Funding is the lifeblood that sustains nonprofit organizations and allows them to achieve their missions. However, the quest for funding can often be overwhelming and requires strategic planning and diversified approaches.
In this article, we’re going to dive into the intricacies of nonprofit funding, exploring seven distinct strategies that can help you fortify your nonprofit’s financial health.
Whether you’re a seasoned grant professional seeking fresh insights or new to navigating the funding maze, this updated guide will illuminate the path towards sustainable funding solutions.
7 Ways To Fund Your Nonprofit Organization
In today’s competitive landscape, securing funding for your nonprofit organization is crucial for sustainability and growth. Here are seven effective strategies to help fund your organization’s mission:
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1. Grants
‍Grants provide vital financial support for nonprofits, often funding specific projects or initiatives. They are highly sought-after; after cash donations, they’re the next most favored revenue stream.
Grants can be offered by:
Government agencies
Private foundations
Corporations
Other philanthropic organizations
To receive a grant, a nonprofit must go through an application process, which usually involves submitting detailed proposals outlining the purpose, goals, and budget for the project they wish to fund. This process can be incredibly competitive, as many organizations often vie for the same funding.
Leveraging a tool like Instrumentl can streamline your grant-seeking process; with access to a comprehensive grants database and tailored search functionalities, you’ll be able to identify good-fit funding matches quickly and easily. We’ll explain our features in more detail later in the article—keep reading!
Donations can come from various sources, including individual donors, major benefactors, and recurring contributors. Building and nurturing relationships with donors is key; emphasizing transparency and the impact of your organization’s work is a great way to foster long-term support.
Partnering with corporations provides mutual benefits: increased brand visibility for the company and financial support for your nonprofit.
This can involve creating sponsorship packages that outline various levels of support and corresponding benefits, such as logo placement on marketing materials, mentions in social media posts, or speaking opportunities at events. Check out this example from the Mint Artists Guild’s Festival Brand Awareness campaign.
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Securing sponsorships requires aligning your organizational values with corporate objectives and demonstrating tangible returns on investment.
4. Fundraising Events
‍Hosting fundraising events, ranging from formal galas to charity 5k runs, provides opportunities to engage supporters and generate revenue.
To successfully host a fundraising event, you must ensure meticulous organization in terms of event planning, strategic promotion and advertising campaigns, and effective stewardship of attendees.
Check out this example: Devereux Advanced Behavioral Health Pennsylvania hosts an annual gala each year to raise funds for children, adolescents, and adults living with emotional, behavioral, and cognitive differences.
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5. Membership Programs
‍Establishing membership programs cultivates a community of dedicated supporters committed to your cause. Offering exclusive benefits and recognition incentivizes membership enrollment and sustains ongoing engagement.
Membership programs offer nonprofits a stable revenue stream, increased donor loyalty, higher levels of engagement and connection, and long-term sustainability. These are all great reasons to consider this approach as a funding mechanism for your organization.
Check out this membership program offered by the San Francisco Opera. You can choose your level of giving; as your giving level increases, the benefits that you receive also increase.
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6. Crowdfunding
‍Crowdfunding platforms—such as GoFundMe, Kickstarter, and IndieGoGo—offer accessible avenues for mobilizing grassroots support and raising funds for specific projects or campaigns. Here are a few tips to make sure your crowdfunding campaign is successful:
Craft a compelling narrative: Tell a story that resonates with your audience and clearly communicates the impact of your project.
Create engaging visual content: Use high-quality photos, videos and graphics to capture attention and convey your message effectively. Your supporters can share these images and content on social media, broadening the reach of your message.
Offer multiple donation options: Make it easy for donors to contribute by offering multiple payment options, including credit/debit cards, PayPal, and mobile payment platforms. Remove barriers to making donations and streamline the giving process as much as possible.
Express gratitude: Show appreciation to your donors by thanking them personally and publicly for their support. Your thank-you can be short, sweet and to the point. Here’s a great template you can tweak and adapt to fit your needs:
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7. Planned Giving
‍Encouraging planned giving enables donors to leave a lasting legacy through bequests, trusts, or other estate planning mechanisms. For more information on how to launch a planned giving program, check out our step-by-step guide to planned giving strategies.
By diversifying your funding sources and implementing strategic approaches tailored to your organization’s needs, you can enhance financial resilience and advance your mission effectively.
