I think that it means keeping your ear to the ground, listening and looking out for tips, read other charities newsletters/reports – funders will be named and might be worth trying. I got the name of our local funder mentioned earlier from a leaflet issued by our local Hospice!
Use the local Council for Voluntary Services – they often have a specialist there who will point you in the right direction.
Possibly the most useful is to be on the emailing list of NCVO at the Cabinet Office. You can edit the list that you want to receive and it also gives you the final date for application. Worth its weight in gold
and costs nothing!