Capital Raising Considerations for New Nonprofits
Starting a nonprofit in 2024 is equal parts exciting and daunting. On one hand, the chance to make a difference for an urgent cause, vulnerable community, or global issue is a bold, selfless decision that can lead to measurable positive change; on the other, the initial stages of nonprofit creation can be logistically harrowing as aspiring leaders work to assemble personnel, carve a functional niche, and – perhaps most crucially – secure initial funding.
Fortunately, as more nonprofit entities find success for a wider range of issues and causes, the capital raising process has become rooted in several time-tested approaches and methods. These crucial considerations are paramount for rising nonprofits looking to find their financial footing and hit the ground running on their most ambitious goals.
Establishing early goals
A new nonprofit is usually only as successful as its primary goals are fleshed out; this is a long-standing principle of nonprofit work that has only gained significance in an increasingly post-pandemic landscape. To position themselves for lasting success and viability, nonprofit leaders must dedicate ample time to fully realizing their philanthropic and advocacy-based visions, surrounding these efforts with a like-minded, well-rounded team capable of bringing them to fruition; this ensures that leaders can allocate appropriate focus to the fundraising process.
Aligning effective funding sources
Many capital-raising options exist for aspiring nonprofits, each bringing unique considerations and demands that will vary by target cause and goal. Similarly to their goal-setting process, nonprofits must, therefore, educate themselves on the funding sources that best reflect their intentions and values. Common options include, but are far from limited to:
Federal grants
Government-funded grant programs are a great way for eligible nonprofits to earn meaningful funding while building awareness on a larger scale. The sheer number of these programs allows countless nonprofits to find an applicable application – though the process can be time-consuming (albeit potentially very rewarding).
Crowdsourcing outlets
The digital age has helped normalize the crowdsourcing process for philanthropic activity, and nonprofits can leverage this effective outlet for additional funding exposure. Platforms like GoFundMe, FundRazr, and Kickstarter have simplified crowdfunding for those new to the nonprofit community, eliminating needless stress and focus while emphasizing proactive, multifaceted fundraising.
Angel investors and venture philanthropists
Both angel investors and venture philanthropists pursue philanthropic businesses and causes as investment prospects, and while they have slightly different overarching goals in doing so, they mutually represent a progressive dedication to spreading wealth amongst rising charitable entities. As a result, these individuals can offer critical seed funding that can fast-track a new nonprofit’s immediate plans.
By establishing a solid financial foundation through such means, today’s nonprofits can equip themselves for further reach and maximum impact, expanding the community’s collective knowledge and inspiring their contemporaries and successors to follow suit.