Thinking Sustainable Finance

Sustainable Funding is a strategic approach taken by an organisation to look at all of it’s funding & cashflow as part of long term thinking.

It’s not about securing the next piece of income (grant or contracts), but is about exploring all the finance and funding options to select the mix that is appropriate and sustainable.

Much of sustainability is not just about money either. It is about looking at many aspects of the organisation to ensure that funding is part of a full strategic direction.

If an organisation is unable to clearly communicate the proof of how its critical services are delivered and make an impact, then it is unlikely a grant funder will see the ultimate benefits their grant might deliver and may be unwilling to support the organisation. Everyone loses out. So being able, as an organisation, to monitor, report and communicate effectively might be critical skills to address as part of financial sustainability.

Equally, a commissioning or procurement route may require new skills of bid writing or working in a consortium. These skills may need to be built up if the organisation is to be able to bring in contracts.

The Sustainable Finance workstream for the Third Sector Hub aims to help local third setor organisations to build theirfinancial stability through looking at many aspects of their organisation.

income spectrumIncome can be seen as coming from a ‘spectrum’ of sources, starting with donations and gift giving, through grant financing onto earning income through service contract work and earning through trading. Resources and support available to local third sector organisations is structured here around this ‘spectrum’ of income sources. Use the menu to navigate around.

This ‘spectrum’ model is material borrowed from the NCVO Sustainable Funding Project (www.ncvo-vol.org.uk/sfp). Visit their website for lots more information and resources.