How to Get Funding for a Nonprofit Organization

As a nonprofit organization, securing funding for the quality programs and services you provide in your community can seem like a constant and ongoing struggle. Yet the success of your mission depends on your ability to raise funds. At LENDonate, we are dedicated to helping nonprofits secure funding that helps strategic organizations endure uncertain times and sustain long-term success.  Our platform brings together investors and philanthropists who are looking to support the social good in communities that align with their personal values and beliefs.

But first, let us take a look at some of the best tips, strategies, and tried and true methods for obtaining funding for a nonprofit organization.

The Tried-and-True Methods

Grants

Many nonprofit organizations turn to government funding in the form of grants to secure essential funds for their mission. Grants are typically made available to specific service sectors and may require a lengthy application process. Before applying for a grant, it is important to check the eligibility requirements to make sure you qualify for the intended grant before beginning the application process. Grants may also come from corporations and other private organizations but may still be targeted to specific service industries, service areas, etc.

Fundraising Events

Most of us are familiar with famous fundraising events like the classic Jerry Lewis MDA Telethon, the AIDs Walk, and other such well-known events. Hosting a local fundraising event in the spirit of these beloved events is a great way to earn funding and build a rewarding relationship with your local community. Auctions or special events like Gala’s and even concerts are other great sources of fundraising events that can earn funds while providing an entertaining and memorable experience for donors. While extraordinarily successful fundraising events may take a lot of time and resources to plan, organize, and conduct, a memorable event that attracts strong donor interest can help garner and strengthen donor support and long-term financial contributions.

Sponsorships

Partnering with local businesses is another great way to earn funds for your nonprofit. A sponsorship is a mutually beneficial relationship in which two or more entities work together to achieve their goals. You earn vital funding for your organization, while the sponsor gets positive exposure and recognition in the community by placing their name or logo on your event materials, your marketing materials, and/or your website. A good way to secure sponsorships is to tap into your board member’s local connections in business and industry and create a partnership that benefits both entities.

Individual Donations

Individual donations can come in both large and small sums. While tapping into the giving power of local philanthropists can bring in sizable donations, organizations would be wise not to overlook smaller individual donations as well. A steady stream of donations in small amounts as little as $5 to $25 dollars per month can provide a continuous stream of funding.

Crowdfunding is a relatively new form of individual donations that allow organizations to raise funds for specific ventures by tapping into the power of the internet and social media to spread the word of your mission throughout the local community and beyond.

Tips for Maximizing Your Fundraising Efforts

To get the most out of your fundraising, here are 5 tips that you should consider when creating your next fundraising effort.

1. Publicize Your Success

If you want donors to invest in your mission, you need to prove that you can generate results. Donors will not contribute to your cause if they don’t know how your nonprofit is enjoying the fruits of its success. Let potential donors know how you have made a positive impact in the community with data and numbers that paint a positive picture of what they can expect to see from their donation.

2. Do Not Lowball or Underestimate Your Fundraising Needs

When you decide it is time to raise funds, you need to have a well-thought-out plan for your goals and what it will take to achieve them financially. Fundraising takes a lot of effort, so be sure to aim high when setting a fundraising goal. It is much easier to set a larger goal for one fundraising effort than to constantly organize additional fundraisers to meet your financing needs.

3. Consider Alternatives to Cash Donations

Many nonprofit organizations make the mistake of seeking only cash donations to reach their funding goals.  In-kind donations of assets, property, and other resources can be just as impactful to your mission. For example, an organization may be interested in donating an older vehicle to you, which you can repurpose for your specific needs. Computers, books, furniture – even real estate and appreciated stocks – can be received as donations that can make a huge impact on your organization.

4. Failure to Adequately Promote Your Fundraising Event

Huge mistake nonprofits often make is not getting the word out about their event well enough in advance. Tapping into social media, local networking, and even good old-fashioned cold calling can be highly effective ways to get the word out about your big event. Your organization should do everything in its power to broadcast your event so the whole community you serve is aware.

5. Focusing on Only One Fundraising Method

Your best bet to maximizing your fundraising efforts is to employ as many of the different tried and true methods we have discussed as possible. By only focusing on either large donations or fundraising events or any other singular form of fundraising, you may be leaving crucial funds on the table. Executing as many different fundraising options as possible will provide the biggest financial returns for your organization.

Supplement Your Fundraising with Help from LENDonate

But wait, there’s more.  LENDonate can leverage all your fundraising efforts by supplementing other funding, bridging gaps in funding, and helping you find alternative financing when raising traditional funds becomes a challenge. LENDonatehas a one-of-a-kind marketplace that brings together organizations like yours with our extensive network of investors and philanthropic partners. Nonprofit organizations can create a profile that outlines their mission and fundraising needs, and potential investors and donors can bid to financially supporting your project. Your mission will be exposed to a wide variety of potential supporters, who offer much more flexible terms than bank loans. This can be a great way to supplement those other sources of funding and obtain capital for operating costs and other uses that might not be available with more traditional fundraising options. In some cases, loans may even be forgiven or converted into partial or full donations. For those looking to get started with LENDonate, we invite you to head over to our borrower’s page for more information on how to get set up with LENDonate.   We look forward to hearing from you so that we can think outside the box and share your story with investors and donors looking to invest in socially conscious organizations like yours.