Top Funding Sources for Nonprofits & Charities

1. TOP FUNDING SOURCES FOR NONPROFITS AND CHARITIES

2. Identifying funding sources and deciding on a funding model can be one of the most challenging tasks at hand

3. MAIN NONPROFIT FUNDING SOURCES

4. INDIVIDUAL DONATIONS 71% Of all donations made to nonprofits, 71 percent come from individuals 1

5. 1.1 MAJOR DONORS Major donors give less frequently but their gifts are significantly larger Gift size REGULAR DONORS Regular donors usually give more frequently but their gifts are smaller in size

6. 1.2 While online fundraising grows day-by-day Online or offline Combine traditional and modern fundraising techniques

7. WEBSITE 1.2.1 Crowdfunding (see below) works best for specific campaigns and when you’re telling specific stories CROWDFUNDING Online fundraising Crowdfunding is all about many individuals each making a small donation – $10, $50, $100, maybe more PEER-TO-PEER FUNDRAISING Individual fundraisers usually set up a personal fundraising page to accept donations

8. 1.2.2 DIRECT MAIL EVENTS Offline fundraising Generally low cost and effective Provide a space in which the nonprofit and potential donors can interact PHONE SOLICITATIONS DOOR-TO-DOOR Couple of ‘thank you’ calls to large telemarketing campaigns Successfully by political organizations

9. GRANTS Nonprofits can apply for grants from the government at local, state, and federal levels as well as private and public foundations Fuel large projects Enabling large-scale societal impact 2 Take a significant amount of time

10. Are we able to invest resources in writing winning grant applications? Can we meet the grant conditions? Are the activities we would conduct consistent with our mission, our aims, and our strategy? Considerations Can the activity continue after the grant funding ends?

11. CORPORATE SPONSORSHIPS Corporations are usually keen to partner on projects to improve their philanthropic image Valuable funding source 3 Demand transparency

12. Philanthropic – no-strings-attached donation, similar to individual giving Event sponsorship – episodic or short-term support, typically event-based Corporate support usually comes in three major forms Cause marketing – longer-term thematic engagement Check DonorBox Donation Software for complete fundraising solution

13. MEMBERSHIP FEES This funding source is particularly effective if your nonprofit can offer exclusive programs and or perks and benefits to its members Funding through past beneficiaries or alumni 4 Works if your organization serves a large community

14. Do we run programs that produce loyal supporters and evangelists? Can we invest in long-lasting building relationships with our beneficiaries? Do we have the capacity to reach out to beneficiaries after they finish using our services? Considerations Do we offer exclusive perks and benefits to justify a membership fee?

15. SELLING GOODS AND SERVICES Another funding source your nonprofit can consider is selling goods and/or services Hospitals bill patients 5 Museums ask for admissions fees

16. Selling tickets to events Creating and selling publications ‘Trading’ or ‘Earned Income’ Selling in-house expertise e.G. Writing, training, consultancy

17. IN-KIND DONATIONS Invaluable source of support for nonprofits like animal shelters, homeless shelters, safe houses, or humanitarian relief organizations Save you many dollars 6 Use them in auctions

18. While opinion varies as to what a nonprofit’s “ideal” funding model is, utilizing several diverse sources to achieve sustainability is generally a good practice

19. MORE INFORMATION https://donorbox.org/nonprofit- blog/nonprofit-funding-sources/