Case study  ·  11

Reducing Donor Dependence at a Skills Training Institution

A skills training institution cut donor dependence from 85% to 55% in two years via employer contracts, paid upskilling, and curriculum licensing.

Sector
Vocational skills training
Engagement
Revenue diversification strategy
85% to 55%Donor dependence reduced within two years
Total revenue grewRevenue growth achieved alongside diversification
Placement rates improvedStronger training-to-demand alignment

The operating constraint behind the numbers

A vocational training organisation delivered strong graduate outcomes on fragile finances. Eighty five percent of funding came from three donors, one of which had signalled a strategic shift, leaving the mission hostage to a single grant cycle.

The evidence leadership could act on

Donor Dependence: Before vs After

  • Before (start)85%
  • After (two years)55%

Source: Eighty five percent of funding came from three donors, one of which had signalled a strategic shift... Donor dependence fell to 55 percent within two years while total revenue grew

What changed in the management system

01

Price employer contracts on outcomes

Employer sponsored training contracts were priced on placement outcomes.

02

Launch fee paying upskilling line

A fee paying professional upskilling line was launched for working adults.

03

Productise and license the curriculum

The curriculum was productised for licensing to smaller providers.

04

Install commercial capabilities

Commercial capabilities a donor funded culture never needed, from pricing to contracting to a business development rhythm supported by a simple CRM, were installed alongside the new revenue lines.

04  What Remained

The management system installed

Business development rhythm
Simple CRM

What the organisation could do next

A revenue diversification strategy was built on what the institution already did well. Employer sponsored training contracts were priced on placement outcomes, a fee paying professional upskilling line was launched for working adults, and the curriculum was productised for licensing to smaller providers. The commercial capabilities a donor funded culture never needed, from pricing to contracting to a business development rhythm supported by a simple CRM, were installed alongside. Donor dependence fell to 55 percent within two years while total revenue grew, and placement rates improved because employer contracts tied training even more tightly to demand.

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