Resource Development

Financial management is one of the most important practices in management, as it illustrates the bottom line, thus impacting the sustainability of a mentoring program. This section will refer you to resources to help you understand basic practices in financial management.

Designing a Resource Development Plan

Running an effective mentoring program costs money. If you have not developed a program budget and determined the amount of funding you need to start and sustain your program, visit the program planning and design section. Once you have determined how much money your program requires, you need a fundraising plan.

In developing your fundraising plan, avoid one of the most common mistakes: relying too heavily on one funding source. In fact, some experts say if 30% of your program funding comes from one source, you can consider yourself in a crisis. Instead, plan to tap into different funding streams - including corporate donations, government and foundation grants, individual donations, in-kind gifts and special fundraising events.

How can my program identify funding sources?

Research a variety of funding prospects. Some potentially good sources of funding include:

City, county, state and federal governments;
Chambers of commerce;
Community and private or corporate foundations;
Individual philanthropies;
Major corporations; and
United Ways.

In addition, you can use the Web to do a search of "foundations." And, consider getting a subscription to publications, such as the Chronicle of Philanthropy or visit your library and look at current issues of those periodicals.

Once you have identified potential funders that you wish to pursue, go to their respective Web sites to find out whether your program actually qualifies for funding. Then, follow the guidelines for submitting a letter of intent or a brief proposal. (Many potential funders prefer not to meet with you in person when you are just beginning the proposal process.)

What do funders want from potential grantees?

In general, most prospective funders will ask for:

A clear statement about the purpose of your proposal;
The rationale or need for the project.
Goals/outcomes you expect to achieve and how you will measure your success;
Your strategy for carrying out your proposal;
A brief review of your organization's background and other past successes; and
A budget that outlines how you will use the funds and how you plan to sustain your program in the future.

Fundraising and proposal writing requires solid skills, experience and a network of contacts. If no one in your organization has these skills, you can:

Educate yourself by reading books and attending seminars;
Contact your State or Local Mentoring Partnership for help;
Hire professional fundraisers or proposal writers; and/or
Scale down your mentoring project.

Managing Program Finances

During the initial planning stage, your program should have established a long-term financial plan and budget. Now, you need to develop a system for managing all your financial information.

As part of that responsibility, you need to record all cash and in-kind contributions and document the actual costs of running your program. Even if all staff, administration, space and equipment are donated, you still need to document the costs of:

Recruitment and training materials (folders, pens, photocopying, etc.);
Volunteer expenses (gas, refreshments, certificates, special awards, etc.);
Special events (refreshments, certificates, special awards and prizes, etc.);
Items needed by participants (bus fare, school supplies, etc.);
Screening mentors (criminal background checks); and
Extra liability coverage.

Be sure to keep accurate records of your expenses. As a non-profit organization, you must be able to verify all costs and expenditures for the IRS and for any funding organizations. In addition, accurate records will help you better estimate future costs.

(These sections are excerpted from How to Build a Successful Mentoring Program Using the Elements of Effective Practice, Section V. How to Manage a Program for Success.)

Resource Development Resources

Additional information, resources and tools are available in the Find Resources section and in the How to Build a Successful Mentoring Program Using the Elements of Effective Practice Tool Kit.