How can a small CSO build sustainable funding beyond short-term grants?

I run a small community-based CSO that currently depends almost entirely on short-term project grants from a few international donors. This makes it very hard to plan ahead, retain staff, and invest in strengthening our organisation.

What are some practical strategies we can use to diversify our funding and move towards more sustainable income, such as local fundraising, partnerships, or social enterprise activities, while still staying true to our mission and complying with AML/CFT and good governance requirements?

It would be helpful to know what has worked for other CSOs in the region, and what policies or systems we should have in place before we start trying new funding approaches.