10. Clear strategy for raising the funding
10. Clear strategy for raising the funding
Identify which key funders you will approach for funding at an early stage. There are many resources that provide information about current funding opportunities, although it does take time to research and find suitable grants to apply for.
You can ask for help with this from Argyll and Bute Council by emailing thirdsectorenquiries@argyll-bute.gov. uk or communitydevelopment@argyll-bute.gov.uk. Argyll and Bute Council also produces a comprehensive and very useful Funding Alert on a monthly basis and provides access to grant searches through GrantNet.
Argyll and Bute TSI (Third Sector Interface) also provides Grants and Funding pages and sends out a regular email highlighting funding opportunities if you join the mailing list. You can also speak to one of the four Third Sector Support Advisors at TSI who can help by critiquing funding applications and signposting to useful templates and polices.
Foundation Scotland is a central point worth checking, as it distributes grants from a wide range of Trusts and Community Funds.
A list of other funding guides and more information on planning your Funding Strategy can be found in the link below.
Developing your Funding Strategy
Work through funding opportunities systematically and check that your project and your organisation fit the eligibility criteria in the first instance. Does the fund cover capital or revenue costs? Is your project activity listed as something that will be funded, or a focus for the grant? Are there specific areas of activity that the funder is looking for such as training or environmental outcomes. List all the funders that you are likely to be able to apply to, based on eligibility criteria.
Each funder will have a set of requirements that you will need to take into account as you work out which order to approach them in. For example, some require match funding to be in place, others will have specific requirements about spending grant money in a set time. A spreadsheet with potential funders, deadlines, requirements and amount to apply for is a useful tool to gather all your research into one place. This can also be updated as you progress each application, and even colour coded when you are successful, for example:
| Funder | Requirements | Progress notes | Amount |
|---|---|---|---|
| Hugh Fraser Foundation | Email application and latest accounts. | Applied 15-03-22 | £3,000 |
| Viridor | 100K max. Closing date 30th April submit a stage 1 application first | Wait for quotes before applying | £15,000 require specification and quotes |
| Awards for All | Max £20k. Can apply at any time. Project fits criteria well | Apply before Sport Scotland to secure match funding | £9,500 |
The actions from the table above are: Secure specification and quotes, then apply to Awards for All, then Viridor and finally Sport Scotland, once match funding is secured. raise funding
You will need to apply for more funding than you need, as a good project will only secure approximately 50% of the funding it applies for.
More complex projects may require planning permission to be in place, or full business plans to be provided before applications are made, so this needs to be taken into consideration when project timing is planned at the outset.
Where possible, make contact with the funding organisation at an early stage and establish a relationship with a single point of contact if appropriate. This will help as you discuss project details and develop your application.
Most funders will ask for key documents including your constitution, accounts and a recent bank statement, so it is useful to have those on hand in a folder, ready to attach to applications.
Do not underestimate the time it will take to research funding opportunities, develop a strategy and then write funding applications. Aim to draw in help where you can (e.g. Argyll and Bute Council and the TSI) as well as volunteers to collate information and put together applications.
Funding Table
You will be expected to show a potential funding package at an early stage of the project. This needs to be based on your funding strategy and give a likely scenario for where the funding for the project will come from. It should be as realistic as possible and include local fundraising or borrowing if appropriate.
This funding table will change as you apply for and secure grants, so will need to be updated regularly. As you secure grants you will be able to consider when claims can be made from each funder, which will highlight whether you are likely to have a cashflow issues. Some funders will pay out a grant up front and others will pay when you show an invoice that needs to be paid, so you can claim the funding before paying the bill. However, many funders require evidence of spend before they will release the grant, and therefore the bill needs to be paid and then the claim made. There can also be a time delay in payment of the grant, so cashflow must be carefully considered.
The funding table will need to be updated regularly and grant claim requirements noted as these will inform any potential cashflow issues for the project.
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