Developing a sustainable funding model

Developing a sustainable funding model.

Charities must have a well-thought financial plan to achieve their goals and be answerable to the donors who invested. Transparency and accountability are the pillars for you to gain the trust and confidence of your funders. With a sound financial strategy, your organisation will survive even if and when any particular donor or group of donors no longer fund it (financial sustainability); and achieve some level of financial autonomy.
Let’s partner to:
  • Reach sustainability by right-sizing your budget
  • Manage your cash-flow, reserves and investment
  • Apply fund accounting & full cost recovery best practices
We conduct these sessions online. Our online training is skill-intensive, filled with practical tips, to enable participants to deep-dive into charity governance and financial stewardship issues. We will apply our experience and knowledge in accounting and financial management and provide practical steps in ensuring the charity’s long-term sustainability.
Budget, Cash Flow, Reserves & Investment

Charities and nonprofits must balance the need to manage risks against the need to serve the community effectively. To achieve this balance, charities and nonprofits need to understand the financial strategy and investment model and the risks inherent in the model. Whatever decision charities and nonprofits make about reserves, they should ensure that it is arrived at after careful deliberation, made as part of their’ strategic planning, and recognise that reserves are a resource to be managed and utilised to meet the needs of beneficiaries.

Our two-day online training will probe you to think on questions such as:

  • Is it meeting the long-term needs of the community and not just your organisational budget?
  • Are you actively managing it or just protecting it?
  • What is the framework you are using to ensure the board and senior management can make efficient and effective financial decisions?
  • How do you manage the institutional and private funders’ perception that you are an effective and sustainable charity?

The two-day online training will guide you to:

  • Enhance accountability to stakeholders by developing an effective and efficient charity/non-profit financial management system
  • Gain tips and insights on budgeting and cash flow management for charity/non-profits
  • Explore best practices for managing reserves and investments to ensure charity/long-term non-profit sustainability

I have learnt the budgeting and monitoring processes to ensure that cashflow analysis for each service (current school, adult education service, new school) is clearly presented to all internal stakeholders, including Management committee, heads of services and finance team”.

Fund Accounting & Full Cost Recovery

Communicating your full cost information opens more meaningful discussions with funders and donors about your funding needs. With more precise information on funding needs, you can work towards developing a more sustainable funding model.

Our two-day online training will probe you to think on questions such as:

Are we applying fund accounting and full cost recovery accounting best practices so that we do not fall into the starvation cycle? 

Are we reluctant to present the full cost data to funders and donors despite the benefits of adopting full-cost accounting? 

Are we afraid that donors will refuse to fund the programme, thus falling into the trap of under-resourced programmes?

The two-day online training will equip you to:

  • Communicate full cost information to both funders and donors
  • Improve your strategic decisions in allocating your scarce resources to ensure sufficient investment for long term sustainability.
  • Set the appropriate level of fees to charge the community for various programmes. Charge appropriate programme fees through a better understanding of their full cost to improve financial sustainability. 
  • Provide services of greater quality.
  • Be more transparent and accountable to stakeholders.

Developing a sustainable funding model

View the poster of Bombay Chartered Accounts Society
The Honorary Treasurer as an ‘office-holder’ among the charity trustees is a very important role. While financial matters are the responsibility of all trustees, it is often the Treasurer and the recommendations of the Finance sub-committee that the other trustees look to on the charity’s financial management and reporting. Hence it is important for those in the finance sector to be aware of the nuances of charity finance and step up their capabilities on charity boards and as auditors in this sector.
Charity accounts have some major differences that will seem odd even to trained accountants. Nonprofit Board members, senior leaders and finance department staff  need to be aware and learn the difference between Charity Accounting Standards (CAS) and business finance.
I see full-cost recovery and fund accounting as partners that can go hand in hand. When you have a clear picture of your costs, your funds, you can have better control and better governance. You can be a more effective organisation with a wider and deeper reach to your stakeholders.
I see full-cost recovery and fund accounting as partners that can go hand in hand. When you have a clear picture of your costs, your funds, you can have better control and better governance. You can be a more effective organisation with a wider and deeper reach to your stakeholders.
We will apply the stronger framework learnt during this course. We will set up the investment committee with a well-written policy statement. Define clearly the investment objectives, which must
fit in with the overall strategy and budget. Determine the amount to be invested, with considerations to risk, reward, time-frame
and liquidity.
~ Participant at the Reserves and Investment course.
The training helped me understand the importance, understanding and definition of full cost recovery. It takes an investment of time in order to thoughtfully implement full cost recovery across an organization.
~ Participant of Full Cost Recovery course.
I understood the importance of accountability in budgeting. Having an organised budgeting process, a regular health check of the budget is responsibility of all program leads. The ownership of the budget is not only with Finance.
~ Participant of Budgeting and Cashflow Management training.
Please email us at contact@ushamenonasia.com. We would love to discuss how we can journey together.