To acquire a diverse set of funding sources, a nonprofit organization first has to be sure that the community has a positive impression of the organization and mission. Recently, I came across a publication issued by the Horatio Alger Association called, “Ten Traits That Make Nonprofits Great”. After reading through this infographic, I believe that trait Number 4 —“Develop Diverse Funding Sources” — is one of the most important traits in creating a successful nonprofit organization, as more services can be provided with increased funding. When acquiring new funding sources, we see that some sources are more available or recognizable than others. I have realized that funding sources are not consistently used by nonprofit organizations, as some smaller charities may not know or be familiar with the various funding prospects that are available. This infographic showed the following examples of funding sources that charities can utilize:
- Local Foundations and Businesses
- Special Events
- Investment Income
- Government Grants
- Payment for Services
The publication has listed great examples of various ways to diversify funding sources. It is important to have a balance of diversity while maintaining the organization’s focus on the funding sources that are most effective for the success of the organization. Considering advice from local public relations, marketing and advertising firms can help with increased community support and your organization’s development success. Being able to utilize a combination of funding sources can help with the increase of contributions for the organization, which in turn creates more growth, opportunities, and overall potential. It is best to take your organization’s funding sources into close consideration to help with identifying trends and other unique funding resources. The above insights can provide you with a good sense of an effective funding mix for your particular organization. Make sure to read the publication from the Horatio Alger Association for other ways to make your nonprofit great.
By Danielle Roisom