How can you avoid risks when relying on external funding for community organizing?

1 Know your funders

Before you apply for or accept any external funding, do some research on the potential funders. What are their values, priorities, and expectations? How do they measure impact and accountability? How flexible are they in terms of budget, timeline, and reporting? How do they communicate and collaborate with their grantees? Knowing these answers can help you avoid funders who might have incompatible or conflicting agendas, or who might impose unrealistic or burdensome demands on your work.

2 Negotiate your terms

Once you have identified some compatible funders, don't be afraid to negotiate the terms of your funding agreement. Be clear about your mission, vision, and strategy, and explain how your work aligns with the funders' goals. Ask for the amount and duration of funding that you need, and justify your budget and expenses. Request for some flexibility and autonomy in how you use the funds, and how you report on your progress and outcomes. Be respectful and professional, but also assertive and confident in your work.

3 Diversify your sources

One of the biggest risks of relying on external funding is losing your main source of income. This can happen due to changes in the funders' priorities, policies, or budgets, or due to unforeseen circumstances such as a pandemic or a natural disaster. To avoid this risk, try to diversify your sources of funding as much as possible. Seek out multiple funders who share your vision and values, and who can support different aspects of your work. Explore other forms of income, such as membership fees, donations, crowdfunding, or social enterprise. Build relationships with your funders and other potential supporters, and keep them updated and engaged with your work.

4 Involve your community

Another risk of relying on external funding is losing touch with your community. Sometimes, funders might have different perspectives or interests than the people you are organizing with and for. They might also have more power and influence over your work than your community members. To avoid this risk, involve your community in every stage of your work, from planning to implementation to evaluation. Seek their input and feedback, and respect their needs and preferences. Make sure that your work is driven by the community's agenda, not the funders'. Share your successes and challenges with your community, and acknowledge their contributions and support.

5 Plan for sustainability

Finally, one of the most important tips to avoid risks when relying on external funding is to plan for sustainability. Sustainability means that your work can continue and grow without depending on external funding, or with minimal dependence. To achieve sustainability, you need to have a clear vision and strategy, a strong team and network, a solid reputation and track record, and a realistic and adaptable budget. You also need to have a contingency plan in case of emergencies or funding gaps. Plan for sustainability from the start of your work, and review and update your plan regularly.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?