Outcome funding means funding an organisation in relation to what impact they have rather than just focusing on the outputs, such as the activities they do, or the products they produce. This guide by the NCVO provides a comprehensive and detailed explanation on outcome funding. It includes assessing your outcomes, why an outcomes funding approach is helpful for an organisation’s own development and monitoring, and how this approach can be a useful tool for promoting yourself to funders.
- Set out clear outcomes and performance targets which a particular function or new project is intended to deliver.
- Be clear in advance about the steps that it will take to achieve those targets.
- Have a procedure for stocktaking as they complete each step.
- Be ready to adjust or amend the targets/timetable/methods if their experience and learning demonstrate that to do so would be appropriate.
- Establish a system of keeping those organisations that are helping them (with funds or other resources) well informed about progress and learning.