The Funding Mix

No matter the size or nature of an organisation, one of the top priorities for committee members or trustees is to identify suitable sources of income. The ability to fund activities, projects and services is imperative. Running costs need to be covered as well as the ability to grow and develop services.

While Third Sector groups are set up to be ‘not-for-profit,’ any surplus they do make is used to support services or build up reserves.

An organisation will often find a variety of different fundraising methods works best. Sources of income include:

  • Trading income
  • Grant income
  • Procurement contracts
  • Fundraising events
  • Donations
  • Legacies
  • Sponsorship

In deciding which best suits the group’s needs, consideration should be given to its overall purposes or aims, its size and nature of activities, how much it needs to raise and the resources already available.

For relatively small costs, local fundraising may be the answer, while for larger costs, funding options should be explored. Think about who will benefit from your services and what they will get out of it. Be clear on needs and benefits.

Consider what resources you will need to carry out your plans:

  • Human resources – will you need to employ people?
  • Material resources – will you need equipment?
  • Financial resources – will you need capital or revenue funding?

Fundraising is a key contact between charities and the public. It’s an opportunity for your charity to secure funding and public goodwill.