Considering the days (okay, weeks) you spend on an application, it’s pretty disheartening when your chosen funder comes back with a big fat no. For most charities and social enterprises, that’s scary. Because, let’s face it, you probably don’t have a long list of alternative funders lined up.
Have you thought about diversification of funding? Let’s look at whether it might be a good idea for your projects.
Diversification is important for sustainability and growth
If you’re relying on only one funder for all your funded projects, or if more than 30% of your income comes from a single funder, then that’s risky.
That’s because, even if exponential growth isn’t your goal, the ability to keep up your good work and cover all overheads and expenses is vital. If this one funder decides not to fund projects like yours anymore, you’re in a precarious position. Could you survive?
Diversification is possible!
Over the course of a year, how many different funds do you usually apply to? Is it usually:
Less than 10?
Less than 5?
Less than 3?
Fun fact: there are more than 8000 trusts and foundations in the UK. Of course, they won’t all be the best match for your work, but basic statistics will tell us that the greater the number of funders you approach, the greater your chance of success.
Diversification is happening
Up until this point, you’ve stuck with the same funders because you’ve known what you’re getting. You know what they’re looking for, and you (usually) know what they’ll say yes to.
But that’s changing too.
The funding landscape is becoming a very different place. Funders are stopping repeat funding. Diversification of funding is becoming a necessity, to survive and succeed in the sector.
And this is a good thing.
As the focus shifts to storytelling and collaboration, funders want to find new funded projects to shout about. Thankfully, receiving funding no longer depends on who you know - it can become exciting again, not panic-inducing. If you diversify.
Now that we’ve convinced you why diversification is a great idea, we need to help you with the how. So, we’re teaming up with Validaid, an online platform that matches funded projects and funders, to bring you a webinar that guides you through the future of finding funding and challenging those existing power dynamics.
You can sign up to the webinar (and get some more information), by clicking on this link: http://eepurl.com/gfRa2L. It’s on Tuesday 26th February 2019 at 11:00 am. We only have 100 spots, so be sure to sign up early!
If you have any questions about the webinar or Validaid’s exciting new work, get in touch at firstname.lastname@example.org.