Difference between revisions of "Sources of Funding"

From NGO Handbook
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After an organization has a well-defined mission, a proper legal structure, specific programs and budgets, and a good ethical and legal structure, it is prepared to ask for money. Why are people going to give your organization money to do what it does? Because it is their passion. They are believers. In the fundraising world, your best source for money and resources are people who think like you do, who believe like you believe— individual donors and foundations.  
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After an organization has a well-defined [[Mission Statement|mission]], a proper legal structure, specific programs and budgets, and a good ethical and legal structure, it is prepared to ask for money. Why are people going to give your organization money to do what it does? Because it is their passion. They are believers. In the fundraising world, your best source for money and resources are people who think like you do, who believe like you believe—individual donors and foundations.  
  
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Governments and corporations are another story. Governments are not compassionate. Governments do not believe things like people do. People in government can be very compassionate, but governments are political and make political decisions. Corporations, on the other hand, are driven by dollars. Corporations can say wonderful things, “your organization is doing great work,” but generally unless it means something to their bottom line, do not ask them. Most people think that the Coca-Cola Foundation is a wonderful, international organization that does good. And it does good. But they get something in return for doing good in a country, such as exposure.  
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Governments and corporations are another story. Governments are not compassionate. Governments do not believe things like people do. People in government can be very compassionate, but governments are political and make political decisions. Corporations, on the other hand, are driven by dollars. Corporations can say wonderful things, “your organization is doing great work,” but generally unless it means something to their bottom line, there is little point in asking them. Most people think that the Coca-Cola Foundation is a wonderful, international organization that does good. And it does good. But they get something in return for doing good in a country, such as exposure.  
  
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A lot of how you ask for money depends on whom you are asking. Donors who are business oriented – a business corporation, a business owner – generally are thinking in terms of the bottom line - profits. If I am a philanthropist, however, I do not care what the bottom line is. I want to do good. How you phrase what you do and why you do it will be different according to the audience. Corporations are business minded. Governments need a political reason for giving. You cannot ignore that. If it is a United States government program, then they will publish exactly what they are doing and why they are doing it, and instructions for applying. They have you execute the government’s vision.
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A lot of how you ask for money depends on whom you are asking. Donors who are business oriented—a business corporation, a business owner—generally are thinking in terms of the bottom line: profits. If I am a philanthropist, however, I do not care what the bottom line is. I want to do good. How you phrase what you do and why you do it will be different according to the audience. Corporations are business minded. Governments need a political reason for giving. You cannot ignore that. If it is a United States government program, then they will publish exactly what they are doing and why they are doing it, and instructions for applying. They have you execute the government’s vision.
  
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==Main sources of money==
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Main sources of money
 
  
 
The following are some of the main categories of sources of money.  
 
The following are some of the main categories of sources of money.  
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* Governments and intergovernmental organizations. In the United States, there is a lot of money from governmental sources. Included in this category are grants from governmental organizations and departments and intergovernmental grants. The United Nations, for example, is always looking for partners. The French government, the German government likewise provide grants. You just have to hit them where they have interest.
 
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* Corporations. Corporations give money when it is to their benefit, unless they are a family owned corporation or business where the owner's vision is still implemented.
 
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* Charitable foundations and associations. There are many charitable foundations in the United States who are willing to provide grants, worldwide.
 
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* Individuals. There are individuals who may or may not have a foundation but they can write you a check. Those are the people that believe, and will give you a personal check.
 
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* Services. There are also sources of income, which are not donations, but rather compensation for offering a service for which governments and organizations are willing to pay.
 
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For this last category, your organization essentially becomes a hired contractor to do its mission. For example, your organization can contract and become a partner with the United Nations, or partner with some of the world’s relief organizations, if you have contacts on the ground in a neighborhood, city, or country where they wish to provide help. The American Red Cross or the International Red Cross do not know who and which neighborhoods need to be helped. You do! So in looking at whom you can go to for help in terms of donations or resources, look at whom you serve. Look at the other organizations that might need that service. You should know who the International Red Cross representative is. They should know who you are and what you do. Your organization may deal with illiteracy or helping women get jobs. If something happens in your country and you have got contacts or hundreds of women across the country, the Red Cross would want to know that.
 
