Where does crowdfunding fit with a sustainable funding strategy?
Third sector organisations do well to diversify their income from a range of sources in this cold climate
But where does crowdfunding fit in?
Thinking about adopting a diverse funding mix can help your organisation become more financially sustainable in the long-term. The key to ensuring stability is the diversification of income streams underpinned by effective management and planning.
Tips for sustainability include knowing what income streams are available, being open to new approaches and adopting a sustainable and diverse mix of income sources, which often means adopting new income streams
- new opportunities need to be better understood and organisations need to take time to explore their potential.
- different income streams are accessed and managed in different ways and involve different relationships with the individual or organisation supplying the funds.
- the skills needs to access money from each income source also varies: for example, the ability to fill in a form maybe useful in winning grant funding, but understanding how to negotiate, might be needed to obtain funds through trading or contracting.
- whatever your organisation and its mission – the message of diversification is important to everyone.
Crowdfunding is a new opportunity, that needs understanding and exploring and which involves developing new relationships and skills
Funding Central’s Income spectrum online tool is a useful application for developing a sustainable funding strategy.
When third sector organisations are developing a funding strategy crowdfunding would seem to come under the Gift Economy – as income from donors. However if we take a closer look crowdfunding donations are not unrestricted income as they are tied to the successful delivery of a specific project. Though the requirements for monitoring and reporting are not the same as for grant income – organisations must deliver the promised rewards, update and keep donors as involved as possible. If there is a slip up – it will do great harm to their reputation with the people who matter.
If an organisation raises money through a successful campaign for its core mission or service then the funds can be categorised as unrestricted.
For start-ups and innovators crowdfunding is reaching out into the open market. If the product or idea is to be successful the campaign has a good chance of success.
Join me on an introduction to crowdfunding workshop
Middlesbrough 14 June 10.00 15.30
Workshop in partnership with Funding Information North East and Middlesbrough Voluntary Development Agency
Central Middlesbrough venue
Rochdale 26 June 09.30-13.00
Workshop in partnership with CVS Rochdale
Venue: CVS Rochdale, Partnership House, Sparrow Hill, Rochdale OL16 1QT
Crewe 3 July 10.00 – 15.30
Workshop in partnership with CVS Cheshire East
Venue:The Exercise Studio, Belong, Brookhouse Drive, Crewe