General information on sources of funds for nonprofits

1. Fundraising for Non-Profits, Part 1

2. Learning Objectives
 What is fundraising?
 Why do people give to non-profits?
 Sources of funding for non-profits
 Private companies
 Individual donors
 Foundations

3. What is Non-profit Fundraising?
Fundraising is the process of asking for contributions from
individuals, companies, foundations, etc.
Nonprofits can fundraise through a variety of digital and
traditional communication methods.

4. What is Non-profit Fundraising?
Sources of funding for non-profit
Individual donors
Private companies
Foundations

5. Why do people give to nonprofits?
Feels good.
 People give back because it makes them feel
good about themselves and giving back to their
community makes them feel like they are
contributing.
Altruism.
People want to help. When a problem is
identified in their community and they can do
something about it, they will.
Personal Connection.
People’s personal history with a specific issue
(ex. Homelessness, domestic violence, cancer,
etc.) makes them more likely to want to
contribute to alleviate the need for others
Society expects you to give back.
Sometimes people’s reasons for giving back are
nothing more than peer pressure
Tax incentives.
Donating to a charity is tax deductible. Although
it may not be the main reason for the donation,
it often provides a strong motivation.
Impulsivity.
 Sometimes you just catch people at the right
time and generosity follows.
 Ex. Girls Scouts catch coming out of Walmart with $8 in your
pocket.

6. Individual Donors

7. Individual Donors
Individual donors make up the majority of those who will provide support to your organization.
Typically, they will make ¾ of all charitable donations your organization will receive.
It is vital to the life of your agency that you build relationships with those who support you.
A close relationship with your donor will result in donor support year after year.

8. Fundraising
Cycle

9. Non-profit Fundraising Sources
INDIVIDUAL DONORS
• Recurring donations
• Online and text donations.
• Phone campaigns.
• Peer-to-peer fundraising.
• Major gifts.
• Planned giving.

10. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Recurring donations – exactly what you think… donations that repeat, in the same amount,
typically monthly or quarterly, but could also be yearly or weekly.
• Typically, fundraising software will make these easy to set up and maintain. They can also be
made by mailing a check, credit card or through your organization’s website donation portal.
• Recurring donations are an easy way for your donor to set up their contributions and not having
to worry. They also are a good way to retain your supporters and their monetary support as
many prefer the convenience they provide.

11. Recurring
Donations
How to get Started
1. Offer this option once the donor
shows interest in supporting your
nonprofit. Maybe they are not
interested in a monthly donation,
but a quarterly one will better suit
their interest. Give plenty of
options for them to choose from.
2. Explain the impact of a recurring
donation. In order for the donor to
understand the impact of their
donation, they will need to
understand its impact on your
mission. Provide details of your
program and how their
contributions will be used to help.

12. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Online donations – a convenient way and quickly becoming the new norm for donors to
make contributions.
•Usually, a link on the organization’s website will take the donor to a landing page connected to
the agency’s fundraising software platform.
•Enables non-profits to accept donations via credit card or PayPal
•Connecting the donation link to the non-profit’s website allows the donor to learn more about
the agency and increase their interest.

13. Online
Donations
How to get Started
2. Don’t get fancy. Make sure the
landing page looks similar and
maintains the look and colors of
your organization/website. A
drastic change in looks may spook
the donor into thinking the page is
not associated with the
organization. Remember they
maybe entering personal
information. Make it secure.
3. Invest in a dependable payment
processing system. Fundraising
software will usually include a
payment processing system for an
additional charge. A reliable
payment system will bring you and
your donors peace of mind.
1. Keep the process simple.
Convoluted website without
simple access to donate
may turn off the donor and
make them change their
mind. Keep it simple from
start to finish.

14. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Text donations – Did you know that 96% of Americans own a cell phone*?
• You can have your supporter show your organization the love by simply sending a text. Your
organization can create a key word.
•Text-to-give – donors text a short code (words or numbers) to a predetermined short number
and a specific amount is charged to their phone bill.
•Text-to-donate – donors text a key word and their chosen amount of the contribution to a
number provided by the organization. Text to donate can be set up for long term use and is a
convenient way for donors to provide support throughout the year.

