The Forgotten Step: Strategies for New Nonprofits to Get Their First Money on the Books
I am frequently contacted by new organizations trying to get grants. When I say “new” I mean new without an estimate. Maybe you are one of them? He has a great cause, a 501(c)(3) status, and no money to go on. Many new projects believe that grants are the best way to get off the ground, and there are many new grant writers who would like to convince you of this. In my opinion, this is not the best strategy.
Most of the time, a funder doesn’t want to be the first investor. A new nonprofit needs to show that it has some money and has put it to good use. To many this may seem like an impossible task, but it is not. This is basic fundraising. Here are five easy suggestions:
1. Garage Sale: You probably had one as a kid. This is a great way to announce the formation of your new organization to the community. Explain that all proceeds go back to the cause. If you and your board members contribute, there’s a good chance you’ll reach your first goal of $500 easily.
2. House Party: Take advantage of your relationships for the first financing. Advertise a spaghetti dinner at your house and explain how the $10 a plate is supporting the mission of your new nonprofit organization. If you have a relationship with a church, you can even host the event there and have additional support from the congregation after Sunday services.
3. EBay: Yes, a new nonprofit can grow quickly using technology and this is just advice. Tech resources are so plentiful that I’ll leave the topic in its own dedicated article. Until then, eBay is a basic step even for beginners. Explain in your sale that the funds are being used to support a new non-profit organization.
4. Recycle: Recycle newspapers and cans and take them to your local recycling center. You and your board members can even ask family and friends to recycle. Explain that you are more than happy to pick up materials from your house on a schedule and that all proceeds will go to a good cause.
5. Board Members: We advise new nonprofits to have at least six on their board before seeking grant funding. Funders view boards as an integrated system of checks and balances for managing the money they invest in the nonprofit. Six is a good number. If each of your six, when they get to the board, donates $50, you have your first $300. If each of the six commits $25 over the next four months, their grand total within four months is $600.
Combine these efforts and your nonprofit organization may well have its initial $5,000 to $10,000 within the first four to five months of its existence. Organizations with such small budgets are good candidates for the next step: small grants from local foundations.