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Partnering resources and getting resources from other organizations is about building relationships, even building relationships with other organizations that sometimes you may think are your competition.
 
  
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The United States has a World Relief Organization. It is based in Washington, DC and they are always looking for partners. So one of the first things you could do is to find out who your representative is in the United Nations and their contact information. Because they are a non-profit and are interested in helping with world relief, or different programs currently going on in your country or region, your would like to form a working relationship with them.  
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* '''Charitable foundations and associations'''. There are many charitable foundations in the United States who are willing to provide grants, worldwide.
  
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* '''Individuals'''. There are individuals who may or may not have a foundation but they can write you a check. Those are the people that believe, and will give you a personal check.
  
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Niche
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* '''Corporations'''. Corporations give money when it is to their benefit, unless they are a family owned corporation or business where the owner's vision is still implemented.
  
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One of the hardest things in developing a non-profit organization involves critically assessing your task and your vision. It is hard in the beginning to take a step back and say, “Who else is doing this work and what is the difference between what they do and what we do?” Because if somebody else is already doing the work, and doing it well, does your organization even need to exist? Maybe you should just work for them. That is a hard question! But it is one of the first questions that major donors are going to ask you. Why fund you? Who else does this?
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* '''Governments and intergovernmental organizations'''. In the United States, there is a lot of money from governmental sources. Included in this category are grants from governmental organizations and departments and intergovernmental grants. The United Nations, for example, is always looking for partners. The French government, the German government likewise provide grants. You just have to hit them where they have interest.  
  
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You have a unique niche if you can quantify and identify exactly whom you serve and why you are the only ones who can do it. Or you are the only ones who can do it in this country, or this state. Or you are the only ones who work with girls ages 14 to 20 when another program works with younger girls or older women. Identify your niche. And check out your competition, the organizations which do similar things. Who are they? What do they do? How do they do it? They may be able to help define who you are and what your niche is. “They do this, but they do not do that, and here is an area where we are the best!”
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* '''Services'''. There are also sources of income, which are not donations, but rather compensation for offering a service for which governments and organizations are willing to pay.
  
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For example, you may assist underprivileged children who otherwise might not go to school. They fall below the radar screen of other organizations that offer scholarship funds. Nobody knows that they are here. You identify who you are and what you do and why you deserve funding. It helps the donor know why to give to your organization versus somebody else
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==Foundations==
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Foundations
 
  
 
The most popular granting source in the United States is foundations. Foundations give a lot of money. Here in the United States, a foundation is a legal entity designed to give away money. That is their purpose; that is why they exist, is to give away money. They have to give away a certain percentage of their assets every year. Some foundations are designed to do this forever. Some foundations are designed to give away their money and then to go away. Foundations exist here in the United States just for this.  
 
The most popular granting source in the United States is foundations. Foundations give a lot of money. Here in the United States, a foundation is a legal entity designed to give away money. That is their purpose; that is why they exist, is to give away money. They have to give away a certain percentage of their assets every year. Some foundations are designed to do this forever. Some foundations are designed to give away their money and then to go away. Foundations exist here in the United States just for this.  
  
