NONPROFIT
FUNDRAISING
BASICS
Presented by
Patrick Malone,
WSUE Horizons Coach
NONPROFIT FUNDRAISING BASICS
• In The Beginning….PASSION + PERFORMANCE.
Strategic Plan (3-5 years)
Program Plan & Budget/Business Plan (1-2 yrs)
Fundraising Plan (board training)
Audits/Financial Assessment (track record)
READY, AIM, FIRE……..>>>>>>>>>>
NONPROFIT
FUNDRAISING
BASICS
Nonprofits generally have the
ability to secure up to 5 types
of income or revenue. They
include:
•Fees for Service,
•Social Enterprise/Earned
Income,
•Individual Donors,
•Grants, and
•Government Earmarks
NONPROFIT
FUNDRAISING
BASICS
PLUS TWO
more……
1.YOUR MEMBERS
2.YOUR BOARD
NONPROFIT
FUNDRAISING
BASICS
Fees for Service.
Generally your most basic source of
income. Money is derived from the
provision of some type of good or
service (at hopefully a break-even
point).
Education is a good example.
Your goal should be that between
30 and 60% of your income comes
from fees. Pricing denotes value
and encourages participation and
commitment.
Nonprofit Fundraising Basics:
FEE FOR SERVICE EXAMPLE
Financial Education - A
Financial Education - B
• You sponsor a series of
4 classes for free on the
topic of financial
education in April 2010.
Here your organization
spends $ in printing and
promotion.
• You sponsor this same
series but you invite
local businesses to
invest as sponsors AND
you charge participants
$15.00 for the entire
series or $5.00 per
class. Here your
organization makes $
through income fees.
NONPROFIT
FUNDRAISING
BASICS
Social Enterprise/Earned Income.
Not only should/must you make
money by appropriately pricing
your core goods and services, but
you should also exhaustively look
into your ability to earn money
from some form of ancillary social
enterprise.
A social enterprise balances
mission and money, so that the
core mission of the nonprofit can
flourish. Here you might make 5 to
20% of your budget.
Nonprofit Fundraising Basics:
EARNED INCOME EXAMPLE
Financial Education - A
Financial Education - B
• You purchase a set of
teaching curriculum
from a recognized
source for $.
• You gather a team to
compile your own
stories and worksheets
in preparation of a Basic
Financial Education
Guidebook and sell it
online for $ making you
$$ in profit.
Nonprofit Fundraising Basics:
EARNED INCOME EXAMPLE
Christ Kitchen, Spokane –
Women Empowerment
Food From the Hood, LA –
Youth Entrepreneurship
NONPROFIT
FUNDRAISING
BASICS
Individual Donors.
Much like Fees for Service,
individual donors should
comprise between 30 and
80% of your revenue.
Middle income Americans
give 85% of all American
philanthropy. Make them
your champions!
Nonprofit Fundraising Basics:
INDIVIDUAL DONOR EXAMPLE
Financial Education - A
Financial Education - B
• You tell co-workers about
your training series and ask
each person to give
something. You get $.
• You schedule an individual
time to meet with coworkers after work and ask
them to invest in the
personal growth of
neighbors who will then
become more self-sufficient
and need fewer social
services and therefore
reduce taxes. You get $$$!!
NONPROFIT
FUNDRAISING
BASICS
Grants.
You regularly prepare and
submit grant proposals.
You derive 20 to 60% of
your overall revenue from
this source.
Nonprofit Fundraising Basics:
GRANT PROPOSAL EXAMPLE
Financial Education - A
Financial Education - B
• You furiously search the
internet researching
possibly funders and write
dozens of proposals netting
you much exhaustion and a
few $.
• You strategically rate your
programs and services for
the ‘best funder fit’ and
then systematically prepare
a highly competitive grant
proposal getting you $$$!!
NONPROFIT
FUNDRAISING
BASICS
Government Earmarks.
You make a routine written
request of members of your
Legislative and/or
Congressional delegation to
slip a pet project into the
state and/or federal budget.
Especially useful for capital
projects.
You derive 1-5% of your
revenue this way.
Nonprofit Fundraising Basics:
GOVERNMENT EARMARK EXAMPLE
Financial Education - A
Financial Education - B
• You submit a project
request to 1 legislator and
then you recruit strong
business and community
leaders to lobby for your
project request within the
state/federal budget.
• You submit your top priority
project with full support
documentation, along with
dozens letters of support to
all members of your state
and/or federal delegation
and then invite key
community leaders to join
you in promoting its
passage.
Giving USA 2005 Data
Giving USA 2005 Data
Nonprofit Fundraising Basics:
• Your goal, our goal…
Is to build a CULTURE OF
PHILANTROPY in all our
communities and among all
our residents and businesses
NONPROFIT
FUNDRAISING
BASICS
Nonprofits generally have
the ability to secure up to
5 types of income or
revenue. They include:
•Fees for Service,
•Social Enterprise/Earned
Income,
•Individual Donors,
•Grants,
•Government Earmarks,
• Members, and
• Board Members.
Annual Operating Funding
Summary:
• Fees = 30-60%
• Earned “Y” = 10-30%
• Donors = 30-80%
•
•
•
•
Grants = 30-60%
Earmarks = 1-5%
Members = 10-100%
Board = 1-10%
• = 100% of your overall
financial needs