Charity Flexi Funding
Make It Work For You
Pay just £100 and you’re on your way to Everest Base Camp or Kilimanjaro or China’s Great Wall or any other trek for that matter – interested?
Flexible funding for Charity Treks and Challenges is often overlooked when considering which method to use. But if you consider it carefully, it can work for you in many ways. We explain why.
The two prime and most well know methods of funding a Charity Trek or Challenge are:
- Self Fund – you pay the full cost of the trip yourself. Any money you raise (100% of it) goes to your chosen charity. Very simple.
- Minimum Sponsorship – you pay the deposit and then fundraise a set amount (called the fundraising target). From that fundraising amount, the charity pays the remaining fees for your trip.
But there is a 3rd method called Flexi Funding. It’s a mix of the two methods above and that’s where the beauty of it lies. Flexi funding basically reduces the level of the fundraising target by increasing your level of personal payments BUT this can be done over time.
With Flexi Funding, you can:
- Spread the deposit payment over several months.
- Reduce high fundraising targets by paying more yourself.
- Pay balance payments over several months.
There’s no getting away from the fact that the trip has to be paid whichever method you use; the money doesn’t magic away! The flexibility is in the how and when.
Example Trip – use this to see how it works:
Trip X costs £2000.
Using the Sponsored method:
- The client pays a deposit of £250 leaving £1750 to pay through fundraising.
- A £1750 balance payment produces a fundraising targets of £3500. Once the client reaches that target within the specified timescale, the charity pays the £1750 and the process is complete.
Is the £250 too much to pay in one go?
Does the £3500 Fundraising Target appear daunting?
Using the Flexi method, we can make mutually agreed adjustments, for example:
- Adjust the deposit – make 2 monthly payments of £125 for example (total £250).
- Adjust the Fundraising Target down a bit (if it appears dauntingly high) to let’s say £2500.
- The implication of that means the client would pay an additional £500 from their own funds but that can also be split into monthly payments to suit. As long as those payments are made within the agreed timescale, it’s fine.
The total cost of the trip remains exactly the same, it’s how and when those payments are made due.
Note that the ‘agreed timescale‘ means that any financial processes are complete 8 – 10 weeks prior to departure.
It is as flexible as you want to to be (within reason!) – just talk to us if you have any questions – 01529 488159.