How can you mitigate cash flow risks when fundraising for a new project?

Develop a comprehensive financial plan for the entire project, including detailed budgeting and cash flow projections. Identify potential cash flow gaps and plan for contingencies. Avoid reliance on a single funding source. Diversifying funding sources can help mitigate the risk of fluctuations in any one area and provide a more stable financial foundation. Establish a reserve fund to cover unexpected expenses or delays in fundraising. Having a financial cushion can help bridge gaps in cash flow and provide a safety net during challenging times. Secure commitments from major funders or investors before officially launching the project. This can provide a solid financial base and reduce the risk of delayed funding.

Planning, diversifying fund sources, and experimenting when you have excess rather than when you're desperate! Copy success stories as best you can! Allow for as much time as possible and ask for as much help as you need!

Here's how you can master your cash flow cycle: Estimate how long it takes you to raise funds, collect payments, and spend on project activities. Think weeks, months, maybe even years! Consider seasonal swings, income reliability, and expense timing. Some months might be "cha-cha-cha," others might be "slow dance." Don't let surprise expenses throw you off balance. Be ready for financial moonwalks and sudden pirouettes (okay, maybe not pirouettes, but you get the point).

When fundraising for a new project, '?????????????? ?????? ?? ?????????? ??????.' Mitigate cash flow risks by thoroughly assessing project costs and creating a realistic budget. Diversify funding sources to avoid over-reliance on a single channel, and negotiate favourable terms with investors or lenders. Implement efficient financial management practices, such as careful monitoring of expenses and strategic cash reserve planning. Factor in potential delays or setbacks in the project timeline when forecasting cash flow. Proactive risk management ensures financial stability and resilience during the fundraising process for a new venture.

Great examples for diversification of income include grants (foundations, government, tribal), contracts, fundraisers (big events or just basic email blasts or newsletter asks), donations (recuring or one time-- stock, cash, or physical gifts), sales, renting out spaces, etc. It's always worth it to dive into new income streams.

Monitoring and adjusting cash flow every other month is super helpful! My work does this every other month, and then communicates the findings to relevant staff. For example, if I secure more grants than I thought I would, our fundraising person knows that they don't need to have that extra fundraising event in spring. Or if I didn't get enough grants for this program, they can look into securing other sources of funding, like finding new contracts. Communication is key to put pressure on or alleviate pressure from staff in charge of different sources of income.