15. Text-to-Donate
Text-to-Give
How to get Started
2. Keep the key word simple and
meaningful. Choose a keyword that
your donors and supporters will
remember. If your non-profit
benefits veterans, something like
“help vets” could be easily
remembered.
3. Made “Text” donations a thing.
Text-to-donate and text-to-give are
both relatively new medium of
fundraising. Promote your ability to
receive donations this way on your
social media pages and other
means available. Teach your donors
how to use their phones for good
by supporting your non-profit.
1. Find a provider of the
service. Although some
providers offer both, some
only offer either text-to-
donate or text-to-give. Find
the one most suitable to
your org needs.
Text-to-Give
Text-to-Donate, Text-to-Give
Platforms
Learn more about providers
here!

16. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Phone drives – Remember the old Jerry Lewis Muscular Dystrophy Telethon?
Phonathons campaigns have been around since Alexander Graham Bell placed his first
phone call. Whether volunteers are calling donors or donors are being encouraged to
phone in, raising money through phone lines can be a greatly effective way to raise
money for your cause.
•Phonathon can be a fairly low-cost way to raise funds if manned by volunteers and staged at the
nonprofit site.
•They also give you an opportunity to build a person-to-person relationship with your supporters.
In fact, a phonathon may be the first time you make contact with a soon-to-be life-long
supporter

17. Phonathon.
How to get Started
2. Make sure their message is on
point. Conversations with donors
should be kept limited to the
mission and their willingness to
support. As it important as it may
be, this phone call should not be
about building relationships. Keep
it moving to maximize the number
of people reached.
3. Come up with a simple and
affordable way to collect the
donation. Whether through your
own website, or a credit card
system, make sure you plan ahead
and include a simple, affordable
way for volunteers to collect the
donation or take the pledge from
the donor.
1. Train your phone personnel.
Whether you recruit volunteers
or staff, or both, make sure they
are properly train to
communicate your message.
Consider providing a script they
could go by or memorize.

18. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Peer-to-Peer (P2P) Fundraising – supporters raise funds on your organization’s behalf.
Whether it is through a post on their Facebook page, signing up for walking a certain
number of miles, or running a marathon, peer-to-peer fundraising is effective in getting
your supporter’s family and friends involved.
•Not only does P2P fundraising bring in monetary or in-kind support, but it is an effective
way to promote your non-profit and expand its network. It’s a recruitment tool!
•Normally, if P2P efforts are through a platform that will charge a fee per donation. Make
sure to read the fine print before endorsing P2P using the medium.
•Remember this P2P fundraiser? The Ice Bucket Challenge

19. Peer-to-Peer.
How to get Started
2. Provide support (if applicable) .
Share videos, stories and other
information about your nonprofit that
may be useful to those running the
fundraising event. Be careful with
activities that may bring liability upon
your agency…for example, events that
include alcohol or extraneous physical
activity.
1. Train your followers.
Post instructions on
your social platforms on
how to start a peer-to-
peer fundraiser to
benefit your nonprofit.
Don’t forget to tell them
how the money
collected
3. Make an “appearance”. Make
sure you thank and/or comment
on the fundraising about how
their grassroots efforts help
your organization accomplish its
mission. Give the fundraising a
personal angle.

20. Non-profit Fundraising Sources
INDIVIDUAL DONORS
Planned or Legacy Gifts – these are donations that are made into the future. Either
through a trust or left for the non-profit in the donor’s will at time of death.
•Planned gifts tend to be substantial amounts of money given by donors who have been
supporting the organization for a while. These are donors who believe in your mission.
Do not underestimate the power of relationship building with your donors.
• Who is interested in planned giving?
• Demographics: older, single or widowed individuals, no children, wealthy or own appreciated
property
• Philanthropic history: make frequent/recurring donations, believes strongly in your mission
(always supporting or volunteering), affected by your mission (lived through similar
experience as those you help)

21. Planned Gifts.
How to get Started
2. Help your supporters. Provide
specific information that they will
need to properly set up a planned
gift. This will include your
nonprofit’s legal name (name used
at incorporation), Tax ID, and
business address. Creating a
brochure or a page on your
webpage that has this information
will make it easier for you to have
this information available to those
interested.
3. Sell your program to the donor.
Allow the donor to select the
specific part of your program they
would like to support. Legacy giving
includes a level of pride. Be clear
with them on what they will be
supporting and how their money
will be used.
1. Get informed. There is
specific legal and ethical
requirements to make a gift
at death or into the future.
Make sure to consult with
professionals and get
informed before recruiting
donors to leave a gift to
your nonprofit.

