3 Nonprofit Funding Avenues All Founders Should Know About
Nonprofits, like for-profit businesses, require funds to expand and meet mission objectives. There are numerous options available. Many are viable even if the founder has a poor credit history. Many will even work for non-profit organizations. Make the most of the nonprofit's strengths. There is funding available to match.
Grants
Government grants necessitate paperwork and grant proposals, but they are frequently a good place to start. These work similarly to business plans and require a 501(c)(3) designation.
Federal Funding
The federal government wishes to distribute funds. To look for grants, go to grants.gov. Here are some grants for non-profit organizations.
F20AS00026 – Youth Engagement, Education, and Employment: Provide young people and veterans with introductory educational experiences in natural resource careers (via the Department of the Interior, United States (U.S.) Fish and Wildlife Service).
USDA-NRCS-NHQ-UAIP-20-NOFO0001013 – Urban Agriculture and Innovation Production: Create projects to start, build on, or expand the efforts of farmers, gardeners, citizens, government officials, schools, and other stakeholders in urban and suburban areas.
RUS-20-02-DLT – Grants for Distance Learning and Telemedicine: Improve rural distance learning and telemedicine services.
For urban projects, try HUD (Housing and Urban Development), which is also undeclared. Here's an example of a nonprofit-eligible HUD grant:
FR-6300-N-USP – Authority to Accept Unsolicited Research Partnership Proposals Notice
If you want to apply for more than one grant, each one must have its own application with the correct ID.
For rural projects, contact the USDA (Department of Agriculture). There are opportunities such as:
The USDA funds low-income housing, rural development, and housing preservation.
Grants from the State and Local Government
Grants are also provided by local governments. Here's one in Massachusetts, for example. You can find them at grantwatch.com or on the websites of cities and states.
They are frequently less stringent than federal grants. In Houston, for example, everything goes through the Greater Houston Community Foundation.
Federal funds are available for state and local programs. Take advantage of the HUD Investment Partnerships program. See hudexchange.info/programs/home for more information.
Crowdfunding
Nonprofits can use a service such as GoFundMe. There are no platform charges. Instead, they give donors the option of leaving a tip. Nonprofits can take advantage of GoFundMe's services. These include data and reporting, as well as event-based crowdfunding.
Here are some of the best crowdfunding options for nonprofits.
GoFundMe
There are no platform fees on the most well-known nonprofit crowdfunding site. GoFundMe instead makes money through 2.9 percent payment processing fees. It provides fundraising tips and ideas to help nonprofits achieve their goals. Go to gofundme.com for more information.
CrowdRise
CrowdRise is a subsidiary of GoFundMe. Use CrowdRise to create a nonprofit website, or work on events or peer-to-peer fundraising. Crowdrise can be found at crowdrise.com.
NFF
Nonprofit Finance Fund (NFF) provides working capital to manage cash needs and bridge loans to cover costs while other funding is sought. See nff.org/financing for more information.
The Promise Alliance of America
America's Promise Alliance offers grants to assist young people. Communities or organizations can be recipients (like the United Way). See americaspromise.org/news/funding-opportunities-205 for more information.
The Candid.org Foundation Center maintains a large database of grants, grantmakers, and grantees. Discover grants from all over the world for a variety of purposes. Visit candid.org for more information.
MobileCause
MobileCause manages nonprofit fundraising campaigns. It communicates with supporters through mediums such as text. Visit mobilecause.com for more information.
Global Giving Day
Global Giving is a platform that matches donors with causes. It also has corporate partnerships available. There is a 5% to 12% non-profit support fee. See globalgiving.org for more information.
CauseVox
The goal of this website is to assist a nonprofit in creating and growing a community around a cause. It charges a percentage of the platform fee for its basic plan. The costs of the standard and growth plans are lower percentages, but they have monthly fees. Visit causevox.com.
Classy
Classy allows you to create fundraising pages. A nonprofit can use Classy Events to organize road races, concerts, and other events. It provides a fundraising reporting tool for tracking progress. See classy.org for more information.
Developing Business Credit
What if a nonprofit founder's FICO score isn't high enough to qualify for a traditional loan? If the organization is not in the midst of a fundraising campaign, it can build business credit. Because business credit can help a nonprofit at any stage, it should build business credit even if the founder has a perfect FICO score. In this regard, a nonprofit is the same as a for-profit corporation. Business credit is an excellent way for a nonprofit to obtain funds without incurring debt.
Collateral
Cash flow
A founder with good personal credit
A guarantor
It's an excellent method for smoothing out funding peaks and valleys between fundraising campaigns. Even as a new nonprofit, an organization can obtain business credit right away. Good business credit is more than just a means to an end. It will aid a nonprofit in the future in obtaining loans.
These are just a few examples of how nonprofits can improve their facilities and programming without relying on the generosity of donors.
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