This document discusses better funding models for non-profits, especially during the COVID-19 crisis. It suggests using the crisis as an opportunity to put non-profits on a more sustainable financial footing long-term. The document outlines 10 practical steps for building a stable income stream, including diversifying funding sources, setting minimum funding levels, defining management fee recovery rates, and matching funding to mission rather than changing mission to suit funders.

1. BETTER FUNDING MODELS THROUGH
& BEYOND THE COVID-19 CRISES
USING THE CRISES TO PUT NON-
PROFITS ON A MORE SUSTAINABLE
FOOTING.

2. Christian Meyer zu
Natrup
Managing Director
chris@mzninternational.com
Joseph Nelson
Consultant Finance & Funding
joseph@mzninternational.com
TALKING POINTS & SPEAKERS

3. Funding is not the No.1 priority.
Delivering your mandate is!
Funding should be mandate driven -
not the other way around!
Funds-flow dictate de-facto strategy.
We therefore need to strategise your funds
flow!
This is difficult at any time, but especially
during this crises. But we can use crises to get
funding right in the “NEW NORMAL”!
Do good! BETTER.

4. Reset the mind and ask what the ideal funding actually looks like?
WHAT SORT OF FUNDS DO I NEED?
Funding the organisation
or a project?
How long should funders be
committed?
Repeatability
of income source?
Surplus over
direct costs?
Timing of funding?
Acquisition
costs & time

6. Single reliance on small number of donors and type of funding. Is 50%+ of one
type of funding sustainable?
Consider scenario & acid testing your funding structure.
Mindset change: from “Funding” to “Mission Revenue” and from “Grant
implementing organisation” to “Change agent”.
Avoid the chase:
Search Grant – Run Grant – Panic – REPEAT
HOW NOT DO FUND YOUR MISSION

7. 1. Diversification of funding and revenue streams
2. Set minimum funding level
3. Define minimum management fee to be
recovered or gross margin
4. Set the parameters and stick to them!
5. Have a system to find and assess opportunities
10 PRACTICAL STEPS IN BUILDING A STABLE INCOME STREAM

8. 6. Match the funding streams you choose to your
mission, not the other way around
7. Be prepared to participate flexibly - from lead to sub
to associate all options can add value
8. Find an EU partner NOW
9. Add surge capacity to your proposal writing team
10.Understand income development as a key part of
business as usual not something to be done ad hoc
10 PRACTICAL STEPS IN BUILDING A STABLE INCOME STREAM

9. Thank you!
Any questions?
Speak to a MzN funding consultant in your
area here
For proposal writing support and strategic
funding development support