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Agile & robustly funded
NGOs need to find new ways
to survive and thrive
Chris Meyer zu Natrup
Managing Director
About us
We build better NGOs
We help them be better
funded
TALKING POINTS TODAY
Challenge
ahead Why now? What now?
The NGOs we need
Agile
We need more agile organisations
to deliver better quality interventions
Building a more efficient NGO
Funded
We need NGOs to robustly
funding themselves
Funding it better
We will never share client data
1. Where we mention client‘s name, we
received advance, written permission
2. In all other cases lessons learned are
anonymized
The organisation we need
1. Covid-19 / 21 / 23
2. Digitalization 2.0 accelerated
3. Impact due in 2030 (SDGs)
4. Climate change adaptation & reduction
5. Funders & Donors change drastically
6. Recession ahead & new Philanthropists rise
7. Work force & Donors generational change
8. Things we don’t know > knowledge
Disruption is the new normal 1. Are we able to keep working efficiently & effectively?
2. Can we project impact where & when needed?
3. Can we scale sufficiently to deliver enough impact?
4. Do we have enough funding?
5. Do we have the right funding?
6. Are we not just spending too much time in meetings?
7. Too many bottlenecks?
8. Is this the organisation we need to deliver the
mandate?
Disruptions expose weaknesses
Am agile, constantly learning
organisation that is robustly
funded to scale within and
despite disruption
Agile & robustly funded
NGOs who receive 70%+ funding from a single type of donor have a 75% likelihood of experiencing financial distress.
This drops to c25% when no income source represents more than 50% of total income.
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
This is a sample text.
Insert your desired text here.
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sample text.
sample text.
Unrestricted funding
(Hight net worth giving, e-campaign)
Inst. Donors
(USAID, EU, Gates, DANIDA, DFID)
Other
80%
16%
The problem
• EU based NGO,
development &
advocacy mandate
• Not enough funding
overall
• Siloed, static
management structure
structured to meet donor
demands
• Critical lack of
unrestricted funding
Robustly funded
Robustly funded?
The problem
• EU based NGO, 7
countries, development
& advocacy mandate,
$15m annual spend
• Not enough funding
• Siloed, static
management structure
organized to meet donor
needs
• Critical lack of
unrestricted funding
What we did together
• WHAT DO WE NEED?
Zero-based analysis of funding type & amount needed for
strategy realization (4 months)
• What type of funding do we really need?
• What amount of funding do we really need?
• What reach & scale do we really need?
• What overheads do we need to cover for that?
• WHAT CAN WE GET?
Funding projection where and by when to obtain this
funding and investments needed (1.5 months)
• How can we get the type and amount of funding needed?
• What investments do we need to make?
• What time-scale is realistic?
• HOW DO WE GET IT?
Structural changes & investments committed (6 months)
• RESULT: 75% of new funding mix changes obtained after
18 months, scale increase is on track
Robustly funded
Robustly funded
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
This is a sample text.
Insert your desired text here.
This is a
sample text.
sample text.
Unrestricted funding
(campaign, membership, sponsorship, etc)
Income earned
(charity business, contract services, etc)
Inst. Donors
Other
“We are shock-proofing our ability
to generate income.”
S. Weber, President
Robustly funded
Funding Raised
(campaigns, crowdfunded, members, sponsorship)
This is a sample text.
Insert your desired text here.
This is a
sample text.
sample text.
Unrestricted funding
(campaign, membership, sponsorship, etc)
Income earned
(charity business, contract services, etc)
Inst. Donors
Other
Flexibility
of use
Surplus
over costs
Cost of
acquisition
Cost of
management
Repeat &
scale
Funding attributes
We can change the funding we have.
START YOURSELF: Do you have the right funding?
Amount: Are all key activities &
investments you need over the time of
your strategy sufficiently funded?
Time: Is the duration of your
funding/capital the same as the time
you need the funding for?
Type: Is the range of key activities &
investments needed permitted use of
the funding/capital projected?
NGOs who are not committed to an agile management approach suffer
more from bottlenecks, staff fluctuation and low impact than those that do.
