TSB 018: Raising Funds: 7 Tips for New Nonprofit Leaders

Read Time: 5 minutes

This week's tip: Here are seven tips new nonprofit leaders can use to start fundraising.

Raising funds for a nonprofit organization can seem like a daunting task. But with the right resources and a bit of know-how, it can be a rewarding experience. In this blog post, I’ll provide seven tips for new nonprofit leaders looking to raise funds for their organization. With these tips, you’ll be ready to get out there and make it rain.

1.  You Have Options: Different Ways to Raise Money for Nonprofits

Fortunately, there are a variety of ways to raise money for nonprofits, from traditional methods like grant writing, hosting a fundraiser or selling products, to more modern methods such as donor-advised funds and community events using Zoom.

Traditional methods of fundraising are still popular, as they allow your organization to create a sense of community and bring people together for a good cause. Hosting an event, like a gala or a dinner, is a great way to generate funds, as is selling products like t-shirts, mugs, and hats.

Identifying and responding to grant opportunities is great for obtaining multi-year income to support staff and major initiatives. This is not an easy path but can be very rewarding, so we will take a deeper dive into this later in the article.

Online donations are increasingly popular, as new apps and software pop up every day to make it easy for people to donate to your organization. Zoom is beta testing a new product called OnZoom to host community events and fundraisers for your organization.

No matter what method you choose, it’s important to remember that every donation counts. Each donation helps your organization reach its goals and make a difference in the lives of those you serve.

2.  Gather Your Tools: Be Prepared When Fundraising for Charities

Once you’ve decided how you’re going to raise money, it’s time to gather the tools you’ll need to be successful. This includes things like a budget, a plan of action, a list of potential donors, and marketing materials.

Your budget should include the cost of hosting an event, printing materials, and any other expenses associated with your fundraising efforts. If you’re using a crowdfunding platform, you’ll also need to factor in their fees.

Your plan of action should include a timeline of when you’ll launch your campaign, when you’ll reach out to potential donors, and when you’ll follow up with any donations or pledges. This will help you stay organized and ensure that everything is done in a timely manner.

You’ll also need a list of potential donors. This includes individuals, corporations, and foundations that may be interested in supporting your cause. Reaching out to potential donors is an important step in the fundraising process, so make sure to include it in your plan.

Finally, you’ll need to create marketing materials like brochures, flyers, and business cards to promote your organization and fundraising efforts. These materials should include information about your organization, its mission, and how people can help. When you're ready, consider creating a nonprofit annual report.

3.  Use Your Resources: Finding Funding Opportunities

When it comes to finding funding opportunities, there are a few routes you can take. One is to search for to foundations and corporations that have a history of supporting nonprofits like yours on sites like candid.org. This includes researching foundations that have provided grants to similar organizations, as well as looking for companies that have corporate giving programs.

Another option is to apply for grants. Grants are typically awarded by foundations, corporations, and government agencies to support specific projects or initiatives. There are a wide variety of grants available, so it’s important to research the different grant opportunities and apply for the ones that best fit your organization’s needs on sites like Grants.gov.

You can also network with other nonprofits and organizations to find potential funding sources. Connecting with people in the same field can help you identify potential donors and learn about new grant opportunities.

4.  Let's Simplify: Types of Grants for Nonprofits

When it comes to grants, there are several different types to consider. Each type of grant offers a different set of benefits, so it’s important to understand the differences before applying.

Project grants are typically awarded to support specific projects, like building a new facility or launching a new initiative. These grants are generally awarded for a specific period of time, and the funds are used to cover the cost of the project.

Operating grants are awarded to cover the cost of running an organization, such as salaries, overhead, and other expenses. These grants are typically awarded for a limited time period, and the funds are used to cover the cost of the organization’s operations.

Endowment grants are awarded to help organizations build an endowment, which is a pool of money that is invested and used to generate income. This income can then be used to support the organization’s operations and programs.

Finally, there are unrestricted grants, which are awarded to organizations to be used at their discretion. These grants are usually awarded for a specific period, and the funds can be used to cover any expenses associated with running the organization.

5.  Start with the End in Mind: Applying for Grants

Once you’ve identified potential grants, it’s time to start the application process. This can be a daunting task, but there are a few things you can do to make the process easier, but only if you are clear on what you want to accomplish before you begin.

First, read the requirements carefully and make sure you understand what the grant maker is looking for. Make sure to include all the required information in your application, as incomplete applications will be rejected.

Second, make sure to include all the necessary documents, such as financial statements and tax returns. It’s also a good idea to include a cover letter that explains why your organization is a good fit for the grant and how the funds will be used.

Finally, make sure to follow up after submitting your application. This is an important step, as it shows the grant maker that you’re serious about your application and willing to take the extra step to ensure that the process goes smoothly.

6.  Here is a Short List: Ideas for Fundraising Events

In addition to grants, fundraising events can be a great way to raise money for your organization. Here are a few ideas for fundraising events that you can use to raise money for your organization:

• Silent auctions: Silent auctions whether online, in-person, or hybrid are a great way to raise money for your organization. All you need is a few donated items, an app, and a few willing volunteers to make it happen.

• Raffles: Raffles are a fun way to get people involved and generate funds for your organization. Similar to a silent auction, a raffle needs highly desired donated goods and services and volunteers to handle logistics.

• Galas: Hosting a gala is a great way to bring people together and generate funds for your organization. Be careful that your ticket price is well above the expected costs of the venue, food, drinks, and entertainment to make it successful.

•  Bake sales: Bake sales are a low-cost way to get community members involved, create healthy competition and generate revenue. With the help of a few talented bakers that are willing to donate and some hungry buyers you're well on your way.

•  Car washes: Car washes are a great way to get young people involved and fundraise. With a good location, a few supplies, and energetic volunteers you can provide a service that helps raise funds.

No matter which event you choose, it’s important to make sure that it’s well-organized and properly promoted. This will help ensure that the event is successful and will generate the funds you’re looking to raise.

7.  Mobilize Your Board: Effective Nonprofit Fundraising

Finally, it’s important to remember that fundraising is not a one-person job. It’s important to get your board involved in the fundraising process. Your board can help spread the word about your organization and its mission, as well as reach out to potential donors and apply for grants.

Your board can also help with the planning and execution of fundraising events. They can help with things like finding venues, securing donations, and promoting the event. Having your board involved in the fundraising process will help ensure that it’s successful and that you’re able to reach your goals.

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With these seven tips in mind, you’re ready to start raising funds for your organization and make a difference in the lives of those you serve.

Good luck!

See you next Saturday.

Whenever you're ready, there are three ways we can help you:

1. Register for one of our upcoming workshops here. 
2. Book me to speak at your upcoming event here.
3. Explore our consulting services here.