How To Raise Money For A Non-Profit Organization

Cash, as they say, is king. Without it, you cannot provide the programs and services for which your nonprofit organization is intended. Unlike a non-profit business, companies that raise money for nonprofits, cannot promise investors a return on their investment (excluding a mental return) or expect future sales to make a profit. So where do you get the money you need? ways to raise money for nonprofits.

You want it. You ask individuals for direct donations. Ask foundations and government agencies and corporations for grants to support specific programs and projects. Over time, you can request direct donations from corporate and private philanthropists. The general term for this question is fundraising.

There are two fundraising orders: simplify and focus. Many small non-profit organizations have trouble raising money because they pursue every possible opportunity, thereby slowing down their efforts and losing sight of their mission.

Fundraising includes all fundraising activities for a non-profit agency. It includes efforts to raise money from:

• Individuals

• Grants

• Philanthropy (private or corporate)

Add to the list service fees and similar income. Although these are not charitable donations, they can be a significant source of funding for a new non-profit organization.

Most non-profit start-ups limit themselves to seeking donations from individuals and special events. (Very few may be able to secure government funding for a specific program, but this is rare.),how to raise money for your nonprofit?

Once launched, they may be eligible for specific grants (usually program-related) and donations to philanthropists. Program staff (who make donation decisions in these organizations) seek good experience, proven success, and a strong CEO as proof that their donations will change positively and achieve their programs and philanthropic goals. By definition, startups lack the first two and will not be able to overcome this barrier without an extremely well-qualified and well-connected ED.

In any case, fundraising starts simple enough.

It all starts with the case statement: a short (one or two pages) written statement that lets potential customers know what you intend to do with their donations and why their donations will have a positive effect on the community. The declaration on the case provides the basis for donation, provides a basis for supporting materials (brochures, letters, brochures, etc.), and helps maintain your non-profit organization's communication consistently and convincingly. Without a clear statement of the case, your message will be confused and lost.

Step 1: Case Statement

Here are some of the questions you need to answer in your case statement:

• Why are you in business? So what is the problem you are trying to alleviate or solve? This is an extension of your mission.

• What results do you expect? They must be measurable and publicly monitored, not vague statements about "improving lives". What specifically are you trying to achieve with this particular program or service?

• How is your organization different from other organizations?

• How will you achieve your program and service goals? What methods will you use? Your coverage of this point should not be exhaustive.

• What great achievements have your non-profit organization achieved? People give to successful organizations and tend to avoid giving to those who struggle.

• What is the history of the organization? When was it founded, and by whom? How is it financed? What is the philosophy of the organization? How do you work with other non-profit organizations?

It is longer than an elevator speech (this 30-second cycle is designed to stimulate interest) but much shorter than a business or strategic plan. The main purpose of the case statement is to persuade potential donors to open their checkbooks and make a donation to your non-profit organization.

To make it more effective, customize the statement of the case. This is sometimes called searching for a "poster child" for the organization. Ultimately, the decision to give is based on emotion, not just pure cause. Accordingly, you want to put a face on the beneficiaries of the organization. An after-school program will help a young woman avoid trouble, a dental program will help children have healthy teeth and gums, and a homeless shelter will protect families from rain and cold. And so on. Draw a picture with realistic people (or animals) who receive important benefits. This makes the case personal, as opposed to impersonal. This also makes it more exciting.

Who writes the case? Ideally, all your stakeholders will play a role. To save time and focus, start with the board members and the CEO, who will be the main inquirers. Draw a rough outline of the case and then ask for constructive criticism from other stakeholders, including employees, customers, early donors, and friends. Each group will have valuable suggestions. Ask for ideas for a child with a poster - and keep in mind that in advertising agencies the first few ideas are thrown on the theory that early ideas are generally weak. If they really have value, that is, if they convey the spirit and urgency of the program or service, these ideas will reappear.

Another dimension of reviewing the case statement involves focusing on your goal. You will naturally direct the statement to the people you are courting. This does not mean that the statement of the case is entirely plastic: most of it will be permanent. You will simply highlight the facts and figures about the analytical, the emotional attractions for the sensitive, and the prestige to give to those who need reassurance that they will join a selected group. By the way, this is not cynical. It's just a smart sale.

