Research paper

Team Research Paper Fundraising for a nonprofit organization in a weak economy is very uncertain; not many individuals or businesses have the financial means to lend money. Thus, it is imperative to use all approaches to fundraising. Fundraising for a nonprofit organization typically involves applying for loans, grants, and using other forms of government and public assistance. When implementing non-traditional approaches to fundraising, it is important to use every possible means of government assistance, community support, and family contribution methods because there are limited the country’s economic status. Raising money based on contributions, sponsorships, personal investments, seeking family support, applying for a loan, and obtaining government grants are all effective ways of fundraising for a nonprofit organization. Another way of fundraising for a nonprofit organization is to use creative ways of providing a service to the community. Community fundraising requires detailed planning stages such as creating a plans and goals, picking a team, knowing the audience or customer, targeting the audience, and showing appreciation ("Community Fundraising Inc.," 2012). For any nonprofit organization, funding is a must . Funding is generally sourced from grants and loans. When a government grant is provided to nonprofit organizations an Internal Revenue Service 501 (c)(3) isn’t a necessity for qualification. When applying for a grant it is important that one is professional and thorough, showing a need to begin the operation at an early convenience and should contain precise information. When applying for grants nonprofit organizations have several types of funding to choose from. The first is compatible grants, which coincide with organizations business. The second source of funding is in fellowships, which are typically awarded to individuals rather than organizations. Fellowships allow individuals to have expenses met without using finances within the same nonprofit organization. Additionally, social investing is an available fund for nonprofit organizations. Some social investing funds normally do not have to be repaid, but others are low interest loans (Morgan, 1999-2012). Nonprofits rely on a mixture of donations and grants as sources of income. It is very important to combine the two and still maintain ambition. Writing grants can include tedious paperwork with strict deadlines and contain beneficial results. It is significant when writing a grant to focus on the vision of the organization. It is important for one to do research by exploring information through websites such as grants.gov that displays funding opportunities. Also, search engines such as Google or Bing will provide information on terms that support a vision. When preparing a grant it is imperative to follow the instructions. One can look for deadlines and geographical needs and know when budget period begins and how it will affect the request for proposal. When preparing a grant application it is important to show the funder that the job can be complete without the government funds. The goal is to demonstrate an improvement to the organizations’ clients and community. Letters from volunteers and from banks informing the lenders that they can lend money to the organization if it was needed would be useful to receiving the funds (Fournier, 1999-2012). Nonprofit organizations must have a board of directors. Regardless if there is minimal staff it is requirements to maintain a board. As stated on www.boardsource.org (1999), “Non profit corporations are governed by boards of directors with legal and ethical responsibilities that cannot be delegated” (pg. 5). As the board holds the ultimate responsibility of governing the organization, there are also legal, financial, and ethical roles the board must maintain. According to www.boardsource.org (1999), “Although the day-to-day management responsibilities lie with the volunteer staff or chief executive and later, perhaps, with paid staff, the board holds the ultimate decision-making powers of the organization” (pg. 5). As a board is established there must be understanding of the organizations purpose and mission. Each member should hold a strong sense to work with the interests at heart of the organization, having shown skill sets that will provide positives for the organization. Having board members with experience of financial, legal, marketing, and community will allow proper choices throughout the life of the organization. According to www.boardsource.org (1999), “To better serve the mission of the organization and be successful in fund-raising and recruiting board and staff nonprofit organizations need to develop a solid strategic institutional plan” (pg. 15). With having a board on the same path with the understanding vision setting this plan should not come as a hard task. Priorities for establishing a nonprofit organization are financials and tax-exempts eligibility. As there are various types of nonprofit organization classifications there are also different tax-exempt possibilities. Tax-exempt forms and filing fees are available at the IRS office or via the web. There are important guidelines and dates that need to be adhered to when filing, the organization board must be aware and educated on. According to www.boardsource.org (1999), “Although the IRS automatically provides a 12-month extension missing the deadline may result in your organization’s receiving recognition as a private foundation. “Private foundations are subject to regulations different from those for public charities” (pg. 17). A nonprofit organization has the option of establishing itself as an incorporated or non-incorporate organization. This establishes protection upon the board and staff from any issues that may arise within the organization. When establishing a nonprofit organization you must determine whether the opening shall come from established finances, as this is not a requirement, or by other financial means. Having the availability of many sources, the options available must be reviewed in detail. There are many options to raise funds for a nonprofit organization, such as direct public support, government grants, and events that generate revenue. Although there are benefits to all different fundraising options, some options yield more benefits and drawbacks than others. When considering different fundraising options and how well they work, one must analyze the option’s efficiency. According to Song and Yi (2011), government grants can have a negative impact on fundraising efficiency. The article states, “Government grants crowd out private giving, because government grants adversely affect an organization’s incentive to work hard in raising funds” (Song & Yi, 2011). Song and Yi go on to say that because of reduced incentive to work hard, private giving is crowded out and results in less fundraising efficiency (Song & Yi, 2011). Although Government Grants help and are widely used by nonprofit organizations, one may reconsider relying heavily or solely on Government Grants. It is important to research all of the details that go into setting up and maintaining a nonprofit organization. Grants, public donations, and fundraising events are all potential avenues for funding a nonprofit organization. Utilizing methods of the past for fundraising can be very helpful, but one also must think of new, creative approaches to be successful. Along with raising funds, a nonprofit must also establish a strong infrastructure. Creating a board of directors, and developing a team of people who will manage the business operations is as important as fund raising. Along with fundraising options, and company infrastructure, one must also examine the pros and cons of each option available. This would allow the organization to no longer continue with an option that has too many drawbacks. In a week, or strong economy it is possible to start a nonprofit organization. Understanding the intricate details of such a process will make the difference of whether or not the organization will succeed.

References Catalog of federal domestic assistance. (2012). Retrieved from: https://www.cfda.gov/?s=generalinfo&mode=list&tab=list&tabmode=list&static=assistance Community fundraising inc.. (2012). Retrieved from: http://www.communityfundraising.us/ Martin, M. J. (1999-2012). Nonprofit Organization Fund Raising Ideas. eHow Discover the expert in you. Retirieved from: http://www.ehow.com Martin, M. J. (2012). Nonprofit Organization Fund Raising Ideas. Retrieved from: http://www.ehow.com/way_5291606_nonprofit-organization-fund-raising-ideas.html Song, S., & Yi, D. T. (2011). The Fundraising Efficiency in U.S. Non-profit Art Organizations: An Application of a Bayesian Estimation Approach Using the Stochastic Frontier Production Model. Journal Of Productivity Analysis, 35(2), 171-180. doi:http://dx.doi.org/10.1007/s11123-010-0186-y