Coverage plan and funding mix

Your plan is finished and in your budget you have worked out what it will all cost. Now it's time for the next step: how are you going to cover those costs? In your coverage plan, you give an overview of all expected income and from which sources it will come. All the sources together form your funding mix. A healthy mix consists of multiple forms of financing and shows that you spread your risks - something financiers value.

Coverage plan and budget as basis of trust

The cover plan, along with your budget, is the financial heart of your project plan. It shows what your project will cost and how you plan to pay for it. For funds, sponsors or other financiers this is essential: it shows that you have a grip on your finances. A balanced budget - in which income and expenses are exactly in balance - is often a condition for funding. A well-founded coverage plan inspires confidence. This is strengthened if you can show previous annual reports or financial statements. In this way, you demonstrate that you are not only strong in terms of content, but can also work in a financially responsible manner.

Types of budgets

Throughout the life cycle of your project, you work with different types of budgets. Each phase requires a slightly different approach, tailored to the goals and insights of the moment. Here we explain how you get from an initial estimate to a balanced justification and how you eventually move toward a multi-year budget.

Your coverage plan continues to evolve

Like your budget, your coverage plan changes over time. You supplement it as soon as applications are granted or denied. Clearly put the status with each source: in application, awarded or denied. That way others can see how your funding is developing. Is a source uncertain? Provide an alternative. If an application is rejected, you can move quickly. Also inform your funders if changes affect the implementation of your project!

Translating your project plan into numbers

In your plan, you have already made important choices: who will work with it, where and when the project will take place, and what it will take to carry it out. The next step is to link numbers to these choices by preparing a budget. A budget is basically a reasoned estimate of the costs you expect to incur and is an essential part of your project preparation. Especially for grant applications, a clear budget is often mandatory.

What is a healthy funding mix?

Many creators think of funding primarily in terms of grants and funds. But those rarely cover all the costs. A broader mix makes your project not only financially stronger, but also more attractive to lenders. In the beginning, creating a funding plan often feels uncertain. You don't yet know which applications will be approved or how much a crowdfunding campaign will generate. That's precisely why it's smart to spread out your income. A mix of multiple forms of funding makes you less dependent on one source.

Examples of forms of financing include:

• Grants and funds
• Sponsorship
• Donors, gifts and crowdfunding
• Loans
• Direct revenue
• Own investment or savings

Which mix fits best depends on your type of project, your target group and your organizational form. Different conditions apply for each form, such as whether you must be a foundation or pay VAT. Always check what is or is not possible.

💡 Tip: Start applications and campaigns on time! The earlier you start, the more room you have to shift if things go differently than expected.

Forms of financing

Once you have a good idea of the cost of your project, the next step is: how will you finance it? You may have some savings behind you, but often you will need to use a combination of income sources. We call this your funding mix. Think of grants, funds, sponsorships, your own income or contributions from your audience. Use this page to research which forms of funding suit your project and audience.

Help with financing

Creating a good coverage plan and seeking funding can be time-consuming and complex. Fortunately, you don't have to do it alone. For example, you can work with a fundraiser or funding expert.

For those who find this financially difficult, the Firestart Fund: an interest-free loan to hire a fundraiser. This will help you write applications, create a strong plan and find appropriate funds.

Help with financing

Arranging funding can be quite overwhelming. Grants, funds, sponsors, donors. There are many avenues, but it's not always clear which one is the best fit. Moreover, applying for funding often requires specific knowledge, time and experience. Fortunately, there are ways to enlist help so you don't have to go through this process alone.