Funds for NGOs
Share this article:
What Is an NGO?
How Do NGOs Work?
NGOs vs. Nonprofits
How Do NGOs Get Funding?
6 NGO Funding Sources
Money doesn’t have to be repaid NGO may be able to automatically qualify for the same loans year after year Can be for large amounts Funding for grants can dry up There may be heavy competition to qualify for certain grants Requires a grant writer on the team to fill out applications
Money doesn’t have to be repaid Funds can come from any donor who’s interested in supporting the NGO Fundraising activities provide a way to publicize an NGO and its cause Planning fundraising events can be time-consuming Fundraising needs to be ongoing; it’s not a one-and-done event May require finding businesses and individuals to donate time or products
3. Private Donations
Money doesn’t have to be repaid Donations can be sizable For the donor, money given to NGO may be tax deductible Large donations aren’t guaranteed Donors may want to be honored through a plaque in their name or a mention at an event Donations may slow during sluggish economic times
Money doesn’t have to be repaid The perks offered to members are usually low-cost Members feel more invested in helping the NGO Membership fees are typically low, so it takes a lot of members to raise significant funds NGO needs a membership coordinator or department to run program Perks need to be enticing enough to draw members
5. Corporate Sponsorships
Corporate sponsorships can be of significant value Partnering with a corporation can amplify the NGO’s message faster and further Corporation may get tax benefits with the donation May require a dedicated individual or team at NGO to find corporate sponsorships and manage the relationships Continual support from a corporation isn’t guaranteed
6. Business Loans
Can be easier and faster to get than a grant, corporate gift, or large donation Can enable an NGO to take advantage of a short-term opportunity Can help an NGO make capital investments that will improve operational efficiency Money has to be repaid, plus interest NGO will need to prove it has sufficient revenue to repay the loan and may need to provide collateral Lenders may charge nonprofits a higher interest rate due to higher risk involved
3 Small Business Tips
When starting a business, it’s a good idea to write up a clear business plan that explains your goals and how you hope to achieve them. Funders and investors will often request to see your business plan and be more interested in supporting companies with a blueprint firmly in hand. To determine when your company will be profitable, consider performing a break-even analysis. The formula is relatively simple: Fixed Costs ÷ (Average Price – Variable Costs) = Break-Even Point. Looking for funding to start or grow your venture? Generally, it can be easier for entrepreneurs starting out to qualify for a loan from an online lender than from a traditional lender. Lantern by SoFi’s single application makes it easy to find and compare small business loan offers from multiple lenders.
Frequently Asked Questions
About the Author
Share this article: