The challenge in financial resource development is not simply collecting data; it is turning that data into information that helps a charity make better decisions. Management may know how much was raised during the year, yet still be unable to answer important questions: has funding become more stable? Is the charity too dependent on one source? How much of its income can be used flexibly? Will expected cash flows cover upcoming commitments?
A resource development dashboard helps answer these questions by presenting a focused set of indicators linked to management decisions. Its value is not measured by how many figures it displays, but by whether it highlights issues that require attention or action. Guidance for non-profit organisations recommends using dashboards to present information needed for action and accountability, and to help decision-makers understand data quickly. www.councilofnonprofits.org
1. What is the dashboard for?
Financial reports and dashboards serve complementary purposes. Financial reports provide detail on income, expenditure, balances and commitments using the relevant accounting classifications. A dashboard selects indicators from that information to help management review the charity’s resources and make decisions.
For example, it might show increased reliance on a major funder, a delayed expected payment or a rise in campaign costs. It should also help management ask: what caused the change? What could it affect? Who will follow up?
The dashboard should not replace accounting records or detailed financial reports; it should draw on them. Its format and content should reflect what the board, executive management and resource development team need to know, according to their responsibilities.
2. Organise funding data before choosing indicators
Funding categories can easily become confused, particularly when a charity combines the source of funding, its type and the channel through which it was raised. This can lead to the same income being counted more than once.
To avoid this, classify each resource across separate dimensions:
| Dimension | Examples |
|---|---|
| Funding source | Individual, company, grant-making organisation, government body |
| Type of income | Grant, donation, sponsorship, earned income, waqf income |
| Collection channel | Campaign, digital platform, bank transfer, event |
| Purpose or restriction | General support, specified project, other restricted purpose |
| Status | Received, approved but unpaid, application under review, unconfirmed forecast |
A donation received through a campaign on a platform remains a donation from its original source; the campaign and platform are collection channels, not additional funding sources. A grant that has been approved but not yet paid should also be distinguished from money already received.
3. Core indicators
Not every charity needs the same indicators. The selection should reflect its size, funding model and ability to collect data. It is usually best to begin with a limited set and expand the dashboard only when there is a clear need.
3.1 The volume and distribution of resources
These indicators help the charity understand how much it has received, where it came from and how it has changed:
- Total resources received during the period.
- Amount received from each source.
- Each source’s share of total receipts.
- The difference between actual receipts and the approved budget or target.
- Changes compared with the previous period, with reasons noted where possible.
The share of a funding source can be calculated as follows:
Receipts from the source during the period ÷ total receipts during the period × 100
The basis of comparison should remain consistent. If the indicator measures cash actually received, grant applications and uncollected pledges should not be included.
3.2 Funding concentration and risk
A charity may raise a substantial amount while depending heavily on one funder or one giving season. It can therefore monitor:
- The proportion of total receipts from its largest funding source.
- The proportion from its three largest sources, where appropriate to the charity’s size.
- The amount of funding that could be affected if a major source stopped or was delayed.
- Reliance on a particular season, audience or collection channel.
- Shared dependencies across campaigns and funding sources.
For example, running five campaigns does not necessarily mean the charity has diversified its income if all five target the same audience, during the same season and through the same platform.
There is no single concentration threshold that is right for every charity. Management should determine what level warrants attention by considering the effect of losing that source and the charity’s ability to replace it.
3.3 The flexibility and restrictions of resources
The dashboard should show whether resources are restricted to a particular purpose or can be used more flexibly under their terms. It should also show relevant commitments, so that a bank balance is not mistaken for money available for any purpose.
Three concepts should be kept distinct:
- Flexibility: the purposes for which the resource may be used.
- Liquidity: whether the money is available when payment is due.
- Reserves: resources the charity has decided to hold against specified risks under an approved policy.
A resource may be flexible but not yet received. Cash may be in the bank but restricted or committed. The dashboard should therefore show receipts, restrictions and related commitments separately.
3.4 Future funding opportunities
Information on opportunities in progress can support planning, but it is not income already received. Keep it separate from actual receipts and classify each opportunity by its status:
- Application submitted; decision pending.
- Funding approved but not yet paid.
- Confirmed instalment not yet received.
- Possible renewal or early-stage forecast requiring verification.
For each opportunity, record the expected amount, its status, likely timing and the person responsible for follow-up. Management may use internal probability estimates for planning, but should not present a probability-weighted figure as confirmed income.