1. Covid-19 / 21 / 23
2. Digitalization 2.0 accelerated
3. Impact due in 2020 (SDGs)
4. Climate change adaptation & reduction
5. Funders & Donors change drastically
6. Recession ahead & new Philanthropists rise
7. Work force & Donors generational change
8. Things we don’t know > knowledge
Disruption is the new normal
• Disruptions render forecast based strategies
meaningless
• We need to respond faster
• We need to learn better and faster
• We need to remove bottlenecks to react better
• We need to survive & thrive in a disrupted world
• Adoption to the “new normal” means adoption to any
new normal
Agility is key
This is about how we respond and
scale.
How we organise ourselves, how
we work either opens up strategic
opportunities, or closes them.
3. What is agile?
• Agile Strategy sets targets, but does not prescribe
ways to achieve them
• Learning by Data obsession: Measure, report, learn –>
foresight
• Collaborate through the Platform: form rapid new
partnerships & project development capacity
• Trust based: Teams come together when and where
needed, less formal structures, very flat hierarchy, open
data
• Structures & Systems must actually
support the Strategy, not just based on
history
• Trust requires data transparency:
Objectives, Indicators and other data points
should be freely available to inspire trust
• Funding must be robust: Government
funding is not a viable path to impact
• Data is the key to impact: collection ->
analysis –> insight -> foresight
• Make work work for people: Flexible work
arrangements, platform based work allows
people to work when they want/can
4. Lessons learned from agile transformations
Diversified its funding in 2019,
grew in 2020
Puts data at its core in 2020,
attracts substantial donor endorsements
Fundamental restructure undergoing,
to be ready for recurring migration
waves
The mindset we need
Accept
…to accept the things
we cannot change,…
Politics
Donor priorities
Economy Evolving needs
Pandemics
History
Sunk Costs
Change
…courage to change
the things I can,…
Our NGO
Programme priorities
Organisational
structure
Evolving response
Funding model
Communication
Future Costs
The mindset we need
STAY IN TOUCH!
CHRISTIAN MEYER ZU NATRUP
chris@mzninternational.com
DEBORAH MOWESLEY
deborah@mzninternational.com
Insight blog & free events every month under
www.MzNinternational.com
Upcoming webinars:
Ten Questions every proposal
should answer to be successful
14th Sept 2 to 3pm
How to get Donor Mapping Right
21st Sept 2 to 3pm
Latest insight article:
Clearing the Air: 5 Tips on How to
Proactively Manage Conflict in a
Team

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MzN Agile funded NGO Sept22.pdf

  • 1. Agile & robustly funded NGOs need to find new ways to survive and thrive
  • 2. Chris Meyer zu Natrup Managing Director About us We build better NGOs We help them be better funded
  • 3. TALKING POINTS TODAY Challenge ahead Why now? What now? The NGOs we need Agile We need more agile organisations to deliver better quality interventions Building a more efficient NGO Funded We need NGOs to robustly funding themselves Funding it better We will never share client data 1. Where we mention client‘s name, we received advance, written permission 2. In all other cases lessons learned are anonymized
  • 4. The organisation we need 1. Covid-19 / 21 / 23 2. Digitalization 2.0 accelerated 3. Impact due in 2030 (SDGs) 4. Climate change adaptation & reduction 5. Funders & Donors change drastically 6. Recession ahead & new Philanthropists rise 7. Work force & Donors generational change 8. Things we don’t know > knowledge Disruption is the new normal 1. Are we able to keep working efficiently & effectively? 2. Can we project impact where & when needed? 3. Can we scale sufficiently to deliver enough impact? 4. Do we have enough funding? 5. Do we have the right funding? 6. Are we not just spending too much time in meetings? 7. Too many bottlenecks? 8. Is this the organisation we need to deliver the mandate? Disruptions expose weaknesses Am agile, constantly learning organisation that is robustly funded to scale within and despite disruption Agile & robustly funded
  • 5. NGOs who receive 70%+ funding from a single type of donor have a 75% likelihood of experiencing financial distress. This drops to c25% when no income source represents more than 50% of total income. Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (Hight net worth giving, e-campaign) Inst. Donors (USAID, EU, Gates, DANIDA, DFID) Other 80% 16% The problem • EU based NGO, development & advocacy mandate • Not enough funding overall • Siloed, static management structure structured to meet donor demands • Critical lack of unrestricted funding