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Grants are highly competitive and finding the best ones for your nonprofit can be challenging. Luckily, there are resources available that streamline this process. Leveraging tools like Instrumentl simplifies grant-seeking by allowing grant professionals to quickly find good-fit funding matches and bolster their revenue streams.
Additionally, tapping into community resources, engaging with corporate partners, and staying updated with government websites broadens the spectrum of funding possibilities, ensuring long-term sustainability through diversified revenue streams.
Use Instrumentl To Find Grants Fast
We might be biased, but we believe that Instrumentl is the most robust software solution available to help grant professionals streamline the grant search process.
Instrumentl provides users with a comprehensive database of over 400,000+ funders and 15,000+ active RFPs. Our search engine is simply unmatched in terms of its depth and breadth. Not only is it huge, but it’s also always up-to-date, meaning that you're never looking at outdated or old funder information.
Instrumentl’s Smart Matching technology helps identify good-fit matches for you based on specific criteria about your nonprofit and the type of funding opportunities that you are looking for.
When you’re ready to start your grant search, you simply tell Instrumentl about your funding needs, including:
Grant size/funding amount needed
Type of funder you’re looking for (corporate, foundation, government)
Funding use (program support, capacity building, capital expense, etc.)
Location of project/program
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Instrumentl takes this information and analyzes its database to find opportunities that match your needs, ensuring that you’re only looking at the best-fit matches out there. This Smart Matching feature saves you time and energy, and boosts your ROI by weeding out grants and funders that aren’t a good fit.
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As a grant professional myself, this is certainly one of the (many) reasons why I recommend Instrumentl over other grant databases and softwares. But don’t take just my word for it!
Dr. Bev Browning, author of Grant Writing for Dummies, shares why she loves Instrumentl so much: ‍
“I love the ability to create a project workspace and then sit back and watch Instrumentl do all of the sourcing work! I see that loading sign in front me, and all of a sudden - there’s like 200+ funding opportunities.”
In addition to using a software tool like Instrumentl, you should consider tapping into community resources to help quickly and easily identify grants for your nonprofit.
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You might not realize it, but your local community is probably teeming with grant-related resources, such as:
These organizations often have insights into local grant opportunities that may not be widely advertised, and can also provide guidance and support throughout the application process.
Pro Tip: I’ve also found that these local community groups are great places to build your network and get connected to potential donors and funders.
Engaging With Corporate Partnerships
Diving into the world of corporate partnerships is another great way to discover grant opportunities. Many corporations have social responsibility programs or foundations that provide charitable grants to nonprofit organizations. In fact, in 2022, corporations gave $22.08 billion across the United States. That is a LOT of money!
Corporations often support nonprofits whose work aligns with their business values or local community interests.
For example, Tyson Foods’ Community Giving program is committed to helping the communities in which their team members and their families live, with a focus on food insecurity and refugee resettlement and immigration issues.
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Nonprofits can engage with corporations and their charitable arms directly in a few ways:
Use Instrumentl’s Funder Profiles to find the Key People at corporate foundations so you know exactly who to contact to begin your outreach.
Look up grants directly on a corporation's website.
Attend networking events in your local community (this is where your expanded network of community groups that we talked about will come in handy!).
Staying Updated With Government Websites
Government websites are also a great resource to help you discover grant opportunities.
Both state and federal governments and their agencies offer funding opportunities; these grants are typically larger and can span over multiple years, making them more attractive (and more competitive) to many organizations.
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You can check these websites for grant opportunities, sign up for updates, and utilize their search tools to find good-fit government grant opportunities. You can also find detailed information about grants on these websites, including information about the application process and eligibility requirements.
Here are a few examples of government websites you might want to check out:
It should be pretty clear by now that the journey to securing sustainable funding for your nonprofit requires a strategic blend of different approaches.
By exploring diverse funding strategies, you can build a robust revenue portfolio that supports your nonprofit’s mission over the long-term. These strategies can include:
Grants
Individual and major donations
Corporate partnerships
Planned giving
Utilizing tools like Instrumentl to streamline your grant-seeking process is a sure-fire way to make sure that you’re finding grants quickly and efficiently for your nonprofit.
Other strategies, such as tapping into community resources, engaging with corporate partners, and using government websites are also smart tactics to help make sure no grant stone is left unturned.
As you embark on this journey, don’t hesitate to explore Instrumentl to discover new funding opportunities and take your fundraising efforts to the next level. With the right tools in your pocket, you can transform your nonprofit’s vision into reality and create lasting change in your community. Let’s go!
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