Lecture no.

1 and 2
 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 greenlight 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.
You can ask any question if you want.