Funding and Project Management Guidebook
Funding and Project Management Guidebook
MANAGEMENT GUIDEBOOK
This guidebook has been prepared by the International Federation of Green Crescent
The purpose of this guidebook is to assist the capacity development of the Country
Green Crescents and other stakeholders with whom we cooperate in the field of
civil society worldwide, to share the experience and knowledge of the Turkish Green
addiction prevention.
The guidebook gives clues on addiction prevention and international, scientific and
For your inquiries, suggestions and feedback, please contact via the following e-mail.
Basic Concepts......................................................................................................................................... 1
Project.................................................................................................................................................1
Project Lifecycle..............................................................................................................................2
Program Management................................................................................................................. .4
Portfolio Management................................................................................................................. .5
SWOT Analysis..............................................................................................................................10
Problem Analysis..........................................................................................................................10
Target Analysis...............................................................................................................................11
Strategy Analysis..........................................................................................................................12
Management of Risks...................................................................................................................17
Overview..........................................................................................................................................19
Establishment of Partnerships.................................................................................................20
This guide is prepared for the Country Green Crescent units that are seeking to
enhance their capacities in the design and implementation of projects so as to receive
financial support from grant programs based on calls for proposals by private funding
institutions.
BASIC CONCEPTS
This section describes the basic elements required for the definition and management
of projects.
PROJECT
A project is defined as a transient effort undertaken to produce a unique product,
service or output, regardless of the sector or organizational structure. For example,
the efforts of a non-profit non-governmental organization (NGO) to curb the increase
in substance addiction among high school students in a certain part of a city by
developing strategies, setting goals and implementing planned activities within a
certain time period could be considered a project.
Most of the projects of non-profit NGOs are carried out with volunteers. The limited
resources make it difficult to identify and recruit sufficiently experienced and
knowledgeable experts. This is an issue that should be taken into account by the project
managers responsible for the formation, management and development of a project
team.
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can be challenging processes for most NGOs, while commercial companies have the
advantage of being able to hire experienced personnel with expertise in the required
fields. Since the resources of NGOs are limited, it is not always possible for them to
retain experienced staff, which affects performance in the foregoing processes.
The lifecycles of projects of NGOs are different to those of commercial projects. For
most NGOs, obtaining the necessary financial resources for a project is an important
issue that should be planned as one of the stages in the project. In commercial
projects, resources are usually allocated by the company management at the very
outset of the project. The projects of NGOs must therefore be adaptable to the
conditions established by the donor institutions, and accordingly, their lifecycles may
also be required to be adapted. In commercial projects, project lifecycles are designed
according to the sector(s) and the status of the company in question, and this approach
generally requires the implementation of a company-specific methodology.
The projects of NGOs are often focused on social or behavioral change, and therefore
produce intangible results. This makes it relatively difficult for NGOs to monitor and
evaluate their projects, unlike with commercial projects.
NGOs concentrate on the human factor in their projects. Although there may be
tangible outputs, such as development of an efficacious software, the entry into
service of an office, etc., such projects focus generally on human behaviors and living
conditions. Projects tend to be instigated to address challenging conditions, such
as poverty and substance addiction, and are often managed within the context of a
complex and intricate set of stakeholder relationships.
PROJECT LIFECYCLE
The project lifecycle is the series of stages through which a project goes from inception
to completion. The definition of project lifecycle differs from sector to sector, and in
each organization in accordance with the different initiatives. The lifecycle of projects
of NGOs generally passes through five stages (Figure 1).
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PROJECT
LIFECYCLE
1. PLANNING
This is the first stage, in which the project options are developed in line with the
strategic plans of the organization, taking into account the general situation at
both national and local levels. Project topics that can be addressed in the short,
medium and long term are identified, potential financing opportunities are listed and
a portfolio is created.
2. IDENTIFICATION
3. FORMULATION
Potential sources of funding for the project are identified from among institutions
and organizations. The project is detailed, and the design is finalized. The generated
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information is used to prepare a proposal for presentation to potential donors. If the
proposal is deemed appropriate, a contract is signed, and the financial resources are
conditionally secured.
It is the stage, the project plan is implemented and the effects on the project of
changes and developments in environmental conditions are monitored.
In this stage, the collected data are analyzed and evaluated, taking into account
the general purpose of the project. An assessment is made of whether the benefits
agreed at the beginning of the project have been obtained, and whether such benefits
are sustainable. When necessary, audits are planned.
