31
2009
Sector spotlight: How to achieve sustainable funding
NCVO’s Sustainable Funding Project (SFP) is a first-stop shop encouraging and enabling third sector organisations to explore and exploit a full range of sustainable funding and financing options.
Here they explore what sustainable funding means and what the SFP can offer third sector organisations.
What is sustainable funding?
Sustainable funding isn’t about locating one ever-lasting source of income. It is an approach that begins with strategic planning and takes account of opportunities to diversify funding across a spectrum of income streams available to the third sector. Sustainable funding can range from donations and grants through to contracts and trading. Loan finance can also be used to develop capacity and invest for the future.
The Income Spectrum (PDF format) shows the range of income options available to voluntary and community organisations.
How do I achieve sustainable funding?
In order to be sustainable, your funding needs to be:
- Stable – it’s important to have a mix of income streams so that if one diminishes it doesn’t threaten your organisation’s viability overall.
- Suitable – there are a wide range of funding and finance options which are appropriate for different situations. Understanding what each can offer, and ensuring there is a good match between your objectives and the type of funding or financing you are seeking, is essential.
- Sufficient – there never seems to be enough money, but understanding your costs properly allows you to make informed decisions about accepting contracts or undertaking project work.
To find out if your organisation needs to develop a more sustainable funding mix, use this toolkit (PDF format) to analyse the breakdown of your income and assess whether a more diverse approach could be of benefit.
How can the Sustainable Funding Project help third sector organisations?
The Sustainable Funding Project provides support and information on all aspects of sustainable funding, but third sector organisations might be particularly interested in their work around public service delivery and loan finance. Why not take a look at the following resources:
- The Public Service Delivery Network is for those working in, and with, the third sector with responsibility for negotiating and managing public sector contracts. It is free to join and is supported by publications, an Annual Conference and half day seminars
- Publications such as Before Signing on the Dotted Line- all you need to know about procuring public sector contracts and a ‘Brief Guide to Loan Finance for Trustees
- The Sustainable Funding Project website contains introductory and signposting information on the various elements of sustainable funding
- A free monthly e-newsletter on sustainable funding issues which highlights the latest developments and new services
- Case studies featuring organisations who earn their own income, have used loan finance to grow and have got a sustainable funding mix
- Only Connect is a bursary scheme which pays for your travel to visit an organisation who is already earning income through trading or contracting
Go to the NCVO website for links to all the sustainable funding resources detailed above or email questions to sfp@ncvo-vol.org.uk.
If you would like to join the Public Service Delivery Network, email psdnetwork@ncvo-vol.org.uk.
What next?
Want to read some examples of what your Futurebuilders investment package might look like? Ready to begin the application process?
- Search our database of investments
- Submit an enquiry (please note that applications for Futurebuilders have now closed so no furthur enquiries will be accepted)
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