Targeted Marketing

Step 2: Targeted Marketing

Targeted marketing, which carefully identifies the most likely potential donors, is one of the keys to successful fundraising. What is targeted marketing? Think of a goal. In its center, there is a bull's eye, surrounded by concentric bands, which are consistently further from the center. You head to the center, the bull's eye, where you earn the most points. If you have dropped a little, press the first ring, which will give you fewer points.

Now think of your limited marketing dollars as a quiver of arrows. All fundraising has a monetary cost. How can you maximize the return on your investment? Simple: focus carefully. Go for the biggest payout, bullshit. With practice, you will improve your goal.

Start with your board and their contacts. These usually include the earliest donors and people like them. Following well-proven marketing techniques, your chances of successful fundraising start with people who have already given to your organization, followed closely by those who have already donated to such a cause. You want to grow the bull by turning people from potential donors into real donors. Or, in other words, you want to foster relationships with more and more people. Your staff, friends, and other stakeholders will help you identify more potential donors. Ask for recommendations (this is what all sellers do) and follow. Slowly, step by step, this will provide a solid donor base. And if you're smart, you can start cultivating those donors who can make big contributions.

The same process applies when seeking funds from corporations, philanthropists, and/or government agencies. You look for early donors and cultivate them; then look for more people like them and repeat the process. An important consequence: corporations, philanthropists, and government agencies do not decide to give money. The people in these organizations make the decisions, and you need to carefully nurture your relationships with these people. In a very real sense, each giving is individual.

Step 3: Start with individual requests

Obtaining funds for a new non-profit enterprise is very similar to obtaining funds for a new non-profit enterprise. Traditionally, you start by investing your own assets. Then you turn to the three F's: family, friends, and fools.

Family and friends have an obvious, natural reason to invest in your new venture. If your idea is as good as you think you are doing your family and friends a favor by allowing them to invest in your startup.

Fools are people who think you have a good business idea with a real chance of success. The label of "fools" may sound harsh, but the success rate of new ventures over other, less risky investments is bleak.

Take the same approach with your nonprofit organization. First, if you don't want to invest in your nonprofit organization, why someone else? Secondly, if the non-profit case is fascinating to you, it will probably be attractive to your family and friends as well. The third group of non-profit start-up investors may be fanatics(not fools) who see the same social benefit that drives your ideas.

What you can't do is hope to attract bank funds (banks play a role later, once you have experience) or philanthropic and grants. These organizations are not interested in start-ups.

Part of your fundraising job is to identify those individuals and organizations who are likely to be interested in the programs and services you offer. Asking people to donate to a non-profit organization that has no interest in them is nonsense. Referring to a small number of potential donors is an effective way to focus your efforts.

Personalized appeals to key supporters

Make a personalized appeal to your main supporters. The most effective way to reach your main supporters is to visit them individually. You can do this yourself or more often a board member and the CEO can make the visit.

Before you leave, rehearse what you plan to do. What would you say? How much will you ask for? What supporting materials will you take with you?

The beauty of a personal visit is that you will build relationships with the individual. You can adapt your presentation based on his response. Ask for recommendations. Ask for criticism of your demands. You talk to people who are already committed to your non-profit organization, so asking for money is not a necessity. Although you may feel uncomfortable the first few times you go out to raise money on a personal basis, this feeling will soon subside and you may even find that you enjoy the process.

Why rehearse? Simple: wings won't work for most of us. By having a script you can return to, including a query level, you develop a consistent approach that you can improve on. One suggestion is to make a list of 100 (or 50 or 25) people you target for an individual visit, and then roughly rank them in terms of their potential value to your organization. Some ranking criteria: potential donation, power as a source of referral, community position, political or other position. Then visit the list in reverse order, starting with the people who are at the bottom. The idea is that as you move through the middle of the list, you will refine your presentations and learn the main objections and how to deal with them, and know what works best. This will focus your best efforts on the best prospects.

The individual personal visit is a great source of unlimited funds to cover the unglamorous but vital overheads. It is also a way to pave the way for planned donations and other fundraising efforts.

Don't forget to ask - and ask again. Visiting without asking is a waste of everyone's time.

Annual Fund Complaints and Indemnities Annual Fund

Appeals

Most non-profit organizations conduct annual fund appeals inviting their stakeholders and other potential supporters to make a small donation to cover the organization's management costs. These are calls for unlimited funds.

Most appeals rely on the mail to deliver a series of requests for money. One or two letters will not break through the cluttered mail that recipients receive. Some experts require up to eight or even more letters. The additional costs (using a mass shipment permit) are small for each additional shipment.

