What do you mean by Public Funding?
In simple words, public funding is the funding that originates itself from the treasury of the public. It is the money or funds that have been collected from the taxpayers, health funding, funds from human, environmental, development of community and numerous other programs of public service held is one of the many ways which results into its expenditure for the good of the society. It can be from the local government, state government, channels of the federal state which differ at various levels, public funding is a result of public sources.
Public Funding Advantages
Usually, the public funding entitles the biggest sum of money which can be used to financially support companies and their objectives. A state with a fair population does possess a financial budget of millions and billions of dollars. That is when the federal budget hits a staggering figure of trillion dollars. Hence this means that even the smallest piece of the budget in case of public funding can amount to be a huge sum of money for all the programs. Then can easily take care of more than a hundred thousands of programs through public sources.
Table of Contents
1. Long term and lasting
Public funding is something which is more long term and lasting in comparison with private funding. As and when public funding for a specific issue transforms to a known element in a budget, it is usually refunded with no questioning every year.
2. Public funding is usually seized particularly for the organization’s work
A federal government in the majority of the states and major every local governing body give more funds for services such as youth services, substance abuse, adult literacy, community development programs, mental health services, etc. It is much easier to ask for funds which are already planned and funded for what you wish to do to persuade a funding individual is ideal.
3. Enhanced credibility
Public funding has the mind-blowing attribute of giving the company enhanced stability whicheventually gives the organization more credibility in the society. It makes an individual as a recognized personalitywhich in turn makes it easy to snag more and more moral support with public sources from a community which is backed by the financial aid.
4. Easier than other methods of funding:
The best part of public funding is that it makes the whole process of funding a whole lot of a much easier process to accept funding from numerous other resources, the public funding can help any company becoming acceptable for the private and public sector as more and more are convinced to work and join you.
5. Subjected to Advocacy
Public funding is likely to be exposed to huge endorsements and hence is having a bigger impact on how much of the funds are available for use. So with the help of advocacy in a professionalcompany by educating the people about it, telling them the minute details may help you to persuade legal advisors of the company to accept the need of funds for a specific issue for public sources.
In general, this means that public funding can be and is the legitimate answer for all the questions, issues you ever came across. Besides the fact that it is one of the most preferred sources of funding, it does come with a few disadvantages too.
Public Funding Disadvantages
1. Time-consuming
Though being a dependable and most preferred source of funding it surely is a time killer and difficult to have access to. All the agencies and officials at various levels have rules and regulations to be followed. This results in the clash of the agencies that are concerned with funding operations. Additionally, it may need lengthy, boring and tiring information gathering and documentation procedure. And not just that it is done in law language which is not just hard to follow and understand but also seen as something self-contradictory.
2. Too many terms & conditions
As being sourced from the government there is no 2 opinion that the public funding does come with a pretty long and unending list of terms and conditions. One can say it’s funding which is wrapped with a lot of constraints. Requirements for reporting, in some specific methods of administering or operating the programsand mentioned arrangements for money management. All of this can be an integral granting part, and this may just cause more hardship, specifically for small-medium enterprises.
3. Strict accounting and thorough audit process
As it’s government money sourced from the public or taxpayers public sources it usually will ask for more and more tough accounting and procedure for audit. Also, there will be a need to keep a track of moneyreceived and where it had been spent upon while on the other hand, one may give it back if not used properly. Inappropriate use may subject to legal proceedings and in some extreme cases money is refunded and required legal proceedings begin. Just in case when the money granted has a bigger than the usual amounts offered through public funding. One will have to go through a yearly audit which is not a time-killing activity but is a costly procedure.
4. Does not allow easily (being granted the money)
The public funding due to the restrictions that it is subjected to will surely avert you from doing what you wish to di which may result into a clash with your philosophy and mission of doing something as per the plan. However, there is a handful of fund granting mediators which follow their protocols which usually describes how the services should be offered through public sources. Hence one may have a short degree of tolerance or a much different approach.
Final words
So here we come to know that funding plays a key role in namely any sector. However, if you ever get lucky enough to sanction the fund amount, the first thing will be the acknowledgment of your proposal being accepted. Later one will have to communicate on the specific grant or contractagreement which will let you offer the services, needs of the community, both financially and programmatically from public sources.