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How do you locate foundations that give away grants for your type of organization? One of the best sources is The Foundation Center. That is a non-profit organization, which has a database of grantmakers and grants. It also publishes directories of grant-making foundations, according to various categories, as well as fundraising guides. The Foundation Center identifies foundations by what their name is, where they are located, their phone number, who is on their Board of Directors , their amount of giving per year, what their limitations in giving are, who they have given to, their application process, and numerous other helpful details. If you do not have access to one of their five libraries or 200 collections, where you can peruse the materials for free, you can visit their website at www.fdncenter.org. The Foundation Center also offers free electronic newsletters. Some of their services are fee-based. You also can query online. A lot of libraries I the United States, and most major university libraries, also have copies of the directories. Another source for information on Foundations is the Empowerment Resource Network, for which I work.
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How do you locate foundations that give away grants for your type of organization? One of the best sources is The Foundation Center. That is a non-profit organization in the United States that works for foundations. They have a list and a database of every registered foundation in the United States. It publishes directories of grant-making foundations, according to various categories, as well as fundraising guides. The Foundation Center identifies foundations by what their name is, where they are located, their phone number, who is on their Board of Directors , their amount of giving per year, what their limitations in giving are, who they have given to, their application process, and numerous other helpful details. If you do not have access to one of their five libraries or 200 collections, where you can peruse the materials for free, you can visit their website at www.fdncenter.org. The Foundation Center also offers free electronic newsletters. Some of their services are fee-based. You also can query online. A lot of libraries I the United States, and most major university libraries, also have copies of the directories. Another source for information on Foundations is the Empowerment Resource Network, for which I work.
  
 
There is a foundation somewhere in the United States that funds just about anything you can think of. It is important to know the foundation and what they give to. There are organizations that give internationally. There are organizations that only give to Australia. So you have to look at each foundation, what they are interested in, what their limitations are in terms of giving and if their giving program fits your organization, if it looks like that foundation is a believer in what you do, then they are a potential donor. Potential! Not a prospecting one yet, but a potential one.  
 
There is a foundation somewhere in the United States that funds just about anything you can think of. It is important to know the foundation and what they give to. There are organizations that give internationally. There are organizations that only give to Australia. So you have to look at each foundation, what they are interested in, what their limitations are in terms of giving and if their giving program fits your organization, if it looks like that foundation is a believer in what you do, then they are a potential donor. Potential! Not a prospecting one yet, but a potential one.  
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How do you use your affiliation with WANGO to help you with foundations? Every foundation is managed by a Board of Directors. Those boards of directors are people, and people know people. Every time I research a foundation, I look to see who is on the Board of Directors. Because I may recognize a name, or my board of directors might recognize a name, or someone we know through our affiliation with WANGO may know somebody who can help us get into a foundation.  
 
How do you use your affiliation with WANGO to help you with foundations? Every foundation is managed by a Board of Directors. Those boards of directors are people, and people know people. Every time I research a foundation, I look to see who is on the Board of Directors. Because I may recognize a name, or my board of directors might recognize a name, or someone we know through our affiliation with WANGO may know somebody who can help us get into a foundation.  
  
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===Asking for money from foundations===
  
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Asking for money from foundations
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The process of asking for and getting money is based on relationships, first and foremost. It is all about relationship! This is why foundation fundraising is different from government fundraising&mdash; because bureaucrats just do not know how to carry on relationships with normal people! For foundations, look at the board, look and see what they do, and often you can also call the foundation and they will send you an annual report, if it is not on their website.
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The process of asking for and getting money is based on relationships, first and foremost. It is all about relationship! This is why foundation fundraising is different from government fundraising -- because bureaucrats just do not know how to carry on relationships with normal people! For foundations, look at the board, look and see what they do, and often you can also call the foundation and they will send you an annual report, if it is not on their website.
 
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Many of the larger foundations that fund internationally have websites. They tell you what they believe. They tell you what programs they fund. They may even list who they funded and how much. Looking at this information helps you to decide, does my program match what they fund? How do you know how much money to ask for? You take a look at whom they funded and how much gave out. That will show you a range of how much they give. McReynolds gives out an average of $25,000 to $50,000 in grants to organizations. You know that by looking at their annual report. An annual report will also list everyone on the board of directors, so you do not have to do that research.  
 
Many of the larger foundations that fund internationally have websites. They tell you what they believe. They tell you what programs they fund. They may even list who they funded and how much. Looking at this information helps you to decide, does my program match what they fund? How do you know how much money to ask for? You take a look at whom they funded and how much gave out. That will show you a range of how much they give. McReynolds gives out an average of $25,000 to $50,000 in grants to organizations. You know that by looking at their annual report. An annual report will also list everyone on the board of directors, so you do not have to do that research.  
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Once you have gotten to the point where you know, yes or no, they will or will not look at your grant proposal, then you can start putting together all that information we talked about the first 20 minutes: who you are, what you do, what your plans, what your budget is on paper, and all presented in a form that they require.  
 
