Funding Formula Stage 1
Introduction
In Stage 1, we explore the following:
- the background to the current global funding environment
- tools to help you assess and build your Resource Mobilization capacity
- an example of a Resource Mobilization strategy
1. What is Resource Mobilization?
Resource Mobilization is more than simply writing funding proposals: these are the end product of a longer chain of activities. Resource Mobilization is about how we, as a Federation, present ourselves as credible and relevant to donors, and how we build our visibility and relationships. IPPF’s aim is to create an environment in which partners want to work with us, and donors want to fund us.
Resource Mobilization is a team effort, and it requires your organisation’s commitment to secure funding for its work.
2. Why should you do Resource Mobilization?
The short answer is: to build a diverse and sustainable funding base. A diverse funding base could include:
- core funding
- restricted funding for projects
- contracts with businesses for workplace services
- donations and project funding from the corporate sector
- funding for training from your national government
- grants from international governments
- donations from high net worth individuals
- proceeds from direct mail
- income from legacies
- donations in kind
A diverse and sustainable funding base is important for the health and long-term future of your organisation. Being dependent on one or two sources of funding is high risk, and can leave you vulnerable. It can also compromise your independence if you are heavily influenced by a single major donor. Being financially sustainable means your organisation is not donor-led, but can enjoy organisational autonomy, for example:
- being empowered to stay focused on achieving your goals and priorities
- making your own choices independently
- rejecting funding that is inappropriate to your aims and objectives, or unethical
- enabling programmatic flexibility – either responding to a range of different donor priorities, or to an urgent need, for example, a humanitarian crisis
3. How do you currently do your Resource Mobilization?
Before you develop a Resource Mobilization strategy, it is useful to undertake a self-assessment, to establish what resources your organisation already has, and what other resources you need in order to achieve your programming objectives. Here are some questions you can ask of your organisation:
- where are you now? For example, are you meeting – or on target to meet – your service delivery goals?
- where do you want to be? For example, do you have specific goals and targets for the next five years?
- how are you going to get there – and what resources will you need? In order to reach your strategic goals, you will need human, financial and technical resources.
Assess what Resource Mobilization your organisation is already doing. For example:
- how much income do you generate?
- who funds you?
- who ‘does’ your Resource Mobilization?
- do you have a Resource Mobilization plan?
The following matrix will help you undertake a quick assessment of your Resource Mobilization:
First Steps in Resource Mobilization Self-Assessment
| Current Projects / Programme/ | Type of Resource | Source of Funding | Amount | Time Period | How Funding was Secured |
|---|---|---|---|---|---|
| Eg. Youth Community-based Outreach Clinic service Delivery Advocacy Gender-based violence Comprehensive sexuality education HIV | Eg. Grant Loan Contract Commodities Donations in kind Training | Eg. National government Multilateral agency Foreign government Corporate sector Charitable trust/foundation HNWI | $$$ | How long does the funding last? | Personal contacts /relationship Proposals Bid Sub-contracts |
4. Do you want a more detailed assessment?
If your organisation wants to undertake a thorough organizational self-assessment, use IPPF’s Resource Mobilization Needs Assessment tool, Competitor Analysis tool, SWOT (Strengths, Weaknesses, Opportunities and Threats) and PESTLE (Political, Economic, Social, Technological, Legalities and Environmental) tools. These are the next ‘Blocks’ in the Resource Mobilization wall.