Leaders are supposed to ask for donations. But there are 10 different ways to raise the needed cash. Why not make a plan before you send the next email? Check out the video thoughts 🙂
What’s the first word you think of when we talk about nonprofits? Fundraising.
This is a NonProfit Trend idea to start your week.
If you set up your Nonprofit and tried to raise a million dollars per year for 10 years, where would you get it? Let’s imagine that your nonprofit, called Nice NonProfit is completely average. So we are going to raise all the money by looking at 10 sources of nonprofit money in the USA. They are in Alphabetical order
Donor Advised Funds
Federated Drives (United Way)
Fee for Service
Interest, Dividends, Sale of Assets
State and Local government
Which one will give Nice NonProfit the most money over 10 years?
Let’s cheat and start with Individual Donations. How much will they give over 10 years? They will give only 8% of the total. That’s possibly the easiest to start with but most nonprofits will miss their revenue targets by overemphasizing $25 donations from Aunt Ina.
Fee for service is 50% of the entire 10 years. It’s true that hospitals, nursing homes, and colleges inflate this number. It’s also true that fee for service is necessary in any nonprofit capital structure.
The federal government funds 25% of all nonprofit work. Who knew? You’ve been going to the birthday party for the village mayor when it should have been AOC!
The Village Mayor and others in your state come in at 9% so it’s still worth memorizing the words to Happy Birthday at fundraisers
Foundations give 2%, Charitable bequests give 2% and Interest and Dividends give 2%. And federated campaigns, donor advised funds, and corporations give 1% each. Take these numbers with some caution because they are changing with Donor Advised Funds in particular.
These are averages. But it’s a good idea to take the list and see which three sources are the best fit for Nice NonProfit. And blessings as you raise the $10 million! I’m Dr. Ron Tompkins and I coach outsider nonprofits that are determined to be part of the work to make a world with more peace, justice, and joy.