At a young age, I became fascinated with the idea of helping out the less privileged cos I saw my parents do it.
However, a challenge always seemed to suffice whenever there was someone to help and my parents weren’t buoyant enough to render such help.
When the need was urgent, the only resolve was to borrow and I saw them do so a number of times.
As I grew older and saw organizations that were solely non-profit, I realized they must face challenges when it comes to funding and it proved to be true.
There just have to be a solution!
Read this post to the end as we have brought a solution to this challenge. Learn the ways nonprofit organizations can make money to finance projects.
What are Nonprofit Organizations?
Nonprofit organizations are those that exist not to make money but to fulfill a particular purpose. They are recognized by law as either charitable, educational, scientific, or literary.
This doesn’t negate that they can have activities to raise funds. They can even make a profit if they operate for a nonprofit cause and have the right tax exemptions.
If their activities are related to their purpose, then their income is not taxed.
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7 ways to make money for a Nonprofit Organization
Many nonprofit organizations find it difficult to have a sustainable way of making money. We have come up with ideas on how to curb this.
This article will explain the ways to make money for a non-profit organization.
Stay with us!
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You can organize tournaments that attract crowds like golf, tennis, basketball, etc.
Since our nonprofit organization will spend money organizing this tournament, what are the ways to make money from this? Don’t worry yet, we are coming to that.
Organizing a tournament is actually a very smart thing to do. There are actually 2 ways to go about it.
Write to companies who have an active CSR policy to partner with you.
Essentially, they will foot the bills. All you do is find a way to infuse a fundraiser directly or indirectly.
You may sell coupons in the tournament for special gifts or outrightly ask for donations.
Likewise, your non-profit organization can go-ahead to organize the tournament while there will be an entry fee. Sell lunch, conduct an auction, just be creative about it, and seek additional donations.
This is by far the smartest and easiest way money for a nonprofit organization.
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#2 Product and Services Sales
Most nonprofit organizations make money by developing a unique product to sell at certain periods of the year. It may be during Halloween, summer, or thanksgiving.
You can incorporate this!
Find a unique product and sell using your network, door-to-door or during events.
Some nonprofit organizations also charge a fee for the products and services they render.
Take Meals on Wheels for instance. They charge a membership fee although small to bring nutrition to senior citizens.
The paradox here is, make sure the users of your product or service will be willing to pay before projecting such a fee.
#3 Corporate Support
Support from corpoate bodies is one of the major ways to make money as a non-profit organization.
Most 21st century businessess include philanthropy in their annual budgets.
But, both the nonprofit organization and the corporate body must serve a similar cause and population. An eye doctor will likely support advocacy for the blind than a group that fights gender equality.
In addition, they give more funds than private support.
Grants offer another way to make money for a non-profit organization. They can provide large sums of money for your organization and there are tons of grants readily available.
Trust me, the process can be lengthy and stressful. It is also not guaranteed. But, we are looking at the end goal here remember – which is to make an impact. Grants can help you do that!
An important factor to note when seeking for grants is that the goal of the grant and organization offering the grant must align with yours. If it doesn’t, your organization may not get it.
Therefore, conduct a background research about the organization, check out the aim of the grant before applying.
Donations is still a goldmine when it comes to how to make money for a nonprofit organization.
Since the services of non-profit organizations are geared towards humanity, people will donate for a cause.
A recent stat proves that over 70% of NPO revenue comes through donations. Now imagine the hike with the ardent use of electronic donations.
Similarly, there are individual donations from partners and non-partners alike. Some nonprofit organizations even have partners who give a specific amount at specified times and seasons.
#6 Fundraising event
While some fundraiser event is done directly through charity auctions and donation kiosks, others inculcate it as an end-of-year or quarter event.
For the Goalkeepers event, it is not a direct fundraiser, but showcases the achievement of a non-profit organization and such brings about increased visibility and of course funds. They even grant awards to other NGOs and individuals.
That sounds like reverse psychology, right?
Maybe your nonprofit organization doesn’t have such capacity yet, feel free to organize cooking competitions, crowdfunding, and movie night events to raise some funds.
Do you know what a bequest is?
A bequest is a gift be it monetary or otherwise that is written into a donor’s will that is fulfilled after their death.
Ever heard that someone willed this amount to a charity organization at death? That’s a bequest!
Many notable personalities will a fraction of their possession to nonprofit organizations and this is one way NPO’s make a one-off huge sum of money.
Your nonprofit organization shouldn’t suffer because of how to make money. Therefore, follow through with these ways to make money for your nonprofit organization.
In case the fear of funding is stopping you from aligning to make an impact in society through charity, this is a form of assurance that your projects will be funded.
The Weath Circle wishes you well!