Financial Sustainability Essentials – How to Build a Financing Strategy

Attending the FM2 is arguably the best decision I have taken this year. As a Programme Manager, it has changed my approach to programme planning and implementation to include financial sustainability practices.

Course code:	FM2
Course Title:	Financial Sustainability Essentials – How to Build a Financing Strategy
Duration:	2 days
For:	Non-finance managers, finance managers and Board members of local NGOs; programme managers of INGOs.
Fee basis	Non-residential: fee excludes accommodation

Purpose

The purpose of the course is to build the confidence and skills of NGO managers to improve the financial sustainability of their, or partner, organisations by:

assessing and managing critical financial risks and
developing a financing strategy and associated policies.

Target Audience

This course is aimed at managers of small to medium-sized NGOs and those responsible for strategic financial management, including Board members.

It is also suitable for international NGO programme managers who advise local partners on how to plan for financial sustainability.

Previous financial management experience or training is not a requirement for this course although it is advantageous to complete the FM1 course first if you are completely new to financial management.

We recommend that you read this course outline carefully to make sure the content is relevant and meets your learning requirements. If you are not sure if this course is for you, please contact us.

Course Content

The final balance of course content will be decided by those attending the course, according to their interests and training needs.

The core components of the course include:

What makes a financially sustainable NGO and how we measure it
Financial risk analysis – tools and techniques
What a financing strategy looks like
The problem with donor dependency – and some alternative financing options
How to finance central support (‘core’) costs
How to build and manage reserve funds
Managing key stakeholder relationships.

Also see the Programme Guide.

Learning Outcomes

At the end of the course, participants will be able to:

Do	carry out a financial risk assessment using selected analysis and mapping tools to identity critical threats facing their NGO analyse an income schedule to identify the current and desired funding mix of their NGO analyse financial statements using financial ratios to assess the donor dependency and reserves status of their NGO carry out a resources audit to establish the potential for alternative financing options in their NGO
Know:	describe the four key features of a financially sustainable NGO describe the components of a financing strategy for an NGO explain why it is important to have diversified income in an NGO outline options for building up unrestricted reserve funds to create a safety net and support future development outline options for financing and managing central support costs across the organisation
Feel:	recognise that being highly donor dependent makes NGOs more vulnerable to external threats appreciate the importance of managing key stakeholder relationships.

Training Approach

The Mango training approach is highly practical, participatory and often fun!

We focus on real issues and help participants to use the tools covered, rather than just discuss them. We work especially hard to de-mystify financial concepts to overcome the fear of finance.

“Mango training really does take the fear out of finance!”

We train in small groups to meet the needs of individual participants and use a variety of learning methods to stimulate interest and meet different learning styles. Participatory techniques include interactive presentations, practical problem-solving activities, case studies and quizzes.

Courses are supported by extensive materials for participants to take away and apply after the course, including a detailed course manual. We also offer a free follow-up service by email or phone to all Mango trainees.

How to Book

All courses can be booked online or by completing a booking form and sending it to the training team. Full terms and conditions are also available on our website, as well as the latest calendar, current availability and course fees.

You are also welcome to telephone us with enquiries on +44 (0)1865 423818.

Course Fees

The course fee covers: tuition, all course materials including a course handbook and workbook; complementary Mango pen, ‘jargon ball’ and calculator; lunch and refreshments during the course; and a course certificate.

The course fee does not include the cost of overnight accommodation or travel to and from the training venue.

Programme Guide

Module	Session Topics
Day 1	Assessment Tools: Where are we now?
Introductions and overview	Welcome and introductions Programme overview Personal and course objectives How to build a financially sustainable NGO
Assessment tools	Financial SWOT analysis Stakeholder analysis - the Mendelow Matrix Measuring financial sustainability - trend and ratio analysis
Mapping income	Where do NGOs get their money from? The financing mix matrix Challenges of donor dependency
Risk assessment	Identifying and prioritising risks Summary of assessment tools
Day 2	Decisions and Targets: Where are we going and how do we get there?
Introduction	Programme for the day Review of day 1 What is a financing strategy?
Income policy	Alternative financing opportunities Charging for services The Resources Audit Setting a financing mix target
Reserves policy	What are reserves? Setting a reserves target How to generate reserves in the non-profit sector Designated funds
Other key policies	Financing central support costs Ethical income policy Applying unrestricted funds Stakeholder action plan
Summary and action planning	Next steps for your financing strategy Certificates and close