Developing Funding Strategies to Build Long-Term Resilience
Ntefeleng Nene
One year after USAID cuts rattled non-governmental organisations (NGOs) worldwide, thousands of NGOs operating across sub-Saharan Africa face rising financial uncertainty. In this environment, NGOs can no longer afford to be reactive – they must reflect on their internal capabilities and build long-term financial resilience. At the same time, donor and partner expectations are evolving, with greater emphasis on transparency and measurable impact.
Yet this moment is not only one of risk – it is also one of opportunity. Many global donors value localisation and community-led leadership, so Africa-led organisations have a critical chance to redefine development on the continent. To seize this opportunity, organisations must build effective funding strategies that are not only aligned with their mission but also sustainable over the long term.
An effective funding strategy is anchored in a strong organisational strategy that can reliably generate the revenue needed to cover costs. When building this foundation, every NGO leader must ask these questions: Whom do you serve? What do you want to do for the people you serve? And how will you achieve the impact you’ve defined for your organisation? At its core, organisational strategy serves as the backbone of the funding strategy.
These four key steps can help you craft an effective funding strategy:
- Clarify which funding opportunities have the highest potential. Typical funding sources include domestic government, multilateral or bilateral funding, philanthropic foundations, corporates, small gifts from individuals, ultra- and high-net-worth individuals, and programme service fees. While diversifying funding streams makes sense, you might want to focus on a single funding category and diversify within it – for example, rounding out foundation support by reaching out to a few more grantors – rather than pursuing every opportunity that arises. Some categories will align more closely with your organisation’s capabilities, mission, and operating context than others.
- Identify key payers (i.e., donors) and understand what drives them to fund your work. Each funder is motivated by different priorities. For instance, local governments in the regions where you operate may focus on underserved communities. If your organisation’s work aligns with the government’s mission and goals, that may be a strong fit. Similarly, corporates often seek alignment with their investment agendas or ESG priorities. This is why pursuing too many funding streams can dilute your strategy – focus strengthens results.
- Define the roles staff and board members will play in pursuing your selected revenue categories. This involves mapping existing capabilities within your organisation and identifying gaps that need to be addressed. Do you need to hire new staff, strengthen systems, or adopt new technologies? Securing government funding, for example, requires strong proposal writing capacity and a clear understanding of compliance and regulatory requirements. It’s also important to weigh the opportunity costs of investing in these capabilities now versus later.
- Set realistic funding targets that can be tracked over a defined period. Whether over 12 months, three years, or longer, funding goals should be specific and measurable. Once you determine how much you aim to raise, assess how your main funding category can realistically meet your funding targets over the short and long term. Many organisations also have a secondary category to make their funding strategies more robust and resilient. Well-defined targets create focus, accountability, and alignment across your team. And tracking progress regularly can help you make adjustments based on what is and isn’t working.
Building relationships is, of course, central to a funding strategy. Whether working with governments, corporates, or foundations, establishing trust will help sustain funding relationships over time.
(Ntefeleng Nene is a partner at The Bridgespan Group, based in Johannesburg. She also leads the Bridgespan Nonprofit Development Programme (BNDP) Africa, a cohort-based coaching programme for nonprofit leadership teams)
