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Capital Fragility
Answer these five questions to assess whether your capital is vulnerable to external fragility cycles.
Has your organisation experienced significant funding volatility during market downturns or political transitions?
Does a substantial portion of your capital depend on annual appropriations, donor renewals, or market-linked returns?
Would a major funder withdrawal or economic shock force you to curtail mission-critical programs within 12 months?
Does the thing you have to renew come due on an interval that has nothing to do with the interval on which your funding arrives?
Do external stakeholders (funders, boards, regulators) have the power to redirect or withdraw capital based on short-term considerations?
Does any of your capital carry an enforceable repayment obligation that survives a bad year?
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