PROGRAM MANAGEMENT
This is a group of projects, sub-programs and program activities that are managed in
coordination to obtain benefits that cannot be obtained when managed individually.
Program Management refers to the application of knowledge, skills and principles to
a program to achieve the objectives of the program, and to obtain benefits that would
be otherwise unobtainable if the separate components of the program were to be
managed individually.
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PORTFOLIO MANAGEMENT
This is a strategic activity and responsibility. The term “portfolio” refers to all of the
projects, programs, sub-portfolios and operations that are managed collectively to
achieve strategic goals. Portfolio management refers to the centralized management
of a portfolio to achieve strategic goals. The key responsibilities of portfolio managers
in NGOs include the identification, prioritization and initiation of project options that
can serve the strategic goals of the organization; monitoring current projects at a
strategic level; and identifying and concluding projects that are no longer able to
create value due to changes in the external conditions.
The first stage in stakeholder management involves identifying the stakeholders. Since
resources are limited, it is neither possible nor necessary to maintain the same level
of communication with all stakeholders. Stakeholders are thus categorized based on
their position, their role in the project, their managerial strengths and their vopinions
of the project. An analysis of the stakeholders will reveal those who are critical to the
project, and will allow them, if necessary, to be grouped for the application of different
strategies for the direction of stakeholder relationships.
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Planning
Initiating Execution Closing
Start End
Figure 2: Relationship among process groups
The project processes, categorized into five different groups, refer to the activities
undertaken for the design, execution and finalization a project from start to end.
These processes are also categorized according to their respective knowledge areas
and contents. Examples of knowledge areas may be scope management, timeline
management, cost management, risk management and purchasing management.
The knowledge areas given in Figure 3 should be analyzed for each project, and the
studied subject should be developed in accordance with the relevant processes.
In risk management, as one of the knowledge areas, we encounter the following six
processes:
- Risk management planning - Planning responses to risk
- Identification of risks - Implementing responses to risk
- Analysis of risks - Monitoring risks
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1. RISK MANAGEMENT PLANNING
In this process, how risks are managed are determined and the approaches to
be followed are defined, all of which takes place at the beginning of the project.
This process raises the awareness of risk in the project team and directs the
risk management activities, ensuring that risks are visible and addressed by all
stakeholders in a balanced manner.
2. IDENTIFICATION OF RISKS
Risks are identified in the planning stage, and a list of the risks and their sources
is compiled. All risks are viewed from a single perspective, and the project team is
given the opportunity to respond appropriately to the identified risks.
3. ANALYSIS OF RISKS
The general characteristics of the identified risks are identified, along with their
likelihood and possible effects. This process aids in the prioritization of risks,
identifying those that are important and those that are unimportant, ensuring the
effective and efficient use of project resources.
In this process the optional responses to each identified risk are determined, as
well as the strategy to be followed, leading to agreement in the actions to be taken
in response to exposure to and coping with risks. This process is carried out in the
planning stage.
This is the process in which the agreed risk response plans are implemented, and
pre-agreed actions are taken to eliminate any issues and critical risks that may pose
a threat to the project. This process is carried out throughout the project lifecycle.
6. MONITORING RISKS
This process includes monitoring the implementation of the agreed risk response
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plans, the following-up of any identified risks, and the identification and analysis of
emerging risks. In short, this process serves to ensure the effectiveness of risk-
related activities throughout the project lifecycle.
DEVELOPMENT AND
MANAGEMENT OF PROJECTS
NGOs generally develop and manage their projects in accordance with the project
lifecycle given in Figure 1. At each stage, the team focuses on a different area, uses
different tools and techniques, and manages different processes.
The topics of focus throughout the project lifecycle and the works performed are
summarized below:
1. PLANNING
In this first stage, the person leading the project focuses on the strategic
framework. The role s/he assumes in this stage is portfolio management rather
than project management. S/he is required to internalize the strategies of his/her
organization, develop and make a preliminary analysis of projects with the potential
to support these strategies, and prioritize these potential projects with a strategic
view. All of these processes are performed by the portfolio manager. The portfolio
manager presents the overall scheme to decisionmakers and ensures that the most
appropriate strategy is determined for the existing conditions.
In this first stage, the project options are reviewed in line with the strategic plans
of the organization, taking into account the general situation at both national and
local levels. It is important for the topics of interest to be compatible with the past
experience and current capacity of the organization, and that a current and real
problem is focused on. Partnerships that are in line with the strategic plan are
evaluated. In summary, project topics that can be addressed in the short, medium
and long term are identified, potential sources of financing are identified and a
portfolio is created.
