Managing Multiple Funders in a Nonprofit Project

When a project is supported by multiple funders, it can lead to conflicting or overlapping requirements—particularly regarding stakeholder engagement and reporting expectations.

In working with nonprofits, we’ve observed a wide spectrum of funder expectations: some require detailed reporting on how funds are used, while others offer support with minimal or no reporting requirements.

To effectively manage these complexities, it’s essential to:

• Map Funding Sources to Specific Activities
• Develop a clear mapping of project activities to their respective funding sources. This helps in segregating funds, ensuring accurate tracking, and simplifying the reporting process. It also facilitates transparent communication with each funder about how their contributions are being used, and allows for honest discussions around project status, delays, or changes.
• Integrate Stakeholder Needs into Project Planning
• Build a robust process into your project plan to ensure all stakeholder needs—including communication and reporting expectations—are identified and addressed. This also involves resolving any conflicting requirements between funders early in the process.
• Plan for Changes and Delays

When multiple funders support the same activity, a delay or change in one funder’s contribution can disrupt the activity and impact overall outcomes. Anticipating these risks and planning contingencies is key to maintaining alignment with all funders’ expectations.

How do you ensure you meet the individual needs of your funders?