Why Exit Planning Matters

Funders increasingly ask: "What happens when our funding ends?" They don't want to create dependency or fund projects that collapse the moment they withdraw. Smart organisations plan the exit before writing the application.

The Five Exit Strategy Models

Model 1: Mainstreaming

Goal: Pilot project becomes integrated into core organisational operations, funded through existing income streams.

Example:

"Year 1-2: Grant-funded youth counselling pilot. Year 3+: Evidence of demand and outcomes used to secure local authority commissioning contract. Service continues as part of core offer, now self-sustaining through contract income."

Model 2: Commercial Sustainability

Goal: Project generates sufficient earned income to cover its own costs.

Selling products/services to customers
Training programmes that charge fees
Social enterprise models
Membership subscriptions

Model 3: Successor Funding

Goal: Sequential grants from different funders maintain continuity.

Years 1-3 funded by Foundation A. During Year 2, apply to Foundation B for Years 4-6, using evidence from first phase. Continuous service, changing funders.

Model 4: Handover to Partners

Goal: Another organization adopts and continues the project.

Local authority takes on delivery
Partner charity integrates into their programs
Community group sustains with volunteer model

Model 5: Planned Conclusion

Goal: Project achieves specific objectives and legitimately ends.

Not everything needs to continue forever. Campaign-based work, one-time infrastructure projects, or time-limited interventions can have natural endpoints.

Building Sustainability from Day One

Project Phase	Sustainability Actions
Year 1	Test revenue models, build evidence base, identify potential successor funders
Year 2	Develop business plan, submit applications to successor funders, pilot commercial elements
Year 3	Transition to sustainable model, wind down grant dependency, secure next funding phase

Presenting Your Exit Strategy

Funders want specific, credible plans—not vague hopes.

Strong Exit Strategy Statement:

"This 3-year grant will pilot innovative peer mentoring. Our exit strategy combines:

Earned income (target 40%): Year 2 we'll introduce £50/session corporate wellbeing workshops based on the model. Conservative projections: 8 sessions/month = £19,200 annually.

Successor funding (target 40%): We'll apply to ABC Trust (which funds established mental health programmes) in Year 2, using evaluation data from Years 1-2.

Core integration (target 20%): Volunteers trained in Years 1-3 will sustain peer support elements, supervised by 0.2 FTE from core budget.

We will NOT continue service if sustainability plan fails—we'd rather end responsibly than deliver poor-quality, under-resourced support."

When to Plan Exit

Counter-intuitive truth: start planning the exit in your application, not in Year 3 when panic sets in.

Application stage: Include sustainability strategy in proposal
Month 1: Build sustainability milestones into project plan
Month 12: Review progress against sustainability targets
Month 24: Execute transition activities (applications, commercial pilots, etc.)
Month 36: Complete transition or make informed decision to conclude

Common Exit Planning Mistakes

❌ "We'll find more funding"

Vague hope without specific strategy. Name funders you'll approach, when, and why you're competitive.

❌ Ignoring sustainability until final year

Too late. Build income generation and evidence from Year 1.

❌ Unrealistic income projections

"We'll generate £100K from workshops" with no market research or pilot results.

Conclusion

The best grant-funded projects are designed to not need grants forever. Build the path to sustainability into your DNA from day one, and funders will reward that strategic thinking with support.

TL;DR: Exit Strategy Essentials

✓ Choose appropriate exit model (mainstreaming, commercial, successor funding, handover, or planned end)
✓ Build sustainability actions into project plan from Year 1
✓ Present specific, credible exit strategy in applications
✓ Develop evidence base that makes you attractive to successor funders
✓ Be willing to end responsibly if sustainability plan fails