How to Get 501 C 3 Funding

According to Giving USA, the total amount of charitable giving in 2008 in the U.S. was more than $300 billion. Of that amount, 75 percent came from individuals.

The main priority of your 501 C 3 not for profit organization should be its programs, but raising money is a close second. While there are many fund raising methods, you should determine what works for you and use it as the main component to your fund raising efforts. Most fund raising is carried out during the fall of each year when organizations are preparing budgets for the next year. The majority of money for 501 C 3s come from individuals. Funds also come from corporations, federal, state and local governments, grants and foundations.

Things You'll Need

• Fundraising plan
• List of potential donors and organizations that can help
• Paper, stamps, envelopes

Instructions

1. Create a fund raising plan. Before you start trying to raise money for your 501 C 3, you need to develop a written plan including the amount of money you need to raise, the sources you plan to use and how you will execute the plan. The plan is not set in stone and can be adjusted as you go along. Think about the programs and funding you have now- for instance, would you like to do more but don't have the money? Doing some initial fiscal accounting will assist you in discovering what your financial goal should be when it comes to fund raising.

2. Estimate the amount of money you'll need for fund raising efforts.To raise money for your 501 C 3, you're going to have to spend some. Costs to think about include website creation, special fund raising events, postage and paper. When estimating your costs, be realistic and implement cost-effective strategies so that the expenses don't take away from all your fund raising money. According to nonprofit.about.com, most experts say that fund raising and administrative costs should stay around 25 percent of your total operating budget.

3. Seek out donors with interests similar to the ones your organization offers. Donors might be past recipients of your programs, their friends and families or even people you don't know personally. Create a list of individuals you think would contribute money to your organization. If you need extra help with this, you can rent mailing lists from several list brokers who will assist you in sending bulk mailings and emails asking for donations. You can also ask people to donate via phone and your website.

4. Search for grants that are in line with your organization's goals. Many granting organizations want you to have a detailed plan, and they want information about how their money will be utilized. Write a plan that carefully summarizes the financial and other goals of your 501 C 3. Also, thoroughly read the requirements of each organization, prepare any necessary documents, and be sure to fill out your application carefully, and submit it by the deadline. Keep in mind that you are trying to get the grant organization to see why it should invest in your 501 C 3.

5. Assess your fund raising plan throughout the year. Evaluating your plan will help improve your outcome so plan to assess what you are doing every few months. A few questions to ask yourself are: What formed the largest successes? What were your greatest challenges? What should you alter, get rid of or add? When your 501 C 3 becomes more familiar with yearly fund raising, you can progress to multi-year strategies, bigger goals and newer methods.

References

• Overview of Nonprofit Fundraising Sources and Approaches
• 6 Steps to a Fundraising Plan for a New Nonprofit