KPIFundraising & Income

Grant Income Diversification

Number of distinct funders contributing grant income, indicating reduced dependency risk

What is Grant Income Diversification?

Grant income diversification is the number of different grant funders contributing income in a period. It shows how dependent an organisation is on a few funders.

Relying on one or two funders is risky, since losing one can threaten services, so a wider spread makes funding more resilient.

How this KPI is measured

Function
Fundraising & Income
Sub-function
Grant Management
Industry
Not-for-Profit / Charity
Type
Leading
Impact
Revenue
Unit
#
Measurement frequency
Annual
Formula
Count of unique grant funders contributing income in period

How to calculate it

Count the unique grant funders contributing income in the period.

For example, if a charity received grants from 12 different funders this year, the figure is 12.

Also look at the share of grant income from the largest funder, since a high count can still hide dependence on one big grant.

Where it is used

  • Managing funding risk

    See dependence on funders.

  • Planning fundraising strategy

    Broaden the base.

  • Reporting to trustees

    Show resilience.

How to improve it

Tips and common mistakes

  • Count alone is not enough. Check concentration.
  • Diversifying takes time.
  • Keep quality of relationships high.

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