Raising money for a non profit is a lot tougher than finding
startup capital for a commercial business. The reason for this is obvious.
After all, you can’t promise a business
investor of a non profit that you will make profits on the investment.
The best way then to find funding for a non profit is by asking for direct donations.
Non profit organizations should ask for funds from government agencies and corporations
for grants to support specific programs and projects.
Another way to find money for the non profit organization is through fundraising.
Fundraising includes efforts to raise money from individuals as well as through
grants and from private and corporate philanthropists.
To raise startup capital for the non profit, the message and the aim of the non
profit has to be clear. A non profit agency first has to decide on the areas that
it will work in as well the programs that it plans to invest before it solicits
philanthropists and individuals for funds.
There are two fundraising commandments: simplify and focus. Many small nonprofits
have trouble in raising startup capital because they pursue every conceivable opportunity,
thereby diluting their efforts and losing sight of their mission.
Just like every entrepreneur needs to develop a strong business plan before approaching
an angel investor for funds, non profit organizations need to develop a strong case
statement.
The case statement needs to needs to be simply but effectively written in order
for it to be used to raise funds. The case statement needs to explain the mission
of the organization as well as the problem that the non profit is trying to resolve
or alleviate. To be most effective, the case statement needs to be personalized.
Like every new business, the non profit needs to define its target audience to raise
capital. Again just as in any other business, a non profit should start with family
and friends for donations. This then has to be followed by a well proven marketing
technique to improve the organization’s chance of getting new capital.
Making personalized appeals to the core group is the best way of finding funding
for the non profits programs. Another effective method is personal visits. A member
of a non profit agency always has to rehearse the fund raising talk before meeting
with an individual donor. The reason for this is that every philanthropist for a
non profit agency is similar to an angel investor for a new business.
Individual personalized visiting is a great source of unrestricted funds to cover
the unglamorous but vital overhead expenses