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 problem to solve. 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 keep in mind: set the purpose, develop an end goal, create a list, keep track of 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 headed. Funders will want to know what your organization stands for. There should be a cultural plan and a business plan in place that outlines 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 your organization’s goals. One question to ask is: What are we trying to do here?

Develop an end goal

It should be very clear before requesting donated funds or supplies how the funds or other resources will be allocated. Also, the organization needs to know how much money or other resources it should get from donations. This will set clear expectations for whoever leads this initiative. One question to ask yourself is: 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 reach 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 your organization in reaching 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 need to be persistent in seeking funding. One question to ask yourself is: Is this potential sponsor still interested in supporting our goal?

Document Tracking for Responsibility

Whoever leads the donation initiatives needs to monitor the organizations and what they are contributing. By donating to recognized 501c3 nonprofits, organizations can get tax benefits. Consequently, organizations that receive donated resources must document what they receive for tax purposes. Additionally, this will help create projections for other funding targets in the future.

Synopsis

Searching for funding is a vital goal for non-profit organizations just starting out. Fundraising can often be challenging for general stakeholders. When considering fundraising, there are several things to consider. It’s important for business leaders to remember to set a purpose, develop an end goal, create a list of potential sponsors, track potential sponsors, and thoroughly track documents. This will lead to fundraising success.