Getting Grants and Financial Resources: Developing a Committee to Help with Financial Sustainability
Learning how forming a financial sustainability committee helps you develop a group of professionals who believe in your group and can save you a lot of time and energy by handling the monetary challenges.
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WHAT IS A FINANCIAL SUSTAINABILITY COMMITTEE?
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WHY SHOULD YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
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WHEN SHOULD YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
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WHEN SHOULDN'T YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
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HOW DO YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
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MAINTAINING A FINANCIAL SUSTAINABILITY COMMITTEE
Most of us, in our personal lives, have experienced the headache of trying to pay our bills when the checkbook is dry or making that small paycheck go a long way. We wonder how we will pay for Kim's braces and a new transmission, and we try to decide if we should cash in a CD or just eat spaghetti all month.
Financial difficulties, unfortunately, are often part of our organizational lives as well. If your group is like many community organizations, finding the money to reach your goals is a constant struggle. Do we cut staff or programs? What will we do when the grant ends? Where else can we get support?
Fortunately, at work, at least, you don't have to be alone dealing with your financial woes. Others are there who can take care of the money so that other members of the organization can breathe easier and focus on the work they were hired to do, such as increase immunizations, fight the death penalty, or clean the environment. The people who can help manage your finances may be on the Board of Directors, hired grant writers, or - our suggestion - members of your financial sustainability committee.
WHAT IS A FINANCIAL SUSTAINABILITY COMMITTEE?
What do we mean by a financial sustainability committee? In simplest terms, it is a group that helps you raise money or obtain goods for your project. Generally, such a group is made up of people in your community that have, or can get money or goods. People who have experience dealing with legal or financial issues, such as lawyers and accountants, may also be members. That's because they can help you with the many legal issues that can affect you financially, such as becoming tax exempt.
"Wait a second," you might think, "these people are already represented on our Board of Directors." If so, fantastic - you probably don't need to form another committee. Or the financial sustainability committee you create might be a subgroup of the Board. These possibilities are especially likely for smaller organizations.
WHY SHOULD YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
Although for some organizations such a committee may be unnecessary, for many organizations, it can be a very good idea.
A financial sustainability committee can:
- Help get resources to help your organization survive - and thrive
- Ease the transition from one source of funding to another, such as at the end of a grant period
- Help find money or goods from many different sources - a financial committee that has members with many connections will help lead to a diverse funding base for your organization, which is one of the most effective ways to ensure sustainability.
- Meet some funders' requirements - sometimes, the existence of a committee for financial sustainability is a requirement for receiving a grant.
- Allow members of your group to focus their time and energy on the jobs they were hired for. Too often, members of organization spend so much time trying to find resources for the organization they are unable to spend time doing what they were hired to do. A community mobilizer may spend all of his time mobilizing the community around the need for money to keep the organization going, instead of the real issue of child hunger. for example. By having a committee of experts taking care of the finances, you allow the mobilizer to do what he knows best, not something he (potentially) knows little about.
WHEN SHOULD YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
So, when is the right time to develop a financial sustainability committee? Ideally, the committee should be formed during the first year of your project.
Remember: It's never too early to start thinking about sustainability. Many groups start thinking about it when their grant is almost out - and find themselves out of luck as well.
For established groups, other good times to form a financial sustainability committee include:
- When future funding is uncertain for your organization
- When your group does not have all the resources it needs to carry out desired activities
WHEN SHOULDN'T YOU DEVELOP A FINANCIAL SUSTAINABILITY COMMITTEE?
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