Starting a nonprofit is hard, but keeping it running is harder. Just like any venture you take on, it requires hard work, dedication, and funding, and the process of finding different sources of revenue for your nonprofit can be intimidating. Don’t worry, because we’re here to give you a few ideas and guide you through creating the best funding strategies for you!
Donations are still the biggest source of revenue for your non-profit. But with person-to-person interaction limited due to the pandemic, up the ante by accepting online donations. This will not only ensure safety for your team and your donors but also make it more convenient for technologically-inclined donors to send donations. You can use online donation platforms like Donorbox, or but it also helps to have other online donation portals like Giving Fuel in case one or the other falls through. Try to steer away from online payment channels like Paypal that is usually associated with business organizations.
One way to increase online donations is to create a newsletter that keeps donors and supporters updated about what your nonprofit is doing. Write about any upcoming activities and have a question and answer section where people can submit questions that you answer in the next newsletter. If you have a goal you’re trying to achieve, keep your readers up to date with its progress.
Partnering up with a business or company can be a huge help for your nonprofit. Companies usually sponsor a nonprofit for an event or campaign, and effective sponsorships can help increase revenue and provide you with new connections for other future partnerships. You can usually see company sponsorship in events like charity runs or concerts. While at first, you might think that companies might find nonprofits unattractive because you have nothing to offer, the opposite is true. Depending on what kind of business you are partnering up with, you’re also helping them by bringing awareness to their business (for small businesses) or softening their image (for large businesses or corporations).
You and your team can introduce your nonprofit to your colleagues and business contacts, as they can be a good source of potential sponsors. Approach potential sponsors who have a connection to your cause and whose values align with yours.
Grants can offer extra income if it is essential to your nonprofit. They are usually restricted depending on a certain sector or location, which is why it’s important to search for grants that are appropriate for your nonprofit before applying for consideration. Some grants you can choose from include:
- Community Foundations — This is locally based, and this type of foundation aims to provide a particular community with funds, the limits of which are set by donors.
- Private Foundations — This type of foundation usually gets its funding from an individual, family, or corporation.
- Family Foundations — Funds in this type of foundation are usually derived from a single family. Still, it can also mean that it is run by a family member who voluntarily serves as a trustee.
- Public Charities — As the term implies, public charities rely on the public to gather money to give and distribute in the form of grants to nonprofits.
It might sound easy, but grant applications are a lengthy and complex process, so it’s important to plan. The first step is to see which ones apply to your organization. Once you narrow down your choices, the next step is to draft a project proposal. Writing a convincing proposal that is both effective but not forced can prove to be difficult. Still, some online grant writing resources can help you whip up a professional and persuasive proposal that raises your chances of having your grant approved.
Along with fundraising campaigns, events are the backbone of nonprofit organizations. Events like concerts, charity fun runs, auctions, and festivals play a large role in funding your nonprofit. These events can bring in new people interested in your organization and help you gain more exposure. These take a lot of time and effort to plan, so it’s best to start early. Consider your target market and create events that will cater to them because this is one of the best opportunities to increase your revenue.
Be mindful of your expenses because these can eat up your budget and revenue quickly. Ensure that you and your team find ways to optimize your budget and generate the best results for your event. This is also a good time to utilize your connections with similar organizations. Working hand-in-hand with local businesses and organizations with the same values can save you a bit of money and bring in more people.
Funding your nonprofit might feel like a losing battle at times, but don’t give up! Just remember to plan, utilize your resources, connect with people, and put effort into what you do. Keep these things in mind and use these ideas to guide you in making your nonprofit organization the best it can be!