How To Maximise The Impact of Your Funding Bids

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If you wish to search for more funders, you’ll find funder lists, links to dozens of other free funding finders, and fundraising tools and guides on the Charity Excellence Resource Hub.

In submitting successful funding bids, quality is always more effective than quantity. You’ll also want to be sure it isn’t underfunded, and that the risk of it going wrong and damaging your reputation with funders is minimised. This guide is intended to help you:

•  Ensure that your minimum criteria are met for any funding bid.
• The benefits outweigh the costs.
• And it represents the best possible use of your resources.

Minimum Criteria

 Charitable Objectives. It demonstrably supports our charitable objectives.

Due Diligence.  The individual or organisation does not hold views and isn't involved in activities that would conflict with our aims or values, or association with whom would bring us into disrepute.

Legality.  The proposal complies with all relevant legal requirements and our policies. 

Risk.  The level of risk is acceptable, not only in financial terms, but also other areas, such as reputational. 

 Benefits

Strategic and Business Objectives. The key consideration is assessing the value in terms of achieving our strategy and specific annual/business plan objectives.

Financial. Obviously, the amount, but also whether funding is restricted, or not, and potentially diversification of our income streams.

Other Benefits. Does it enable us to better provide a mix of services, develop new skills/capabilities, share good practice, PR/media?   

Costs

 Financial. Include all relevant costs. For example, events, reports, travel, staff costs and an overhead margin.  It may be that the non-financial benefits are so great that running the tender at a full cost loss is worthwhile. However, in such instances, it is essential that the impact on budget/cash flow is assessed and can be managed and the loss is fully covered by income from other sources. 

Make Prudent Estimates. Where estimates are used, these should be prudent with the underlying assumptions made clear and justified.  

Multi Year. Separate initial purchasing/start-up costs, such as equipment procurement, which will only appear in year 1 of your costing from ongoing costs such as staffing increases, which will be incurred every year.

Non-Financial. Undertaking any project inevitably means that staff and management resources are committed, so it is always essential to ask the question, is this the best possible use of these resources? There is also a real cost in terms of time in preparing and submitting a large bid/tender and there may be substantial reporting commitments. This must also be taken into account, particularly if the probability of success is low.  

How Can I Improve My Bid?

Communication. Ensure that the bid is concise, complies with any requirements, focusses on the deliverables/outcomes the funder wants and is expressed in their language.

Leverage. How the project might be potentially useful in other areas.

• For example, in sharing learning, or for marketing or fundraising.

We have also considered if it might generate external benefits.

• For example, the opportunity to share best practice with other organisations.

Delivery. Could the work be delivered more effectively in another way? For example, reducing travel by using video conferencing or hosting locally, or sourcing pro bono support, in-house delivery, fixed term staff contracts, engaging a contractor, out-sourcing, partnership.

Contracting. Where work is contracted out, have we tendered for this, or at least asked for pitches from more than one provider, and have we negotiated to get the best deal?

Value. Are there high cost and/or items that add limited value, which can be removed or scaled back. For example, publishing on the web or an infographic, rather than a hard copy report, or using in-house expertise/specialist volunteers, instead of consultancy/agency.

To Bid or not to Bid?

 In all cases, the;

• Minimum criteria must be met;
• Benefits must demonstrably outweigh the costs, both financial and non-financial and;
• Funding agreed to cover any full cost funding shortfall to ensure that the overall budget and cash position remain secure.

Only in exceptional cases should a bid be taken forward if the;

• Income will not cover all direct (cash) costs plus a reasonable margin for overheads and;
• Only if there are overriding non-financial benefits in delivering our business plan objectives.

 Terminology

 Full Cost. All financial costs from any budget, including staffing (including on costs) and overheads. 

Direct Cost. The total cash cost in delivering a project, but excluding overheads.

On Costs. Staff are paid a gross salary, but there are additional costs to this, such as pensions, healthcare, national taxes, such as National Insurance in the UK. On costs can often add up to a third onto the gross salary cost.

Overheads. General running costs such as leasing, utilities, insurance and audit. A bid that does not include all overheads will run at a financial loss that must be covered by funding from another area.

Can you help?

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