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partnerships:azp:fin [2017/06/12 10:20] (current)
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 +Financial Sustainability
 +Development Trusts have to manage a delicate balancing act with their
 +finances. On the one hand they must deliver some benefits to their
 +community which cost rather than earn money; on the other hand they are
 +under pressure from funders to cut their dependence on grant.
 +-   The balance between projects which are spenders and those which are
 +    earners is at the heart of the Trust'​s business plan. It should be
 +    reflected in the initial bid to funders.
 +-   The first core funding received by a Trust to pay for staff and
 +    overheads is likely to taper away within a few years. Unless the
 +    Trust can replace that funding, or earn substantial sums from its
 +    projects, it will not be able to sustain its operations.
 +-   ​Earning projects will take some time to yield revenue. A Trust
 +    should think about income generation from the start. If possible get
 +    a funder to provide capital for workspace or a similar asset which
 +    can produce long-term income.
 +-   Avoid losing money by setting up sound financial systems from the
 +    start.
 +-   Does the Trust have a business plan?
 +-   Does the Trust have a fundraising and sponsorship strategy with
 +    clear goals for:
 +    meeting core costs? developing an asset base? developing and running
 +    projects?
 +-   Does the Trust have:
 +    written agreements with sponsoring and funding organisations?​ a
 +    spread of funding support? skills in assembling funding packages and
 +    in managing muli-source programmes?
 +-   Has the Trust set up:
 +    appropriate accounting procedures and financial systems with regular
 +    monitoring of costs and revenue? procedures for costing and pricing
 +    Trust activity? an efficient system for accurate measurement of
 +    income and expenditure on an accruals basis for projects?
 +-   Does the Trust comply with the reporting requirements of the
 +    Companies Act, Charity Commisioners and core sponsors?
 +© David Wilcox <​>​. Tel +44 (0)1273 677377.
 +Fax: +44 (0)1273 677379. These information sheets may be freely
 +distributed with this attribution,​ but not republished as a whole.
 +[Partnerships Online](../​index) : [The Guide to Development Trusts
 +and Partnerships](../​pguide/​index):​ [other
partnerships/azp/fin.txt · Last modified: 2017/06/12 10:20 (external edit)