Once you have gotten to the point where you know, yes or no, they will or will not look at your grant proposal, then you can start putting together all that information we talked about the first 20 minutes: who you are, what you do, what your plans, what your budget is on paper, and all presented in a form that they require.  
  
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==Associations==
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Another broad group of donors that often are overlooked are associations. Associations are not private enterprise; they are non- governmental. They are non-profits. A lot of them can be professional associations. The Bar Association, an association of lawyers in the United States, give money for juvenile crime projects, which is related to what they do. The Farm Bureau in most countries, or the national farm bureau, will give money that supports agriculture, family farms, and such programs.
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Search for foreign associations who are looking to have an impact and do a service project. Associations have the same sort of philosophical need to do good in a lot of cases. The National Educational Association (NEA) in the United States has a strong firm belief in certain education principles, and send money overseas, or teachers overseas, when it is to their benefit. The American Medical Association and Doctors Without Borders are examples of organizations which use volunteers around the world to help with medical care, immunizations, and so forth. Different associations may not give money to your organization, but they may give you resources or partner with you on a specific project.
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There is not a general directory for associations worldwide, although the Yearbook of International Organizations lists international associations. There is also a national directory of associations in the United States. Since associations are non-profit organizations, you can examine directories of associations on the regional or local levels. You can also use the national database of non-profits organizations provided by GuideStar (www.guidestar.com). Guide lists over 850,000 non-profit organizations in the United States, and their database can be searched by zip code and city, among other categories.
  
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Individual donors
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==Individual donors==
  
 
Foundations actually are not the number one donor, at least in the United States; individuals are. PLEASE NOTE: Donations by individuals and businesses in the United States are NOT tax deductible if the money is being given to a foreign NGO. This does not mean that donors will not support you; it means that you must officially notify them that their contribution is not tax deductible, even if you have an IRS 501(c)(3) letter. For Foundations and Trusts, the tax deductibility of the grant is not an issue. For individuals who have a passion for what you do, they may not care that their donation is not tax deductible either. The key is to find people who believe in what you do.
 
Foundations actually are not the number one donor, at least in the United States; individuals are. PLEASE NOTE: Donations by individuals and businesses in the United States are NOT tax deductible if the money is being given to a foreign NGO. This does not mean that donors will not support you; it means that you must officially notify them that their contribution is not tax deductible, even if you have an IRS 501(c)(3) letter. For Foundations and Trusts, the tax deductibility of the grant is not an issue. For individuals who have a passion for what you do, they may not care that their donation is not tax deductible either. The key is to find people who believe in what you do.
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In order to reach individuals in the United States, one needs certification (the 501(c)(3) letter) by the IRS. Depending on how you solicit individuals, whether it is a mass mailing, whether it is a special event, whether you are sending email or sending out letters, you need this certification to be considered a legitimate nonprofit organization.  
 
In order to reach individuals in the United States, one needs certification (the 501(c)(3) letter) by the IRS. Depending on how you solicit individuals, whether it is a mass mailing, whether it is a special event, whether you are sending email or sending out letters, you need this certification to be considered a legitimate nonprofit organization.  
  
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If your organization is located in the United States and you send for or go out and ask for money, you need a solicitation license from your state. The Secretary of State who handles your corporation is the one who gets you the solicitation license. It may run $50 a year if you are under $50,000 and $500 a year if your annual budget is larger. Each state has its own rules and fees for soliciting the general public in their state. The solicitation letter is needed when you are approaching the general public (mass mailing to a large list of donors).  
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If your organization is located in the United States and you send for or go out and ask for money, you need a solicitation license from your state. The Secretary of State who handles your corporation is the one who gets you the solicitation license. It may run $50 a year if you are under $50,000 and $500 a year if your annual budget is larger. Each state has its own rules and fees for soliciting the general public in their state. The solicitation letter is needed when you are approaching the general public (mass mailing to a large list of donors). If you send letters to all the states, you need a permission letter from each state. They are a pain to work with. They make you dizzy with the forms you have to fill out with the Secretary of State. It is essentially registering again as a legitimate organization. An IRS number [federal tax ID] and 501(c)(3) nonprofit status are different from a solicitation letter, and a solititation number is still needed even when you have the tax-exempt status. Because its the only way that the state governments get their money. Your IRS fees go to the federal government. If you’re soliciting in the state of Georgia, for example, the governor of Georgia wants a little of your money too.
  
