1.
How to Fund my Organisation,
Not Projects
A Holistic Approach to Funding.

2.
WHO
WHAT
We build better NGOs
We help them to be funded
better
Joseph Nelson
Senior Consultant

3.
From Project to Organisational funding in 3 steps
Maximise Unrestricted Income through
efficiencies
Eliminate Losses
Flows
Systematic business development
Build A Continuous Flow
Alternatives
A funding mix that works for you
Scale Up Alternative
Revenue Streams
We know you know...
1. Out of the many things you can do, here
are three concrete steps
2. This talk aims to move from ambition to
action
Efficiencies

4.
IMPACT
The most protracted, complex and pressing problems we have in the world today need
innovative solutions, sustained over time.
That does not match a donor template.
Most organisations tackling these problems need a better business model.

5.
Change & Disruption like never before

6.
Efficiency - Do (only) what you cost
Top 4 Reasons Our Clients Suffer Regular Financial Difficulties:
1. Programme Overruns - Supporting programme activities
from unrestricted funding due to implementation issues.
2. Disallowables - Compliance oversight leading to donors
recouping funds after the programme has ended.
3. Poor Budgeting - Programme budgets which do not include
key delivery aspects which are later paid for through
unrestricted funding.
4. Cost Recovery Policies - Organisations lacking clear
knowledge about their need to recover indirect costs from
donors, leading to organisations taking loss making projects
consistently.
MzN Client approached us
with structural deficit
issues that they needed
resolving:
Consistent Annual Deficits
Reducing Reserves
Good Programme Volume
Long Term Donors

7.
Efficiency - Some levers to look at
Programme Overruns
What we Found
Programmes consistently exceeded budgets due to poor operational decisions on the ground and ineffective reporting to
the Headquarters.
What we Recommended
The systematic strengthening of the programme delivery function, project management capacity building in the field and
an increased oversight function based in Headquarters.
Disallowables
What we Found
Audits consistently found compliance problems following the programme implementation. Upwards of $250,000 were
recalled annually from donors.
What we Recommended
Support and guidance at both the field and Headquarters level to ensure donor policy compliance.

8.
Efficiency - some more levers
Poor Budgeting
What we Found
Programmes were overrunning in terms of costs across the range of country offices because core and standard activities
were not included or underestimated.
What we Recommended
Organisation wide budget training was recommended to ensure that each country office understood the full extent of the
requirements of implementing programmes
Cost Recovery Policies
What we Found
The organisation as a whole did not understand the implications of the indirect cost recovery aspect of grants and did not
have a holistic understanding of the organisational requirements.
What we Recommended
A core cost analysis to understand what the organisation needed to recover from donors as well as a portfolio audit to
understand the current average recovery rate. We implemented an updated business development plan to move the
average to the organisational requirement within 12 months.

9.
AVOID the gap
Donor Scoping Application Contracting New Projects
Contracting should be
a continuous process
Avoid the: Get a grant - Implement a Programme - Complete it - Scramble Around - Loose People - Find another Grant, Race

10.
1. Systematic Business Development - Donor scoping needs to be an
accessible and interactive document (ideally cloud based or on a
platform). The work needs to be systematic, not ad hoc and the
process needs to be owned.
2. Understand your Parameters - Donors have a range of criteria and
eligibility standards. Your organisation has specific capabilities and a
mission to fulfil. Make sure that both of those aspects are
accounted for within your pipeline. Time wasted on ineligible
projects is de-motivational and costly.
3. Research the Donors - This is an exercise of strategic importance;
the devil is often in the detail. Time spent conducting proper
research builds effective prospect lists as well as avoids
disappointment.
4. Build a Prospect Table - This is where you summarise and prioritise
the opportunities identified by your research.
5. Apply!
Funding
is a
Simple
and
Logical
Process
Once you have defined your funding strategy - You should follow these simple steps to build a sustainable pipeline:
Flows - Create a Pipeline that is a Continuous
Flow

11.
Flows - Create a Pipeline that is a Continuous
Flow
The problem
• EU based NGO
• 7 countries
• Development and
advocacy mandate
• $15m annual spend
• Irregular flows of
funding
• Critical lack of
unrestricted
Our Actions
• Zero-based analysis of funding type and consistency needed for
strategy realization
• What type of funding do we need?
• What amount of funding do we need?
• How frequently do we need to apply and what is our average
success rate?
• What overheads do we need to cover for that?
• Funding projection where and by when to obtain this funding and
investments needed
• How can we get the type, amount and frequency of funding
needed?
• What investments do we need to make?
• What time-scale is realistic?
• Structural changes and investments committed aiming at a new income
portfolio.
• Developed a business development function dedicated to prospect and
donor research as well as leading the application process.
• After 18 months there is a consistent flow of funds which allows for the
continuation of operations without disruption.

12.
Alternatives to Grants - Scale Up Alternative Revenue Streams
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
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Unrestricted funding
(High net worth giving, e-campaign)
Inst. Donors
(USAID, EU, Gates, DANIDA, DFID)
Other
80%
16%
The problem
• EU based NGO,
development and
advocacy mandate
• Not enough funding
overall but critically overly
reliant on grants from
institutional donors.
• Critical lack of unrestricted
funding

13.
Build a new income stream
1. Commercial Contracts (Fixed Price)
2. Income Earning Business
3. Fundraising scaling
____________________________________
BASE IT ON WHAT YOU DO

14.
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
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Insert your desired text here.
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sample text.
sample text.
Unrestricted funding
(campaign, membership, sponsorship, etc)
Income earned
(charity business, contract services, etc)
Inst. Donors
Other
“We are shock-proofing our ability
to generate income.”
CEO at Top 10 Humanitarian NGO
Alternatives to Grants - Scale Up Alternative Revenue Streams
Changing the Business
Model and Thinking
Differently about Revenue

15.
STAY IN TOUCH!
Joseph Nelson
joseph@mzninternational.com
Christian Meyer zu Natrup
chris@mzninternational.com
Check out our blogs and upcoming events on
our website:
www.mzninternational.com