How to Create a Funding Strategy

Keeping your organisation financially sustainable can feel like a challenge. Many local groups rely on short-term grants or one-off fundraising events, which makes it difficult to plan ahead. That’s where a funding strategy comes in.

A funding strategy helps you:

• Secure long-term stability.

• Plan your fundraising activities with confidence.

• Reduce the risk of depending on just one source of income.

• Keep your funding aligned with your mission and community needs.

Here’s a step-by-step guide to get you started.

Step 1: Review Your Current Position

Take stock of your current income: which grants, contracts, or donations are you relying on? How secure are they?

Step 2: Clarify Your Funding Needs

Break down your needs into:

• Core costs (rent, staff, insurance)

• Project costs (specific activities or services)

• Development costs (growth and innovation)

Tip: Keep your explanations simple and link them to community benefits as this will help you identify potential funders later.

Step 3: Explore a Mix of Funding Sources

Relying on just one income stream is risky. Instead, consider a mix of:

• Grants (local and national)

• Contracts/commissioning (providing services for councils or health boards)

• Donations & fundraising (appeals, events, local giving)

• Membership fees

• Trading/social enterprise (room hire, workshops, small-scale sales)

• Legacies/Wills

• Lotteries (e.g. The Giving Machine)

Step 4: Match Funding to Your Priorities

Only apply for funding that fits your mission. Chasing money that doesn’t align with your values can cause “mission drift.” A simple table with “Opportunity / Relevance / Effort / Deadline” can help you prioritise.

Step 5: Create an Action Plan

Be clear on who does what, by when. Track applications, deadlines, and responsibilities.

Step 6: Build Relationships

Successful fundraising isn’t just about forms — it’s about people. Connect with GVS networks, speak to funders before applying, involve councillors and community champions, and link your work to the Vale of Glamorgan Wellbeing Plan.

Step 7: Review Regularly

Review your strategy every 6–12 months. Check what’s working, and update your plan to stay on track.

Ready to Start Your Own?

Here’s a simple template you can adapt:

1. Mission statement - This is linked to your charitable purpose

2. Financial needs (core, project, development)

3. Current income sources

4. Target income mix (e.g. 40% grants, 30% donations, 30% trading or other income)

5. Priority funding opportunities - what are you going to apply to over the next 6 months?

6. Action plan (what/who/when/how)

7. Monitoring & review