Best Ways to Fundraise for NGOs

An NGO is a Not-For Profit organisation which operates at a local, national, or international level, independently of the government. However, this independence means that getting funds for NGOs can become more difficult since they are not financially supported by governments. Thus, NGOs often turn to the private sector, grants, individual benefactors, philanthropic foundations, government agencies, and the sale of handmade products, among others.

Firstly, NGOs face significantly more competition for raising money today than a few decades ago. As the number of NGOs in the world increases, sustainable funding has become harder and harder to come by. Secondly, fund-raising is a time-consuming and tedious process, since planning and organizing fundraising projects and events requires valuable time and money. Even after an NGO has secured a private investor, they continue to face new issues. As a sponsor, the private investor now has the power to make crucial decisions about how the NGO will function, and the NGO risks losing their investment if they do not comply. This can severely hamper the neutrality and work of the NGO in achieving their goals.

Similar to the operations of a startup, the founders of an NGO have to invest in their NGO with their own funds in the beginning stages. The founders pay from their incomes from working other jobs, their own personal savings or through donations from close connections and friends. The goal of the NGO at this initial stage is to create a substantial impact on its current benefactors to generate traction and attract more sponsors to eventually access the latest funds for NGOs.

However, building credibility for the NGO alone is not enough—finding these potential sponsors and donors in the first place poses yet another issue. The management at an NGO may not have all the information about grants and private investors who are interested in private sector collaborations. While both international and national for profit-organisations have elaborate CSR plans aimed towards supporting sustainable development activities and share the common goals of many nonprofits, NGOs frequently lack access to these opportunities. How can one realize these funding sources?

If you are an NGO startup, you should build your networks to stay updated on the latest funds for NGOs. Remember that every significant for-profit organisation has funds specifically allocated for their involvement in CSR-related activities. Establishing connections through networking can help you identify more potential sponsors and garner more support. You can also access extensive databases of thematic grants and opportunities online. Once you get funds from private individuals and for-profit businesses, you can expand your operations, awareness about your organization, and also your impact. This is how you can grow, and eventually obtain bigger funds for NGO.

The work is not over once you have identified a potential funding source, however. Though bank foundations, government ministries, foundations and international organisations often offer grants within their own nation and across countries to NGOs, most have stringent application procedures to ensure their money is going towards the best and most reliable projects. The application procedure to obtain a grant often involves preparing written proposals, contacting partners, and obtaining other relevant documents. Don’t forget to follow the deadlines while writing applications, and show your potential sponsor what they want to see!

If you follow these steps, you’ll be well on your way to finding your next sponsor. Don’t forget to share your NGO’s fundraising story!

Parth Gautam is the Product Manager for AsianNgo portal. Responsible for enhancing the user experience and end-to-end management of the portal which includes - technology, content and marketing communications.