How to Fund a Non-Profit
It is impossible for a non-governmental organization (NGO) to conduct charity work without outside funding. This is because the duties of an NGO include delivering relief aid to people who are needy such as refugees or children who are unable to meet basic needs. However, the big question is where these organizations get the money to fund the mega projects that they engage in. The following are some of the common ways that most NGOs use to raise money:
Many companies join hands with the NGOs to raise funds towards a particular project. Mostly the sponsors are companies that as part of their corporate social responsibility (CSR) offer a portion of their profit to NGOs. The aim of the sponsors is mainly to help needy individuals as they also advertise their company. It is common for many people to prefer firms that give out to the needy, and thus corporates strive to boost their reputation through sharing.
The government may, at some time, decide to give out money to needy people who are suffering from a common need. Also, many foundations give out funds to NGOs to promote their cause. However, it is imperative to note that the donor gives grants to fulfill a particular role that is agreed upon beforehand. Therefore, an NGO needs to check out for grantors who are interested in their line of work.
Are you aware that individuals give away most to NGO’s than any other group of people? It is reported that about three-quarters of the contributions to charity organizations comes from individual donors. This is usually done through various platforms such as online giving and peer to peer donating.
Events also rank among the chief sources of money that are used by NGOs. The most notable events include galas, runs, auctions, and walks. All these events are organized and run using money that is given out during the occasion. Events are, therefore, one of the easiest means of collecting funds.
Fees for Services
Many of the prominent NGOs have institutions such as hospitals through which they can raise money for use in their operations. Although many people don’t believe that the fees for services offered at a subsidized price are enough to cater to the NGO’s expenses, they cannot be undermined.