First steps to sustainable funding
Too often 'sustainable funding' is seen as a question of simply getting better at fundraising or locating an ever-lasting income source, yet it's more than just thinking about the money.
Discover what income options are available, the benefits of diversifying your income and use our practical tools to explore and evaluate what is appropriate for your organisation.
- What is sustainable funding?
- So, what income streams are available?
- Could we benefit from a more diverse income base?
- If it's not just about the money, what else should we be thinking about?
- Where can we find introductory information?
- We want to be sustainable - where should we start?
- We are ready to explore other income streams - what do we do?
What is sustainable funding?
- Sustainable funding isn't about locating one ever-lasting source of income, it is an approach.
- This approach begins with strategic planning and takes account of opportunities for diversification across the spectrum of income streams available to the voluntary and community sector.
- Sustainable funding is about exploring all the available options.
- Sustainable funding also involves thinking about what is the most appropriate way to fund your organisation. This is because the funding an organisation needs comes down to what it does, who its users are, and what stage it's reached in its developmental lifecycle.
- It's about using the appropriate income stream(s) to drive development at the appropriate time.
So, what income streams are available?
Download the income spectrum (PDF 474kb) which illustrates the range of income streams available to voluntary and community organisations (VCOs) and the relationships with the different individuals or organisations providing the funds.
Could we benefit from a more diverse income base?
Take a few moments to review where your organisation is getting its money from. How many income streams and sources of funding are represented? Are you overly dependant on one short-term source?
Download the income breakdown table (PDF 2.79MB) and assess whether a more diverse approach could benefit your organisation.
If it's not just about the money, what else should we be thinking about?
Becoming more sustainable often means making changes in a number of aspects of your organisation.
Download Sustainable Sun Needs-Analysis Tool (A4 fold-out leaflet - PDF 236kb), designed to help you work our where you are now in each of 7 areas which are integral to long-term sustainability.
Plot your current organisational health, consider future development, and display on a wall to monitor progress. Once you have printed out the six pages of the Tool, or you view the entire document (PDF 224Kb) to see how all the pages fit together.
Note: the Sun tool is best completed by one or more people from your organisation working with a funding advisor or local Council for Voluntary Service or other support agency. However, it can be completed independently.
Where can we find more introductory information?
Download Introducing Funding and Finance for Voluntary and Community Organisations (A6, 49 pages, PDF 1MB), a mini-guide that provides a snap-shot of sector funding and basic exercises to guide organisations through the topics covered. It is ideal for new and small organisations, those new to the concept of sustainable funding and the wider funding environment.
For a more detailed introduction to financial sustainability, from strategic planning to understanding available income sources, download the Guide to Sustainable Funding (40 pages, PDF 632kb) from the Introductory Pack to Funding and Finance (6 part pack), produced by the Sustainable Funding Project for the Finance Hub.
We want to be sustainable - where should we start?
Sustainable Funding starts with planning. In this section, we introduce the 6 stage planning cycle used in the Tools for Tomorrow toolkit.
We also introduce full cost recovery and provide information on a wide range of financial management topics.
We are ready to explore other income streams - what do we do?
- Look at our introduction to fundraising on how to develop a fundraising strategy, discover fundraising resources and tips on writing applications.
- Are you ready to hunt for your hidden assets and trade? See our first steps to trading and issues to consider before trading.
- Delivery of services under contract is a growing area for voluntary and community organisations. Find out more in our Public Service Delivery section.
- Loans are not an income source as such, but a financial tool or an enabler that can aid organisations to do more. Find out how loans and other finance can help.