22. Corporate Donors

23. Non-profit Fundraising Sources
PRIVATELY OWNED
COMPANIES
• Matching gifts.
• Corporate grants.
• Volunteer grants.
• In-kind donations and
services.

24. Non-profit Fundraising Sources
PRIVATELY OWNED COMPANIES
Matching gifts - essentially double eligible donations that a company’s employees make
to your nonprofit.
• Company usually has a list of eligible charities.
• After employee makes a contribution, they can submit paperwork to their company’s
HR department. If the charity is eligible, the company will cut a check to the
nonprofit for the same amount as the employee’s donation
• Matching gift programs allow companies to exercise their corporate philanthropy
initiatives along with doubling the donation to the charity

25. Matching Gifts
How to get Started
1. Find out which employers match
gifts to non-profits. Use a matching
tool to find out more about which
companies match their employee
donations. Guide and remind your
donors that this is available
through their companies.
2. Take the time to thank your
donors and supporters. You should
always take the time to thank those
who support your mission. Don’t
forget there are separate parties to
thank when a matching gift is
involved. Thank the donor and
their employer!
Find out which companies match
employee gifts to charity here:
Charity Navigator's Gift Matching
Search

26. Non-profit Fundraising Sources
PRIVATELY OWNED COMPANIES
Corporate grants - are local, state, or national grants that companies distribute to
eligible nonprofits.
• Sometimes, a company will select a nonprofit to give the money to. Other times,
nonprofits send in their grant applications and the company will make a selection
from the applicant pool.
• Companies tend to issue grants via their corporate philanthropy or corporate social
responsibility offices or through a corporate foundation.

27. Corporate
Grants
How to get Started
1. Get a Grant Writer. Save
room in your non-profit budget
for hiring a professional grant
writer. This person will be
bringing in large sums of money
through grants. It is money well
spent. In the alternative, reach
out to local SW school and
request a Master level student
that may be interested in
writing grants while earning
internship hours.
2. Remember who you are. Make
sure your organization is seeking
grants that fit its values and
mission. Don’t waste time chasing
grants that are not aligned with
your purpose.
3. Use a cost-benefit approach.
Time is money and writing grants is
time consuming. Do not waste your
grant writer’s valuable time
pursuing grants whose total
amount is not worth the time spent
applying for it.
For example, a company grant’s total
amount is $500 but in order to qualify
you most provide endless amount
information from the previous years.
The work may not be worth $500

28. Non-profit Fundraising Sources
PRIVATELY OWNED COMPANIES
Volunteer grants - are sums of money that companies will distribute after employees have
volunteered a minimum number of hours with an eligible nonprofit.
• There are individual volunteer grants that reward one employee’s volunteer efforts.
Similarly, team volunteer grants are made after a group of employees volunteer together at a
nonprofit for a certain number of hours.
• Volunteer grants allow corporate volunteers to give back monetarily to the nonprofits that they
care about.
• Nonprofits benefit by receiving both volunteer time and charitable donations

29. Volunteer
Grants
How to get Started
1. Tell your Volunteers about
Volunteer Grants. Mention it at
volunteer gatherings, put it on
your volunteer newsletter or
send emails about it to your
volunteer corps.
2. Make sure they know how it
works. Find out how their company
manages volunteer grants and help
your volunteer get informed and
sign up for the program.
3. Create group volunteer
activities. If you know of a
company that has volunteer
grant program, reach out to
them and encourage them to
volunteer as a group at your
organization.

