Almost all organizations, be it voluntary or community needs funding for their projects. It is important for the organization to be aware of its financial sustainability and independence. An organization is said to be financially sustainable if it has more than one source of income and does its action, strategic and financial planning on a regular basis. On the other hand, financial independence requires an organization not to be fully dependent on just one source for its funding purpose.
For formulating a successful funding strategy there are a few pre-requisites.
• An organization must have a strategy and plan ready for the project. It must formulate an organizational budget.
• The organization must have a good public image.
• The organization must be very clear about the values of the organization which it cannot compromise at any cost.
There are a few project funding strategies a company can make use of in order to find out the best mode of funding for their projects.
1. Never be fully dependent on one source of funding. Keep in mind to diversify the funding base for the organization. While it is great to have one loyal funder, it might also turn out to be dangerous.
2. Making use of the funds received by charging fees for a particular service. Make sure of the fact that there is a market for whatever the organization wishes to sell. Do a feasibility test of the market in order to know whether the market can afford the product being offered.
3. Organizations can raise money from membership fees through members of the organization in exchange for some kind of service, benefit or product.
4. Raising funds from the general public is another strategy an organization can choose. The public is requested to pay for some charity or other causes. The public is appealed through direct mail. People do pay for such causes as they feel responsible for being the part of the solution.
5. An organization can raise funds by organizing special events like annual dinners, music nights, auctions etc by setting targets of the money to be collected from such events being held.
6. Tenders are an excellent way to earn funding for the project. The organization must keep a close watch of the media for tenders being advertised. When a suitable tender is selected, the organization must get in touch with a suitable person for further details. When the job is completed the organization will get paid for the said work.
7. The organization can also try to pool in money by spending carefully. It can ask its employees to reduce costs and increase the efficiency. The company can aim for a cost efficient and effective mode of working.
To have an effective funding strategy it is important to review it on a regular basis to keep a track of new funds being launched which may have to be included in the strategy. This strategy reviewing will help the organization in understanding which sources are successful and which are not and how they can be modified in order to achieve the goals.
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