 
You do not need a solicitation license to apply for grants. A solicitation license protects the general public. Whether you are doing direct mail, whereby you are mailing requests for funds throughout the Untied States, or if you are having a special event that the public is invited to, a solicitation license is required to protect the general public. What that means is that if you call me on the phone like the telemarketers do, I can call the Secretary of State and verify that you are a legitimate organization and I can give you money. The need for a solicitation license from each state in which you solicit the general public is one reason we DO NOT encourage you to use direct mail or telemarketing to raise money. Targeting businesses and individuals that you have taken the time to develop relationships with is more effective in the long run and prevents you from having to comply with public solicitation rules.
 
You do not need a solicitation license to apply for grants. A solicitation license protects the general public. Whether you are doing direct mail, whereby you are mailing requests for funds throughout the Untied States, or if you are having a special event that the public is invited to, a solicitation license is required to protect the general public. What that means is that if you call me on the phone like the telemarketers do, I can call the Secretary of State and verify that you are a legitimate organization and I can give you money. The need for a solicitation license from each state in which you solicit the general public is one reason we DO NOT encourage you to use direct mail or telemarketing to raise money. Targeting businesses and individuals that you have taken the time to develop relationships with is more effective in the long run and prevents you from having to comply with public solicitation rules.
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Partnering with other organizations in soliciting the general public is another option. For example, if your organization is working through churches or congregations, you can partner with them and use their letterhead, or their shield. Since the solicitation is only going to a closed group of people and the people who are on that list, the church or the congregation has legitimized your organization. In other words, if you are sending a solicitation to the general public in the city of Washington, DC, you need a license. If you have an agreement with an association, and you want to solicit everyone in that Association, you do not need a general solicitation license.  
 
Partnering with other organizations in soliciting the general public is another option. For example, if your organization is working through churches or congregations, you can partner with them and use their letterhead, or their shield. Since the solicitation is only going to a closed group of people and the people who are on that list, the church or the congregation has legitimized your organization. In other words, if you are sending a solicitation to the general public in the city of Washington, DC, you need a license. If you have an agreement with an association, and you want to solicit everyone in that Association, you do not need a general solicitation license.  
  
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Major donors  
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===Major donors===
  
 
Major donors are individuals, and lot of time celebrities, who can write substantial checks. Major donors usually give less than $100,000, but can sit down and write you a check for at least $1,000 -- just pull out the checkbook and write it. They may not be major money for your organization, but these are the people you can call in an emergency and say, “I need $5,000” and they can write you a check. To find those people, it is a matter of looking at all those other resources mentioned and finding them one at a time. Your major donors are your true believers. They are the people that eventually you want to put on your board of directors, that you want to make part of your group. They are the people you can rely on for emergency funding.  
 
Major donors are individuals, and lot of time celebrities, who can write substantial checks. Major donors usually give less than $100,000, but can sit down and write you a check for at least $1,000 -- just pull out the checkbook and write it. They may not be major money for your organization, but these are the people you can call in an emergency and say, “I need $5,000” and they can write you a check. To find those people, it is a matter of looking at all those other resources mentioned and finding them one at a time. Your major donors are your true believers. They are the people that eventually you want to put on your board of directors, that you want to make part of your group. They are the people you can rely on for emergency funding.  
  
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===Finding individual donors===
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Finding individual donors
 
  
 
How do you find individuals who believe what you believe? Conferences. Everybody attending a major international conference, like WANGO Annual Conference 2002, has probably met one person who could either write a check to them or knows somebody who could write a check, because they are sympathetic to what you are doing. Those business cards that everyone gives you, keep those! And if you have a good conversation with somebody , they may know an organization or a person that could support you.  
 
