6. Financial issues
A major barrier to many community-based projects is often seen as money, or lack of it. This part of the toolkit looks at raising and managing finance in order to fund a project successfully. This process starts right at the beginning of every project – however big or small – and the issue continues after the main project work has been completed. The aftercare implications on finance are considered more fully in the section Economic sustainability. This section looks at:
An idea of the cost of a project is needed before funds can be obtained. While this can be a little difficult to judge precisely, flexible costing is possible. Financial planning: costing looks at how much things cost, how to budget and assess what is feasible, and the production of estimates and ballpark figures.
Once the costs of a project have been assessed it's time to begin Fundraising. This includes identifying possible donors, dealing with the requirements of any application process and issues such as match funding.
Any funded project will require the organisation to report back to the funding body and show that their funding is being managed appropriately. This is dealt with in Cash and cash flow.
In order to keep track of expenditure and ensure that this remains within budget, suitable Financial management regimes must be put in place.
The holding of Insurance can protect the project and those involved in it from financial problems should something go wrong. This can be from over-runs on contracts, accidents on site during and after the project and environmental liabilities resulting from the possibility of contamination existing on the site.
What will my project cost? What unexpected costs might there be?
What sources of funding are available to my project? How can I meet the requirements of potential donors and provide match-funding?
How can I ensure the funding is being managed appropriately?
Who should control the finances ensuring the project stays within budgetary constraints?
Are the potential risks and liabilities of your project covered? What types of insurance will you need?
Important note: This information is intended as a guide and, while it is as accurate and up to date as we can make it, it should not be used in place of specialist legal, financial or commercial advice.