What to tell a funder when things don't go to plan

After all your hard work, you get the good news that your application has been successful and you have secured the grant you need. Your work does not stop there. There are a number of grant management tasks that will always be needed: checking the terms and conditions; being clear on the reporting requirements and saying thank you.

I would add another task to that list: asking the funder what changes they want to hear about and when. 

It is unlikely that 1, 2 or 3 years on, you will be doing exactly what you said you would. Most funders will expect some variations from your original proposal. So it is good to be clear which changes:

• they don’t need to hear about: such as, your drop-in is held on a Friday but you change it to a Thursday.
• they do need to be told about: for example, where they are funding a staff post and the post holder leaves or goes off sick or goes on maternity leave. The funder will want to ensure that service delivery continues and is of sufficient quality.

Some funders will want to learn about changes through the grant reporting system and others will want to know of variations in advance as they will need to authorise the change of use of the grant. So it is important that you find out which approach your funder takes – especially as not doing so could delay or even risk future grant payments.

But what about when things go wrong?

The times when charity workers find it hardest to tell a funder is when things go wrong. But this is exactly the time to be upfront. Honest communication is what is required. If your new service has not attracted any clients; you have had to reduce the service due to cashflow problems; or a staff member has been caught stealing; then my advice to you is to tell the funder as early as you can.

Why? Well, it is the right thing to do. The funder is accountable for how their funds are spent and may need to take steps to manage or reduce their risks. They are also likely to find out anyway when they read your report, accounts or the story in the newspaper. How you respond to the situation may well affect the future relationship and likelihood of further funding. What sometimes happens is an awkward monitoring call or visit where the grantee gives evasive answers to questions and the funder has to raise the issue directly. This does not instil confidence and it suggests a lack of care about funds given. What would a funder now think about this charity? They are likely to start questioning how they manage resources, monitor performance, and communicate with other stakeholders.

So get in touch right away to explain what has happened. Go through the steps you have taken to address it and ask if the funder needs any further action. It is never easy when things don’t go to plan. Facing and managing the situation with open communication is the best approach for everyone in the long run.

Emma Beeston Consultancy advises funders and philanthropists on giving strategies and processes; selecting causes and charities; assessments and impact monitoring. Services for charities include external perception reviews; bid reviews; training for fundraisers and non-fundraisers involved in bids. E: ms.e.beeston@gmail.com; T: emmabeeston01