How do you find individuals who believe what you believe? Conferences. Everybody attending a major international conference, like WANGO Annual Conference 2002, has probably met one person who could either write a check to them or knows somebody who could write a check, because they are sympathetic to what you are doing. Those business cards that everyone gives you, keep those! And if you have a good conversation with somebody , they may know an organization or a person that could support you.  
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Look trade associations publications, Who’s Who in American Business, or the Standard and Poors index. Or do your search on the Internet. The best search engine is google.com. Type in a person’s name. Type in “Lebanon”, type in your country. Look at the people who are affiliated with your area. Look for individuals who have come to the United States who are successful. If you are a U.S.-based organization, look for people who have given to organizations like you. If you are a policy organization that works on AIDS research, look up other policy organizations that do AIDS research and see who gave them money, because their donors could be your donors. There is no rule that says people have a limited amount of money and can only give to one organization.
 
Look trade associations publications, Who’s Who in American Business, or the Standard and Poors index. Or do your search on the Internet. The best search engine is google.com. Type in a person’s name. Type in “Lebanon”, type in your country. Look at the people who are affiliated with your area. Look for individuals who have come to the United States who are successful. If you are a U.S.-based organization, look for people who have given to organizations like you. If you are a policy organization that works on AIDS research, look up other policy organizations that do AIDS research and see who gave them money, because their donors could be your donors. There is no rule that says people have a limited amount of money and can only give to one organization.
  
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==Corporations==
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Corporations
 
  
 
Corporations right now are not giving away as much money as they used to. Again, corporations give money when it is to their benefit, unless they are a family owned corporation or business where the owner's vision is still implemented. Chick-fil-A was started by a man in Georgia. Chick-fil-A's across the United States are closed on Sunday, because Sunday is church day. Chick-fil-A's corporate giving program supports religious organizations because of who owns the corporation.  
 
Corporations right now are not giving away as much money as they used to. Again, corporations give money when it is to their benefit, unless they are a family owned corporation or business where the owner's vision is still implemented. Chick-fil-A was started by a man in Georgia. Chick-fil-A's across the United States are closed on Sunday, because Sunday is church day. Chick-fil-A's corporate giving program supports religious organizations because of who owns the corporation.  
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If, on the other hand, a donor gives your organization money to do something specific that is not your organization’s mission, that has nothing to do with your purpose and goals, do you take the money? Probably not. There are times when you have to know when to say no. It is a decision that everyone has to make.  
 
If, on the other hand, a donor gives your organization money to do something specific that is not your organization’s mission, that has nothing to do with your purpose and goals, do you take the money? Probably not. There are times when you have to know when to say no. It is a decision that everyone has to make.  
  
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Foundations
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==Government grants==
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Foundations give a lot of money. Here in the United States, a foundation is a legal entity designed to give away money. That’s their purpose, that’s why they exist, to give away money. They have to give away some 30% of their assets every year. Some foundations are designed to do this forever and some are designed to give away their money and then to go away. How do you find them?
 
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The best website is the Foundation Center: www.foundationcenter.org. That is a non-profit organization here in the United States that works for foundations. They have a list and a database of every registered foundation in the United States. They have people who can answer you online.
 
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The process of asking for and getting money is based on relationships, first and foremost. This is why foundation fundraising is different from government fundraising. Foundations look at the Board and at what the organization does. Every foundation is managed by a board of directors. Every time I research a foundation, I look to see who is on the board of directors. Because I may recognize a name, or my board of directors might recognize a name, or someone we know may know somebody who can help us get into a foundation.
 
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Many of the larger foundations that fund internationally have websites. They publish an annual report every year, which includes a list of the board of directors. They tell you what they believe, what programs they fund and who they funded and how much. Take a look at whom they funded and how much they gave out.
 
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Also partnering resources is about building relationships with other organizations that sometimes you may think are your competition. The United States has a World Relief Organization based in Washington, DC, and they’re always looking for partners. Find out who your representative is in various organizations and their interest.
 