3.5 The cost of securing and managing resources
Receipts may increase while the costs of campaigns, grant applications or funding requirements rise as well. To understand these costs, distinguish between:
- Fundraising costs: for example, preparing a proposal or producing campaign materials.
- Funding management costs: such as reporting, compliance and follow-up required by a funding agreement.
- Shared staff time and resources: where these can be estimated in a documented and useful way.
Track the cost of each campaign or opportunity and compare it with the amount actually raised, rather than only with its target. Avoid comparing all funding sources using one measure without considering their different requirements. The method used to calculate costs should be clear, and the same cost should not be counted both as a direct item and as part of shared services.
3.6 Cash flow and reserves
A charity needs to understand when receipts and payments will occur, not only their total value. Funding may be sufficient across the year yet arrive after salaries or other payments are due.
The dashboard could include:
- Cash currently available, after taking account of restrictions and commitments.
- Expected receipts, their timing and their level of certainty.
- Expected payments and commitments.
- Potential cash shortfalls during the coming period.
- Reserves compared with the target in the charity’s reserves policy.
Cash-flow forecasts should be reviewed regularly. NCVO suggests that small and medium-sized charities update forecasts monthly and look ahead on a rolling 12-month basis, while tracking restricted funding separately. This is UK guidance and an example of practice; charities should also follow the requirements and circumstances that apply locally. www.ncvo.org.uk
4. Link each indicator to a possible decision
An indicator is not useful simply because it appears on a screen. Link it to a management question or action the charity can take.
| Indicator | Management question | Possible action |
|---|---|---|
| A high share from the largest funder | What would happen if this funding stopped? | Prepare an alternative scenario and develop other sources |
| A delayed approved payment | Which commitments fall due before it arrives? | Update the cash-flow forecast and review payment dates |
| Campaign receipts below target | Is the issue reach, messaging or timing? | Review performance and adjust the plan where appropriate |
| Rising fundraising costs | What caused the increase, and is it likely to recur? | Review the costs or redesign the activity |
| A growing share of restricted funding | Are flexible resources sufficient for essential needs? | Address the gap in the funding plan |
These are examples, not automatic instructions. Any action should reflect the funding terms, the charity’s policies and the available evidence.
5. A simple example of reading the dashboard
The following example is hypothetical and for illustration only:
| Indicator | Result | What management should review |
|---|---|---|
| Receipts to the end of the quarter | SAR 720,000 | Compare with the plan and previous period |
| Largest funder’s share of receipts | 42% | Assess the impact of delay or withdrawal |
| Confirmed funding not yet paid | SAR 180,000 | Check the payment date and conditions |
| Restricted share of funding | 76% | Check whether flexible resources cover essential needs |
| Forecast cash shortfall within two months | SAR 65,000 | Identify commitments at risk and options for addressing the gap |
A 76% restricted share does not, by itself, show whether the charity is in a strong or weak position. Nor does confirmed funding that has not been paid mean cash is available today. The dashboard should highlight areas for analysis, after which management can agree an action, an owner and a follow-up date.
6. Assign responsibility and set a review schedule
Different levels of management need different information:
- The board or finance committee: a concise view of concentration, risk, liquidity and decisions requiring guidance or approval.
- Executive management: funding forecasts, gaps, changes in commitments and corrective actions.
- The resource development team: detailed information on campaigns, applications, funders, costs and follow-up dates.
Also identify who updates each indicator, its data source, how often it is updated and who reviews it. Cash-flow forecasts and active funding opportunities might be reviewed monthly, while the funding mix and concentration risks could be reviewed at suitable intervals or whenever a significant change occurs. There is no single review schedule for every charity; the important points are that updates are regular and reflect how quickly the information can change.
NCVO notes that management accounts help leaders and trustees monitor performance and compare actual income and expenditure with the budget. This supports treating the dashboard as part of regular financial review, rather than as a report disconnected from the charity’s management. www.ncvo.org.uk
Conclusion
A resource development dashboard is not a standard list that suits every charity, nor is it a replacement for financial reporting. It is a tool for helping management understand the volume and sources of resources, concentration risks, funding restrictions, the costs of developing income and future cash flows.
Start by classifying data in a way that prevents confusion and double counting. Then select a manageable set of indicators and define how each will be calculated. Link every indicator to a management question and a possible action, and assign responsibility for updating and reviewing it.
A useful dashboard does more than answer, “How much have we raised?” It helps management understand: “What does our funding portfolio look like, where are the risks, and what decision should we take now?”
