How to Raise Money Within a Nonprofit Organization

You should write a business plan and a budget before beginning fundraising efforts.

A nonprofit organization cannot survive without donations. The best way to obtain contributions to keep a nonprofit afloat is to utilize different methods of fundraising. Some of these methods include planning fundraiser parties or special events, meeting with potential donors to solicit funds and writing grant letters. Before you start fundraising you should write a business plan, establish a budget and create a list of possible contributors.

Things You'll Need

• Business plan
• Donor list
• Grant applications

Instructions

1. Write a business plan. It should include information such as your company's mission statement and an explanation of what your organization will use funding for, as well as short- and long-term goals. You will need this plan to show to potential donors and may have to include it with grant applications.

2. Create a detailed list of your overhead costs. This will give you an idea of how much money you need to raise, as well as show potential donors what expenses they are funding. Include cost of supplies, staff salaries and any other expenses you incur to run your organization.

3. Create a list of potential donors. The list can include friends, family, businesses, organizations, government agencies and any entities that have helped your organization in the past. These contributors should receive any correspondence pertaining to fundraising as well as invitations to all the events you plan.

4. Plan fundraising events or parties. One idea is to have a live auction party where donors bid on valuable items. Ask local companies to sponsor your auction by donating goods or services in return for advertising. You can also have friends donate valuable items, such as unwanted vehicles, designer clothing or jewelry. You can also organize events to provide services in exchange for donations, such as a car wash or bake sale.

5. Locate charitable foundations or entities in your area and contact them for help. They can be wealthy individuals with a history of philanthropy or small to large companies or corporations. Schedule appointments to meet with donors. Take your business plan and budget report to the meetings to show that your organization is ready to receive and utilize contributions. You will have to convince potential donors that you and your organization are worth the investment. Be prepared to explain your nonprofit's accomplishments and goals and discuss why you are capable of handling funds for your organization.

6. Start a website and use social media to drive traffic to it. Twitter, Facebook and Myspace are just a few social channels you can utilize to develop a network of followers that support your cause. Devote your social media pages to your organization's agenda. Post daily messages about upcoming events or activities. Provide a link to your website and let your followers know that they can make donations there.

7. Apply for government funding by completing grant applications. Many nonprofit organizations solicit the government for funding, so there is a lot of competition. To increase your chances of receiving government help, your grant proposal must be professional and concise. If you are not proficient in grant writing, hire a professional grant writer to help you.

References

• Walden University: How to Raise Money for a Nonprofit Business
• Free Management Library: All About Nonprofit Fundraising