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Associations
 
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Another broad group of donors that often are overlooked are associations. Associations are not private enterprise; they are non- governmental. They are non-profits. A lot of them can be professional associations. The Bar Association, an association of lawyers in the United States, give money for juvenile crime projects, which is related to what they do. The Farm Bureau in most countries, or the national farm bureau, will give money that supports agriculture, family farms, and such programs.
 
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Search for foreign associations who are looking to have an impact and do a service project. Associations have the same sort of philosophical need to do good in a lot of cases. The National Educational Association (NEA) in the United States has a strong firm belief in certain education principles, and send money overseas, or teachers overseas, when it is to their benefit. The American Medical Association and Doctors Without Borders are examples of organizations which use volunteers around the world to help with medical care, immunizations, and so forth. Different associations may not give money to your organization, but they may give you resources or partner with you on a specific project.
 
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There is not a general directory for associations worldwide, although the Yearbook of International Organizations lists international associations. There is also a national directory of associations in the United States. Since associations are non-profit organizations, you can examine directories of associations on the regional or local levels. You can also use the national database of non-profits organizations provided by GuideStar (www.guidestar.com). Guide lists over 850,000 non-profit organizations in the United States, and their database can be searched by zip code and city, among other categories.
 
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Government grants
 
  
 
Finally, there are government grants. I personally do not write government grants simply because a lot of the time they are politically driven. It is not that they really care, but rather they are politically driven. You cannot count on government grants. You may get it this year, but not the next year. Does that mean that you should not go for them? Of course not. Government grants are just another source of funds.  
 
Finally, there are government grants. I personally do not write government grants simply because a lot of the time they are politically driven. It is not that they really care, but rather they are politically driven. You cannot count on government grants. You may get it this year, but not the next year. Does that mean that you should not go for them? Of course not. Government grants are just another source of funds.  
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One resource that you do have in your countries is the United States embassies. You can call them and make inquiries and get referrals.
 
One resource that you do have in your countries is the United States embassies. You can call them and make inquiries and get referrals.
  
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==Services==
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For this last category, your organization essentially becomes a hired contractor to do its mission. For example, your organization can contract and become a partner with the United Nations, or partner with some of the world’s relief organizations, if you have contacts on the ground in a neighborhood, city, or country where they wish to provide help. The American Red Cross or the International Red Cross do not know who and which neighborhoods need to be helped. You do! So in looking at whom you can go to for help in terms of donations or resources, look at whom you serve. Look at the other organizations that might need that service. You should know who the International Red Cross representative is. They should know who you are and what you do. Your organization may deal with illiteracy or helping women get jobs. If something happens in your country and you have got contacts or hundreds of women across the country, the Red Cross would want to know that.
  
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Other resources
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Partnering resources and getting resources from other organizations is about building relationships, even building relationships with other organizations that sometimes you may think are your competition.  
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A lot of times, in order to get money you just need resources. Find somebody who will publish something for you for free, a local printer who believes in what you do. Find college students who will design, or do computer work for you for free in exchange for experience. Find a partner organization. Find a partner here in the United States that will adopt you. There are a lot of congregations and religious organizations in the United States who have a lot of money and want to do missionary work but don’t know where to send it.
 
  
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The United States has a World Relief Organization. It is based in Washington, DC and they are always looking for partners. So one of the first things you could do is to find out who your representative is in the United Nations and their contact information. Because they are a non-profit and are interested in helping with world relief, or different programs currently going on in your country or region, your would like to form a working relationship with them.
  
  
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Communications
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==Other resources==
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A lot of times, in order to get money you just need resources. Find somebody who will publish something for you for free, a local printer who believes in what you do. Find college students who will design, or do computer work for you for free in exchange for experience. Find a partner organization. Find a partner here in the United States that will adopt you. There are a lot of congregations and religious organizations in the United States who have a lot of money and want to do missionary work but don’t know where to send it.
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In fundraising, if you ask for money or resources, “No” does not always mean no; it does not always mean forever. It can mean not now, not this, not this much, not you. Seek after people. If it looks like they should be funding you, send them your newsletter. Send them your annual report. Let them know what you are doing. Invite them to things. Build a relationship with them. Invite government officials. Government officials run political campaigns and can lead to some of your best publicity, and it’s free.
 
