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Strategic Funding Framework
The Strategic Funding Framework provides a tool for building and maintaining a high return funding strategy.
How important is funding to your organisation? How efficiently and effectively do you raise the funds you need to do your work? How confident are you that you can grow your organisation over time?
A reliable income stream is critical for the majority of non-profit organisations. An organisation with a strategic approach to funding is more likely to achieve their goals and become sustainable. As a non-profit organisation, if you can develop a robust and realistic approach to fundraising you are better positioned not just to communicate with your existing funders, but to attract the attention of our growing population of wealthy individuals, trusts and foundations who are seeking a philanthropic relationship of real engagement.
The SVA funding framework is inspired by the work of the Ireland Fund’s Kingsley Aitkens, a globally respected expert on strategic funding and a member of SVA’s Leadership Council. SVA has continued to refine the framework for the Australian context as we’ve has moved forward in raising the millions of dollars we’ve required to do our work effectively. Perhaps more importantly, the Strategic Funding Framework has contributed to a 90 per cent retention rate amongst SVA supporters. For the ventures in SVA’s portfolio – many of whom don’t have the corporate connections that SVA has – the framework has reliably resulted in increased, longer term funding.
The SVA Strategic Funding Framework involves 4 steps:
- Understanding your organisation and its needs (campaign targets)
- Selecting your funders (funding mix assessment)
- Developing the communication (case statements)
- Managing the relationship development process (ICAM framework)
1. Campaign Targets - understanding your organisation and its needs
As non-profit organisations we have finite resources and infinite possibilities. The challenge is to decide what is done and in what order. Developing your campaign targets is about deciding:
- What does our organisation need in terms of resources?
- What are our priorities?
To complete this step you will refer to your organisation’s: - Baseline financial information
- Strategic plan
- Program plans (including resource requirements)
- Forecast budget
2. Funding mix assessment - selecting your funders
The next step is to review your current and prospective funders and rank them according to their value to you as an organisation. This will establish priorities about who you approach and why.
The tool will guide you as you rate your current and prospective funders against four criteria:
- Alignment with your organisation
- Capacity to support your organisation
- Propensity to support your organisation
- Cost of raising funds
The taste test at the end of this section walks you through the process of assessing your funding mix, providing information about how to rank funders.
3. Case Statement – developing the communication
A case statement is a clear, concise and inspiring statement that tells the listener:
- Who you are
- What you do
- How you plan to do it and the resources you will need
A good case statement can be adapted to suit the audience, whether you are at a dinner party or in front of a packed auditorium. It is the starting point for every pitch and it gives every one in the organisation, including the board and funders, the opportunity to be an ambassador for your mission.
4. ICAM Model - managing the relationship development process
Once you have a list of your target funders and a clear case statement, taking advantage of funding opportunities is about having the right relationship development process. SVA has found the ICAM model extremely valuable. This involves the four stage process – Inform, Connect, Ask and Manage.
The taste test takes you through each step of this with some tactics and tips to help you apply it in practice.  More Information
For additional details on the Strategic Funding Framework, download and read this more comprehensive description.
Testimonial
‘In my opinion the ICAM process brings the kind of systematic and disciplined approach that’s required for a funding strategy to deliver results. The fact that SVA has been there and “walked the walk” makes this an even more powerful tool for us to use.’
Peter Ruzyla, Eastern Access Community Health
Taste Test
Since a tool is best understood when it is actively applied, we have included two segments of the strategic funding framework in an interactive format. The first taste test introduces you to Step 2, the Funding Mix Assessment. The second taste test introduces you to Step 4 of the Framework, the ICAM the Relationship Development process.
To find out more about SVA Organisational Tools contact Lisa Hagan on (02) 8004 6722.
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SVA's online organisational tools are proudly supported by the Macquarie Group Foundation. |
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