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Learn about identifying funding sources, managing costs effectively, and understanding financial risks associated with managing funds for your association. Discover where associations get their funding and how to maintain accountability and transparency. Explore budgeting, funding risks, and in-kind contributions.
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DAY 2 Session 8 Funding Sources and Managing Costs/Resources: Slides
Outcomes for participants • At the end of this session participants should be able to: • Identify funding sources that might be useful for the success of their association’s proposal. • Understand the need to manage costs effectively. • Be aware of the risks associated with managing funds.
Accountability and transparency • Library associations need to be accountable and transparent - finances should be available for scrutiny not only by auditors but by members as well. • Two key principles of a financial management system are: • Transparency • Accountability
Where do associations get their funding? • Funding from membership fees and/or • Sponsorship • Accreditation schemes • Conferences and related activities • Sale of products, publications • Continuing professional education courses • These funds might be ongoing every year even if the amount varies. • But, relying too much on membership income is risky.
One-Off Funding Streams • Associations might also receive one-time funds for: • A project (such as BSLA) • Government grants • Grants from foundations or charities
In-kind Contributions • Associations are often supported by other organisations, such as: • National libraries, which provide accommodation, a place to keep records, and sometimes equipment for the association • Libraries which provide space for workshops and events • Contributions of this kind help associations to provide activities and services they could not otherwise afford
Activity: Funding Sources Brainstorm 10 mins • As a total group discuss: • What could be some sources of funding for your proposal? • Do you know of funding sources in your own country or region? • Suggestions will be noted by the trainer on a flipchart.
Writing a budget • A budget for your proposal will: • Give you the confidence that your association will be able to meet financial responsibilities • Identify problems before they occur – such as any shortfall in covering expenses • Manage your expenditure • Increase donor/stakeholder confidence in your association
Budgets and guidelines • If you receive project funding, you need to be able to deliver the project within the budget and financial guidelines • Costs must be reasonable and allowable. It should be clear how they have been calculated • The cost should be consistent with your association’s policy and the funder’s policy • If you cannot complete the project, or you don’t spend the full amount, you will need to be prepared to return the remaining funds.
Funding Risks • Risks may include: • Currency fluctuations • Change of Government • War • Dependency on too few funding sources • Financial incompetency • Other?