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2. IDENTIFICATION
In the “Identification” process – the second stage of the project lifecycle – the project
team leader continues to consider the issues from a strategic perspective in their
role of portfolio manager. S/he manages the process for the selection of the most
appropriate project ideas identified in the first stage. The project to be implemented
is selected, for which purpose of each project in terms of local requirements and its
compatibility with the strategic approaches of the organization are reviewed. Once
a project is selected, s/he assumes the role of project manager and carries out a
preliminary feasibility study for the project. The scope of the project is clarified based
on a Logical Framework Analysis and similar tools. Meanwhile, the capacity of the
organization to design, manage and create the expected benefit from the project is
evaluated. The project team reaches consensus on the project idea, and the project
is designed to address technical and operational issues.
3. FORMULATION
In this stage, potential sources of funding for the project are identified from among
institutions and organizations. The expectations and conditions of potential financiers
are detailed. In the light of these details, the preliminary feasibility study carried out
in the second stage is advanced. The problems targeted by the project, their root
causes and the steps to be taken to resolve them are clarified. The resources that
will be needed for these steps are expressed in terms of time, cost and expertise. The
scope, schedule, budget and risks of the project, as well as detailed information on the
required resources and stakeholders, are determined. In addition, how these areas
will be managed, monitored, evaluated and audited are identified. Based on these
studies, a proposal is prepared in accordance with the requirements of the potential
financier, and submitted to the financier for assessment. At this stage, the party that
will provide financing for the project makes their final decision. Such a decision often
determines the destiny of the project. One of the main tasks of the project manager
during this stage is, therefore, to present the project to critical stakeholders in an
accurate and effective manner. If the proposal is deemed appropriate, a contract is
signed, and the financial resources are conditionally secured.
Before this stage, the project is approved, a contract is signed, if required, and the
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conditions for the supply of resources are determined. In this stage, the project
team leader focuses on the performance of the works projected in the project plan,
and delegates tasks to the relevant team members. S/he continues to monitor the
performance of the delegated works. Monitoring is carried out simultaneously with
execution, and is often leads to changes in the project.
As an NGO, while the project may be running smoothly, it may not be enough to
achieve the overall objective of the project. Evaluation activities are carried out to
ensure the project is on track, and that the collected data are analyzed and evaluated
in accordance with the overall purpose of the project. At this stage an assessment
is made of whether the benefits agreed at the outset of the project can be achieved.
The continued relevance of the planned benefits is examined. When necessary, audits
are planned. Lessons learned during the project are listed to be made use of in other
projects. One of the most important responsibilities of the project manager is the
creation of an environment of trust so that lessons learned can be made use of.
SWOT ANALYSIS
Before beginning an analysis of the problems on which the project focuses, it may be
useful to make a SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis of
the current situation to gain an overall picture. This tool makes it easier to determine
the strengths and weaknesses of the project, as well as the external opportunities
and threats that may arise. To carry out a proper SWOT analysis, it is necessary to
examine all factors objectively and to share them with the decisionmakers in a candid
and transparent manner.
PROBLEM ANALYSIS
If a project is to succeed, it must focus on a real problem and identify it in a loud and
clear manner. The way the problem is explained is an important factor in gaining access
to financial resources and securing the commitment of critical stakeholders. The
problem analysis approach aims to reveal all of the potential challenges and obstacles
associated with the problem. Some of these identified challenges and obstacles may
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be the root cause of the problem, while others may be an outcome. Such a study will
reveal the cause-effect relationships between the analyzed problem and the associated
challenges and obstacles.
Figure 4: Problem analysis - taken from the “Project Cycle Management Guidelines”
prepared by European Commission.
TARGET ANALYSIS
Target analyses support the development of strategies to resolve the problems
identified in problem analysis studies. The target tree indicates the hierarchy of
identified problems, and describes the steps to be taken to eliminate them.
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When carrying out a target analysis for the case subjected to the problem analysis in
the previous section, the structure is as follows (Figure 5).
The potential sources People are aware of New laws are enacted for the The number of households and
of pollution are the hazards associated effective prevention of the enterprises connected to the
effectively controlled with solid waste direct discharge of wastewater sewerage system is increased
Figure 5: Target analysis - taken from the “Project Cycle Management Guidelines”
prepared by the European Commission.
