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Step 1
Write out a business plan for your organization. Nonprofit organizations are considered a form of business by the financial world and by the IRS. For anyone to give financing to your nonprofit organization, you must show it that you have thought the idea through and have a solid plan for making the organization work. The business plan will be a requirement for many corporate sponsors and grant providers.
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Step 2
Write out a mission statement for your organization. This is what guides your nonprofit. This statement shows what your nonprofit organization stands for and what it set out to accomplish. Many grant and corporate sponsorships will want to see if your mission statement and goals match with the views and objectives of their philanthropy efforts.
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Step 3
Apply for a nonprofit designation from the IRS. This is simple paperwork and requires the above two steps to complete. Without this step, financiers of nonprofits may not take you seriously.
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Step 4
Look for grants and corporate sponsors. This is the hard part of financing for a nonprofit. Finding the right people to ask for money takes research, planning, time, patience and persistence. You need to know what funding category your organization falls into to know where to look for financing. Research organizations won't go through community development programs, and corporate sponsors are very specific with their giving. Look online for grants specific to your category. You will notice certain foundations and corporations cross over each other. You will also notice that certain financing comes with a cost or stipulation, such as a requirement that your organization show matching funds or that the financing is a part of a larger funding package. A sponsor doesn't want to be responsible for an organization's entire budget.
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Step 5
Hold fund-raising events. This might be the best way to get community financing and support. For many organizations, if there is no community support, there is no use for the organization. Such things as raffles, book sales, auctions, charity events and dinners can often provide both financial backing and support.
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Step 6
Send out sponsorship packages and letters. Although this is the slowest method of financing a nonprofit organization, it is also often the best way to start a grass-roots campaign for a nonprofit. This also allows a nonprofit to target specific individuals or business to gain support and financing. Sponsorship packages usually consist of a letter asking for support, a brochure explaining a program or the organization and supporting items such as pictures. The solicitation for funding often is included in the letter and again as an order form of the brochure.
