Resource Management and Allocation

One strategy used by several development initiatives to become more self-sustainable is to ensure that their management of resources actively favors their self-sustainability.

In the development field, money is often limited and not always easy to come by. This makes it difficult to plan long-term projects and can also create an environment of competition among development projects in need to secure resources –precisely at a time when collaboration is more urgent than ever! And although external donations can be very helpful, they can also become a problem for development initiatives because the plans and results that donors expect do not always match their project’s specific needs. The few resources that are available are sometimes previously “labeled” –that is, they may only be spent on one specific thing, or may only be used in some sectors and not in others. This can hinder an initiative’s ability to design its project comprehensively, maybe because it is not allowed to cover certain areas of development or because it has to adjust to the donors’ rules and interests rather than the local communities’, which might be important to prioritize.

To turn this situation around, initiatives manage resources for self-sustainability in several different ways:

1. Some pinpoint resources and plan on how best to use them. This may entail making an inventory of their available material, human, infrastructure and knowledge resources; defining their project’s role and choosing an institutional profile that allows them to target their resources to specific populations and objectives; taking preventive measures to avoid expenses and reduce future dependency (by allocating part of their money to a stability fund, perhaps, or by hiring or training staff dedicated to getting them more support); advancing the work while they wait for funding; integrating their programs so that they support one another; establishing matching funds agreements to multiply the value of their contributions, etc.
2. Some diversify sources of support so as not to depend so much on merely one or a few sources, which in turn helps them negotiate under more equitable terms. Depending on the case, projects use many different strategies for this purpose, and most of them combine several. Some, for example, get voluntary contributions through campaigns, promotion on social media, etc. Others send teams to canvass the streets and find “sponsors” for their causes or beneficiaries. Others make the most of their local knowledge and material resources by encouraging the participation of beneficiary communities, etc.
3. Some ensure their transparency so that resources are not wasted, and donors, beneficiaries and volunteers see them as reliable. Legal figures such as trust funds help some initiatives supervise the proper use of funds so that donors are clear on how their resources will be managed, which often encourages them to contribute. Clearly defining and communicating the project’s objectives and ways of working, as well as the roles and responsibilities that correspond to each party, helps many initiatives become more effective in their work and make better use of their resources. In addition, projects that encourage local engagement have the support and oversight of more people, which sometimes helps them ensure a more efficient and transparent management of resources. Still other projects publish their budgets and spending on their websites or through annual reports, which builds trust with donors, beneficiaries, volunteers, etc. and maintains or promotes their support.