Page 8 - CEEM Shopping Mag February 2020

Nonprofit Fund Development

Tanya Humphrey, LCSW

North Star Project Black Economic Development Program

When making the decision to become a nonpro t entrepreneur one of the rst questions you should
ask yourself is who will fund your activities? Nonpro t is a tax status not a nancial situation. Every
nonpro t needs an innovative and pro table business model. As a nonpro t entrepreneur, you want
to be autonomous and focused on delivering strong and stable programs that aren’t solely dependent
on grant and donors.

The hard truth is no one is going to fund your project if you do not have all of the following:
• A strong and effective Board of Directors
• A budget and your own financing. This is your dream and you must be able to invest in it.
• A strong management team and business strategy
• A record of positive outcomes
• Audited financial records

Forget everything you’ve heard about free money, obtaining grant funding is a competitive process,
but a process most nonpro ts must engage in early in their development. Few agencies invest the
time and energy to learn the basics required creating a sound fund development strategic plan or
research to identify prospects critical to their success, this is a major mistake that often negatively
impacts their sustainability.

Strategies
Individual donors who respond favorably to what you’re doing and who you serve are usually a good
source for general operating support. As you develop your strategy try to see yourself as the funders,
would you be impressed with the experience of the Board of Directors, the agency programs and
outcomes, the agency finances? Be honest would you be impressed enough as a funders take that risk?

Funders have written guidelines as to what they will fund and how to apply for grants. These are
referred to as RFP (Request For Proposal) many foundations require at LOI (Letter Of Intent/Interest)
Research the funder’s giving history, reach out to the contact person listed on the RFP for clari cation,
this is a good way to establish name recognition for your agency prior to your submission.

• Have your programs been clearly defined and the need documented? Have you conducted a
needs assessment and does it support the need for the services you are seeking funding for?
• Who is your competition and are your proposed services being provided already? If the answer
is yes, what is unique about your program services that would justify a funder’s investment?

Nonpro t Fund Development | Page 1 of 2