Contingency Planning - What If the Funding Does Not Come?

You have a project and are seeking the fundingat all possible. It is best to look to downsize the
to see the project through completion. In makingleast utilized services and programs so as to
your case for support you have outlined theminimize the impact on the target population
need, the target population, projectserved.
implementation, staffing, etc. But what will happen- Lay off staff: No one likes to do this but it is
to this worthy and much needed project if theoften a necessity if the organization is to survive.
funding never materializes?Of course, it is important that you are not cutting
Every organization should have a "prepare for thestaff that are most likely to help the organization
worst" contingency plan to move forward with apull out of a financial crisis. I am shocked by how
project or without a project if fund raisingoften fundraising and development staff are the
activities do not go as planned. Thus, yourfirst to be let go.
ministry should pursue the following strategies if- Identify alternate forms of financing: Too many
the worst case scenario does emerge.organization fail to diversify and end up with one
- Look for cost saving alternatives: By beingmain funding source. It is important to have a fully
innovative and entrepreneurial, organizations oftendiversified funding strategy to enable long term
can figure out how to do "more for less." It maysuccess. Major giving, individual contributors,
be that combining the project with an existingplanned giving, special events, earned income
program will realize enough of a savings tostrategies, charging fees for some services are all
implement both programs. Perhaps outsourcinggood candidates for inclusion in a diversified
some of the administrative components can savestrategy. Just because the organization is a
enough to implement a project.non-profit does not mean it is prohibited from
- Reduce program services or eliminate programsmaking money. Further contingency planning may
altogether: Prioritization is key to understandingalso include securing loans or establishing lines of
the mission and vision of a project or programcredit to bridge funding lulls.
and how critical it is to the vitality of theExpecting success is often immeasurably tied to
organization. Cutting or eliminating the most visibleactual success. But the saying "expect the best
programs, or programs that serve thebut plan for the worst" is never more true than
community's greatest needs should be avoided ifwith funding development.