30. Non-profit Fundraising Sources
PRIVATELY OWNED COMPANIES
In-kind Donations/Services - are products and services companies give to non-profit
agencies, usually free or at a very low-cost.
• Anything from food, clothing, or other items the non-profit needs. Services may include legal
advice, lawnmowing and landscaping services, tax-preparation, medical care, etc.
• These goods and services often stem from a community partnership, or develop into a
supportive partnership which continue year after year.
• Typically, the company providing the service will receive a tax deduction for the cost of services
provided and/or the service is provided as part of a employee-based humanitarian initiative
•In-kind donations are also largely provided by individual donors

31. In-kind
Donations and
Services
How to get Started
1. Sometimes all you need to
do is ask. Businesses in your
community will have the greater
interest in being seen as making
a difference in the community
where their customers live. Ask
for their help. Big box stores are
often more than willing to
partner up with non-profits.
2. Ask before you buy. Funds are
limited for non-profits usually. Find
companies that have kinds of
goods/services you need and ask
for a donation before you offer to
pay. In the alternative, ask if they
have discounts for non-profits.
They normally do.
3. Add the personal touch. Instead
of emailing or calling the company,
pay them a visit. Meet their CEO or
Director. Or seek out opportunities
to mingle with those in
management like frequenting
events hosted by the local chamber
of commerce or other similar
events. Asking the right person, in
person, could make the difference
between being told “Yes, we can
help” or being turned down flat.

32. Other sources of
funding

33. Other Fundraising Sources
• Capital campaigns.
• Annual campaigns.
• Annual Events.
• Foundations

34. Non-profit Fundraising Sources
CAPITAL CAMPAIGNS
•These are large, longer-term fundraising initiatives put together to accomplish as
specific task or meet a specific need. For example, an expansion wing to an existing
building, expansion in the program or services offered or building a new building.
• The total goal (amount of money needed) and the purpose of the capital campaign will be
made clear to those who contribute. Once earmarked, moneys raised as part of the campaign
cannot be diverted to other purposes.
•Two phases:
• Quiet Phase. Nonprofit reach out to local companies that may provide larger donations. The purpose is
to fundraise the majority of the goal, between 60-90% of the money needed to meet the goal (best case
scenario).
• Public Phase. Open to all donors with purpose of meeting the rest of the goal.

35. Non-profit Fundraising Sources
ANNUAL CAMPAIGNS
•These are campaigns that the non-profit holds regularly every year.
• Sponsor-a-mom, share your Christmas, Back-to-School Supply Drive, etc.
•Annual campaigns keep the nonprofit running and make a big portion of its annual
operating budget.
•Annual campaigns are what the Development calendar is made of. Your agency can plan
ahead each year and be ready when they come around with marketing materials and a
strategic on how to be more successful than the previous year.
•Watch a promotion video for The Samaritan Inn’s Homeless Awareness Week’s annual
campaign: HAW promo

36. Non-profit Fundraising Sources
ANNUAL EVENTS
•These are community events that attract both regular supporters and new donors.
• Galas, carnivals, golf tournaments, fun run, partner celebrations, talent shows, walkathon,
etc.
•Annual events are attractive to donors in that, if put together correctly, they become
places to be seen in your community. Philanthropists love a good celebration for a good
cause.
• Although the cost of these kind of events can be high, the return-on-investment could
yield a large portion of your agency’s operating budget for the year.
• Event planning could be a class in itself.

37. Annual Events

38. Non-profit Fundraising Sources
COMMUNITY FOUNDATION GRANTS
•Foundations are typically nonprofit organizations that collect money to hand out to
other nonprofits at the local, state and national level.
•Grant writing (and submission) can be a extraneous and time consuming. There likely
will be a lengthy application process that requires a lot of paperwork and record
tracking. Process can take months.
•Hiring a grant writer (hopefully, experienced) could make a significant difference in your
nonprofit’s ability to apply and receive grants.
•Check out https://www.grantwatch.com/ for grant opportunities for nonprofits

39. References
• Grant Watch. https://grantwatch.com
•The Samaritan Inn, Inc. – https://www.saminn.org
•Double the Donation.
https://doublethedonation.com/tips/nonprofit-fundraising