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UPBEAT
NEWS FOR DOWNBEAT TIMES: OK folks, ZimNotes knows it's tough out there but, as we said in a recent article on this subject, "No Whining" (see "Economic Uncertainty and the Nonprofit Self-Fulfilling Prophecy"). Nonprofits are known for being creative in difficult times and problem solving. That's what we do best. Everyone is concerned about the impact of the financial crisis on revenues so let's not whine; let's do something about it. Just like you should do (or should have done) for your own portfolios (those lucky enough to have them): Diversify. Ensuring that your organization's revenues come from a diversity of sources is the best way to weather this storm. In this vein, ZimNotes will review with you a variety of ways that nonprofits raise money. Compare this list with your current methods, see which you are not currently doing, look for a good match in terms of current staffing and board participation, and plan accordingly. Also, please understand that board members and staff members have roles to play with reference to each of the fundraising strategies below. For how to involve board members in each of these fundraising activities, please see our book Boards That Love Fundraising. Foundations: Foundations are nonprofit organizations that exist to make philanthropic contributions. By law, they must donate at least five percent of their assets to nonprofit organizations each year. Foundation grants should be viewed as "venture capital" for nonprofits. That is, foundations like to help nonprofits get off the ground, and they will often fund a project within an organization. In the large majority of cases, however, foundations will not fund a nonprofit for more than a few years, and they should therefore not be viewed as sustaining funders far into the future. Also, the turmoil in the stock market means smaller foundation payouts next year. Please see The Foundations Center for information on grants in your area. Corporations:
There are a variety of ways to seek corporate dollars. While many
larger corporations have set up separate foundations,
the majority of corporations and businesses in the U.S. make their
philanthropic contributions directly through the company. This may
take the form of:
Government Agencies: In order to ensure that your organization is covering the government funding waterfront, you should review the Catalog of Federal Domestic Assistance or Grants.Gov to make sure that you are pursuing all potential federal funding sources. With respect to city, county and state funding, you should create and maintain good working relationships with city, county and state legislators, who can then apprise you of the availability of public funding and also check government websites (e.g. California). Check with your local nonprofit councils or support groups for listservs or mailing lists for government grants and requests for proposals. Some cities, counties and states have one location or website to review for most funding sources; see for example San Francisco's RFPs. Religious donors: Every major faith in the U.S. has a national philanthropic office (e.g. - the Catholic Campaign for Human Development or the Jewish Fund for Justice). These grantors work in much the same way that foundations do: they have areas of interest and guidelines for prospective grantees to follow. Religious grantors are fond of nonprofits that serve needy populations; social services agencies are therefore likely candidates for funding. Individuals: Of the $306 billion contributed to nonprofits by private sources in 2007, individuals gave 75% or $229 billion. Another 7.5 % or $23 billion was donated through bequests for a total of 82.5% or $252 billion by individuals. Foundations gave only 12.5% or $38.5 billion and corporations gave 5% or $16 billion. Grants are useful as far as they go, but sustaining funding comes from individuals (see former ZimNotes articles on individual fundraising) Here are some of the ways that nonprofits raise money from individuals:
P.s.
If you need help getting started, give Zimmerman Lehman a call
at 415.986.8330 or 800.886.8330. We can help you figure out what
the best strategies are for your organizatio This information
is the property of Zimmerman
Lehman. If you would like to reprint this information,
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