Non-profit charities rely on funding and donations to operate, and applying for grants and bursaries is a full-time occupation within the sector. It is important to know how to apply for money, but it’s equally important to know who to apply to. Here are 5 funding sources for charities and non-profits that provide grants, bursaries, loans, and many more funding types.
Crowdfunding
No matter what charity you run, there will be donors interested in supporting your work; they are sometimes called individual donors and can be sourced by reaching out, developing network connections, advertising, social media, and more. These days, crowdfunding is also an option.
Crowdfunding is an excellent way to raise charity funds from individual donors efficiently. Instead of relying on one or two individuals to support the work, you can access a larger pool of investors. Charity crowdfunding sites to check out include GoFundMe, CrowdRise, and Classy.
Foundations
Foundations are legal entities set up by individuals, families, and corporations to support specific causes and charities. Examples include the Bill and Melinda Gates Foundation, Walmart Foundation, the Ford Motor Company Fund, and the New York Community Trust.
Charities normally apply to the foundation for funding and are accepted or rejected based on their projects and alignment with the foundation’s values. In the application process, you might have to present your Nonprofit State Registration White Paper to ensure you are state legal.
Governments
If you are a non-profit organization, you need to apply to the local or national government for bursaries and grants. These grants are difficult to secure, but if you are successful, they come with several benefits that can support your bottom line and accelerate your success as a charity.
Firstly, government grants are substantial when they are offered, supporting your bottom line and increasing your non-profit capabilities. When you secure funding from the government, you also gain an endorsement from them which can lead to further funding and outside support.
Earned Income
Earned income doesn’t refer to personal income; it refers to the sale of products and services. Non-profit charities, such as public universities, hospitals, and community organizations, bring in money from service fees and the sale of products. This can also be used as a source of funding.
If your non-profit charity doesn’t sell products and services, you might consider this as a source of revenue and future investment. Some sources of revenue in charitable organisations include souvenirs, service fees, and services that offer people insight or education into the charity.
Philanthropy
Corporate responsibility can be a major source of funding for charities. Companies looking to increase their visibility, or to appeal to a target audience, might consider partnering with a non-profit charity. Grants and donations can be given to the charity in return for partnership.
There is no shortage of funding opportunities for non-profit charities, and it is important to explore all of these modes of funding to secure the best outcomes. Along with philanthropy, consider crowdfunding, foundations, governments, and earned income to support operations.
