The sustainability of charities requires planning in advance to be prepared to react if necessary. Greater use of digital technology can facilitate this by simplifying processes. But what is the meaning of sustainability in charities? Simply put, sustainability means that charities are able to continue supporting their service recipients in the long term. We have explored 10 key areas to maximize sustainability in charities. Here are 10 ways to ensure the charity sustainability.

charity sustainability; income generation

A charity must be able to generate enough income to cover its expenses. Income can come from a number of sources, including receiving grants from large funds, fundraising from the general public, fees for contracts from statutory authorities, and investments. Ways to generate income from various sources should be supported by marketing activities aimed at building relationships with sponsors, donors and investors.

charity sustainability; impact

Income is necessary, but not an end in itself. It should never be forgotten why charities make money. These institutions should focus on more fundamental issues and ask questions such as “What do they want to achieve?” What results are you looking for? And what is their intended effect? to answer Without sufficient impact, it is unlikely that charities will be able to sustain the revenue generation necessary to cover the cost of their charitable work. The ability to demonstrate this impact through measurement and reporting is critical.

charity sustainability; Strategy

Since income and impact are so critical to charities, these two are the first things that start-up charities usually focus on. But it is unlikely that they can maintain the stability of the organization alone in the long run. They should be included in the heart of the strategy. It can be argued that strategy should be the starting point from which everything flows, especially sustainability, which in itself is a core element of any strategic plan. A charity needs clarity about the goals it is striving for and how it will achieve them. The strategy of the charitable organization must be in harmony with its goals.

charity sustainability; Agenda

The work plan usually follows the strategic plan and is vital for the achievement of an organization’s goals. A business plan is not just about money, but a comprehensive plan that outlines the main goals and activities of an organization for the future. It determines the necessary measures to achieve and realize them, as well as the resources (especially people) and the required facilities. The work plan is supported by a financial plan.

sustainability of charities; Cost control

Although some people find cost control boring, it is nevertheless very important. First of all, cost control can be summarized as the need to spend less. For small organizations that charge based on the amount of revenue, if their revenue decreases, they must also reduce their expenses. While an effective work plan helps to reduce this problem. Therefore, it is important to continuously focus on identifying important items and eliminating unnecessary expenses. Otherwise, not spending in key areas can jeopardize service delivery and undermine fundraising efforts.

charity sustainability; cash flow

Cash flow issues are the biggest reason many businesses fail, and charities are no exception. While creating a balance between income and expenses is important, it is not enough to ensure liquidity circulation and the ability to pay obligations. Timing is very important; Because some grants may be paid in arrears, and in some cases, payments are made late. This can have a major impact on cash flow and even lead to the bankruptcy of an organization. So having a good financial plan along with constant monitoring will make cash flow management easier.

charity sustainability; Diversification

While building financial relationships can enable a charity to dramatically increase its impact, relying on one funder or one type of fundraiser can be very damaging. This fact has given rise to extraordinary innovations and new ways of thinking. Wider financial resources make it easier to adapt to new conditions.

According to one theory, a charity should not depend more than 20% of its total budget on one financial source; Because if the help of that source is stopped, he can quickly reschedule and cover his expenses until finding a new financial source.

charity sustainability; Culture

In addition to the technical features, financial management and accounting procedures are important not to forget the “softer” elements that are critical to the success of any organization. The beliefs and values ​​of an organization are determined through the performance of the entire organization. A commercial company can achieve honesty through financial incentives, but charities rarely can, so this is very important for charities.

A positive culture is critical to building supporter loyalty and commitment and ensures that impact is achieved. In the event of a negative culture, public support and trust will be significantly damaged. It’s important to note that culture isn’t just what’s perceived outside the organization, but how employees and volunteers are treated can also reflect the values ​​your charity is trying to display.

charity sustainability; leadership

While some of the above best practices and methods should be in place in an organization, leadership is critical to a charity’s sustainability. A strong and effective leadership helps a charity to adopt the right strategy to effectively achieve its goals. Leadership is very important in providing daily guidance. Communication is an important part of leadership. Strong communication and leadership is required to prevent data fragmentation and ensure transparency and efficiency of all financial processes.

charity sustainability; infrastructure and tools

The previous nine points all describe areas that a successful charity should focus on to ensure sustainable effectiveness. All of these benefit from appropriate infrastructure and technology solutions. The use of communication software such as “Zoom” and “Teams” will be necessary to establish daily communication and continue the activities of organizations that choose the remote or hybrid model.

The main tool for making progress towards sustainability is financial software. Cost control, cash flow analysis, as well as diversification analysis and reliance on financial sources are the main parts of financial software. As the use of digital technology can maximize the efficiency of processes, greater organizational financial literacy and understanding of the above-mentioned items can also be a very valuable advantage. But they should originate from a strategy with a sustainable approach and look to the future. “Covid-19” with all its troubles provided an opportunity to take a fresh look at sustainability with the help of digital ways of working.

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