Securing funding takes dedication and a plan of action. June O'Sullivan explains how it's done
Nowadays, we often hear the term 'sustainability'. It has become a favourite word among grant officers, management committees, business advisers and funding authorities, and means 'being self-financing'. It is often followed by the question, 'What are you doing to cover all your running costs and have enough left over to pay for any crisis?
This is a key question for any business, whether a private nursery or a childminder setting up a small home-based business. It involves taking account of all the costs (including hidden expenses such as wear and tear, depreciation and vacancies) necessary to set up, run and meet the future expenditure of the business.
The issue of sustainability is particularly important for settings in the non-profit and voluntary sectors. Such organisations are usually small, community-based and with a heavy dependence on volunteers. They are often funded from a range of sources and, as they are reliant on a local authority grant for running costs, are vulnerable to local councils' cost-cutting initiatives. Organisations should, therefore, devise a funding strategy.
Develop a strategy
- Agree a funding sub-group to write the strategy with financial forecasts for the next two years.
- Make it part of your business plan.
- Identify internal and external threats and keep constantly alert to any such potential problems.
- Identify contingency arrangements in line with key responsibilities, such as redundancy, rent owing, termination of equipment charges and removal costs.
- Agree the funding targets for the year, including running costs (don't forget wear and tear) and planned targets linked to the organisation's annual development plan.
- Research all available funding.
- Allocate the most suitable method of funding against each target. For example, a grant to cover staffing costs, Trust money to replace an old computer, partnership money to pay for Senco training and funds raised from a parents' committee barbecue to pay for new curtains.
- Keep focused on funding and related issues.
- Attend relevant training. Some local authorities have 'capacity building teams', which offer free or low-cost training.
Partnership funding
The Government has developed a National Childcare Strategy and has committed funds to bring about an expansion in the number of childcare places. The funds (54.55 million in 2001) are mostly distributed by Early Years Development and Childcare Partnerships (EYDCPs). The Partnerships are responsible for bringing together all local providers to meet the local and Government targets for increasing childcare places and supporting staff development.
The Partnerships employ specialist advisers to help providers access funds and support. Most Partnership teams are based in the local authority early childhood unit and work closely with council officers.
The Government funds (often referred to as funding streams) are linked to specific targets. For example, the New Opportunities Funding is to support those wanting to provide out-of-school places.
It is advisable to contact your Partnership business adviser for information on the most suitable funding streams for you. If possible, join the Partnership, so that you keep informed and can represent your service and your sector.
Eligible services
Generally, there is Partnership funding available for:
- expanding childcare places for three- and four-year-olds
- professional development of staff delivering the Foundation Stage
- creating childminder networks
- providing out-of-school places
- some, but not all, of the running costs of new group care settings in those areas that are disadvantaged
- converting playgroups to nurseries
- services and staff training for those working with children with special educational needs
- childminders' start-up grants
- improving reception class ratios.
Initiatives awarding funds
Childcare providers can also access funds through initiatives designed to regenerate communities with high levels of poverty and disadvantage, including:
- Sure Start
- Education and Housing Action Zones (EAZs and HAZs)
- Neighbourhood Nurseries Initiative (NNI)
- Neighbourhood Renewal Fund
- Single Regeneration Budgets (SRBs)
- European Regional Development Fund.
Other sources of funding
- European Social Fund (ESF), which gives grants for childcare, training and employment. On occasion, ESF grants may need to be match funded with another grant.
- Learning Skills Councils are now funding childcare training, having replaced Training Enterprise Councils last April.
- NHS Funding - more than 30 million will be available to support staff childcare arrangements.
- Children's Fund - 450 million will be available to tackle poverty and social exclusion through preventative work. It will be managed by the Children and Young People's Unit.
- National campaigns such as BBC Children in Need or local campaigns such as Help a London Child.
- National Lotteries Board
- Working Families Tax Credit and the early education grant for part-time places for three- and four-year-olds, worth 1,188 per child, can be used to keep the cost of childcare places low, thereby boosting more places.
- In some cases, property developers are asked to make a contribution to the community, including childcare, in return for planning permission on certain sites. Contact your local authority planning department for more information.
More information
Your Partnership will know about these funding sources and will distribute information either through newsletters, local workshops, seminars, conferences or leaflets.
The Children's Information Service website may be a source of relevant information.
Nursery World also publicises information about such initiatives. The important thing is to keep alert and be proactive.
Contact numbers
Surestart Unit 020 7273 4830
National Lottery Charities Board 0345 919191
New Deal 0845 606 2626
For National and local Funding Trusts contact The Directory of Social Change at www.dsc.org.uk and the Daycare Trust 020 7739 2866 www.daycaretrust.org.uk .
Applying for funding
- Don't be deterred by application forms. Getting the funds will be worth the effort.
- Aim to be successful but don't count on it. Be realistic.
- Seek advice about filling in the form. This is a serious task.
- Read the guidance and make sure your application fits the criteria.
- Be clear and succinct and use type where possible. Use their headings not yours!
- Funders want to know how their money will be used, so will need a specific budget for the activity they are funding. If you are applying to several funders for the same activity, check the amount of funds available and make sure this is reflected in the budget. You may end up having one piece of equipment or activity funded by a few different funders.
- If the application form is very long, use a portfolio format. Break the form into sections, each with a cover. Write the relevant titles and references on the front. and on all the paperwork. Put page numbers on documents and use clear headers and footers. If the funders want evidence in the form of specific documents in more than one section, don't cross-reference it; photocopy it and include another copy instead. Use a clear contents sheet. Make the portfolio easy to follow.
- Remember that getting funds is often a competitive process. Treat it like a job application. Sell your organisation. Make the funders want to give you money.
- When applying for funds for equipment, it is sometimes worth attaching pictures of the equipment that you want to buy, especially when it is unusual or very expensive special needs equipment.
- Send the right number of copies requested and keep a copy for your file. One good application can be a blueprint for other applications.
Helpful publications
- A Guide to the Major Trusts Volumes 1 and 2 (ISBN 1 900360 38 1 19.95, ISBN 1 900360 52 7 19.95): the top 300 UK Trusts giving 1 billion a year.
- A Guide to Local Trusts in Greater London (ISBN 1 900360 46 2 17.95): information on 265 Trusts that have up to 50 million to allocate in Greater London.
- A Guide to Local Trusts in North of England (ISBN 1 900360 43 8 17.95): 650 Trusts that give away up to 39 million in the North of England.
- A Guide to Local Trusts in South of England (ISBN 1 900360 45 4 17.95): 725 Trusts that give away up to 40 million in the South of England.
- A Guide to Local Trusts in Midlands (ISBN 1 900360 43 8 17.95)
- The Complete Fundraising Handbook (ISBN 1 900360 09 8 9.95): tried and tested ideas for raising money.
- Small and medium-scale events (ISBN 1 900360 29 2 9.95).
- Good Ideas for Raising Serious Money: Large-Scale Event Plans (ISBN 1 873860 72 2 9.95).
- Finding Company Sponsors for Good Causes (ISBN 1 900360 37 3 9.95).
- Writing Better Fundraising Applications (ISBN 1 900360 20 9 12.95).