Fund Raising: The Death Of Traditional Donor Money?
Times are changing in the development sector. As MDF consultants, we witness major changes in the donor landscape all the time. Traditional aid sources may slowly dry up. Bilateral donors are facing major budget cuts. Many countries are shifting from aid to trade, and even UN agencies are confronted with dwindling resources. What does this mean for the non-profit organizations which rely on these funding streams?
Navigating and Match making
It is not all bad news. As in other sectors, new alternatives pop up as others are vanishing. Like mushrooms growing on dead wood. For many NGOs this is an opportune moment to rethink strategy. NGOs need to make a shift from being reactive – waiting for a call for proposal – to being proactive. Creating matches between what beneficiaries need, what NGOs can deliver and what funders have to offer. Before, NGOs had to jump through hoops to fit the donor’s request and complex formats. Now there are opportunities for NGOs to match up to a much larger variety of accessible actors with resources. Corporate foundations, private foundations, celebrities, and even the general public – through crowd funding.
Matching grants, seed money, innovation grants, grant for prototyping and trials, private or corporate sponsorships, equity crowd funding, fellowships, competitions and awards etc… Not only have the sources diversified, but also the types of resources are much more diverse than traditional aid and grants. It is also easier to scan online for sources, such as FundsforNGOs, DoSomeGood, 1% Club, and EuroCrowd.
In deciding whether a funding opportunity is worth pursuing, we suggest that organisations use the 4C model: Competence, Capacity, Competition and Chance to Win. Do you have the technical and managerial competence to deliver the products or services? Do you have the capacity (time, HR) to develop the proposal? Will there be strong competition? Only after a fair positive assessment of these 4 Cs will you have a chance to win.
In MDF’s Fundraising or Resource Mobilization trainings, we guide organizations to better understand and navigate the ever-changing funding landscape. Contact us at email@example.com for further information.
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