How do NGOs get funding?

What Are NGOs?

A non-governmental organization (NGO) is a non-profit, citizen-based group that functions
independently of government, but may be involved in international philanthropic,
developmental, or social missions. NGOs are often organized on local, national, and up to the
international levels to serve specific social or political purposes.

Types of NGOs
Two broad groups of NGOs are identified by the World Bank: operational NGOs, which focus
on development projects; and advocacy NGOs, which are organized to promote particular
causes.Certain NGOs may fall under both categories simultaneously. Large NGOs may have
budgets in the millions or even billions of dollars.

A number of NGO variations exist, including:

 BINGO: business-friendly international NGO (e.g. The Red Cross)

 ENGO: environmental NGO (e.g. Greenpeace and World Wildlife Fund [WW)
 GONGO: government-organized non-governmental organization (e.g. The International
Union for Conservation of Nature)
 INGO: international NGO (e.g. Oxfam)
 QUANGO: quasi-autonomous NGO (e.g.the International Organization for
Standardization [ISO])

How NGOs Are Funded

As non-profit organizations, NGOs rely on a variety of sources for funding projects, operations,
salaries and other overhead costs. Because the annual budget of an NGO can be in the hundreds
of millions (or even billions) of dollars, fundraising efforts are important for the NGO's existence
and success. Funding sources include membership dues, the sale of goods and services, private
sector for-profit companies, philanthropic foundations, grants from local, state and federal
agencies, and private donations.

Individual private donors comprise a significant portion of NGO funding. Some of these
donations come from wealthy individuals, such as Ted Turner's $1 billion donation to the United
Nations, or Warren Buffett's 2006 pledge to give 10 million Berkshire-Hathaway class B
shares to the Bill and Melinda Gates Foundation (valued at more than $31 billion in June 2006).
Many NGOs, however, rely on a large number of small donations, rather than a small number of
large donations.
Despite their independence from government, many NGOs rely heavily on government
funding to function. Some governmental NGO funding may be viewed as controversial because
the funding may support certain political goals rather than a nation's development goals.

The Bottom Line

As non-profits, NGOs rely on a variety of sources for funding, including:

 membership dues
 private donations
 the sale of goods and services
 grants from other non-profits
 government funding

How to Raise Funds for an NGO

Non-governmental organizations (NGOs) are making a positive difference all over the world.
Groups like AMREF and CARE International are 2 groups among many that have shown how
powerful a single goal can be when it’s shared by a group of like-minded
individuals.Unfortunately, NGOs don’t generate any revenue on their own and require extensive
funding to operate successfully. With careful planning and communication, you can be on your
way to raise funds for your organization!

1- Using Crowdfunding Methods

Create an account on a crowdfunding website. Set up a profile on a large crowdfunding site,

like Kickstarter, GoFundMe or Indiegogo. These websites are easy to use and let anyone with a
debit card and an Internet connection contribute to your cause. Another benefit is that
crowdfunding platforms allow you to reach a lot of people at once. After you reach a certain
goal, you can let your donors know through a post on the site

2- Spread the word about your crowdfunding on social media. 

Create a social media presence for your NGO, such as a Facebook page. Facebook lets
you post long messages that get sent to your followers’ news feed. If they‘re passionate
enough about your cause, your followers might share and repost your messages and links
onto their own profiles.
3- Design a reward plan for anyone who donates. 
Create some incentives for people to support your NGO. While some people might donate out of
the goodness of the heart, many people will want to get something in return. Think of rewards
that are both small and big—depending on how large the potential prize is, you might be able to
generate some more interest in your fundraising campaign.
  While not an NGO, consider modeling your potential reward system around incentives,
such as products with NGO’s name and logo on them.
 Contact a financial speculator before you do this. While rewards are great, you don’t want
an incentive program to dip into funds that you need to use to keep your NGO up and
running.

Applying for Government Grants

Research appropriate grants for your organization. Apply for a government grant that
matches the ideals of your organization. This can be tricky, as there might not be a grant that
perfectly aligns with your NGO’s mission. When you apply for a government grant, make sure
that your NGO would be accomplishing the mission of the grant. Don’t worry if your NGO is
based overseas—you may still be able to apply for certain grants in some countries, like the
United States.
 For instance, an NGO focused on youth outreach in Kenya shouldn’t be applying for a
government grant focused on providing human rights support to Armenia.

Assemble and submit the proper application forms. Send in your completed

application for the government grant of your choice. In this technological age, most of these
forms can be turned in digitally. Before submitting anything, make sure that you’ve assembled
all the information and documents necessary for the application.
 For instance, the Democracy Commission Small Grants Program Competition requires
you to submit a CV, correspondence from any partner groups, registration documents, and
more.

Continue applying, even if your past applications were denied. Keep submitting

applications to different grant opportunities and competitions. Perseverance is a necessary
ingredient to a successfully funded NGO, and the grant application process is no exception. See
if the grant application form lists a contact—if so, consider reaching out to them with any
questions you may have about the application process.
 Consider asking about the waiting times for applications, and things you can include to
make your application stand out.

Requesting Funds from a Corporate Company

Find any common goals you have with the company. Search the company’s website and see if
you can find a written copy of their mission statement. Do any of their values match up with the
principles of your organization? If so, it might be worthwhile to open a dialogue with this group.
 For example, an NGO focused on providing clean water for local communities might have
similar goals to a water purification company.
  Check online and see if you can find a staff directory. Before you set up a meeting with
the company, decide who you want to be speaking with. Try and find someone who deals
with strategy for the company, as that could be an excellent starting point.
 Don’t hedge all of your hopes on one company. Reach out to multiple corporations that
you feel could align with the interests of your NGO.

Draft a reward plan for possible funders. Decide what you plan on giving potential
donors should they agree to help fund your NGO. Most corporate groups need to stay focused on
their own interests. Make an investment worth their while by hosting dinners or other special
functions specifically for funders.
 Contact someone who deals with the company’s financial strategy. They can give you
some insight into what kind of reward or benefit the company would like best.

Schedule a time to meet with relevant company leadership. Set a time and place to
meet with the people who would be most able to green light funding to your NGO. Try and meet
with someone who has authority over part of the company’s budget. If you aren’t sure who to
reach out to, consider calling the main company number—a secretary might be able to give you
some tips on the proper employee to contact.
 Make a good impression by meeting the company representatives at their center of
operations. If you’d prefer to meet at a neutral location, ask the corporate rep if they
would be interested in doing so.
 Be sure to thank the company representatives for taking the time to see you.

Prepare a pitch to demonstrate the worth of your NGO to the

company. Explain from the beginning of your presentation why your organization is
important, and how your work could positively benefit the corporation. Make sure that your pitch
is well-researched so you can answer any potential questions that the company representatives
might have. The potential investors will also want to know where their money is going—so make
sure to have a good answer.
 Don’t be afraid to play on the investor’s emotions throughout your pitch. Above all,
potential donors want to give money to a cause that they believe in. For example, if you’re
an NGO that’s trying to get clean water to impoverished communities, tell the story of a
child who’s been negatively impacted by the effects of polluted water.
 Try to maintain consistent eye-contact throughout your presentation. It will come off as
insincere and awkward if you’re constantly looking away.

Follow up with the proper channels after the meeting. Don’t be upset if a

company can’t fit your NGO into their budget—fundraising, as is the case with many
aspects of business, is highly reliant on timing. Even if the company can’t donate to your
NGO now, don’t give up on your efforts! Try again in a year or so and see if the company
has room for you in their budget then.