Effective fundraising for organisational sustainability requires that an organisation has a diverse donor base with multiple funders.
An organisation’s board, the CEO and the financial manager have to ensure that there are sufficient funds for their organisation to undertake its work plans for the coming year, and that the budget provides sufficient flexibility to adapt to changing circumstances as appropriate.
An organisation thus needs to be well aware of the different grantmaking cycles in order to avoid sudden shortfalls during the course of the year.
Non-profits must realise that they are looking after donor money on behalf of the beneficiaries or communities that they serve. This requires great ethical and legal responsibility on the part of non-profit organisations to ensure that their funding is well managed. Because of this, and the often unpredictable and frequently changing nature of non-profit funding, financial management in the non-profit world is a highly skilled, and often daunting, but manageable affair.