What Non-Profits Need Most is Funding
Too many non-profit organizations fall into a financial trap of their own making. Being mission driven, they find themselves focusing on providing services without a clear picture of where the money will come from. Many non-profits fail to put a solid fundraising system in place. A major study of the challenges facing non-profits conducted in 2013 found that almost a quarter of the organizations surveyed had no fundraising plan whatsoever. Additionally, many non-profit board members lack training on essential fundraising skills like donor identification, prospecting and cultivating.
Non-profit organizations need a solid fundraising culture to succeed. Too many non-profits find themselves dealing with one financial crisis after another when efforts are too heavily focused on the cause, and few resources are dedicated to funding. Some in leadership positions at non-profit organizations do not consider income generation their top priority. This kind of thinking can cause an organization to fail to thrive, or worse, flat out fail, despite great ideas or potential.
Create a Fundraising Culture
A strong fundraising culture is created when all of an organization’s members and donors have an awareness of its mission and funding needs and are enthusiastic to work toward making both succeed. With a bit of basic information, and an appreciation for how the mission and fundraising interact, members and volunteers will create a network that spreads the non-profit’s vision and is ready to capitalize on fundraising opportunities. These basic tenets encourage a positive fundraising culture.
Mission and Vision
Members should understand exactly what change the non profit organization is trying to affect and how it goes about doing that. What are the primary goals of the non profit, and how does it use its resources to serve the community? Being able to articulate these points allows members and volunteers to promote the non-profit’s work.
Every non-profit organization must understand the costs associated with sustaining its mission and vision, as well as its programs and services and how to make the project sustainable. The basics of the financial plan includes information about revenue sources and administrative and organizational expenses. Donors and members must know who donates to their non-profit and where other funds come from.
Having fundraising pitches or elevator speeches prepared for every occasion is essential to take advantage of whatever opportunity arises. Preferably, board members already have pitches they use to secure donations from the philanthropists they solicit, but everyone ought to have an idea of what to say if the subject arises. It could simply be clearly communicating the organization’s goals, strategies and needs.
Where’s the Money?
Ideally, non-profits must secure support from many different sources. Some financial sources will occur episodically from events, a grant award or single donation. A combination of episodic and ongoing support, such as endowments, annual funds, recurring grants and the sale of services or products are preferable. Here are some traditional sources of philanthropic funding that non-profits can rely on.
- Charitable Contributions from individuals account for almost three quarters of all charitable giving in this country.
- Corporate Contributions have taken on added importance to companies as socially conscious consumers increasingly turn to like minded companies when making purchasing decisions.
- Government Grants fund programs on the local, state and national levels.
- Foundations come in many forms including family, community and corporate. Their purpose is to generate funds for other philanthropic organizations.
Non profit-organizations need to consider all of this and more to be successful. If every member at every level of the organization is committed to both the mission and the fundraising, the non-profit will have a substantial advantage in receiving support of all kinds.
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Even though I am no longer a BNI business member, I’m still a raving fan of anything BNI. Even in my retirement, I remain an active connector, too.