One thing your nonprofit is going to need a lot of is money. While it isn’t possible to make personal profit from a nonprofit organization, you will need to make money in order to continue offering your services.
So, how does a nonprofit go about making money? Below, we’ll look at some of the best ways to do it.
Crowdfunding
One of the most modern ways to seek funding for your nonprofit is through crowdfunding. This can be a particularly great option when you’re looking to cover your start-up costs.
You basically sign up to a crowdfunding site, create a profile and post details about your campaign. Explain what the funds would be used for and how your charity is going to make a big difference to those it helps.
Individuals can make contributions, helping you to reach the total number of funds required. It’s worth researching into this option before you do it as there is a lot to know about crowdfunding and how it works.
Seek Out Grants
Did you know there are nonprofit grants available? These vary depending on your state and the type of charity you are running. A good place to start is the Charities Aid Foundation. They offer grants themselves, as well as post information on other grants available.
The Nonprofit Expert also provides great information on international grants you may be eligible for. Grants are an ideal option as you won’t need to pay them back. However, they do tend to have strict rules as to who is eligible to apply so make sure you check them out before you apply.
Fundraising
One of the easiest ways to make money for your charity is to hold fundraising campaigns. These can be held locally or online. There are many ways you can fundraise for a nonprofit, including asking for donations, hosting fun events, and making money through ticket sales.
You’ll want to spend a large portion of your time fundraising, ideally focusing on at least one major event each year.
Business Ventures
A lot of nonprofits make their money through business ventures. Running a business allows you to use its profits to pay into the charity. As an additional bonus, your business will receive tax benefits. So, not only will your nonprofit not have to pay as many taxes, but your business won’t either.
If running a nonprofit and a business sounds like too much hard work, you could always just partner with other businesses. Ask local businesses if they would like to donate, using the tax saving benefits as an incentive.
These are the best ways you can make money for your charity. It does take a lot of time and effort to continuously drive money into a nonprofit organization. However, through regular fundraising and the right business partnerships, you can secure a healthy level of funding to keep the charity going and to help as many people as possible.