The key here is to have a clean mailing list. Don't buy or rent a mailing list unless you have money to burn. Instead, make your own list, starting with current and past supporters and stakeholders, paying particular attention to those people who have benefited from your programs and services. A compiled list is built around people who have shown interest in what you are trying to achieve. These are selected people, already qualified.

Phonation is another way to appeal annually. The same list qualifications apply: make sure the people on the list are related to your organization in some way. "Blind" calls are rarely productive for non-profit organizations and can really cause resentment.

If you decide on phonetics, prepare a script for each caller to follow. This facilitates data collection and will help your organization improve results in the future. Hire a professional to prepare the script. The difference between the results of a good professional scenario and the results of amateur efforts will amaze you. In most cases, a good scenario will pay for itself.

Email is an increasingly popular fundraising method. Again, the results depend on the quality of the list. The advantages of e-mail include costs (very low), information transfer (very high if properly prepared), ease of information collection (high), and flexibility. You can make changes very easily.

If you can, try a small number of leads before sending a full mail, phone call, or email. These forms of direct mass marketing have their own logic and small changes can lead to big differences in results. Accordingly, most non-profit organizations try to gain experience in direct marketing on their boards or, if they fail, rely on external advisors to help develop the postal package (cover letter, brochure or guarantee, response device), the script and record, email, or website. This is too important to be left to learn on your own.

Special events and benefits

Even a future non-profit organization can hold a successful fundraising event. This can be a cocktail, tea, golf tournament, famous speaker, dance for dinner, auction, or yacht day. The possibilities are almost endless. As with any fundraising effort, start with a goal. How much money do you hope to earn (excluding expenses)? How many people do you need to attract to achieve this goal? If a successful special event was easy, there would be many more. Unfortunately, there are many fundraising events that are not close to fundraising costs.

Marketing is just as important as raising money. Think about this. Most benefits have two purposes: to raise awareness of the nonprofit's mission and to raise money. In some cases, raising money is considered secondary, especially if the non-profit organization is new and unknown. The successful event will raise awareness of the organization.

How do you plan a successful event? Start with the goal: unlimited monetary and/or marketing goals.

 Then ask the following questions:

• Are there time problems? Well-established conflicting events can hinder your efforts. Sometimes it seems like there are golf tournaments or auctions every day.

• Who will be on the guest list? I think targeted marketing. You will want to invite your main supporters, stakeholders, potential donors, and maybe some community leaders. The event must be tailored to their schedules and desires - and if you try to reach too many people, you almost guarantee failure. Don't complicate it.

• What will you want? Donations, true. But other issues are important: recruiting new board members, advisory board members, recommendations. Just getting to know more people is valuable; the more friends you can make for your non-profit organization, the better.

• Do I have to have an entrance fee? It depends on the event and the audience. This is a call for a verdict. If you still ask for a donation, think carefully about how much (or a little) to ask for. If your audience is well trained, ask loudly. If not, ask low or don't ask at all.

• What is the budget for the event? The budget is vital: spending can easily get out of hand. Budget spending will affect what you want. Plan ahead in financial terms and prevent unnecessary losses.

• Can you ask for gifts in kind? Maybe the catering will provide services at a price or the facility will waive the fees. You need to ask for this kind of donation; if you do not ask, you will not receive it.

Memberships

Membership provides another source of unlimited funds. Many well-known non-profit organizations are membership only: Lions, Kiwanis, Rotary, etc. Some religious groups are quasi-membership organizations. Some non-profit organizations are unable to offer membership due to the terms of their main funding organizations, while others believe that the additional burden of maintaining the happiness of members is not worth the effort. However, if your non-profit organization can easily provide major membership benefits (newsletters, reduced event fees, preferred type of treatment), it is worth considering, as membership income is very stable over time.

Planned Giving

Particularly useful for equity funds and donations planned giving is a long-term effort that begins with establishing and maintaining a relationship with the prospective donor. Methods can range from providing financial planning services (use a professional) to a group, encouraging the involvement of non-profit organizations in wills, and using life insurance or highly valued promotions to finance a large gift (with subsequent tax savings) to more complex methods that are beyond the reach of all but the largest non-profit organizations. As always, the better you know the prospects, the greater the chances of success.

