Funding gaps

A critical output of the financial model will be the size of the gap between revenues and costs (if there is one) over time.

 

There are multiple ways you could fill this ‘gap’, depending on what is causing it and how long it is expected to last. This is summarised in the diagram below:

 

Uses of funding Sources of funding
To fund transition costs (where costs that are greater than revenues in the short term as you transition to a new funding model)

Social investors

Grant funding

To fund new revenue opportunities (where basic revenues are insufficient to fund the cost of investing in new growth opportunities which can generate significant revenue in future)

Social investors

Commercial investors

To fund a sustained ‘gap’ (where core revenues are persistently lower than costs)

Endowment

Community fundraising

For more information about the potential of an endowment, see Funding an endowment.

Community fundraising

A key part of parks transformation is mobilising latent community support for parks. Public engagement is discussed more widely in Engagement and consultation, but there are a number of ways that the community can help support their parks and have a stake in their future. These include:

 

  • Direct financial contributions, either through use of donations and legacies or through community shares and crowdfunding
  • In-kind contributions, through volunteering time or resources

 

Further guidance on fundraising can be found on GOV.UK.