Article by Gretchen Steidle
Global Grassroots, an international development organization working with women survivors of war in East Africa, often faced funding shortfalls in the third quarter as annual grants were drawn down before year-end fundraising began. Luckily, one major funder provided their grants directly within this vulnerable window. But when that same funder decided suddenly to move their grant distributions from October to April the following year, Global Grassroots suddenly faced an imminent shortfall that would require a complete shut-down.
Concerned about perspectives on their financial viability, they reached out hesitantly to discuss the impact of this grant cycle shift with this foundation. The foundation mindfully considered both the impact of their decision-making and the long-term, underlying needs of the NGO. Their response was two part: (1) to offer an immediate bridging grant to ensure the organization could continue programs through the end of year, and then (2) instead of their usual program grant, they offered a larger matching grant in April to help Global Grassroots establish a reserve fund of 3-6 months of operations. Global Grassroots was able to raise the match and the reserve fund was established.
Over several years thereafter, the reserve fund was able to provide the security needed during economic down-turns, COVID, and other shifts in the funding landscape that ensured Global Grassroots could always meet its obligations to its country programs and staff, and have a longer runway towards building new sources of funding.
Learn More about How SIIO Funders hit home runs.