Economic (financial) sustainability
Most groups strive towards economic sustainability, especially in terms of sustainable funding or self-resourcing. They want a hand-up rather than hand-out, as the saying goes.
Funding - an ongoing concern?
Economic or financial sustainability is a big issue for many community and voluntary organisations, especially when they need to employ staff.
Often funding comes from grants from philanthropic or government organisations, or service contracts. This funding is typically for one project or one year, and even though there may be a good chance of renewal it is rarely certain. Also, there is often a need for several grants and funders.
All this means that fundraising, reporting back to funders, and maintaining relationships can take up a great deal of Board and management time and attention.
Achieving financial sustainability
The Economic section will look at some approaches and tools to make financial sustainability a little easier to achieve.
Approaches include starting a social business, ethical investment, corporate sponsorship and property investment. Many of these need substantial start-up money but some can be achieved with limited resources. The resources give ideas and practical ways to do this.
Long-term funding, planning and marketing are integral to financial sustainability. (Capacity building is also a major part of this. This is dealt with under Human.) A Financial Reserves Policy is a good start.
Triple bottom line reporting, which is explained in detail, allows groups to assess how they are doing in terms of sustainable development and social responsibility.
Introductions to other key aspects
Human - introduction
Natural - introduction
Review and renewal- introduction
Back to overall Introduction