Non-Governmental Organizations (NGOs) and nonprofits alike look forward to receiving grants and donations to implement various projects. But grants alone may not be enough to sustain their needs and continue operating. Getting creative with financing is necessary for every NGO and nonprofit. Here are some financing ideas which can assist your organization in implementing projects through funds received.
1. Memberships
A large portion of money acquired by NGOs and nonprofits come from donations from various individuals and organizations. For donations to keep coming instead of just being a one-time thing, donors would want to feel welcomed by your organization. After all, retaining donors would donate more as compared to new donors. In fact, out of everyone who donates online, only 35.92 percent are new donors (Gilman, 2017). In another study, it also shows that major or large donations are made only after 4-5 years of constant giving (Love, 2017). Ultimately, donors would like to test the waters and see the effectivity of your organization before making a large donation.
To welcome them, recognize them as members of your NGO or nonprofit. The greater the number of loyal members you have, there will also be greater chances of receiving more grants. The idea of membership is simple – make your donors feel appreciated and they will continually support you.
2. Partnerships with Government Institutions
A part of a government institution’s job is to allocate budget for social causes such as education, healthcare, and housing. Partnering with government institutions will give you access to funding while they, in turn, will receive access to the implementation. Partnering with a government institution is similar to applying for various grants, as only carefully crafted proposals will be receiving funds. Seeking for partnerships with government institutions, similar to seeking for grant funding agencies, should be essentially focused on because this can either make or break your organization. Success in this field will bring about more opportunities while failure will close doors to many other potential partnerships.
3. Recycling of Goods
A common problem in most developing countries is the lack of medical resources available to the poor and needy, alongside extreme starvation. In line with that, many corporations, especially those in the medical or food industry, have goods that go to waste. Many commodities, when not purchased, get expired and thrown away. While seeking international grants for nonprofits, coordinating with industries who have excess goods can be done to support those who are in need of basic commodities. Alongside the projects you can implement with the goods you acquire, this will also give your organization more visibility as you will acquire more partners and projects. More visibility can easily be turned into more donations and thus more funds for projects, and inevitably more beneficiaries.
4. Partnerships with Multinational Corporations
Multinational corporations often offer international grants for nonprofit organizations as a way to fulfill their corporate social responsibility. Often times, these corporations will prefer to partner with nonprofits who have a huge following. That way, their corporation will also earn more visibility and benefit from their donations. To get in touch with multinational corporations, it is important that you have something to offer to them as well. Apart from the projects, you will implement and your chosen beneficiaries, multinational corporations also want proof that a partnership with you will benefit their business.
5. Going Global
Given that tourism is becoming more and more popular, it would be best to go to where your potential donors are. In this case, go global. It will be possible to garner volunteers and hold various activities in different parts of the world where you will be able to reach a wider range of audiences and participants. Through activities like workshops and trainings, more people will be aware of your operations and causes, and thus more donations will be made.
Although applying for grants will still be necessary for every NGO and nonprofit, other options also have to be looked into as to not limit your sources. Getting creative in acquiring funds will bring your organization to places and ultimately be able to help more of those who are in need. Another financing tip will be to take a look and study large NGOs and how they have earned their place. Looking at the successes and failures of others will help your organization improve further and avoid mistakes.
