Nonprofit fundraising is a complex subject and an important task. In a unique situation from nonprofit businesses, they can not make good profits to their products and services. The operating budget should be visualized from sources other than revenue from the program.
It is a guide focused on fundraising for nonprofits. In this, the following major topics will be discussed:
1. Preparing a Non-Profit Fundraising Strategy
2. Optimizing your organization
3. kickstarting your donor development
4. Developing your marketing campaign
5. Taking advantage of grants and other money opportunities
Before starting, here’s a brief overview of the money.
How are non-profit funded?
The following categories make money for nonprofits:
Fees for goods / services from private sources – This is largely operated by hospitals and high-education nonprofits who charge for services, tuition, etc.
Fees for goods / services from government sources – includes items like Medicare and Medicaid reimbursement
Government grants- Cash is given to organizations giving different scholarships
Personal contribution – charitable donations and grants from private individuals, corporations, etc.
Investment income – Endowment makes an important part of income, especially among the foundation
Where do donations come from?
Private contributions constitute the largest portion of non-programmable revenue streams for nonprofits. These donations were $ 373.25 billion in 2015.
In this amount, 71% came from individuals, while the rest came from foundation grants, will and other corporate philanthropy.
Although this represents a tremendous potential, it brings even more challenges for non-profit companies who want to focus on marketing and fundraising strategies on specific channels. The need for personal contact with most personal donors becomes difficult to measure fundraising strategies focused on different donors.
Prepare the right non-profit fundraising strategy
Any successful initiative requires a plan. To maximize your organization’s potential, it is important to understand where you are today and in the future you need to define specific routes. A useful strategic plan for your fundraising function will provide a sense of direction for your organization and underline measurable goals to assess progress.
1. Establishment of a vision
The first thing you want to do is be an ideal version of your organization. Leslie Ellen of Front Range Source published a good guide on this topic, in which she suggested that you ask yourself the following questions:
A little administrative work should also be done now … especially to set a budget to spend on this non-profit fundraising strategy and an implementation timeline, through which you want to achieve your goals.
2. Understand your current situation
Describe your organization as it exists today. This will prepare the basis for which your strategy will be implemented.
You should get a list of all the different funding sources that you have used currently and used in the past. Try to rank and prioritize the effectiveness and quantity of money raised from each. Focus on what has worked and what is not in the past.
If possible, adopt an external perspective. If you can audit your organization, please do so. If not, then be as fair as possible to determine how well your organization performs in this area, and compare it with other organizations. Use the current employee or colleague, outside of the organization, of other nonprofits.
Understand your strengths and weaknesses! If you are very much funded from a particular source, let’s say that a specific government grant that comes in every year and fund 90% of your budget-you need to address it. Like putting too much focus on a customer on any business, you run the risk of closure, should the government stop it?
Whenever possible, do not limit yourself to singles or some money sources. Make your organization ineligible for things you can not control.