A snapshot from London Funders Gaynor Humphreys 8 February 2012

1. Effective funders, thriving communities A snapshot from London Funders Gaynor Humphreys 8 February 2012

2. Effective funders, thriving communities What? a network of all kinds of funders of London’s VCS: • public sector (eg London boroughs) • foundations • Lottery distributors • corporates • housing agencies

3. How? get to know each other and each others’ ways of funding share information learn about new issues together develop good practice Effective funders, thriving communities

4. Why? All with the intention of: • strengthening the VCS • being smart and effective in their use of their funding • understanding how London is different • advocating for London Effective funders, thriving communities

5. Effective funders, thriving communities The broad funding context • funders’ worlds changing – cuts in local government funding, reduced income from endowment, changes to regional structures • economic and social recession, the impact of policy and funding change on communities, e.g. Londoners’ level of debt • VCS needing new sources of income because of public funding cuts and policy change increasing demand for their services

6. • Value for money - effectiveness• Carefully explained intended outcomes and impact• Evidence of impact: what you can count and also the stories you can tell; consequences of what is being delivered• Why your service should be supported – your local/sectoral knowledge and track record• Why you and not “them”? Effective funders, thriving communities What are funders looking for?

7. • Good governance and management especially financial management – show you manage finances through cash flow analysis as well as budgets • How good is your Board? Do they use their contacts, skills and knowledge? Effective funders, thriving communities What are funders looking for?

8. • Keep up to date with criteria even of funders you know well since many have been rethinking their practice for the new times• Assessment is getting tougher - funders don’t want to risk investing in an organisation that might not survive even with their support• Funders are looking harder than ever at how robust the applicant is• Most funders will not replace lost public sector funding (NB foundations couldn’t do that on their own anyway – they account for less than 10% of sector income)• There may be some new opportunities: there is interest among some funders in capitalising the sector, e.g. through helping with acquisition of property as a source of security and income, or supporting efficiencies in operating costs. What else is changing? Effective funders, thriving communities

9. Effective funders, thriving communities Additional tips • Plan a funding strategy early – keeping ahead• Ensure a funding mix• Get involved in the commissioning cycle as early as you can – be seen as a knowledgeable informant on your bit of the sector• Keep yourself in the public eye• Learn and use the language of commissioners and of the coalition government

10. Effective funders, thriving communities Additional tips Show funders your resilience: - positive outcomes of your adapting to these tough times - how resourceful you are e.g. how you’ve saved on back office costs, what collaboration you are involved in, your effort at finding new income streams -be aware of your carbon footprint and make sure funders know how you are taking steps to reduce it (some funders will ask for this, and it will save you money too)

11. Effective funders, thriving communities www.londonfunders.org.uk