Funding is a Key Element to the Success of Your Nonprofit
As a nonprofit, one of the biggest challenges you will face is how to get funded. To nonprofit organizations (NPOs), donations and fundraising strategies are the lifeblood that allows you to continue to work to achieve your charitable goals.
The Power of Purpose Nonprofit University can teach you how to reach for diversified funding strategies. It’s common to assume that nonprofits are entirely funded through grants and donations. For some nonprofits this may be the case, but today successful nonprofits are diversifying their fundraising strategies. Diversification makes good business sense. It decreases the organization’s reliance on any one source of income and can assure better cash flow.
The following are a few different ways you can diversify your fundraising strategies:
Grants and philanthropies
There are hundreds of thousands of dollars out there available for funding NPOs; you simply need to know where to look to find them. For a greater chance and less competition for funding, start locally. Charitable foundations that are based in your region will often serve only local nonprofits. It’s also a smart idea to search out local corporations that have charitable wings and learn how to get donations from them. Finally, many local service based clubs, like the Lions or Rotary, will at times “adopt” smaller, local nonprofits.
Grants can also be a great resource for funds, but are notoriously tricky to obtain. If you plan to focus some of your fundraising strategies into procuring grants, it may be best to hire a professional grant writer; if that isn’t possible, you can learn how through your studies with Nonprofit University.
Funding Through Contracts
Nonprofit corporations can contract with governments, businesses and individuals to provide services. If your nonprofit is engaged in programs that provide needed services, you can often contract with the government or the private sector via service agreements.
Funding Through Corporations
Most nonprofits only work with the philanthropy division of businesses. While philanthropy is important to many organizations, and is a great source of funding for your nonprofit, consider that there may be other divisions (in most companies) that are also available to you.
Funding Through Public Donations
Public donations have long been a primary income source for nonprofits. However, the nature of the game is changing rapidly in ways that can benefit your organization tremendously if you understand the new dynamics of how to get donations. The Jobs Act, social capital, LOHAS, crowd funding and more have really changed the nature of fundraising strategies.
Early on in the life of your NPO, begin to forge the connections necessary to keep your organization afloat. Use the power of your own networks, and social media, to identify and reach out to people who may wish to work with or donate to your cause as a core fundraising strategy. The larger your network, the larger the likelihood someone will come through with a donation.
Marketing campaigns will broaden the reach of your audience and put your NPO into the fields of vision of people who may not have been aware of it before. When you begin to develop your marketing and fundraising strategy, remember to spread it across all of the forms of media available today. Consider including cross-marketing through television, radio, online, via social media and in public (think billboards or newspapers) as well.
Before rolling out a campaign, however, be sure that you have a branding strategy in place. Develop your logo, images, copy voice and style and remain consistent with it across all forms of media. This will help increase the chance that your organization will be memorable, and have the added benefit of boosting your trustworthiness to potential donors.
The best plan of action to help your NPO secure the funds that it needs to continue growth is a broad one. Cast your net wide and far, and use many different fundraising strategies for maximum return. For information about funding your new nonprofit and much more check out The Nonprofit Startup Guide.