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| September 29, 2003 |
Vol. 8, No. 4 |
Funding Matters: A Warning And An Opportunity
Fact Sheet #4: Nonprofit & Voluntary Organizations Respond To Change
The Canadian Council of Social Development (CCSD) has produced a seminal
report, "Funding Matters: The Impact of Canada's New Funding Regime on
Nonprofit and Voluntary Organizations." This study analyses changing
funding patterns throughout Canada and their impact on voluntary sector
organizations. The findings of this study compliment the results of
community-based research conducted in Halton in recent years that identify major
funding issues and their consequent impact on the quality and accessibility of
community services. Community Development Halton has prepared five Community
Dispatches of the Fact Sheets prepared by CCSD for the June 2003 launch of their
study. I believe this information is essential for all those in leadership roles
in the nonprofit and voluntary sector. Furthermore, a workshop, Funding
Matters: A Warning and An Opportunity, for senior managers, Board members,
funders and concerned citizens is planned for Tuesday November 25, 2003.
Katherine Scott, author of the CCSD report, will give the keynote address.
Details will be available shortly.
Joey Edwardh
Seeking Out Alternative Funding Sources
In this new funding environment, Canadian nonprofit and voluntary groups are
actively pursuing a range of alternative sources of income. Many pride
themselves on their ability to be innovative and find creative ways to respond
to these demands.
Q. How are nonprofit and voluntary groups faring in the quest for new
sources of funding and new ways to do business?
A. Two-thirds of the organizations had a larger number of income sources today
than they had five years ago. But groups are still financially fragile and
dependent on a complex web of unpredictable, short-term, targeted funding that
may unravel at any time.
The majority of organizations surveyed have made substantial changes to
better position themselves in this new funding environment. Most have cut their
internal costs, altered services and programs, and changed their organizational
processes and governance - all in an effort to pursue new funding opportunities.
The process of diversification and restructuring in the sector has been
intensive:
- The vast majority of organizations surveyed (93%) have tried to diversify
their funding sources over the past five years.
- Respondents identified public and private foundations as the most common
source of non-governmental funding over that period: 81% had submitted
applications to foundations, with varying degrees of success.
- Two-thirds of the groups surveyed had approached corporations for
donations (69%) or sponsorships (65%).
- More than half the groups (59%) had organized special fundraising events.
- Six of 10 groups (59%) said they were pursuing commercial or business
activities to diversify their resource base.
- Organizations had also sought out partnerships, which are increasingly
required by funders before they will consider financial requests.
Participants noted, however, that some funders will not support a project
until others have committed money, and the withdrawal of one partner can
scuttle the whole funding arrangement.
- Organizations across the sector are looking for help to enhance their
operational effectiveness. Many believe that becoming more
"business-like" was a "positive" or "very
positive" development for the sector.
For more information on Funding Matters: The Impact of Canada's New
Funding Regime on Nonprofit and Voluntary Organizations, visit the CCSD
website at: http://www.ccsd.ca/pubs/2003/fm/
 PDF:
168 k
Produced by Community Development Halton
860 Harrington Court
Burlington, Ontario L7N 3N4
(905) 632-1975, (905) 878-0955; Fax: (905) 632-0778; E-mail:
office@cdhalton.ca
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