The Role of a Fractional Operations Director in Strengthening Charities and Small Businesses

Overcoming Operational Challenges in the Current Economic Climate

As a Fractional Operations Director, my commitment lies in supporting charities and small businesses as they navigate operational difficulties, enabling them to deliver enhanced services and achieve more substantial growth or impact. The reality of today’s economic environment is that many small organisations face ongoing struggles to secure funding for their initiatives. With financial support increasingly limited to the short term, this scarcity presents a significant barrier to achieving operational stability and efficiency.

The Consequences of Funding Insecurity

When funding is uncertain, organisations are often compelled to prioritise immediate results over investing in essential projects that would otherwise strengthen their resilience or drive digital and developmental improvements—investments that could lead to greater long-term impact. Although short-term achievements might seem to swiftly validate funding by providing quick benefits, this focus can undermine efforts to build the foundational capabilities necessary for securing sustainable funding in the future. Even more concerning, an emphasis on short-term funding can trigger a reactive scramble for income, lacking strategic direction, which in turn places excessive pressure on teams and can result in demotivation and burnout.

The Need for Strategic and Sustainable Solutions

Effectively addressing operational challenges requires more than simply reacting to immediate needs. It demands a comprehensive approach that incorporates strategic thinking and income generation, as well as a focus on securing sustainable funding. Collaborating with donors and funders to support work that delivers long-term change and broader impact is crucial. This perspective raises important questions about how enhancing operational efficiency can help organisations secure more diverse funding streams and build resilience, ensuring they consistently deliver on their mission.

Understanding True Administrative Costs

NPC has highlighted that small organisations frequently struggle to accurately represent indirect cost rates in their funding proposals. Up to 37% of these (Kielburger, 2019)organisations (New Philanthropy Capital NPC, 2023) adjust their administrative functions when funding is insufficient, often leading to underinvestment in critical areas such as IT and HR. This practice perpetuates a cycle of resource depletion. Breaking this cycle requires a clear understanding of the true administrative costs associated with impact projects and the adoption of a longer-term revenue strategy. While short-term project funding may seem attractive, aligning funding with organisational strategy allows organisations to make informed decisions about when to decline opportunities. This, in turn, releases resources for more sustainable income generation and enables capacity to be focused on priority projects.

Transparency and Long-Term Resilience

Organisations that have a clear grasp of the real administrative costs involved in delivering their services are better positioned to ensure these costs are transparently presented in funding proposals. Such openness not only facilitates more effective communication with funders regarding the actual costs of service provision but also empowers organisations to prioritise critical administrative expenditures. This approach fosters greater operational resilience and supports targeted investments in new capabilities and capacity. By consistently assessing their resource requirements, organisations can allocate resources strategically, anticipate future needs, and invest in technology or skills development to secure long-term benefits.

Fostering Lasting Impact as a Fractional Operations Director

My responsibilities as a Fractional Operations Director extend beyond enhancing day-to-day operations. I take a holistic approach, focusing on the long-term sustainability of the organisations I support, ensuring they are well-positioned to achieve their strategic objectives and make a positive difference to those they serve. Although my involvement is typically time-limited due to the nature of my role, my priority remains to lay the foundations for lasting success. While there is often temptation to pursue quick wins that deliver immediate results—especially as these can be highlighted in case studies and attract future clients—the true value of my work is in helping organisations become resilient and confident, capable of making a significant, enduring impact. This is where I find genuine satisfaction, even if I am not present to witness the full results of these efforts.

References

Funds for NGO's, n.d. The Problem with short term funding models. [Online]
Available at: https://www2.fundsforngos.org/articles-searching-grants-and-donors/the-problem-with-short-term-funding-models/
[Accessed 11 December 2025].

 Bibliography

Kielburger, C., 2019. Taking The Long View: Short-Termism Is Keeping Us From The World's Most Pressing Problems. [Online]
Available at: https://www.forbes.com/councils/forbesnonprofitcouncil/2019/12/17/taking-the-long-view-short-termism-is-keeping-us-from-the-worlds-most-pressing-problems/
[Accessed 11 December 2025].

New Philanthropy Capital NPC, 2023. Funding Real Change: Fighting the non-profit starvation cycle.. [Online]
Available at: https://www.thinknpc.org/blog/funding-real-change-fighting-the-nonprofit-starvation-cycle/
[Accessed 11 December 2025].