Step 4: Foundations and other sources of funding

There are over 30,000 charitable foundations. They are a rich source of funding for non-profit organizations - usually for limited funding for specific programs or services, less often for unlimited operating funds.

How is it financed by one of them? In the same way that you receive funding from individuals. You need to know what you're looking for, do research on foundations that might be interested in what you're doing, and connect with people in those organizations that make funding decisions (remember, organizations don't make decisions, people do). Then and only then can you reasonably ask for funds?

Foundations, whether public or private, are very clear in their interests. You can explore them online, go to the library, or (more effectively) ask your peers and helpful people on the United Way for guidance.

Local charities serve local non-profit needs. Community foundations are very accessible and are a major source of capacity building, which is slang for helping small non-profit organizations acquire skills (planning, grant writing, negotiation, on-board training, etc.). If your non-profit organization would benefit from a strategic planning retreat, for example, your municipal foundation (or other local foundation) may be willing to pay a facilitator to help with the strategic planning process. Make a connection, clarify your needs, and ask for their help. Even if they say no, they will do their best to explain why, how you can improve your chances, and get you on their grant cycles (time is of the essence) and decision-making criteria.

Large independent foundations (Ford, Gates, Rockefeller, etc.) are unlikely to give money to small nonprofits. Unless you have a really big idea that meets their criteria, don't worry - and even if you do, the chances are slim.

Corporations and other businesses have charitable wings, usually under the auspices of society or public relations. Some are often targeted: banks, financial services companies, law firms, utilities, and medical companies are besieged by demands. Ask them what their donation criteria are. If you answer them, great, but if not, don't waste their time or theirs. What they may be willing to provide even to a brand new non-profit organization are furniture and equipment. They are also a great source of board members. Some companies even require junior employees to be active in local non-profit organizations as part of their training.

United Way and other federal funds operate locally. They are key trainers for non-profit advice and staff, as well as significant funding organizations. However, in recent years, their tendency has been to focus on several broad areas (medicine and dentistry, homelessness and early childhood education are favorite areas of interest), so they are less inclined to provide direct funding. Ask them. You need to get to know them very well because they act as a non-profit information and guidance intermediary.

Service clubs such as Rotary, Elk, Lion, and many others have a strong local presence. They are known to host small non-profit organizations, manage funds and raise awareness as part of their official duties. They also offer a great place to speak, allowing you to reach business and community leaders in a supportive environment. Chambers of Commerce provide excellent places to talk, although not a source of funding.

Public sources of funding include federal, state, and local agencies. The good thing is that they provide a lot of money. The downside is that even if you can secure a grant, contract or deal for a direct purchase/service fee with a government agency, paperwork and oversight can be very burdensome. (Fair enough; it's public money.)

Step 5: Getting a Grant

Unless you have experience writing grants, hire a professional to help you. You can learn by doing, of course, but it will take much longer than you can probably afford. There are literally thousands of books to write about grants, but working with a professional will speed up the learning curve, give you an idea of ​​the process from both the grantor and the fellow, and significantly increase your chances of funding.

You should also look for local grant writing workshops. This is the strength of the local United Way staff advantage, as they end up receiving well-thought-out grant proposals and saving time by helping non-profit organizations learn not to submit long-term proposals.

Start by deciding which sources of funding to go for. The minimum requirement is a close match between your needs and their interests. Sometimes foundations make requests for proposals (RFPs), stating their interest in funding a particular area of ​​interest. You offer (following their instructions, which they will provide) and they are ordered.

There is a danger: turn your mission to meet their requirements, according to the theory that some money, any money, will be useful, and in the end, it is quite close to your mission ... Beware of creeping missions. It is insidious. Although you may receive some funds, in the long run, it will be worth your trust in a non-profit.

Return to the statement of your case. Tilt it according to the requirements of the chosen financier. Good grant writers can do this in their dreams.

Document the need for the services and programs you provide. Make it clear that you will avoid duplicating the efforts of other non-profit organizations in the area.

Meet the funders. They will work with you. You want to establish long-term relationships with both individuals and the foundation itself; this is a relationship that needs to be nurtured.

Remember that foundations aim to be clear in their guidelines for potential recipients of their funds. Your hardest job is to follow their instructions. Once again, make it easier for yourself by working with a professional writer on scholarships until you feel confident in your ability to apply successfully for cash.

To read more about starting and running a non-profit business, by nonprofits has become easy.