The document discusses the importance of developing exit strategies when providing grants to organizations. It notes that exit strategies help ensure clarity, maintain a healthy relationship between the donor and grantee, and allow the work to continue after funding ends. Effective exit strategies involve transparent communication, realistic timelines, capacity building efforts, and planning to transition organizations to other sources of funding.

1. Affairs are easier of entrance than
of exit; and it is but common prudence
to see our way out before we venture in.
~ Aesop

2. Grantmakers saying goodbye –
designing exit strategies
Claire Hugo
17 March 2011

4. Grantmaking process simplified…
Plan:
EXIT Keep coming back to EXIT STRATEGY
Develop Call for Award Monitor Measure Refine …
strategy applications grants progress impact strategy

5. Underlying principles
 Complex and deep-rooted challenges
 Always be a disappointment
 Certain element of reputational risk
 Defining sustainability

6. Unpacking the “WHY”
Why fund an organisation for more than one year?
Advantages Disadvantages
Promotes sustainability Dependency and sustainability
Partnerships Limited flexibility to engage in new
funding relationships
Monitoring, evaluation and Financial obligation of the donor
reporting
Organic development and the
emergence of innovative models

7. Unpacking the “WHY”
Why would you want to exit?
 Changes in the market
 Declining assets
 Changes in thinking
 Changes in composition of leadership
 Changes in project officer
 Desire to keep strategy fresh and flexible

8. Unpacking the “WHY”
Why do we want to plan for exiting?
 Ensure clarity
 Healthy discipline
 More specific around capacity-building efforts and needs
 Closer working relationship between the donor and grantee
 Cohesion between funders

10. Unpacking the “WHAT”
What makes up an effective exit strategy?
 Good business planning
 A passionate champion
 Continuity of staff and volunteers
 An organisation that has several sources of funding
 Involvement of potential continuation funders at an early stage
 Agreed outcomes
 Transparent ongoing communication
 Realistic time frames
 Realistic objectives

11. Grantmaking process simplified…
Plan:
Plan:
EXIT
EXIT Keep coming back to EXIT STRATEGY
Develop …
strategy
 What are you hoping to achieve?
 What impact are you trying to make?
 What resources do you have available to you?
 Do you consult organisations working in the sector in developing your strategy?

12. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Call for …
applications
 Have you clearly stated what you are trying to achieve in your application forms?
 Have you stated the time frames you are working on?

13. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Award
grants
 Do you ask organisations to sign a contract?
 Do you fund programme and operational costs?

14. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Monitor …
progress
 Do you frequently meet with partner organisations to monitor progress, assess
challenges and acknowledge success?
 Do you frequently assess progress with the targets laid out in the proposals and
contracts (including due diligence)?

15. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Measure …
impact
 Are you frequently checking your impact against your targets?
 Are you mobilising resources to reach your targets e.g. leveraging funding,
enhancing network opportunities, supporting advocacy, providing capacity-
building?

16. Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Refine …
strategy
 Are you asking for advice?
 Have you assisted in developing capacity in your partner organisations?
 Have you reached your targets?

17. There’s a trick to the Graceful Exit. It
begins with the vision to recognise when
a job, a life stage, a relationship is over –
and to let go. It means leaving what's
over without denying its value.
~ Ellen Goodman

19. For discussion
You are currently funding seven organisations throughout the country: support for
bursaries for eight students in their undergraduate studies (through two bursary
service providers), one residential facility for children with special needs, and four
HIV/Aids prevention programmes. Your available budget is R8 million, of which
you have already committed R6 million to the operational costs of these projects.
There has been a change in leadership within your organisation, and you need to
refine your strategy to focus exclusively on HIV/Aids prevention programmes. You
have one year to refine your strategy, and you are given permission to utilise the
R2 million surplus to manage reputational risks.
In groups, please define the following:
 Prepare a budget on how you will invest the R2 million.
 How will you communicate the change in strategy to your current partners?

20. Every exit is an entrance
somewhere else.
~Tom Stoppard