In order to guarantee the autonomy and independence of a think tank, it is important for the funding of the organisation to be diverse, sustainable and transparent. In respect to Praxis’ current financial model, the dominant source of income is formed on the basis of fulfilling public procurement orders. Consequently, we wish to diversify the funding base via the means that have so far been implemented irregularly or rarely. Let us call it the self-initiatory earning of income by which we have in mind the kind of funding the underlying ideas and vision of which have been developed in accordance with our strategic long-term goals.
So far, approximately 25 percent of the total annual income has come to consist of self-initiatory funding. We applied for support from the National Foundation of Civil Society in order to work out a long-term funding development strategy with the aim of raising the share of self-initiatory funding to 35-40 percent of the annual income by 2018. By means of self-initiatory projects, it becomes possible for us to channel our energy exactly where we find that problem solving has so far been lacking in the society, where the issues are not resolved easily (i.e. “tricky problems”), or where progress so far has been too slow.
The project is carried out via the analysis of different organisations’ financial models and practices, the compilation of a funding sources’ database, internal seminars, learning visit and training sessions for Praxis’ employees. Praxis’ funding strategy and plan of action will be created as a result. In order to implement the funding model, the enactment of the first technical steps of the action plan will occur within the project development period.
In conclusion, Praxis is developing a funding model that would offer stronger support for the organisation’s performance and societal effectiveness.