For nonprofit executive directors, it’s natural to want to open new doors, do new things and find new ideas on how to fund a nonprofit. This is the only way to keep moving forward.
If you are an established nonprofit with revenue over $300,000 per year then you are already past the threshold of knowing how to fund a nonprofit. You might be getting not for profit funding from the state or the federal government. Perhaps you are raising funds through private small donors or larger nonprofits. Now, it’s time to try new ideas and take your organization even further.
Why the Solution for How to Fund a Nonprofit is Different than How to Build a Business
The key to moving to that next level of fund raising is to have a plan that is really well thought out. You must also have realistic goals and measurement tools in place. Then, to keep your organization fluid and growing, it’s vital to review your plan on a regular basis, perhaps once a month.
Most people who are not in the nonprofit space do not understand that a nonprofit is often run like a for profit business. They use the same tools, but there are both similarities and differences.
A “business plan” is one of the key elements in any business or nonprofit. The need for fast business funding is also universal. However, when it comes to where to get it, that’s where the similarities may end.
That’s because banks don’t often understand these distinctions either. They still expect you to have a perfect credit score and tons of collateral for a not for profit loan.
Where Can You Go for New Ideas on How to Fund a Nonprofit?
One of the best sites for a business plan that you can customize to fit the unique needs of your nonprofit can be found at https://scalingup.com/growth-tools/. This site provides what they call a one page business plan. Such a tool is valuable to nonprofit executive directors. It forces you to reduce your explanation down to one page as a reminder to keep it simple.
Your plan doesn’t need to be 10 pages long. Having a document of that length will not help you with the important part and that is execution.
People will only want to know your plan for how you are going to bring in more funds and how you are really going to work it. You can explain your strategy for monitoring it weekly and monthly. Put signs up all over your office with the goal as reminders and check your progress.
The Next Step in How to Fund a Nonprofit
In order to fund a nonprofit, you will need your own 501c3 funding. Established nonprofits you should have the same financing tools that all businesses have.
The most crucial type of funding is a nonprofit line of credit. Surprisingly, the number one funder for nonprofits is not a commercial bank. It’s Financing Solutions (www.financingsolutionsnow.com).
As long is your nonprofit has more than $300,000 in yearly revenue, you will qualify for nonprofit funding from Financing Solutions. With their help, you can develop programs, build your brand and achieve greater success.
When you are growing, it’s common to experience ups and downs in cash flow. A LOC is extremely beneficial for nonprofits because it ensures that you can continue to pay your staff on time, take care of emergency situations and provide services and support to your clients. All while working your plan for growth without missing a step.
