recession ahead & new Philanthropists rise
7. Work force & Donors generational change
8. Things we don’t know > knowledge
Disruption is the new normal 1. Are we able to keep working efficiently & effectively?
2. Can we project impact where & when needed?
3. Can we scale sufficiently to deliver enough impact?
4. Do we have enough funding?
5. Do we have the right funding?
6. Are we not just spending too much time in meetings?
7. Too many bottlenecks?
8. Is this the organisation we need to deliver the
mandate?
Disruptions expose weaknesses
An agile, constantly learning
organisation that is robustly
funded to scale within and
despite disruption
Agile & robustly funded
Robustly funded
Robustly funded?
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
This is a sample text.
Insert your desired text here.
This is a
sample text.
sample text.
Unrestricted funding
(Hight net worth giving, e-campaign)
Inst. Donors
(USAID, EU, Gates, DANIDA, DFID)
Other
80%
16%
The problem
• EU based NGO,
development &
advocacy mandate
• Not enough funding
overall
• Siloed, static
management set-up,
structured to meet donor
demands
• Critical lack of
unrestricted funding
Robustly funded
Robustly funded?
The problem
• EU based NGO, 7
countries, development
& advocacy mandate,
$15m annual spend
• Not enough funding
• Siloed, static
management structure
organized to meet donor
needs
• Critical lack of
unrestricted funding
The Actions
• Zero-based analysis of funding type & amount
needed for strategy realization (4 months)
• What type of funding do we really need?
• What amount of funding do we really need?
• What reach & scale do we really need?
• What overheads do we need to cover for that?
• Funding projection where and by when to
obtain this funding and investments needed
(1.5 months)
• How can we get the type and amount of funding
needed?
• What investments do we need to make?
• What time-scale is realistic?
• Structural changes & investments committed (6
months) aiming at a new income portfolio
• 75% of new funding mix changes attained after

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Agile & robustly funded

  • 1. Agile & robustly funded NGOs need to find new ways to survive and thrive
  • 2. WHO Christian Meyer zu Natrup Managing Director Carolin Gomulia Senior Consultant WHAT We build better NGOs We help them be better funded
  • 3. TALKING POINTS TODAY Challenge ahead Why now? What now? The NGOs we need Agile We need more agile organisations to deliver the impact needed Building a better working NGO Funded We need NGOs to robustly funding themselves Funding it better We will never share client data 1. Where we mention a client‘s name, we received advance, written permission 2. In all other cases lessons learned are anonymized
  • 4. The organisation we need 1. Covid-19 / 21 / 23 2. Digitalization 2.0 & accelerated 3. Impact due in 2020 (SDGs) 4. Climate change adaptation & reduction 5. Funders & Donors change drastically 6. Recession ahead & new Philanthropists rise 7. Work force & Donors generational change 8. Things we don’t know > knowledge Disruption is the new normal 1. Are we able to keep working efficiently & effectively? 2. Can we project impact where & when needed? 3. Can we scale sufficiently to deliver enough impact? 4. Do we have enough funding? 5. Do we have the right funding? 6. Are we not just spending too much time in meetings? 7. Too many bottlenecks? 8. Is this the organisation we need to deliver the mandate? Disruptions expose weaknesses An agile, constantly learning organisation that is robustly funded to scale within and despite disruption Agile & robustly funded
  • 5. Robustly funded Robustly funded? Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (Hight net worth giving, e-campaign) Inst. Donors (USAID, EU, Gates, DANIDA, DFID) Other 80% 16% The problem • EU based NGO, development & advocacy mandate • Not enough funding overall • Siloed, static management set-up, structured to meet donor demands • Critical lack of unrestricted funding
  • 6. Robustly funded Robustly funded? The problem • EU based NGO, 7 countries, development & advocacy mandate, $15m annual spend • Not enough funding • Siloed, static management structure organized to meet donor needs • Critical lack of unrestricted funding The Actions • Zero-based analysis of funding type & amount needed for strategy realization (4 months) • What type of funding do we really need? • What amount of funding do we really need? • What reach & scale do we really need? • What overheads do we need to cover for that? • Funding projection where and by when to obtain this funding and investments needed (1.5 months) • How can we get the type and amount of funding needed? • What investments do we need to make? • What time-scale is realistic? • Structural changes & investments committed (6 months) aiming at a new income portfolio • 75% of new funding mix changes attained after
  • 7. Robustly funded Robustly funded Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (campaign, membership, sponsorship, etc) Income earned (charity business, contract services, etc) Inst. Donors Other “We are shock-proofing our ability to generate income.” S. Weber, President
  • 8. Robustly funded Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (campaign, membership, sponsorship, etc) Income earned (charity business, contract services, etc) Inst. Donors Other Flexibility of use Surplus over costs Cost of acquisition Cost of management Repeat & scale Funding attributes We can change the funding we have.
  • 9. Self test: Do you have the right funding? Amount: Are all key activities & investments you need over the time of your strategy (ideally beyond) sufficiently funded? Time: Is the duration of your funding/capital the same as the time you need the funding for? Type: Is the range of key activities & investments needed permitted use of the funding/capital projected?
  • 10. Building an agile NGO – why? 1. Covid-19 / 21 / 23 2. Digitalization 2.0 accelerated 3. Impact due in 2020 (SDGs) 4. Climate change adaptation & reduction 5. Funders & Donors change drastically 6. Recession ahead & new Philanthropists rise 7. Work force & Donors generational change 8. Things we don’t know > knowledge Disruption is the new normal • Disruptions render forecast based strategies meaningless • We need to respond faster • We need to learn better and faster • We need to remove bottlenecks to react better • We need to thrive and survive in a disrupted world to ensure our partners/beneficiaries will too. • Adoption to the “new normal” means adoption to any new normal
  • 11. This is about how we respond and scale. How we organise ourselves, how we work either opens up strategic opportunities, or closes them. • We find new opportunities for impact, partnerships & income • Scale up where the need is (irrespective of government funding) • Enter new impact delivery models and solve problems The transformation has to be based on our values and understanding of the people we serve and problems we address. Agilty is the key capacity
  • 12. What is agile? • Agile Strategy sets targets, but does not prescribe the ways to achieve them • Learning by Data obsession: Measure, report, learn –> foresight • Collaborate through the Platform: form rapid new partnerships & project development capacity • Trust based: Teams come together when and where needed, less formal structures, very flat hierarchy, open data
  • 13. • Structures & Systems must actually support the Strategy, not just based on history • Trust requires data transparency: Objectives, Indicators and other data points should be freely available to inspire trust • Funding must be robust: Government funding is not a viable path to impact • Data is the key to impact: collection -> analysis –> insight -> foresight • Make work work for people: Flexible work arrangements, platform based work allows people to work when they want/can Lessons learned from agile transformations Diversified its funding in 2019, grew in 2020 Puts data at its core in 2020, attracts substantial donor endorsements Fundamental restructure undergoing, to be ready for recurring migration waves
  • 14. The mindset we need Accept …to accept the things we cannot change,… Politics Donor priorities Economy Evolving needs Pandemics History Sunk Costs
  • 15. Change …courage to change the things we can,… Our NGO Programme priorities Organisational structure Evolving response Funding model Communication Future Costs The mindset we need
  • 16. STAY IN TOUCH! CHRISTIAN MEYER ZU NATRUP chris@mzninternational.com CAROLIN GOMULIA carolin@mzninternational.com SARAH FERNANDES sarah@mzninternational.com Insight blog & free events every month under www.mzninternational.com in cooperation with WEBINAR : How to get donor mapping right 10 June Free Training: Request it on www.mzninternational.com The NGO of the future Blog