As nonprofits exist in order to assist the public, they must have a specific purpose within their communities. Establishing a need for the organization and its plans are the first steps, then comes the need to fund the venture. However, this process is more complex than simply asking for donations. As the process is discussed further, ensure your clients are protected with a Nonprofit Liability Insurance Program.

After you’ve established that there is a need for your project, you also have to convince donors and funders that your organization has the ability to carry out what it says it wants to do, states Pratt Library. This includes demonstrating the mission, scouting adequate talent, proving resources and equipment, and creating a fundraising plan.

Grant opportunities are critical to nonprofits. The two main sectors to research include foundations and governmental agencies.  Identify if the local foundations support the cause which the nonprofit represents. To assist with this, the Enoch Pratt Free Library provides access to grant maker’s name and location, where is supplies its donations, and the type of support in which they provide. Make special note of the purposes the funder focuses on and the limitations that they enforce, as well.

In addition to those efforts, government funding is an option. Federal, state, and local governments all can play a role in funding the organization. However, some government sponsored funding is often advertised long before applying for the money is even available. It is also critical to understand the requirements of cost sharing, which can supplement the nonprofit with labor and donations that doesn’t require federal funds to be diminished.

At Charity First, we understand the nonprofit industry and the unique risks that this sector is exposed to. Our programs seek to provide financial protection to safeguard your clients’ organizations. For more information about our products, contact our specialists today at (800) 352-2761.