How to navigate challenges and how to build resilience

In this blog we share our reflections from our panel conversation “ Honest reflections: What does it need to make funding for digital the new normal? as part of the Charity Digital Fundraising Summit 2023.  Our panellists were Charlotte Newman, CEO of Carefree, Kari Gerstheimer, CEO of Access Social Care,, Naana Otto-Oyertey CEO of Forward, Josh Cockcroft Data Lead at Esmée Fairbairn Foundation and Victor Cordon Director of Social Impact Okta Foundation.  The key themes emerging from the panel included the need for organisations to constantly navigate different ways of accessing funding for digital, the importance of building and maintaining relationships with funders and the critical work needed within organisations to understand their capabilities and where they need to upskill.

The digital era has undoubtedly brought forth numerous opportunities for social sector organisations  to expand their reach, impact, and efficiency. With this charities are faced with the increasing need to secure funding for digital initiatives. In the ever faster evolving landscape of digital technology, charities are increasingly facing the need to not only step into innovation but to also provide fund for continuous digital maintenance.

We asked our panel of both charities and funders to share their key learnings related to accessing digital funding and their current challenges to accessing digital funding.  We were delighted to quickly realise that both the panel and the audience fully embraced the ask for an ‘honest reflection’. 

The fact that the panel attracted an audience of XXX people right after lunch also showed us that there is a real need in the sector to open up honest conversations and to collectively explore approaches to design new digital funding approaches that truly reflect the needs of charities operating in the digital age. 

The Early Success: A Straightforward Problem and a Willing Community

Most charities started their digital journey with a straightforward problem that resonates with people's hearts and minds. This, coupled with a straightforward formula is a perfect recipe for early stage digital funding. Charlotte spoke to initial successes which stemmed from a engaging vision, coupled with the clarity of the organisational mission. Funders were more than willing to rally behind a cause they understood and believed in.

The Challenges of Maturity: Navigating Resourcing and Ongoing Costs

All our panelists reflected on the challenge of maturity.  As digital approaches stabilise and take shape teams face challenges covering ongoing expenses and engaging appropriate resources, either internally by expanding the roles of existing staff members or externally by engaging consultants or digital partners.   It is paramount that organisations recognise their internal capacity and available skills to understand where and how gaps need to be filled. Clarity of concept and a well-defined roadmap were mentioned as critical to enabling teams to stay on course amidst the challenges.

However the panel reflected that, this level of clarity is not always possible within charities.  Many struggle to articulate their digital needs, often unaware that the required expertise might not exist within their organisation. One significant hurdle is the misconception that digital initiatives are of lesser value to beneficiaries because they are not in-person services. Articulating the scale and impact of digital efforts is indeed a challenging task.

The Impetus of Change: Navigating the Digital Landscape Amidst COVID-19

For FORWARD, Nanna explained, the onset of the COVID-19 pandemic acted as a catalyst for transforming their digital systems. With face-to-face services no longer feasible, they adopted a digital approach to ensure continuity in our mission. This transformation necessitated not only the right tools and systems but also a team willing to build their confidence and capabilities in digital practices. 

Building Strong Foundations: Nurturing Relationships and Expertise

One strategic step that the panel mentioned in securing funding was cultivating strong and trusting relationships with funders who understand an organisation and support the mission. Naana gave the example of a specific grant which allowed the organisation to consider digital funding holistically, addressing both strategic and practical needs such as the provision of essential tools like laptops. Mentorship and support from programs like Dot Project were invaluable, helping the team to assess policies and strategic approaches.

Crucially, seeking funding for technical expertise that organisations lack internally is key to progress.  For FORWARD this type of holistic support enabled them to become proficient, efficient, and effective in their digital endeavors.

Navigating Challenges: The Barriers to Digital Funding

The panel reflected that the cost-of-living crisis has forced organisations to scramble for funding, making it difficult to sustain a digital approach without core support. Additionally, the lack of in-house technical expertise limits our capacity to build and maintain our digital initiatives effectively.

Moreover, the approaches of funders seem to lag behind the reality we are now living in. Many funders still focus on traditional models, overlooking innovative approaches. Kari spoke to the challenge that the funds available often fall short, unable to cover the necessary maintenance and development costs. Established organizations find it easier to secure funding, leaving smaller, niche charities struggling to make their mark.

Moving Forward: Embracing Innovation and Collaboration

To overcome these challenges,  Kari reflected that charities must embrace innovation and social investment bravely. Boards need to reassess their risk tolerance and consider new, sustainable funding models. Collaboration between charities, funders, and technical experts is crucial. Stronger collaborations between digital partners, funders and charities provides a way in which to By bridge the gap between funding needs and available resources.

At the Dotproject we believe that this conversation is absolutely fundamental to the future of charities and we are invested to keep the conversation going. If you are interested to contribute to the conversation contact us at hello@dotproject.coop