Building a Sustainable Future - Financial Tools and Techniques
The purpose of this course is to build the confidence and skills of NGO leaders to improve the financial sustainability of their, or partner, organizations by:
- Assessing and managing critical financial risk
- Developing a financing strategy and associated policies
Who Should Attend
This course is aimed at policy and strategic decision-makers of small to medium-sized NGOs, including Board members. The course is also suitable for international NGO program managers who advise local partners on how to plan for financial sustainability.
Previous financial management experience or training is not a requirement for this course although it is advantageous to complete the Getting the Financial Management Basics Right course first if you are completely new to financial management.
During the course, there will be an opportunity to practice key planning tools using your own organization’s situation, so it is important that you are familiar with your organization’s strategic objectives and are in a position to implement the learning after the course. The course will have the most effective outcomes if two people from the same organization are able to attend at the same time. We recommend that you read this course outline carefully to make sure the content is relevant and meets your learning requirements. If you have any questions please do contact us.
What You Will Learn
The course will provide you with the key skills and tools needed to build a financially secure future for your NGO, including:
- A framework for assessing and measuring financial sustainability
- Situation and stakeholder analysis to identify financial management strengths, weaknesses, opportunities and threats
- Risk mapping to assess financial risks and identify ways to mitigate and manage the risks
- Alternative financing options to become less dependent on external donors
- Tips for building and managing a safety net of reserves
- A template for building your own financing strategy
Introduction and overview
- Welcome and introductions
- Course objectives and program overview
- What is financial sustainability and how do we achieve it?
- Financial SWOT analysis
- Stakeholder analysis - the Mendelow Matrix
- Financial statements – financial ratio and trend analysis
- Review of the day
- Where do NGOs get their money from?
- The financing mix matrix
- Challenges of donor dependency
- Financial risk mapping
- Financing strategy document
- Resources audit
- Financing options
- Charging for services
- Desired funding mix
- Review of the day
Reserves and targets
- What are reserves and different types of reserves
- What level of reserves?
- Generating reserves
- Reserves policy
- Central support costs policy and apportioning costs
- Ethical policy and unrestricted funds policy
- Stakeholder action plan
- Next steps for your financing strategy
- Certificates and close