Difference between revisions of "Sources of Funding"
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| − | After an organization has a well-defined [[Mission | + | 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. |
| − | 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, | + | 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 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== | ==Main sources of money== | ||
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* '''Charitable foundations and associations'''. There are many charitable foundations in the United States who are willing to provide grants, worldwide. | * '''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. | * '''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. | ||
| − | * ''' | + | * '''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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| + | * '''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. | ||
| + | * '''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. | ||
==Foundations== | ==Foundations== | ||
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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. | 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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| + | 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.
Contents
Main sources of money
The following are some of the main categories of sources of money.
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