  
  
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If you ask the Ford Foundation to fund a project and they do not fund your project, you get the money from someplace else, you do the project, and then send a report on that project back to the Ford Foundation: “Thank you for considering our request. We were eventually able to get the funds from x, y and z. This is what we were able to do with it.” Those donors stay in that realm until they tell you, “Do not call us again.” Make them tell you it before you stop. I only have had one person say, “Don’t call me again. We’re going out of business.” So send them your newsletter. Invite them to things. If you are having a dinner, or you are doing a tour of the facility, invite potential donors. Build a relationship with them. Invite government officials. Government officials run political campaigns and can be some of your best publicity -- and it’s free.
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==Communications==
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Q: If you send letters to all the States, do you need a permission letter from each state?
 
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A: Yes. They are a pain to work with. They make you dizzy with the forms you have to fill out with the Secretary of State. It is essentially registering again as a legitimate organization.
 
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Q: If my organization has an IRS number [federal tax ID] and 501(c)(3) nonprofit status, do I still need a solicitation letter?
 
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A: They are not the same thing. Because its the only way that the state governments get their money. Your IRS fees go to the federal government. If you’re soliciting in the state of Georgia, for example, the governor of Georgia wants a little of your money too.
 
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In fundraising, if you ask for money or resources, “No” does not always mean no; it does not always mean forever. It can mean not now, not this, not this much, not you. Seek after people. If it looks like they should be funding you, send them your newsletter. Send them your annual report. Let them know what you are doing. Invite them to things. Build a relationship with them. Invite government officials. Government officials run political campaigns and can lead to some of your best publicity, and it’s free.
  
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If you ask the Ford Foundation to fund a project and they do not fund your project, you get the money from someplace else, you do the project, and then send a report on that project back to the Ford Foundation: “Thank you for considering our request. We were eventually able to get the funds from x, y and z. This is what we were able to do with it.” Those donors stay in that realm until they tell you, “Do not call us again.” Make them tell you it before you stop. I only have had one person say, “Don’t call me again. We’re going out of business.” So send them your newsletter. Invite them to things. If you are having a dinner, or you are doing a tour of the facility, invite potential donors. Build a relationship with them. Invite government officials. Government officials run political campaigns and can be some of your best publicity -- and it’s free.
  
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==References==
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Back
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The foundation for this article are excerpts from a presentation by Theresa Rudacille (Director of Development, Empowerment Resource Network) on October 20, 2002 in  at a WANGO Conference in Washington, D.C.

Latest revision as of 07:04, 27 May 2009

After an organization has a well-defined mission, a proper legal structure, specific programs and budgets, and a good ethical and legal structure, it is prepared to ask for money. Why are people going to give your organization money to do what it does? Because it is their passion. They are believers. In the fundraising world, your best source for money and resources are people who think like you do, who believe like you believe—individual donors and foundations.

Governments and corporations are another story. Governments are not compassionate. Governments do not believe things like people do. People in government can be very compassionate, but governments are political and make political decisions. Corporations, on the other hand, are driven by dollars. Corporations can say wonderful things, “your organization is doing great work,” but generally unless it means something to their bottom line, there is little point in asking them. Most people think that the Coca-Cola Foundation is a wonderful, international organization that does good. And it does good. But they get something in return for doing good in a country, such as exposure.

A lot of how you ask for money depends on whom you are asking. Donors who are business oriented—a business corporation, a business owner—generally are thinking in terms of the bottom line: profits. If I am a philanthropist, however, I do not care what the bottom line is. I want to do good. How you phrase what you do and why you do it will be different according to the audience. Corporations are business minded. Governments need a political reason for giving. You cannot ignore that. If it is a United States government program, then they will publish exactly what they are doing and why they are doing it, and instructions for applying. They have you execute the government’s vision.

Main sources of money

The following are some of the main categories of sources of money.




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