Though nonprofit organizations are identified as “not for profit,” it would be entirely out of place to think that one could successfully run a nonprofit without consistent funding. At the very least, nonprofits usually have more needs than one could imagine. And if the goals and objectives of any nonprofit organization are to be met, then the need for funding is inevitable.
In other words, while nonprofit organizations do not set out with the goal of making a profit, they require money to run successfully. And if you have owned or worked with a nonprofit before, you could tell that discovering the path to securing funding is a tough one until you know the right way you should go.
The question now is, “what are the ways to fund a nonprofit and keep it running?” We will be addressing this fundamental question in this article by considering some sure ways to fund a nonprofit. We will also look at how to maintain consistent funding from various sources in order to keep a nonprofit organization running. Let’s take a look at seven most important ways to raise funds for your nonprofit.
1. Grant Funding.
While this is considered by most people to be the most demanding and lengthiest process of securing funding for your nonprofit, getting a couple of grant funding for your organization may be the best thing that can ever happen to you. This is because there are a lot of organizations willing to fund your organization and one could get anything from a few hundreds of dollars to millions in grant funding.
What is more important is fulfilling the requirements for each grant and having a strong and highly competitive grant proposal because you will most likely be competing with a lot of people for the same grant opportunity.
This is the most common way by which nonprofits raise their money. And with the boost in technology, and every organization having their online presence, it’s even easier now to get donors to give or support your organization’s dream.
The donation option puts you in charge of the game, and you can also up your organization’s revenue through donations by creating a fantastic landing page to boost online donations. Organizations get donors everywhere, and with only a few clicks, interested donors can complete the process.
Do feel free to sign up with a donation platform such as Donorbox, and get your first $1000 without paying a dime.
3. Corporate Giving.
This is a funding opportunity that your nonprofit will be able to enjoy when you think critically and plan to make it happen. If you work on your connections well, for example, you can get a pro bono where you get some services done for your nonprofit at no cost or a highly discounted rate.
This can also come in the form of product donations where some companies decide to give you items that are useful for your course. Some giving may also come from within the community as you get local businesses to donate some valuable items or money.
4. Membership Fee.
Collection of a membership fee is another way by which nonprofits can raise money to cover some running cost. One thing that is crucial about membership fees, however, is the value that a member gets in return. Some nonprofits that accept membership fees usually give something in return.
Although the value system is sometimes used, the reward given is not necessarily the same value as the membership fee. Membership fees can also be a way of telling members to contribute to the success of the nonprofit. This can be either a one-time payment or an annual fee which promises more consistent funding.
Another interesting way you can generate funding for your funding is through events. Commonly, nonprofits create awareness for each event, and it is a good time to solicit support from people that care about your organization in a fundraising campaign for the event. The good thing about fundraising events is that they are easy to market. You can use social media, or you can even use old-school marketing and design interesting fundraising flyers that you can hand out everywhere.
This funding can also come as participation fees, auctions at the event, or any form of activity that is paid for at the event venue. Whichever one you choose, keep in mind that events can help engrave the name of your nonprofit in the hearts of your potential sponsors.
It may be time to pick up your portfolio and partner with some businesses around your nonprofit to get some big-time donations rolling in. From people who are just interested in your organization’s mission and would love to support to companies who believe that it would be beneficial to them if people discover that they are connected to your organization, you can maximize your opportunities.
One way of incentivizing is to sing the praise of your sponsors through displaying of their logo on your website, at events, or on t-shirts. Every sponsor deserves this honor, so give them.
7. Product and service sales.
Yes, even for nonprofits, charging some amount for the sale of products and services is an acceptable way of generating funding to support the organization’s mission and keep it running.
These products can range from items that will further promote the awareness of your organization such as branded t-shirts, bags, etc., or goods and services that directly address your mission and meet some specific needs of the people. For example, cleaning seniors’ homes for a set price.
These are some of the ways you can raise funding for your organization and keep it running. But keep in mind, whether you are getting outright donations or getting some payments for membership or participatory fees, the more the value that you bring to the society, the more your donors are willing to give. So, whatever you do, offer value and stand for something.
Richard Parker is a freelance writer and author at TalentCulture.com and Readwrite. He covers industry-specific topics such as Seo, small business solutions, entrepreneurship, content marketing, word Press development & web design. You can connect with him at Linkedin.