How to Get Funding for Non-profit Organizations

All businesses require cash infusions, and non profits must get funding to continue providing services or support to their constituents. Non profits and not for profits can acquire funding through several ways. Donations form the bulk of funding to most non profits, followed by grants from corporations, foundations and private individuals. Acquire donations and find grant funding by using these steps. Perseverance and time are necessary for you to get funding for non profit organizations.

Difficulty: Moderately Challenging

Instructions

1. Solicit donations for your non-profit organization. Seek donors with interests similar to what your organization provides. Donors may be former recipients of your services, relatives or friends of someone receiving benefit from your organization or strangers looking to support your work. Make a list of people who you think would donate funding to your organization. Mailing lists may be rented from many major list brokers to help you send mass mailings and emails seeking donations for your non-profit organization.

2. Craft a plan to reach those donors. Telephone, write, email or otherwise contact possible donors. Write a letter or email and have it printed or ready to send asking for donations. Drive people to your website to find out more information about your services, share testimonials and provide an easy, secure online way for people to donate to your organization. Send personal thank you notes to everyone who makes a donation, even if it's just a few lines in a simple card. A simple gift is also appreciated, although some donors prefer not to receive a gift. These people would like to see every penny donated back to the services provided by the non profit.

3. Join a non-profit association for directors of non profit groups. These associations network frequently and share tips on how to find funding. They may also provide access to lists of grants.

4. Grants are gifts of money awarded to non profits for specific uses. Grants may be obtained through corporate or private foundations and occasionally from private individuals. Find grants through online sources or print directories available at local libraries or bookstores.

5. Look for grants that match your organization's missions and goals. Most granting organizations require a detailed plan. Just because a company has non profit tax status doesn't mean it can skip the basic steps of business management. Write a plan with carefully outlined financial and other goals. Granting organizations are like investors, and they want details on how their money will be used.

6. Apply for grant funds. Visit each grant organization's website and read through the requirements carefully. Every grant requires different paperwork to be completed, and a missed step can throw your application out of the running. Prepare financial documents, background documents and your grant application carefully, making sure it is submitted by the deadline. Grant proposals follow specific formats. Take your time, and write your proposal carefully, succinctly and thoroughly. Your proposal is like a sales letter. You are 'selling' the grant organization on why they should invest in your non profit. See samples of effective grant proposals online to learn the proper format.

7. Private donors are the last and most sought after source of funding for non profits, but they are also the rarest. Wealthy individuals often contribute through private foundations established in their names. Find these foundations within books and websites with grant information. The application process is the same as for grants, but the selection process more varied, since the foundation is run in accordance with the wishes of the family or individual. He or she may have highly specific requests on how the money is used, and they may be highly selective in who receives a grant.

Tips & Warnings

• It is difficult, but not impossible, to obtain funding through grants and foundations. Time and perseverance are the key.
• Other ways to raise capital include auctions, galas, parties and similar events. These are outside the scope of this article, but consider the many ways you can promote your services and solicit donations outside of mail and email.
• Make it easy for people to donate to you by providing tax information, receipts and an easily navigated website to accept donations.
• Never try to fool a foundation and lie about your suitability for the grant. All foundations and grant organizations require quarterly and yearly reports and paperwork to be completed detailing how their money has been used.

Resources

• Grants from the US Federal Government
• Learn effective techniques to write a grant proposal.
• Learn more about nonprofit fund raising and grants.
• The National Council of Non Profit Organizations provides tips, techniques, and sources for finding funding.

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