Non-profit organizations have often found it difficult to find funding for the various activities that they may want to be involved in.
Most non-profits start with a great idea, usually meant to help a certain group of people in some way, but good intentions can often be as far as it gets if they don’t secure the needed resources to move their idea into reality.
Whether your non-profit organization was founded to help homelessness, support education or reading programs, help people find jobs or any number of other helpful services and supports, without money, these organizations cannot do the important work that they do.
Where Do Non-Profit Organizations Get Money?
Technically there are two sources of income for non-profit organizations at the most basic level. First, many non-profits get money from private donors who either give lump sum gifts or provide ongoing monthly support.
The trouble with securing funding from private sources is that how much people give is very much dependent on the state of the economy. In bad times, funding sources quickly dry up.
The other source of income comes in the way of grants for non-profit organizations. The great thing about a grant is that this is essentially free money, given to your organization because it’s deemed to be doing something good, which the grant provider is willing to donate to. Generally, grants come from two sources; Governments and Private Organizations, Foundations or Companies.
Where to Get Grants for Non-Profit Organizations?
Actually locating grant providers seems to be one of the biggest hurdles to securing grant money for non-profits. Too often non-profits, especially smaller ones may not be well connected and don’t have the knowledge or resources to put into finding grants.
Finding grants for a non-profit organization can be a daunting task, and almost a full-time job in some cases, which many non-profits just can’t commit to. They are too busy actually carrying out the great work that they do, that they just don’t have time to look for money.
Government grants for non-profit organizations are one of the best ways for a non-profit organization to find money.
These grants are given out to registered 501(c) 3 organizations, that carry out work in a number of areas including religious, social service, amateur sport or other charitable organizations that support their community in one way or another.
It’s crucial to be registered as a non-profit organization officially to be able to access the funding that the Government providers. If your non-profit is not a registered non-profit, this is going to be your first task; to get registered with the IRS, which can be a fairly large task in itself.
Be sure to check various levels of Governments as well, since money is available on a local, state or national level. Once a government body has allocated money for a grant, they will officially notify the public by issuing a Notice of Funding Availability.
Keep an eye out for these and apply immediately as you can be sure that there may be a lineup for this money. The very best place to look for these new grant opportunities is at this website: http://www.gpoaccess.gov/fr/index.html
Are There Strings Attached?
The Government is not in the business of giving money away for the sake of spending tax-payer money. Often government grants to non-profits may come with some stipulations as to what you will do with the money.
Sometimes grants will be offered to non-profits to hire new staff, invest in new technology or equipment or to provide a service that their community is in need of. Be sure that when you are filling out the application, you make sure you are aware of the requirements to obtain the funding and be clear about what you intend to do with the money.
Private Non-Profit Funding
Another tremendous source of funding for non-profit organizations is through private grants. These grants are offered sometimes by large corporations that allocate money to support their communities or by foundations that have been set-up to fund charitable activities.
Currently the most famous of these private sources of non-profit funding is the Bill & Melinda Gates Foundation. Much like Government grants, they have stipulations as to who they give grants to and for what purpose, but there is plenty of money available.
Private non-profit grants may be harder to locate, but they are out there. One strategy is to visit the website of major corporations in your community or state. Often they will have a section about supporting their community and may even offer an online form to submit to apply for grant money.
Each year companies allocate billions of dollars nationally to give to non-profits who do good work in their community. Your application will need to be top notch in order to receive funding though, so make sure you take your time and fill out the paperwork carefully. After all, you are receiving “free money” so it’s in your best interest to fill out the applications fully and carefully to be taken seriously.
Free Money Is the Best Kind of Money
Finding funding for your non-profit can be a daunting task, but it’s well worth it. It’s always best to search for money with the end in sight. What I mean by that is that you should always think of how much you could benefit your community if you organization had the money to do the good work that you do.
Grants are wonderful because you don’t have to pay them back, which will of course help your cash flow and allow you to focus on your work, rather than stress out about the financial state of your non-profit.
By: Bradley Barks
About Brad
Brad is our lead researcher and editor - he enjoys business, meditation, being active and always learning - his goal is to successfully help you research, find, secure, and enjoy grants and scholarships.
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