7 Ways to Fund a Nonprofit
A non-profit organization (NPO) is designed to provide public or social benefits, rather than generating profits for owners or shareholders. There is more than 1.5 million nonprofit organizations in the United States, ranging from small local groups to large institutions, such as hospitals and universities. By starting your own nonprofit, you can support a cause close to your heart, provide meaningful benefits through your activities, and make a real difference to those around you.
However, you will need a foolproof strategy to ensure you can fund your nonprofit before you begin. With that in mind, take a look at these seven ways to fund a nonprofit:
1. Corporate sponsorship
Getting corporate sponsorship can be one of the most effective ways to fund a long-term nonprofit. When you acquire a sponsorship, companies usually agree to provide a fixed amount of funding for a specific term, which means you can plan ahead and use the funds to provide maximum benefits.
With Givebutter, you can streamline your fundraising processes and implement end-to-end strategies to ensure funds are raised and allocated appropriately. To learn more, check out this in-depth article and learn how to secure corporate sponsorship for your group in five easy steps.
2. Apply for grants
Many types of organizations regularly give grants to NPOs. This means you can access some or all of the funds you need to run your nonprofit through a simple grant application process. From state and county governments to large corporations, you can conduct a grant research to determine which opportunities your NPO is eligible for.
When applying for financial support, it’s a good idea to take a strategic approach and apply for the grants that are most likely to approve your application. Instead of applying to every grant provider, consider which ones are most relevant to your nonprofit and tailor your application accordingly.
3. Ask for donations
When you run an NPO, donations from supporters can be an important source of revenue. As your nonprofit becomes more widely known and people learn more about the good you do, it will be even easier for you to get the financial support you need to continue your activities.
Of course, you will need the right infrastructure in place to encourage and receive donations. With Givebutter’s easy-to-use platform, you can engage supporters, create fundraising pages, and securely process donations, making it easy to facilitate one-time and recurring payments.
4. Organize events
Organize events, such as galas, sports tournaments and theme parties, can be a very effective way to generate interest in your nonprofit organization and raise funds in the process. You can sell tickets to the event to raise financial support and even plan activities during the event to raise additional funds.
Charity events can be as small or extravagant as you want, so you can plan a unique event that will engage your target audience and increase ticket sales. You just have to watch the Met Gala to see how lucrative charity events can be – although you might want to start with something a little less ambitious!
5. Membership fees
Depending on the type of nonprofit you run, it may be appropriate to set up a membership fee to help cover your operating costs. These can range from a few dollars to a few hundred dollars, so assess what membership in your nonprofit is worth and set your membership fees accordingly.
While membership fees may not be a viable financial strategy for all nonprofits, it can work very well for some nonprofits. For this reason, it’s worth considering whether membership fees could be an effective way for your nonprofit to generate much-needed funds.
6. Sell goods
Branded merchandise can be a great fundraiser for any organization, but it also offers the added benefit of generating brand awareness. If you sell brand promotional items, such as pens, hoodies or bags, for example, you will gain notoriety each time someone uses these items. In addition to raising funds through the initial sale price, you will benefit from the longer-term brand awareness that these items create and perhaps even attract more members and supporters through this additional publicity.
High-quality promotional items can be had relatively cheaply, especially if you buy in large quantities. Plus, the range of merchandise available means you can appeal to virtually any target audience. From branded teddy bears and keychains to t-shirts, phone cases, bracelets and candy, there are endless ways to promote your nonprofit and raise funds by selling branded merchandise.
7. Accept in-kind donations
In addition to accepting cash donations, consider accepting in-kind donations to help reduce expenses and cover operating costs. In-kind donations refer to anything other than cash that is donated to your nonprofit. If you support local pet owners, for example, people might want to donate pet food to help your cause, for example.
However, in-kind donations do not have to be tangible items that go directly to your beneficiaries. A local marketer may offer free or discounted services as an in-kind donation, for example. Alternatively, you might be able to persuade a local celebrity to show up at an upcoming charity event for free, which amounts to an in-kind donation.
In-kind donations can provide a range of benefits to nonprofits, so consider what type of non-financial donations would benefit your nonprofit most and explore innovative ways to encourage individuals, groups and businesses to support you in kind. this way.
Financing your NPO
Nonprofit organizations play a vital role in society, but obtaining funding can be one of the most challenging aspects of running a nonprofit. Despite this, a forward-thinking financial strategy and the right resources can ensure that you are able to obtain the financial support you need to maintain your operations. No matter what type of nonprofit you run, securing sufficient funding will provide you with long-term security and allow you to achieve your goals.