Study Shows How Nonprofits Secure Funding for Greater Impact
Spring Impact has released "Securing Non-profit Funding: How 28 non-profits secured funds to increase their reach and impact"—a new report investigating the funding sources and strategies used by non-profits to achieve impact at scale.
The report explores the unique journeys of 28 non-profits operating across 70 countries and 10 issue areas, the majority of which are delivering solutions in low- and middle-income countries.
The study examines who is paying for non-profits to sustain solutions at scale and explores the trade-offs and lessons specific to five key types of payers at scale: philanthropy, governments, corporates, bilateral and multilateral institutions, and end users.
Funding remains one of the toughest barriers to scaling, with little guidance available on how to navigate it. The report findings shed light on who funds scale, how non-profits secure this funding, and the success factors that enable them to achieve sustainable impact in a challenging landscape.
Key Findings
The findings paint an honest picture of the funding landscape, revealing the importance of long-term support to sustain non-profits’ ability to make a difference at significant scale and reinforcing the critical role philanthropy plays in financing greater impact.
- Funding gaps persist even with big partners on board: Partners that adopt solutions designed by non-profits, including governments, often require ongoing support from the non-profits to implement those solutions at scale but rarely cover these costs.
- Non-profits still rely heavily on philanthropy even when operating at scale: 23 out of the 28 organisations interviewed have philanthropy as their primary source of funding. Ongoing philanthropic support is often required to sustain impact at scale, with unrestricted funding, in particular, remaining essential for adapting to challenges.
- Governments are critical for scale but provide minimal funding: All 28 organisations in the study engage with governments in some capacity, but only 8 receive funding for the ongoing support they provide governments in implementing a solution at scale.
- Unrestricted, long-term funding enables scale and sustainability: Unrestricted funding makes up 67% of the 28 non-profits’ funding, allowing them the flexibility to allocate resources where they are most needed and respond quickly to challenges.
Despite a complex landscape, the 28 non-profits studied demonstrate that securing funding to transform lives at scale is possible. Their journeys provide clear lessons and guidance on navigating the journey at different stages—from diversifying funding sources to mitigate risks, testing and adapting along the way, and building evidence of impact.
The report offers non-profits, funders, and stakeholders a valuable resource to better understand the realities of funding at scale. By shedding light on the strategies and challenges organisations face, it contributes to a stronger foundation of knowledge in the sector, guiding leaders toward effectively financing impact at scale.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
