How Are You Funding Your Not-For-Profit?
When attempting to fund not-for-profit organizations, it’s important to understand it’s no different than a for-profit business. Both types of organizations are responsible for paying overhead like rent, utilities, staffing, programming, materials, and the like. Both must ensure consistent revenue over costs. The difference is typically how those funds are raised.
The for-profit side of the table generates revenue through product sales, investors, leveraging assets, and investment income. Not-for-profits on the other hand need to be very creative in how they go about generating revenue to be truly sustainable. This article focuses primarily on not-for-profit businesses.
It all begins with a good fund development plan. But first, what is development anyway? Development is about developing prospects who might offer something for your organization’s financial success. A Fund Development Plan provides the framework for your development or fundraising efforts; should be an integral part of every component of your business plan, and usually rolls out of your multi-year strategic plan. Creating a Fund Development Plan is a time-consuming process but when done effectively, can lead to positive results as it will engage all stakeholders, and stockholders in your organization thereby leading to personal responsibility, buy in, and greater success. It’s important to recognize fund development is part of your organizational system – your “corporate culture” can make or break the plan’s success as most fundraising problems are usually organizational issues.
What are you asking for?
It takes a village to raise a not-for-profit but you can’t ask for help if you don’t know what you need. It’s often cash funds but think about other ways supporters might donate. Volunteers, also known as free labor, are always needed, and tracking those donated hours at your event and beyond will go a long way in proving the case your organization has community support.
Key pieces of equipment or other items needed to produce the event might also be donated. These might include space rental, rental of tents, tables and chairs; at-the-door ticket sales and processing; heavy equipment such as fork lifts for moving supplies; airlifts for hanging things; printing of registration, signage, advertising, or other materials; rental of audio/video equipment; entertainment, etc.
Also consider asking sponsors and donors with advertising budgets to help recruit event participants or to promote ticket sales through their paid or non-paid advertising streams. It’s a way of receiving corporate support with little to no out-of-pocket for the contributor.
At ExitZero, we’ll help you determine if an event is the right fit to help fund your organization.