STRATEGY ANALYSIS
Different target analysis approaches may exist for the problems identified in the
problem analysis. Some of these approaches may require resources and influence
beyond the capacity of the organization. It is therefore important to evaluate each
approach and to determine which will be included within the scope of the project.
This process also sets out the scope of the project. A strategy analysis helps when
determining the most appropriate approach to serve this purpose. A decision is made
determining which targets will be excluded.
The results of the strategy analysis ensure the development of a strategy and the
identification of the overall purpose and objectives of the project, and the results that
will best support the achievement of these objectives.
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Answering the questions listed below during the strategy analysis will increase the
effectiveness of the study:
- What is the best and most effective way of achieving the desired objective?
- Should the project be designed taking into account all of the listed objectives/
problems? Would it be a more appropriate/realistic approach to exclude some
of the objectives and problems?
- Which of the opportunities identified in the SWOT analysis can be included
within the scope of the project? How can the determined strengths be used
effectively in the project?
- What resources should be allocated to ensure the sustainability of the
outcomes expected from the project?
- What steps can be taken to ensure the relevant community adopts the
project?
- What would be the most effective and efficient approaches to cost and
budget management?
- What internal and external factors may influence the selection of strategies
for the project?
The strategy analysis is one of the most important and challenging aspects of the
planning stage, requiring the compilation of comprehensive and diverse information,
and the use of such information for the development of the most appropriate strategies.
Political sensitivities need to be taken into account when developing strategies, as
conflicts between the expectations of different stakeholders can be challenging.
Taking the below criteria into account in the strategy study will increase the effectiveness
of the project, as well as the likelihood of receiving financial support:
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STAKEHOLDER ANALYSIS AND THE MANAGEMENT OF
STAKEHOLDER ENGAGEMENT
A logical framework approach should be used for most grant application processes.
It is important for this method to be applied carefully, and should not be considered
a necessity, but rather an approach that will determine the direction of the project
activities and create value for the project.
Logical framework analyses are performed using a matrix of four columns and four
rows. This matrix is presented in Figure 6.
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Project Structure Indicators Verification Sources Assumption
The logical framework analysis is begun by providing the information requested in the
first column (project structure) and defining the general objective. Thereafter, the
purpose(s) of the project that will ensure to achieve the overall objective are defined.
Then, the results, or, in other words, the outputs that will be required to achieve these
purposes are listed (Figure 7).
Project Overall
Inputs Activities Results Purpose Objective
PROJECT DEVELOPMENT
Figure 7: Elements of the Logical Framework Analysis and the direction of the study
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Determining the overall objective of the project is usually the most challenging and
critical stage. The objective must be determined with a strategic perspective, taking
into account the overall scheme. The basic requirement for the compliance of a project
determined based on the desired objectives and results for a grant application following
a call for proposals is that the general objective is in compliance with expectations, and
that the purpose of the project is clearly defined. It is recommended that the general
objective be briefly and concisely explained, if possible in a single sentence.
The second and third columns of the logical framework matrix are filled out with the
indicators, validation sources and validation tools. This is important not only for those
who are to manage the project, but also for the organizations that will provide funding.
They allow the relevant stakeholders to determine whether the project has achieved its
objectives and to monitor progress in the project. The preparation of these indicators
is a challenging process that requires experience. These indicators are important tools
for the monitoring and control processes, which are especially critical for the projects
of NGOs.
Assumptions are given in the fourth column of the logical framework matrix. The
function of assumptions within the matrix is as follows (Figure 8)
- The activities carried out will allow the expected results to be achieved only
when the accepted assumptions are realized.
- The achieved results will allow the expected objectives to be achieved when
the relevant assumptions are realized.
- Similarly, the achievement of objectives will ensure that the overall objective
is met when the relevant assumptions are realized.
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OVERALL
OBJECTIVE
TARGET Assumptions
RESULTS Assumptions
ACTIVITIES Assumptions
Inputs
The logical framework analysis is an important part of the project designing. The active
role of the project team and critical stakeholders in this analysis, and the internalization
of the elements of the logical framework, contribute significantly to the successful
execution of the project.
MANAGEMENT OF RISKS
A risk is defined as an uncertain event or situation that, if it takes place, will have
a positive or negative impact on one or more of the project objectives. Project
managers lack the power to directly control all of the uncertainties that may affect the
achievement of the overall objective of the project. The factors that fall outside their
control are mostly external, and some are expressed as assumptions.
