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Part 1
Getting Started with Nonprofits
Chapter 1
Getting to Know the World of Nonprofit Organizations
Finding the Resources to Do the Job
ОглавлениеOne distinctive feature of the nonprofit sector is its dependency on contributions. We devote many pages of this book – most of Part 3 – to advice about getting contributions through fundraising.
Gifts from individuals of money, goods, services, time, and property make up the largest portion of that voluntary support. This portion is also the oldest of the voluntary traditions in the United States and goes back to colonial times. Since the late 19th century, private philanthropic foundations have emerged as another source of support, and more recently – particularly after World War II – the federal government and corporations have become important income sources. Earned income through fees for service, ticket sales, and tuition charges also is an important revenue source for many nonprofits; in fact, in 2013 nearly three-quarters of the revenues for public charities was earned.
Seeing where the contributions come from
Among private, nongovernmental sources of support, gifts from living individuals – as opposed to bequests from people who have died – have always represented the largest portion of total giving, but philanthropic giving by foundations and corporations has been growing. Table 1-1 gives estimates of the sources of private contributions in 2014. The best fundraising strategy for most organizations is to take a balanced approach that includes individual giving as well as grants and corporate contributions.
TABLE 1-1 Sources of Private Contributions, 2014
Source: Giving USA: The Annual Report on Philanthropy for the Year 2014 (2015). Chicago: Giving USA Foundation.
Fundraising for fun and profit
Nearly every nonprofit organization depends on generous donors for the cash it needs to pay its bills and provide its services. Even if you have income from ticket sales, admission charges, or contracted services, you’ll find that raising additional money is necessary to keep your organization alive and thriving.
You can see from Table 1-1 that individual giving is the largest single source of contributed income to nonprofit organizations. But you can’t just sit waiting by the mailbox for the donations to begin arriving. Two basic rules of fundraising are that people need to be asked for donations and thanked after giving one. Chapter 14 focuses on raising money from individuals, Chapter 15 covers raising money with special events, and Chapter 18 discusses campaign fundraising, which is used when you need to raise extra money for your building or your endowment.
Grants from foundations and corporations make up a smaller percentage of giving to nonprofits, but their support can be invaluable for startup project costs, equipment, technical support, and sometimes general operating costs. Keep in mind that the figures given in Table 1-1 don’t apply equally to every nonprofit. Some organizations get most of their income from foundation grants; others get very little. Chapter 16 introduces you to resources to help you find potential grant sources. Chapter 17 takes you through the process of crafting a grant proposal.
Fundraising works better if people know you exist. That knowledge also helps get people to your theater or to sign up for your programs. Here’s where marketing and public relations enter the picture. Chapter 12 helps you figure out what your message should be and how to circulate it to the world.
Make no mistake about it, fundraising is hard work, but if you approach the task with a positive attitude and make your case well, you can find the resources you need.