You've just had an opportunity to consider possible income streams.

The next step is to consider how we assess what to go for, why and how.

To do this we consider the idea of risk. It is important to look at this in two ways.

Firstly, we consider what is the probability of success with this funding idea?

I.e. what is the risk to our organisation in pursuing this funding stream?

We consider this in terms of high, medium, and low probability of success

So for example

High probability, perhaps 80% chance of success

Could be where there is an existing relationship with the funder.

Where the funder has expressed a desire to support the organisation.

Or it could be a long-term supporter.

Medium probability, a 50% chance of success. Could mean you've had some success in the past

Positive discussions have happened with the funder

Or the competition could be limited and you are in a strong position

Low probability, perhaps 20%

Is where you may have had no previous relationship or it's a long time since the last donation.

Or the landscape could be very competitive.

Once you've decided on which pathways you're going to follow, you then apply the second assessment of risk.

This is where you delve deeper into the concept of risk and think about viability, probability, concerns, and impact

and assess your idea against each of these criteria

This assessment outlines the risk involved in pursuing each element of your fundraising strategy

In understanding the risk you can:

Take action to prevent risk, take action to avoid risk as it arises

Take action to overcome risks that are unavoidable, and review the project and procedures

and if necessary recognise when the risk is too great to overcome.

This table is a useful tool to start thinking about what risks could be, and what you need to do when you have identified them

So for example:

A grant giver for a project you wish to pursue will only accept partnership applications.

This could be high impact, but low likelihood, if you're working with a trusted partner with a shared level of responsibility and commitment to the project.

So you would need to just plan for the possibilities or for the impact of your application.

For example, by outlining the responsbilities of both organisations and having regular catch ups.

But it is very unlikely that you would need to take this any further.

In your second year on the project, you secure backing from a major donor.

And so the impact on your partnership for the grant application falling through moves to medium impact and remains at low likelihood

Because you have already got an alternative funding option in place to support any loss of income from an unfeasible bid.

So you only need to be aware of the risk, that it exists but little preparation needs to be undertaken.

In the third year of your project, however, your partner for the grant application undergoes internal re-organisation

And so you lose your contacts. It now looks unlikely that the organisation will want to go through with the partnership application

As their focus has changed. This moves the risk to high likelihood and medium impact, so it's time to take action.

This also outlines what is of key importance and that this should be a working document that is reviewed, and scheduled to be reviewed on a regular basis.

Situations change and it doesn't always take much for something to move from low to high likelihood.

Perhaps, you could print out this table and put it somewhere visible, to remind you to review and update your risk register.