Post on 18-Nov-2014
description
Affairs are easier of entrance than
of exit; and it is but common prudence
to see our way out before we venture in.
~ Aesop
Grantmakers saying goodbye –
designing exit strategies
Claire Hugo
17 March 2011
Grantmaking process simplified…
Develop
strategy
Award
grants
Call for
applications
Refine
strategy
Measure
impact…Monitor
progress
Plan:
EXIT Keep coming back to EXIT STRATEGY
Underlying principles
Complex and deep-rooted challenges
Always be a disappointment
Certain element of reputational risk
Defining sustainability
Unpacking the “WHY”Why fund an organisation for more than one year?
Advantages Disadvantages
Promotes sustainability Dependency and sustainability
Partnerships Limited flexibility to engage in new
funding relationships
Monitoring, evaluation and
reporting
Financial obligation of the donor
Organic development and the
emergence of innovative models
Changes in the market
Declining assets
Changes in thinking
Changes in composition of leadership
Changes in project officer
Desire to keep strategy fresh and flexible
Unpacking the “WHY”Why would you want to exit?
Ensure clarity
Healthy discipline
More specific around capacity-building efforts and needs
Closer working relationship between the donor and grantee
Cohesion between funders
Unpacking the “WHY”Why do we want to plan for exiting?
Good business planning
A passionate champion
Continuity of staff and volunteers
An organisation that has several sources of funding
Involvement of potential continuation funders at an early stage
Agreed outcomes
Transparent ongoing communication
Realistic time frames
Realistic objectives
Unpacking the “WHAT”What makes up an effective exit strategy?
Grantmaking process simplified…
Plan: EXIT
What are you hoping to achieve?
What impact are you trying to make?
What resources do you have available to you?
Do you consult organisations working in the sector in developing your strategy?
Develop
strategy…
Plan:
EXIT Keep coming back to EXIT STRATEGY
Call for
applications…
Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Have you clearly stated what you are trying to achieve in your application forms?
Have you stated the time frames you are working on?
Award
grants
Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Do you ask organisations to sign a contract?
Do you fund programme and operational costs?
…Monitor
progress
Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Do you frequently meet with partner organisations to monitor progress, assess
challenges and acknowledge success?
Do you frequently assess progress with the targets laid out in the proposals and
contracts (including due diligence)?
Measure
impact…
Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Are you frequently checking your impact against your targets?
Are you mobilising resources to reach your targets e.g. leveraging funding,
enhancing network opportunities, supporting advocacy, providing capacity-
building?
Refine
strategy …
Grantmaking process simplified…
Keep coming back to EXIT STRATEGY
Are you asking for advice?
Have you assisted in developing capacity in your partner organisations?
Have you reached your targets?
There’s a trick to the Graceful Exit. It
begins with the vision to recognise when
a job, a life stage, a relationship is over –
and to let go. It means leaving what's
over without denying its value.
~ Ellen Goodman
For discussion
You are currently funding seven organisations throughout the country: support for
bursaries for eight students in their undergraduate studies (through two bursary
service providers), one residential facility for children with special needs, and four
HIV/Aids prevention programmes. Your available budget is R8 million, of which
you have already committed R6 million to the operational costs of these projects.
There has been a change in leadership within your organisation, and you need to
refine your strategy to focus exclusively on HIV/Aids prevention programmes. You
have one year to refine your strategy, and you are given permission to utilise the
R2 million surplus to manage reputational risks.
In groups, please define the following:
Prepare a budget on how you will invest the R2 million.
How will you communicate the change in strategy to your current partners?
Every exit is an entrance
somewhere else.
~Tom Stoppard