According to a report by a leading Indian newspaper, India has possibly the largest number of active not-for-profit organizations in the world. But at the same time a large number of NGOs in India shut down every year due to lack of funding and insufficient staffing levels.
This is because good intentions and motivation are not enough to run an NGO. To
ensure smooth running of the NGO and to achieve desired results one needs funds
from various sources.
The question that arises is how one can generate funds to ensure smooth functioning of NGO.
Types of funding can be broadly divided into four categories:
Individual Donation: Most of the non-profit organizations depend upon the
generosity of donors for some or all of their funding. In this type of funding
people can donate independently to an NGO. According to a survey most of the
funds come from individual donors.
State Funding: In a bid to promote welfare, ensure social justice for and
empower disadvantaged and marginalized sections of society the Government
provides financial aid to NGO. Any monetary help granted by the Government to
NGOs is called State funding. One needs to submit a project proposal against a
call for proposal or schemes. You will receive funds from the Government if your
project is approved.
Corporate Funding: The financial aid provided by a company, generally to a
non-profit organization, to contribute to development is known as corporate
funds. Corporate Funding is relatively a new concept in India.
Foreign Funding: In order to get financial help from foreign sources, NGO needs
the approval from Indian government or they have to register under FCRA (Foreign
Contribution Regulation Act).
Non-profit organizations can raise funds with the help of some basic ideas and
Before talking to donors for raising funds, one must have a clear understanding
of the institutional aims and objectives. One must know how objectives are to be
realized by attracting current projects and shaping the future plans. Therefore,
it is advisable for fundraisers to be an integral part of the organizations.
It is also advisable to be prepared to provide brochures, leaflets and
presentations for donors, describing the cause for fundraising and how people
can be benefited. People give not more than a few seconds to read the
information So make sure what you write must grab attention immediately. Keep
the message crisp, striking and clear.
For raising funds from individuals, ‘Direct mails’ have been proved to be an
effective and the most dependable method. You can prepare a list of people who
always donate to your organization and another list of people who you think can
become your donors, for example: social clubs, professional associations, up
market shops etc. But before making that list a lot of research works needs to
be done. Avoid spamming by sending fundraising e-mails to everybody without
doing proper research. Always keep your mailing list updated.
Creating fundraising network with volunteer can also be very helpful. There are
many people, who are generous and dedicated to work for social causes. You can
often meet them in direct through your organizational volunteers and explain
them your organizations’ vision. Volunteer who supports your organization can
play a major role in creating the donor group and fundraising network.
One can also raise funds and by placing donation boxes in shopping stores,
restaurants, bus-stand, railway stations, and community halls. But that would
require a special permission before placing such donation boxes from the local
government authorities. If approved, it will not only help in raising funds, but
also in spreading awareness about the NGO.
Fundraising by selling products by your organization can be very effective.
Selling products like candle, cards, flowers, T-shirts, etc to the public can
help in raising funds. Make sure only quality products are delivered to the
Sharing detailed information on the use of money and resources with donors can
be a good idea. Satisfying donors with the outcome of their contributions
becomes extremely important for any nonprofit organization. Maintaining
transparency and accountability help an NGO in building healthy relations with
Last but not the least, you can use Facebook, Twitter, and other social
networking sites to get donations and other community involvement for your
nonprofit organization. Creating a profile on these sites can help in staying
connected with donors. It can help in attracting potential donors and spread
information about the work done by your organization.