  • 6. Robustly funded Robustly funded? The problem • EU based NGO, 7 countries, development & advocacy mandate, $15m annual spend • Not enough funding • Siloed, static management structure organized to meet donor needs • Critical lack of unrestricted funding What we did together • WHAT DO WE NEED? Zero-based analysis of funding type & amount needed for strategy realization (4 months) • What type of funding do we really need? • What amount of funding do we really need? • What reach & scale do we really need? • What overheads do we need to cover for that? • WHAT CAN WE GET? Funding projection where and by when to obtain this funding and investments needed (1.5 months) • How can we get the type and amount of funding needed? • What investments do we need to make? • What time-scale is realistic? • HOW DO WE GET IT? Structural changes & investments committed (6 months) • RESULT: 75% of new funding mix changes obtained after 18 months, scale increase is on track
  • 7. Robustly funded Robustly funded Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (campaign, membership, sponsorship, etc) Income earned (charity business, contract services, etc) Inst. Donors Other “We are shock-proofing our ability to generate income.” S. Weber, President
  • 8. Robustly funded Funding Raised (campaigns, crowdfunded, members, sponsorship) This is a sample text. Insert your desired text here. This is a sample text. sample text. Unrestricted funding (campaign, membership, sponsorship, etc) Income earned (charity business, contract services, etc) Inst. Donors Other Flexibility of use Surplus over costs Cost of acquisition Cost of management Repeat & scale Funding attributes We can change the funding we have.
  • 9. START YOURSELF: Do you have the right funding? Amount: Are all key activities & investments you need over the time of your strategy sufficiently funded? Time: Is the duration of your funding/capital the same as the time you need the funding for? Type: Is the range of key activities & investments needed permitted use of the funding/capital projected?
  • 10. NGOs who are not committed to an agile management approach suffer more from bottlenecks, staff fluctuation and low impact than those that do. 1. Covid-19 / 21 / 23 2. Digitalization 2.0 accelerated 3. Impact due in 2020 (SDGs) 4. Climate change adaptation & reduction 5. Funders & Donors change drastically 6. Recession ahead & new Philanthropists rise 7. Work force & Donors generational change 8. Things we don’t know > knowledge Disruption is the new normal • Disruptions render forecast based strategies meaningless • We need to respond faster • We need to learn better and faster • We need to remove bottlenecks to react better • We need to survive & thrive in a disrupted world • Adoption to the “new normal” means adoption to any new normal
  • 11. Agility is key This is about how we respond and scale. How we organise ourselves, how we work either opens up strategic opportunities, or closes them.
  • 12. 3. What is agile? • Agile Strategy sets targets, but does not prescribe ways to achieve them • Learning by Data obsession: Measure, report, learn –> foresight • Collaborate through the Platform: form rapid new partnerships & project development capacity • Trust based: Teams come together when and where needed, less formal structures, very flat hierarchy, open data
  • 13. • Structures & Systems must actually support the Strategy, not just based on history • Trust requires data transparency: Objectives, Indicators and other data points should be freely available to inspire trust • Funding must be robust: Government funding is not a viable path to impact • Data is the key to impact: collection -> analysis –> insight -> foresight • Make work work for people: Flexible work arrangements, platform based work allows people to work when they want/can 4. Lessons learned from agile transformations Diversified its funding in 2019, grew in 2020 Puts data at its core in 2020, attracts substantial donor endorsements Fundamental restructure undergoing, to be ready for recurring migration waves
  • 14. The mindset we need Accept …to accept the things we cannot change,… Politics Donor priorities Economy Evolving needs Pandemics History Sunk Costs
  • 15. Change …courage to change the things I can,… Our NGO Programme priorities Organisational structure Evolving response Funding model Communication Future Costs The mindset we need
  • 16. STAY IN TOUCH! CHRISTIAN MEYER ZU NATRUP chris@mzninternational.com DEBORAH MOWESLEY deborah@mzninternational.com Insight blog & free events every month under www.MzNinternational.com Upcoming webinars: Ten Questions every proposal should answer to be successful 14th Sept 2 to 3pm How to get Donor Mapping Right 21st Sept 2 to 3pm Latest insight article: Clearing the Air: 5 Tips on How to Proactively Manage Conflict in a Team