Deciding on a funding diversification approach

Two main approaches to diversifying your funding.

Explore a new funding model and establish capacity and expertise in it

• Pick a new funding model that is adjacent to what you are currently used to – when you look at the top three funding models, assess them by thinking about your current funding expertise and pick one that is most like what you are currently doing when it comes to the capacity, skillset, resources needed.

• Pick a new funding model that you think you can build capacity in – you have some skillset and good understanding of the landscape of this model in your country/city/region. Or you can work with an existing funder and/or capacity strengthening organization that can help you build your capacity in the new funding model.

Exploring a new funding model can be especially helpful for organizations that:	Is this your organization?
Have a strong relationship with a specific funder that is willing to explore different funding mechanisms to provide funding.
Are operating in a funding environment that is highly saturated. For example, an organization predominantly funded by grant funding is finding it difficult to find new grants or the competition in the space is really high.
Have capacity and expertise (or the ability to build it) in a new funding model.

Deepen expertise in a particular funding mechanism and diversify by tapping into different sources

• Tap into more of the same type of funders – For example, if you are already working with one foundation or one corporation as a funder, you can focus on diversifying your funding by approaching and building relationships and partnerships with additional foundations or corporations.

• Tap into different types of funders within the same funding model – For example, you have an expertise in grant-writing and are currently receiving grant funding from international institutions. You could focus on finding and applying for grants from additional types of funders such as foundations, corporations, etc.

• Tap into funding from different sectors/thematic areas – For example, in addition to working with funding sources in the health sector you explore getting funding from sources in the education sector for health related education programs.

Deepening current expertise can be especially helpful for organizations that:	Is this your organization?
Want to focus on building on existing skillset among their team when it comes to funding and financing.
That face certain constraints with regards to their team capacity to learn and implement a new funding model