Nonprofit Fundraising

Though the programs and missions are the most important priority for nonprofit organizations, fundraising comes in a close second. Every nonprofit manager knows this fact, and though there are constantly new fundraising methods, you should never forget the foundational fundraising techniques that provide the structure for all other efforts.

It is important to understand where the majority of funds come from for nonprofits. Individual donors are the number one source of funding for nonprofits. In 2005, individual gifts amounted to almost two hundred billion dollars. This is a stifling number. Be sure to focus on individual giving before moving on to explore other options. Corporations are the second largest contributor to nonprofit fundraising. These companies seek publicity, respect, and exposure for their gifts, so finding ways to give them such public promotions is key to bringing in new donors. Corporate funding has been proven to work especially well for events or short-term projects. If your nonprofit organization benefits the people of your area, government funds may be available, especially for social service programs and providers of education. It is always worth a try to see if your organization will qualify. Grants from foundations are another major way that many nonprofits get their necessary funding. There are private, corporate, community, and family foundations that provide grants to worthy organizations. Be sure to have someone on your staff that is savvy with grant writing.

There are two major categories of funding to be considered, Ongoing and Episodic. Ongoing funding includes things like the Annual fund, ongoing product and service sales, and multi-year grants. These sources continue to provide funds all year and are considered unrestricted, but do involve some extra attentions throughout the coarse of year. Episodic support includes particular grants, special events, or bequests. These sources are usually restricted in their purpose, as they are devoted to the unrestricted use by the nonprofit.

Beyond Ongoing and Episodic fundraising methods, there are two other important types of fundraising. Capital Campaigns are multi-year fundraisers that have specific goals, such as new building construction, medical research projects, endowments, and many other specific objectives. Planned giving is the other form of support. Many nonprofits have introduced planned giving campaigns to enable donors to give large gift amounts while receiving income or confer gifts at the time of their death. Both of these special types of fundraising supplement the usual ongoing and episodic fundraising to help nonprofits accomplish even more during the year.

The most successful nonprofits have a balance of all of these fundraising strategies, though unrestricted, ongoing funds are the most important to secure. Not exploring the other sources of funding however, can deny a nonprofit of so much potential. Set goals and produce fundraising plans to meet those goals, so that your organization has the potential to grow and thrive in the future.

About the Author: Dan Carlisle is the owner of Cold Creek Tea, a leading provider of programs and products for nonprofit fundraising, wholesale, and corporate gifts. For more information, visit http://www.coldcreektea.com

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