At the beginning of the project, a risk management plan is prepared, and then
approaches are developed for the management of risks throughout the project lifecycle.
Afterwards, project risks are defined in accordance with this plan. The defined risks are
analyzed to evaluate their effects and to clarify any unfavorable situations they may
cause. Approaches to the avoidance of risks that are highly likely to take place, and
that would have significant impact, are investigated. For risks designated as low impact
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and that will probably not take place, it may not be necessary to take any measures. In
such cases, the existence of the risk and threat is accepted, but no proactive action is
taken. All risk-related studies are carried out under the project plan.
Once the project is launched, risk-related actions are implemented in line with
developments, and risks are monitored as stated in the planning document. Risk
management is a responsibility that should be high on the agenda of the project
manager for the duration of the project.
A plan is required for monitoring, evaluation and reporting activities in such a way that
expectations are met. Such a plan can be thought of as a monitoring and evaluation
system that evaluates the project strategy, directs the project team and ensures the
effectiveness of the project activities, while also providing the necessary information
to meet internal and external reporting requirements.
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Each project has its own specific conditions and may require different monitoring and
evaluation activities, depending on the factors affecting these conditions. Among these
factors are the operating environment, the capacity of the organization implementing
the project and the donor requirements. When preparing a monitoring and evaluation
plan, it is important to identify these factors and coordinate the use of relevant
methods, procedures and tools. This approach ensures the effective and efficient
use of project resources, and facilitates the planning of monitoring and evaluation
activities.
A monitoring and evaluation system is built on the basic parameters outlined below:
The monitoring and evaluation system refers to the conceptual basis defined in the
Logical Framework Analysis. Since the indicators to be measured under the monitoring
and evaluation system reflect this hierarchy, it is important to understand the
differences between the inputs, outputs, results and impacts of the project.
OVERVIEW
In general, it is difficult for an NGO obtain financial support from an organization, and
the NGO is usually required to carry out a comprehensive procedure. In addition to this
challenging process, other NGOs are looking to take advantage of the same financial
support, creating a competitive environment and making the situation even more
difficult. Therefore, obtaining financial support requires not only significant effort but
also considerable experience. It can be quite challenging for an NGO to make its first
application for financial support, given the lack of experience in the field. It should be
noted, however, that if an NGO fails in its first application, the experience gained will
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allow it to prepare better project proposals, and more quickly.
Below are some of the main difficulties encountered by NGOs when applying for
funding:
Establishment of partnerships
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- Collect sufficient, valid and reliable information about the problem
addressed by your project.
- Make sure that the benefit you aim to provide through your project,
and the extent of the change, are compatible with the capacity of your
organization. Use problem analysis, goal analysis and strategy analysis tools
and techniques when analyzing the topic.
- The likelihood of success in the application process will increase if
the stakeholders are determined as a priority, and if the stakeholder
analysis is carried out carefully. The information you receive from your
critical stakeholders will make your project design much more robust and
purposeful, and will ensure that the organization offering financial support
trusts your project.
- The parties responsible for evaluating NGO applications are generally
sensitive to such issues as discrimination, environmental impact and ethnic
minorities. It is important that you approach such issues sensitively in your
project presentation.
- Make sure that in your proposal you take into account the eligibility
criteria and the procedures of the organization to which you are applying.
- The project budget should be realistic, and presented in a format that
meets the expectations of the funding organization.
Each institution to which you apply for financial support will have a different
evaluation model. Being aware of and having full knowledge of this evaluation
model will increase your chances of acceptance. Noticing in advance that you
do not meet the basic criteria of an application will prevent you from spending
unnecessary resources on applying for funding for which you will certainly be
declined. For example, an institution making a call for proposals for a grant may
have some basic conditions that must be met. It may insist that organizations
applying for financial support are fully controlled by an NGO. Or, it may stipulate
that the applicant organization must have implemented a certain number of
projects of a certain capacity prior to making an application. If you cannot satisfy
such requirements, your application will most likely be rejected regardless of the
attention paid to the preparation of the application. It is important to be aware
of these requirements in advance.
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NGO funding is generally offered in a competitive environment. Gaining access to
such funds may only be possible if you have submitted a highly qualified application
that meets all the expectations and requirements of the relevant institution. Being
aware that each application process will be in a competitive environment, learning
the application process stipulated by the funding institution, and understanding
its expectations will increase the likelihood of success in application processes.
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