Affairs are easier of entrance than

of exit; and it is but common prudence

to see our way out before we venture in.

~ Aesop

Grantmakers saying goodbye –

designing exit strategies

Claire Hugo

17 March 2011

Grantmaking process simplified…

Develop

strategy

Award

grants

Call for

applications

Refine

strategy

Measure

impact…Monitor

progress

Plan:

EXIT Keep coming back to EXIT STRATEGY

Underlying principles

Complex and deep-rooted challenges

Always be a disappointment

Certain element of reputational risk

Defining sustainability

Unpacking the “WHY”Why fund an organisation for more than one year?

Advantages Disadvantages

Promotes sustainability Dependency and sustainability

Partnerships Limited flexibility to engage in new

funding relationships

Monitoring, evaluation and

reporting

Financial obligation of the donor

Organic development and the

emergence of innovative models

Changes in the market

Declining assets

Changes in thinking

Changes in composition of leadership

Changes in project officer

Desire to keep strategy fresh and flexible

Unpacking the “WHY”Why would you want to exit?

Ensure clarity

Healthy discipline

More specific around capacity-building efforts and needs

Closer working relationship between the donor and grantee

Cohesion between funders

Unpacking the “WHY”Why do we want to plan for exiting?

Good business planning

A passionate champion

Continuity of staff and volunteers

An organisation that has several sources of funding

Involvement of potential continuation funders at an early stage

Agreed outcomes

Transparent ongoing communication

Realistic time frames

Realistic objectives

Unpacking the “WHAT”What makes up an effective exit strategy?

Grantmaking process simplified…

Plan: EXIT

What are you hoping to achieve?

What impact are you trying to make?

What resources do you have available to you?

Do you consult organisations working in the sector in developing your strategy?

Develop

strategy…

Plan:

EXIT Keep coming back to EXIT STRATEGY

Call for

applications…

Grantmaking process simplified…

Keep coming back to EXIT STRATEGY

Have you clearly stated what you are trying to achieve in your application forms?

Have you stated the time frames you are working on?

Award

grants

Grantmaking process simplified…

Keep coming back to EXIT STRATEGY

Do you ask organisations to sign a contract?

Do you fund programme and operational costs?

…Monitor

progress

Grantmaking process simplified…

Keep coming back to EXIT STRATEGY

Do you frequently meet with partner organisations to monitor progress, assess

challenges and acknowledge success?

Do you frequently assess progress with the targets laid out in the proposals and

contracts (including due diligence)?

Measure

impact…

Grantmaking process simplified…

Keep coming back to EXIT STRATEGY

Are you frequently checking your impact against your targets?

Are you mobilising resources to reach your targets e.g. leveraging funding,

enhancing network opportunities, supporting advocacy, providing capacity-

building?

Refine

strategy …

Grantmaking process simplified…

Keep coming back to EXIT STRATEGY

Are you asking for advice?

Have you assisted in developing capacity in your partner organisations?

Have you reached your targets?

There’s a trick to the Graceful Exit. It

begins with the vision to recognise when

a job, a life stage, a relationship is over –

and to let go. It means leaving what's

over without denying its value.

~ Ellen Goodman

For discussion

You are currently funding seven organisations throughout the country: support for

bursaries for eight students in their undergraduate studies (through two bursary

service providers), one residential facility for children with special needs, and four

HIV/Aids prevention programmes. Your available budget is R8 million, of which

you have already committed R6 million to the operational costs of these projects.

There has been a change in leadership within your organisation, and you need to

refine your strategy to focus exclusively on HIV/Aids prevention programmes. You

have one year to refine your strategy, and you are given permission to utilise the

R2 million surplus to manage reputational risks.

In groups, please define the following:

Prepare a budget on how you will invest the R2 million.

How will you communicate the change in strategy to your current partners?

Every exit is an entrance

somewhere else.

~Tom Stoppard