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Fundraising for NGOs - A Short Guide
Having enough funds keeps a Non-Government Organisation’s (NGO) project running. But, in India, home to the largest number of NGOs globally, fundraising for NGOs is a big challenge.Till a few years back, there needed to be more avenues for fundraising for NGOs. Fortunately, awareness about the importance of NGOs in society, laws mandating voluntary funding, and technological advancements have made fundraising for NGOs easy. If you are an NGO and want to know how to raise funds, here is a guide on fundraising for NGOs. In this guide, you will learn about the type of funds and things you need to do to secure funding.
Types of Funds
Grants
Government departments, enterprises, foundations and international organisations provide grants for social causes. Grants provide adequate financial security for NGOs. But, securing a grant is challenging. An NGO must prepare a thorough project proposal and showcase its ability to implement it. Further, the competition for securing grants is immense.
CSR Fund
Partnering with corporates is a great way to raise funds for NGOs. Many companies in India are mandated to spend some of their profits on Corporate Social Responsibility (CSR). With effective communication and good relationships, NGOs can secure long-term CSR Funds from corporates. Apart from monetary support, corporates also help with skill development, capacity building, idea sharing, employee volunteering and more that benefit the NGO.
Philanthropy
Individuals with a philanthropic bent have always been a source of funding for NGOs. Non-profit organisations can gain support for their cause from High Networth Individuals (HNIs) and Ultra-HNIs. By creating attractive campaigns, maintaining regular communication about the progress, and involving the donors in the cause, NGOs can develop a strong support base for regular funding.
Product Donations
Fundraising campaigns need not be about monetary donations. Some individuals and organisations provide charity in the form of non-monetary donations. NGOs can seek donations like food, clothing, medicines, books, equipment and other resources. Such in-kind contributions can supplement an NGO’s financial resources.
Crowdsourcing
Nowadays, numerous online fundraising platforms allow crowdsourcing funds for social causes. NGOs can use these fundraising platforms to their full advantage for emergency financial assistance. The fundraising platforms offer strategic marketing, guidance on content creation, donor data analytics, etc., which NGOs can use to build donor engagement.
Gains from Events
One way to raise social work funds is by conducting events like galas, auctions, charity dinners, sports tournaments, etc. This type of fundraising requires the NGO to bear the initial costs of conducting an event. But, the benefits include awareness generation about the NGO and its causes, attracting philanthropic individuals and corporations.A well-organized event can help the NGO raise a lot of funds. Instead of making an event a one-off thing, choose wisely to make the event a recurring activity.
Government Funding
The Government of India runs various programs that allow NGOs to participate. These programs are great opportunities for NGOs to both gain funds and work for the causes they believe in. To participate in these programs, the NGO must meet the legal guidelines of the government.
Fundraising Tips
Funding for NGOs must not be a one-time affair. They need sustained funding sources and the following two tips will help NGOs raise sustainable funds.
Showcase Credibilit
Showcasing credibility trumps all the marketing hoopla. Be transparent and detail your projects, implementation strategies, fund spending plans and results achieved to your potential donors. The trust you gain being a credible NGO will ensure that you receive sustained funding.
Offer Value to Donors
According to NGO Darpan, there are over 2 lakh NGOs in India. It shows that the competition for funds is high. In such a scenario, only NGOs that offer value to their donors can sustain themselves.
An NGO can add value by doing things like
- Recognizing the donors will give immense satisfaction to them.
- Printing the logo of the donor company on your branding elements will add value.
- Involving donors in the project to see the real change they are making.
Seek Assistance
Fundraising for NGOs is a tough ask amidst heavy competition. NGOs with resources can exhibit their skills and attract donors for their cause. But, it is those NGOs that lack resources that struggle. A majority of NGOs in India are such NGOs. These NGOs can seek assistance from fundraising companies in India. The fundraising companies’ handhold NGOs to raise funds. These companies assist in marketing and PR, documentation preparation, implementation strategies, communication, networking and more. They ensure that the NGO find the right funding partner and has a sustained funding source.
If you are interested in seeking assistance from a fundraising company in India, we are here to help. Please contact us.