New Strategies to Increase
Funding
S.Gopikrishna
Presented at the OCASI Executive Director’s
Conference, Alliston
November...
Assumptions of the workshop
• Organization is interested in revenue growth over a
period of time
• Organization recognizes...
Sources of Revenue
FUND DEVELOPMENT
• Governmental Contribution Agreements
- Federal funders
- Provincial funders
- Munici...
PART 1
• What parameters can be used to classify
grants ?
• What are some of the important features
of funding streams tha...
Parameters to Classify Funders
• Much of the funding comes through governmental
contributions or grants, so we have to pay...
Funding Landscape
• What level of financial support and flexibility can we
expect and from who?
• Funders whose revenue de...
Funder Announcement
• The method of solicitation of proposals is very different-
some outreach the community vigorously, o...
PART 2
• Budget wise, what should an “ideal”
program look like?
• How can one develop an “ideal” program?
• Can fundraisin...
Features of an “Ideal” Program
• What is “administrative expense”? -Should handle
administrative expense ( percentage wise...
Developing an ideal program
• Pick a successful program and see if it can be developed
in a new “community” through access...
What part can fundraising play?
• Ideally NO contribution to projects since it is needed to
balance agency budget (Sum tot...
Points to Ponder About
• 10-15% ( max) of the revenue of an agency should be in
project based funding
• Therefore, 85-90% ...
PART 3
• Are there any interesting approaches to
funding?
• Can we do funding differently? Are there
any ideas to be tried...
Some Interesting Approaches
• It is easier to get funded when there is less competition.
It is therefore important to iden...
Some Interesting Approaches
• Some populations are easier to find funding for- youth for
example are easier to fund than s...
Would Partnerships Help?
• Forming Partnerships with other organizations for joint
applications may help.
• It gives bette...
Don’t forget …
• Chances improve based on demonstrability of success,
agency track record and capacity
• Strong Proposal W...
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B2 new strategies for funding

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B2 new strategies for funding

  1. 1. New Strategies to Increase Funding S.Gopikrishna Presented at the OCASI Executive Director’s Conference, Alliston November 2, 2010
  2. 2. Assumptions of the workshop • Organization is interested in revenue growth over a period of time • Organization recognizes that growth is never a linear process • Organization is willing to work within existing limitations • Organization is willing to explore new methods of engagement with the community and non-profits to grow.
  3. 3. Sources of Revenue FUND DEVELOPMENT • Governmental Contribution Agreements - Federal funders - Provincial funders - Municipal funders • Governmental Grants • Private funders ( local and international) FUNDRAISING - Traditional methods - Fee for Service - Social Enterprise
  4. 4. PART 1 • What parameters can be used to classify grants ? • What are some of the important features of funding streams that we need to be aware off? • How do funders inform the community about available funding?
  5. 5. Parameters to Classify Funders • Much of the funding comes through governmental contributions or grants, so we have to pay attention to what funders can support • Parameters for classification - mode of service ( counseling, community- development) - a population ( e.g. youth, seniors) - objective (settlement, violence prevention, volunteerism) - length of funding ( project, long-term project, program) • To maximize funding, projects should have well defined (multiple if possible) services, target populations and objectives
  6. 6. Funding Landscape • What level of financial support and flexibility can we expect and from who? • Funders whose revenue derives from a larger base have more money to give out- federal>province> municipality • Funders whose catchment areas cover wider catchment areas are less flexible in the interests of fairness - federal<province<municipality • With the exception of United Way, non-governmental funders fund projects. Trillium is a long-term project funder.
  7. 7. Funder Announcement • The method of solicitation of proposals is very different- some outreach the community vigorously, others are more low-key in their announcements. • Some are deadline based while others have applications throughout the year. • Some funders prefer that proposals be discussed pre- submission- the more the interaction before proposal submission, the higher the chances
  8. 8. PART 2 • Budget wise, what should an “ideal” program look like? • How can one develop an “ideal” program? • Can fundraising play any role in making a program “ideal” financially?
  9. 9. Features of an “Ideal” Program • What is “administrative expense”? -Should handle administrative expense ( percentage wise or predefined items) irrespective of definition • Should balance itself out- i.e. Should recover costs i.e. no contribution from the agency through fundraising • For smooth functioning of a program, it is important to have a diversified revenue base • Combination of program and project based funding- good from a cash flow point of view
  10. 10. Developing an ideal program • Pick a successful program and see if it can be developed in a new “community” through accessing project based funding. • If project is successful through seed funding, then return to program funder for stabilization dollars? • The advantages here are diversified funding base, demonstrability of success and prospects for stabilization • “Community”- could be different ethnospecific communities or different geographical communities or any other variant
  11. 11. What part can fundraising play? • Ideally NO contribution to projects since it is needed to balance agency budget (Sum total of program/project +Administration budget) • Social enterprise- offer an existing skill or product to community members for a fee • Traditional fundraising- Donations/event based • Contracts from other organizations e.g. IT management • Fundraising may need investment- can you find investment money in the existing agency budget?.
  12. 12. Points to Ponder About • 10-15% ( max) of the revenue of an agency should be in project based funding • Therefore, 85-90% of the funding comes through program based funding • Eakin report ( 2007) –”Ontario non-profits deliver $ 1.14 of service for every $ 1 of funding” • Admin costs of an organization are in the 15-20% range of budget. • An organization can work comfortably with no more than a 10% rate of growth per year.
  13. 13. PART 3 • Are there any interesting approaches to funding? • Can we do funding differently? Are there any ideas to be tried out? • Things to remember when developing proposals
  14. 14. Some Interesting Approaches • It is easier to get funded when there is less competition. It is therefore important to identify situations where we have better control of the competition. • Ability to anticipate funding – the thrust of new programs can be guessed from the political agendas of the government of the day • Funders like to see other funders involved. Chances of getting funding improve after one funder has invested
  15. 15. Some Interesting Approaches • Some populations are easier to find funding for- youth for example are easier to fund than seniors. So, is it possible to use well funded sector in the design of a project to deliver services to an underfunded sector? • Many foundations seem inaccessible from the perspective of organizations working with newcomers. Is it possible to partner with organizations that have successfully applied and ask for advice/apply jointly?
  16. 16. Would Partnerships Help? • Forming Partnerships with other organizations for joint applications may help. • It gives better control over competition and allows organizations to concentrate on developing a realistic budget as opposed to getting in the cheapest bid. • It also helps prevent “turf-war” and results in a co- operative approach • It partially addresses concerns of “over-subscribing to a funder” and allows for development of agency capacity
  17. 17. Don’t forget … • Chances improve based on demonstrability of success, agency track record and capacity • Strong Proposal Writing Skills are a must • Organization must develop a strategic sense of what it needs to do over the year so that it can develop proposals and reinforce partnerships to be ready to respond to proposals at short notice. • There are always funding streams to be explored- some funding streams change focus or are discontinued due to lack of applications.

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