How can you overcome social impact funding challenges?

1 Know your impact

The first step to overcome social impact funding challenges is to clearly define and communicate your impact . What is the problem you are trying to solve, and how are you solving it? What are your goals, objectives, and indicators of success? How do you measure and report your impact? Having a clear and compelling impact story will help you attract and retain funders who share your vision and values. It will also help you demonstrate your credibility, accountability, and effectiveness.

2 Diversify your sources

The second step to overcome social impact funding challenges is to diversify your sources of funding. Depending on one or a few funders can be risky and unsustainable, especially in times of uncertainty or change. You should explore different types of funding that suit your needs and goals, such as grants, donations, loans, equity, bonds, or crowdfunding. You should also research and network with different types of funders, such as foundations, corporations, governments, individuals, or social investors. By diversifying your sources of funding, you can increase your financial stability, flexibility, and resilience.

3 Align your expectations

The third step to overcome social impact funding challenges is to align your expectations with your funders. This means understanding and respecting their motivations, criteria, requirements, and preferences. It also means communicating and negotiating openly and honestly about your needs, challenges, opportunities, and risks. You should aim to build trust and rapport with your funders, and treat them as partners rather than donors. By aligning your expectations with your funders, you can avoid misunderstandings, conflicts, and disappointments, and foster long-term relationships.

4 Leverage your network

The fourth step to overcome social impact funding challenges is to leverage your network. This means tapping into your existing contacts and connections, and expanding your reach and visibility. You can leverage your network by asking for referrals, introductions, endorsements, or testimonials from your supporters, beneficiaries, peers, or mentors. You can also leverage your network by participating in events, platforms, communities, or media that are relevant to your field, sector, or region. By leveraging your network, you can increase your exposure, credibility, and opportunities for funding.

5 Learn and adapt

The fifth step to overcome social impact funding challenges is to learn and adapt. This means collecting and analyzing data and feedback, and using them to improve your performance and impact. It also means being flexible and responsive to changing needs, contexts, and trends. You should learn and adapt by monitoring and evaluating your activities, outcomes, and impacts, and sharing your results and learnings with your funders and stakeholders. You should also learn and adapt by seeking and applying best practices, innovations, and solutions from your field, sector, or region. By learning and adapting, you can enhance your relevance, efficiency, and effectiveness.

6 Seek support

The sixth step to overcome social impact funding challenges is to seek support. This means acknowledging and addressing your gaps, weaknesses, or challenges, and seeking help from others who can assist you. You can seek support by accessing resources, tools, or guidance from experts, consultants, or mentors who can help you with your funding strategy, proposal, or management. You can also seek support by joining networks, alliances, or coalitions of social impact organizations or funders who can offer you advice, collaboration, or advocacy. By seeking support, you can overcome your limitations, leverage your strengths, and achieve your goals.

7 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?