In a volatile world marked by economic shifts, geopolitical risks, and regulatory changes, non-profit organizations in Saudi Arabia face an urgent necessity to rethink their funding strategies. While the Kingdom strives to achieve the goals of Vision 2030 by empowering the non-profit sector to contribute 5% to GDP, relying solely on traditional sources like government grants or individual donations is no longer sufficient to ensure sustainability; rather, it requires a thoughtful diversification of income sources.

The following article presents a practical roadmap for Saudi organizations, inspired by international experience published on afpglobal.org, with smart adaptations that align with our local reality.

1. Understand Your Funding Sources and the Impact of Changes on Them

The first step for any organization seeking sustainability is to fully understand its income sources. What percentage of funding comes from government entities, from companies, and from individuals? Does the organization have regular grants from local funding institutions?

We suggest that every organization have a classification system for its financial sources, including monthly analysis of expected cash flows. Volatility is not exclusive to the Western world, as we have witnessed in Saudi Arabia in the past when there were delays in disbursing certain grants or the cessation of some partnerships, making this analysis an administrative necessity rather than a luxury.

2. Internal Transparency: The Key Factor in Stimulating Solutions

When signs of financial shortfalls appear, the team should be the first to know. Transparency breeds trust, and trust creates an environment that mobilizes minds to generate solutions.

The anxiety an employee may feel about their job future cannot be ignored; however, empowering them with information enhances their ability to engage and take initiative.

Additionally, it is essential to share this picture with board members and present it in terms of numbers and forecasts, supported by response plans.

3. Smart Communication with Corporate Donors

Globally, some companies reevaluate their support for certain projects that may be misunderstood. In Saudi Arabia, these considerations may not be the driving factor, but the downturn in profits for certain sectors or a shift in priorities toward ESG initiatives or social responsibility under the "Environmental, Social, and Governance" programs makes it vital to understand how companies think.

The recommendation here is to reconsider existing sponsorship/grant contracts and schedule meetings with social responsibility managers or marketing directors in companies to understand their new directions and propose collaboration paths that align with their aspirations, such as including your project in annual sustainability reports.

4. Funding Institutions: Not Everyone Who Remains Silent is Uninterested

In times of transition, some institutions tend to wait, while others expand their interventions, as seen with major institutions abroad such as Freedom Together and McArthur. In the local context, we observe similar initiatives such as the expansion of grant programs by the Suleiman Al Rajhi Charity Foundation during the Corona pandemic.

Therefore, ensure communication with funding institutions, not only to submit funding requests but to open strategic discussions about their upcoming directions and how your project can integrate with them.

5. Preparing Individual Donors: Thoughtful Honesty Creates Longer Loyalty

The individual donor is one of the most volatile funding sources, but they are also the most responsive when they feel the value of their contribution.

In case of a crisis or funding shortfall, reach out to major donors transparently and tactfully. Explain the gap, share its impact on your programs, and ask for their opinions and contributions to the solution.

And don’t forget to develop your database to identify who can be invited to "emergency giving" circles, drawing inspiration from the successes of organizations in Ramadan campaigns or disaster situations.

6. DAFs: An Underutilized Opportunity

In Western markets, DAFs are used to allocate donated funds in advance, with assets exceeding $250 billion. Although this model is absent as an independent institution in Saudi Arabia, we have similar structures within cash endowments, endowment portfolios, or associations' councils.

Your engagement with large endowers or donors to activate part of these assets for operational programs might be a temporary lifeline. Successful local experiences in activating operational endowments as one of the pillars of sustainability can be beneficial, in line with new governance trends in endowments. Just ensure compliance with Islamic and regulatory provisions and be clear about how to restore balance later.

7. Endowments: Temporary Flexibility Might Save the Mission

If your organization benefits from an endowment earmarked for a specific program, you may approach the endower or the entity for which the endowment was established to request temporary permission to reallocate part of the returns to cover operational expenses.

The General Authority for Endowments understands such transitions if they are documented, temporary, and based on a compelling interest. Be honest and present a future recovery plan that restores the endowment's balance while respecting the endower's intent.

8. Collaboration Not Competition: A Strategic Principle Not a Tactical Emergency

If you must reduce programs, consider collaborating with other associations that share your mission, even if they are in different areas or complementary specialties.

Rest assured that donors – from the Endowment Authority to granting platforms like Ehsan – value the spirit of teamwork and sometimes prefer it in project evaluations.

Alliances are not just for cost-saving, but for expanding impact and sustaining services amid resource constraints.

9. Don’t Stay Alone: Join Collaborative Efforts

Your individual voice is important, but it becomes stronger when integrated into collective advocacy alliances. In the Kingdom, the National Center for the Development of the Non-Profit Sector has begun to enhance the culture of representing the sector's voice to government entities.

Ensure that you are part of these platforms, contribute to raising perceptions, providing data, and advocating for the importance of continuing service programs.

10. Effective Communication with Decision Makers

So far, local experiences in practicing public mechanisms to provide something akin to "Community Earmarks" are lower than needs and do not compare to what is available in the U.S. Congress, but you can raise your needs through official channels such as community engagement platforms or addressing specialized councils.

Make your proposal professional, clearly impactful, supported by evidence, and ensure your voice will reach through official channels.

11. Continuously Update Your Information

Knowledge is the first tool for immunity in facing crises. Follow reports from the National Center for the Development of the Non-Profit Sector, specialized media platforms, and involve your team in training or seminars that enhance their ability to understand reality and adapt to it.

Additionally, reviewing past campaigns launched by your organization during crises – such as the pandemic or climate crises – can provide you with a ready model for activation.

And finally, remember that: crises reveal the essence of institutions

No organization is fully insulated from funding fluctuations. However, the difference between an organization that collapses at the first tremor and one that endures and innovates lies in the choices made by its management today: clarity, flexibility, and initiative.

In the Kingdom, opportunities remain abundant, support is accessible, and systems are flexible enough to give organizations ample room for movement if well assessed and planned.

This article has been translated with adaptations from afpglobal.org

Entitled:

"Fundraising in Uncertain Times: How to Be Proactive to Secure Your Funding"