It takes two to tango: How funders and organisations can work together to unlock better endings
A few ideas about where to begin if you want to have better conversations about endings. And some upcoming events. And a new member of The Decelerator crew.
At The Decelerator, we hear these statements at least once a week…but not (yet) in the same rooms:
Charity Leader: "We’re considering closure but don’t want to tell our funders yet."
Funder: "Too often, we find out about closures too late to help with a better ending or a good transition."
Why does this matter? A key factor in ensuring that closures leave a lasting legacy is the role of stakeholders, including of course funders. While we’ve explored in other pieces the bigger picture changes and policy shifts needed to improve ending outcomes, better organisational endings can’t wait until large funds are made available to enable them, or the insolvency process is reformed (in our dreams…perhaps!). The interpersonal elements are just as crucial, and will hasten a future of better endings too.
All good relationships require open, honest communication. Here are a few ideas for how people and organisations on both sides of the funding dance can act today for better outcomes tomorrow.
Tips for Charities and Nonprofits:
Act Early
Don’t wait to involve your funders. Reach out early to those you trust most. This opens up more options for support.
Plan Thoughtfully
If you’ve decided to close, create a detailed wind-down plan. Outline timelines, resources, and challenges. A well-thought-out plan builds confidence with funders and will ensure you deliver the best possible ending, whatever the limitations of time and resourcing.
Be Creative
Explore different ways funders can assist with your wind-down, from financial extensions to connecting you with partners or convening a wider sector to assess the losses and make plans to fill gaps going forwards.
Frame Fund Transfers as Legacy Building
Position the transfer of remaining funds or projects as a way to extend your organisation’s impact. This isn’t just an end but a transformation.
Reconsider Previously Discounted Funders
Don’t assume a funder who recently turned you down won’t help with an ending. Many funders are willing to support a meaningful closure for the sake of the wider sector or the impact of their historic investments.
Tips for Funders:
Foster Open Dialogue
Encourage early conversations about potential closures. Make it clear you’re open to discussing all options with grantees (if you are, that is!)
Offer Flexibility and Resources
Adapt your funding approach by offering no-cost extensions, repurposing grants, or providing access to experts in nonprofit closures and transitions.
Support Knowledge Transfer
Help document and share the organisation’s learnings through final reports, case studies, or sector convenings.
Consider Legacy Funding
Discuss how remaining funds could be used to create lasting impact. Plan for the long term, ensuring needs or communities or beneficiaries are met even after closure.
Provide Emotional Support
Recognise the emotional toll of closure. Fund resources for staff well-being and career transitions.
Learn, Adapt, and Celebrate
Use each closure experience to refine your approach. Share insights with other funders and help organisations celebrate their achievements.
What else might you add to this list? We’d love to hear from you.
And don’t forget - if you are considering or planning a closure or other ending in your nonprofit, The Decelerator is here to help. The Decelerator Hotline offers free, confidential support for organisations planning any type of ending. Find out more and sign up for the first conversation here.
In other news…
We're thrilled that Sieske Valk will be joining as our new Operations and Project Manager in October 2024. Sieske brings some brilliant experience to The Decelerator, including her leadership of a social business focused on end-of-life care for animals. She recently decided it was time to wind down the business and she's joining us fresh from that experience. We're excited to learn from her and see where this journey takes us. (Sieske and Iona will be working from our office in Exeter. We’d love to hear from you if you're local — we’re looking for local friends and allies and we might be up for hosting co-working days if there’s interest.)
Upcoming events…
Tuesday 1st October: The Decelerator will be hosting an in-person, Chatham House event to provide funding organisations and other strategic sector stakeholders with an opportunity for candid and compassionate reflection and learning on two recent organisational closures in the children and youth sector. More info and sign up here.
Tuesday 17th September: Public online event on mergers with Eastside People and Inspiring Scotland. More info and sign up here.
