Sustainable funding is today’s holy grail for not-for-profit leaders. Predictably, it’s proving to be just as elusive. Boards, leaders, researchers, consultants and think tanks alike are engaged in a limited conversation that starts and ends with funding models. This closed-loop thinking is enabled by planning practices that ignore long-term value creation. In this myopia, strategy is dead.
We believe that the key to picking the right funding model is that leaders need to think beyond the funding model, and unearth the sustainable business model.
It’s no big secret that the key to nailing the business model is to nail the value proposition. The tricky bit is that value is not static. What stakeholders value today will most likely change tomorrow.
So, leaders must first anticipate the long-term future value demanded by their communities; and generate ideas for adaptive business models to deliver this future value better than anyone else. The funding model will flow.