Unit 7 Organisational sustainability and Resource Mobilisation Flashcards
The 4 dimensions of sustainability for NGOs’s (Cannon, 2002)
+ 2 tasks (Fowler, 2000)
- Benefit Sustainability
- Community Sustainability
- Organisational Sustainability
> Resource Mobilitsation (Fowler, 2000)
> Adaptive Viability (Fowler, 2000) - Financial Sustainability
5 basic requirements for CSO to be effective and sustainable (Holloway, 2001)
- Good programmes (high quality deliverables)
- Good management - efficient use of resources
- Commitment to sustainability
- Financial resources to support 1-3
- local support
RM can be optained from following resources
- Northern Governments (official aid, bi/multi-lateral, tax base)
- Southern Governments (ODA, tax)
- International NGO’s
- The market (corporate, NGO enterprises)
- Citizens (gifts, support)
Quality assessment of financial resources
- conditions and expectations of the giver
- methods of allocation (timescale)
- level of admin burden
- predictability and reliability
- Continuity and duration
Available income streams for NGO’s (NCVO)
- Gift Economy - often unrestricted - philantropic
- Grant Funding - often restricted - for specific outputs/outcomes
- Structured market - payment for goods/services
- open market - trading
Non-financial Resources (RM)
- volunteer skilled labour
- goods and materials
- experienced seconded professional personell
- access to public policy fora
- access to service provided for non-profit org
- champions
(Fowler, 2000)(Holloway, 2001)
3 different categories of international donors
- multilateral agencies
- bilateral funding agencies
- iNGO’s
The difficulties of grant funding - related to dependency
- Scale of funding
- Scope of funding
- Timescale
- Donor dependency
- Loss of independence
- Delays in decision making
- Cash flow problems
- Burdensome requirements
The difficulties of grant funding for projects
- Activity focus
- Lack of flexibility
- Time-consuming
4 forms of funding mechanisms:
- project based funding
- programme based funding
- block grants
- framework agreements
Strategic delinquency
an NGO will undertake whatever the donors are prepared to fund - often a sympton of deeper ills in the NGO
Alternative (to donors) sources of income for NGOs
- Foundations and trusts
- local and national Governments
- individual giving
- business/corporate sponsorship
- capital reserves and endowments
- production & trade
- social investment
different types of foundations:
- private (example: Bill&Melinda Gates Foundation)
- community (example: kenya community development foundation)
- corporate (example: mastercard foundation)
- government-initiated (example: lotterywest)
How to generate reserve capital?
- maximise unrestricted income
- maximise the potential of restricted funds, to free up unrestricted funds
- maximise project income, so that projects require little or no internal subsidy
- minimise controllable expenditure, so that expediture is reduced
Corpus fund
build capital reserves enough to generate some income from the interest