Nonprofit organizations are those that invest the funds back into the specific mission of the organization, instead of distributing funds to investors. Nonprofits often work for the community to better the surroundings and individual situations. This, like any business, requires funding to be successful. Nonprofits are often supported by individuals and companies. Unfortunately, downturns in the economy have a direct effect on nonprofits, as donors lower or even cease their donations. In these times, nonprofits have to develop more strategies for collecting the money needed to operate the organization.
Nonprofits may choose to offer individual or business memberships to those willing to be involved in supporting the organization. Membership may include exclusive newsletters, attendance at annual meetings and other privileges. The dues paid by members can directly support the vision of the organization, as well as staff and office needs.
Fundraisers are very common for nonprofit organizations. Nonprofit fundraisers vary widely and can include selling catalog items to collecting items to resell. Countless catalog and wholesale companies work with nonprofit organizations on specific fundraisers. Local coupon books and calendars are popular fundraiser items, as are cookbooks, candles and candy.
Collection jars placed in visible places across the community can also be a viable way for nonprofit organizations to collect money. A jar and a brochure or sign explaining the vision of the organization placed near cash registers or at customer service counters can boost the donations the nonprofit takes in. This particular method may not raise thousands of dollars, but its purpose is two-fold: creates awareness of the nonprofit organization, which may lead to future donors, and it brings in donations while promoting the nonprofit.
Pledge Driven Event
Walk-a-thons, Bowl-a-thons and Bike-a-thons are but a few pledge-driven events non profits use for fundraisers. Donors pledge a certain amount per mile (hour, point) and agree to pay the total of the pledge multiplied by the number of miles (hours, points,) completed. Pledge driven events are often related to the nonprofit, but do not have to be. For example, a children’s charity might have a Fun Run or a Family 5K where adults and children walk or run to raise money for the cause.
Meals and banquets are also frequently used to help nonprofits make money. The nonprofit serves a special meal for current and potential donors in exchange for the money they pay as a ticket price for the meal and entertainment. After providing an enjoyable evening, a representative from the nonprofit thanks everyone for attending, and shares the organization’s mission and goals in an effort to gain additional monetary support.
- growing money towers image by Arpad Nagy-Bagoly from Fotolia.com