Using donations to support your business
The question of establishing a for-profit or non-profit business is a challenge for many social entrepreneurs. However, for companies, financing is often a difficult issue to find solutions to. However, the benefit of establishing a non-profit organization is that it makes it much easier to receive donations as a form of funding. When looking for donations, here are some tips to consider: set the purpose, develop an end goal, create a list, track and track the documents.
Set the purpose
Initially, it is very important that you establish a purpose. This is the first step in determining where your organization is heading. Donors will want to know what your organization stands for. There should be a cultural plan and a business plan in place that describes where potential funds will go. It is not always necessary to reinvent the wheel. Many organizations have cultural plans that can be modeled to fit the goals of your organization. One question we must ask ourselves is: What are we trying to do here?
Develop an end goal
Before requesting donated funds or supplies, you should be very clear about how the funds or other resources will be allocated. Also, the organization must know how much money or other resources should be raised from donations. This will set clear expectations for whoever leads this initiative. One question to ask yourself is: How many or how many resources do I need for a given project or for my operations?
Create a list of potential sponsors
After learning about the resources your organization is looking for, create a list of potential sponsors who can help you achieve your goal or who can donate to your organization. One can see if the potential sponsor has donated similar funds in the past or if the potential sponsor has materials that could benefit their organization in achieving its goal. One question to ask yourself is: Which companies align with my organization’s mission or projected goal?
Tracking potential sponsors
Once potential sponsors have been identified and contacted, it is important to follow up on interest to secure a donation. Organizational leaders are often quite busy and you need to be persistent when looking for funding. One question to ask yourself is: Is this potential sponsor still interested in supporting our goal?
Document tracking for accountability
Whoever leads donation initiatives needs to keep track of the organizations and what they are contributing. By donating to nonprofits with 501c3 recognition, organizations can earn tax benefits. Consequently, organizations that receive donated resources must document what they receive for tax purposes. Also, this will help create projections for other funding targets in the future.
Synopsis
Seeking funding is a vital goal for starting nonprofits. Fundraising can often be challenging for general stakeholders. When considering fundraising, there are several things to consider. It is important for business leaders to remember to set a purpose, develop an end goal, create a list of potential sponsors, keep track of potential sponsors, and thoroughly follow up on documents. This will lead to the success of the fundraiser.