TOP FUNDING SOURCES FOR NONPROFITS AND CHARITIES
Identifying funding sources and deciding on a funding model can be one of the most challenging tasks at hand
6
MAIN NONPROFIT FUNDING SOURCES
INDIVIDUAL DONATIONS 71%
1
Of all donations made to nonprofits, 71 percent come from individuals
1.1
MAJOR DONORS Major donors give less frequently but their gifts are significantly larger
Gift size
REGULAR DONORS Regular donors usually give more frequently but their gifts are smaller in size
1.2 Online or offline
While online fundraising grows day-by-day
Combine traditional and modern fundraising techniques
1.2.1 Online
fundraising
WEBSITE Crowdfunding (see below) works best for specific campaigns and when you’re telling specific stories
CROWDFUNDING Crowdfunding is all about many individuals each making a small donation – $10, $50, $100, maybe more
PEER-TO-PEER FUNDRAISING Individual fundraisers usually set up a personal fundraising page to accept donations
1.2.2 DIRECT MAIL
Offline
fundraising
Generally low cost and effective
EVENTS Provide a space in which the nonprofit and potential donors can interact
DOOR-TO-DOOR PHONE SOLICITATIONS Successfully by political organizations
Couple of ‘thank you’ calls to large telemarketing campaigns
GRANTS Nonprofits can apply for grants from the government at local, state, and federal levels as well as private and public foundations
Fuel large projects
2
Enabling large-scale societal impact Take a significant amount of time
Are we able to invest resources in writing winning grant applications?
Can we meet the grant conditions?
Considerations
Are the activities we would conduct consistent with our mission, our aims, and our strategy?
Can the activity continue after the grant funding ends?
CORPORATE SPONSORSHIPS Corporations are usually keen to partner on projects to improve their philanthropic image
Valuable funding source
3
Demand transparency
Philanthropic – no-strings-attached donation, similar to individual giving
Corporate support usually comes in three major forms
Event sponsorship – episodic or short-term support, typically event-based
Cause marketing – longer-term thematic engagement Check DonorBox Donation Software for complete fundraising solution
MEMBERSHIP FEES This funding source is particularly effective if your nonprofit can offer exclusive programs and or perks and benefits to its members Funding through past beneficiaries or alumni
4
Works if your organization serves a large community
Do we run programs that produce loyal supporters and evangelists?
Can we invest in long-lasting building relationships with our beneficiaries?
Considerations
Do we have the capacity to reach out to beneficiaries after they finish using our services?
Do we offer exclusive perks and benefits to justify a membership fee?
SELLING GOODS AND SERVICES Another funding source your nonprofit can consider is selling goods and/or services Hospitals bill patients
5
Museums ask for admissions fees
Selling tickets to events
Creating and selling publications
‘Trading’ or ‘Earned Income’
Selling in-house expertise e.G. Writing, training, consultancy
IN-KIND DONATIONS Invaluable source of support for nonprofits like animal shelters, homeless shelters, safe houses, or humanitarian relief organizations Save you many dollars
6
Use them in auctions
While opinion varies as to what a nonprofit’s “ideal� funding model is, utilizing several diverse sources to achieve sustainability is generally a good practice
MORE INFORMATION
https://donorbox.org/nonprofit-blog/nonprofi t-funding-sources/