Ultimately, it is important to develop a long-term resource plan. Diversifying your funding helps ensure the sustainability of programs. Many ways can be used to achieve diversified funding, such as grants, program fees, donations, and other creative funding streams.

The most common type of funding for afterschool and expanded learning programs is grants, which may come from both local and national sources and public or private entities. The 21st Century Community Learning Centers program, through which the U.S. Department of Education awards grants to state education agencies through the Elementary and Secondary Education Act, is one of the largest grant programs in the United States that supports afterschool and expanded learning programs. Local youth bureaus, departments of human services, and city governments are other public funding sources that provide grants for afterschool and expanded learning programs. Private funders include local corporations, community foundations, family foundations, United Way organizations, and sometimes national and regional foundations. Grants are important funding sources that can provide up-front money to get programs started. Some grants may provide ongoing operating funds, whereas others may be intended to support only specific program activities or one-time costs.

Although grants are an extremely important funding source, they do come with some challenges. Often they have restrictions on what the funds can be used for, and they may require the use of specific curricula, tools, and other materials. Writing a grant is neither an easy task nor a process to rush through. Taking the time to research the funder and carefully explore each opportunity will pay off. See Tool 16: Grant-Writing Tips for suggestions on how to obtain grants.

When considering what grants to apply for, you may want to ask yourself several questions to determine if a particular grant is an appropriate funding source. What effect will the grant have on the program's mission (e.g., a new emphasis on violence prevention) or the participant population (e.g., focusing on participants with reading difficulties)? What is the duration of the grant and can it be renewed? What bureaucratic requirements accompany the grant (e.g., evaluation or participation in meetings) and does your program have the capacity to meet those requirements?

You may wish to consider individual donations as a potential funding source. Although many programs are successful in raising funds this way, before taking on a fundraising campaign, it is important to think carefully about whether your organization has the capacity to support an individual giving campaign. Most organizations that successfully generate significant funds from donations have a staff member, such as a development director, whose specific role is to manage donors. It is important for donors to feel that they are important and making a difference for your organization, so someone needs to build relationships with these people, plan events, write annual appeal letters and thank-you notes, and solicit new donors. Many organizations plan an annual fundraiser, such as a gala or a sale. Such activities are extremely time-consuming, so it is important to determine whether you have the capacity to support this strategy and if the payoff is worth the investment of time.

When considering fundraising and cultivating individual donors, you may want to ask yourself several questions when determining if fundraising will be an appropriate funding source. Does your program have the staff capacity to support an individual giving strategy? How can you make use of your website or other technology to solicit donations? Do you have people on your advisory board or board of directors with connections to potential donors? Do you have the ability to host an annual event? How saturated is the community with similar events and what would make yours stand out? Do you have a good database to track donors and your communication with them?

Many afterschool and expanded learning programs supplement their grant funding and donations with participant fees. Some are even able to support the entirety of their general program costs through fees and solicit grants only for special projects. Participant fees may be the same for everyone or can be based on a sliding scale that accounts for a family’s income level. Many state child care agencies offer guidance on setting up a sliding-scale fee schedule.

As you develop your program’s resource plan, remember that complete reliance on fee-based revenue may prohibit some young people from participating in the program. Keep your intended target audience in mind to determine if a fee-based structure is in keeping with your program’s mission. Finally, some grant funding for afterschool and expanded learning actually prohibits the collection of additional fees for service. Be sure to review your grant requirements thoroughly before moving to a fee-based structure. What is right for your program depends on a thorough examination of your program, your current and potential funding, and your community (i.e., a market analysis).

Although collecting fees from families is often promoted as a way to secure stable revenue and build a sense of ownership of the program among families, many programs are philosophically opposed to collecting fees. Take time to consider your position on fees; how important the revenue stream is; and whether you have the staff capacity to issue bills to families, collect fees, and track down families who have not paid. Craft your policy based on what is right for your program. One veteran program director described a program’s policy this way: “Our program has a sliding fee scale. If a family does not pay, we let it slide.” The program knew it was undermining a stable funding source by not enforcing the payment plan but felt it was important to provide a safe place for young people regardless of ability to pay the fees.

When determining what, if any, fees to charge participants, you may want to ask yourself several questions. Are families able to pay? What third-party reimbursements (e.g., vouchers from social service agencies) are available for eligible participants? What effect will fees have on the number and type of participants? What are the technical requirements of using a sliding-scale fee schedule? How much of your program expenses do we want to have covered by the fees?

If your program has been operating for only a short period of time, you can look for other resources in your community that may be used to serve your program. It is important to think creatively and look for unexpected funding sources. For example, if you can show that your program has had a positive effect on learning within your district, you may be able to ask the district to allocate part of its Title I funding to the program. (Title I funds are used for school improvement initiatives.) Also, you may be able to create partnerships with community organizations whose missions are aligned with your program's (e.g., YMCA, YWCA, Boys and Girls Clubs, faith-based groups, and United Way organizations) to provide services, donate space, or share costs. Some programs have received funding or support from major employers in the area to help promote a stable workforce and provide a benefit to families in the community.

As you do your research and explore funding options with your board, consider whether any government agencies or private foundations provide funds for organizations that pursue specific goals or activities (e.g., prevention; youth development; a focus on arts, sports, or science, technology, engineering, and mathematics [STEM] subjects) that you may want to offer in your program. Also, consider whether you can share resources with any other local programs (e.g., a church that uses its van only during the evenings or on weekends) or if you can get evaluation or data analysis support from a local graduate student rather than paying out of pocket for an expensive evaluation firm. Perhaps opportunities exist to get AmeriCorps members to serve as program staff or local businesses that are willing to make in-kind donations (e.g., old computers, scrap paper, or food). Another option is to identify other local organizations that may like to rent space in your building (e.g., volunteer firefighters who require personnel training or small businesses in need of conference space) or if you can share staff with another organization in the building (e.g., receptionist, human resources director, or accountant).

Regardless of how your program is funded, you still need to manage the budget effectively. Ideally, you should have a staff member with financial expertise or experience in managing your budget, although not every program can afford a separate individual for this purpose. You may be able to identify someone to serve on your board of directors or advisory board who has this expertise and can support a less experienced staff member. Many accounting firms are willing to provide free advice and guidance or at a reduced fee for nonprofit organizations. Finally, if your program is part of a larger organization, you may be able to pass this function along to staff member within the larger organization.

Regardless of how you support the role, someone should be overseeing the budget by tracking both revenue and expenses and planning detailed budgets for the future and overview budgets for at least two years. A typical program budget includes the following line items: staff and personnel salaries, benefits for full-time staff members, equipment and supplies, transportation, professional development, evaluation costs, and overhead costs (e.g., space and management). You can use Tool 17: Budget Worksheet and Tool 18: Calculation of In-Kind Contributions to help manage your budget and determine the value of in-kind services that your partners can provide to the program. Planning your revenue and expenses for two to three years will help you identify where you may have shortfalls, how many staff members you can afford to hire, the types of programming you can run, and the materials you can purchase.