Fundraising Guide (English) June 2014 - Page 15

its own software or system. Online fundraising requires infrastructure, information technology knowledge, and a way to collect raised funds (like a bank account), which are usually disbursed by check or electronic transfer. Some community organizations with diaspora connections or relationships with foreign supporters create a nonprofit in the U.S. or Europe to act as a fundraiser, or use a special fund or grantmaker as a fiscal agent to send money to them. This can be complicated legally and administratively, so it is not something that any small group can easily do without knowing their local laws and having some internal organizational capacity in finance and information technology. MORE POTENTIAL SOURCES OF SUPPORT  Giving circles: groups of committed donors who pool their contributions to support a cause  Matching gifts: donors who will match the amount of money you raise in a campaign, potentially doubling the total only if you reach a certain level  Diaspora communities: there are many organizations in the U.S., Europe and other countries that bring together people from developing countries to raise money for causes in their homeland. This is a great potential source for regular funding of groups providing services. These groups often like to sponsor specific schools, scholarships for students, medical facilities, etc. New types of organizations like Kiva are bringing small investors to grassroots entrepreneurs through online networking. Kiva posts profiles online of small businesspeople in developing countries looking for financing and matches them with regular people in the U.S. who contribute money for loans. GlobalGiving connects small donors to organizations in developing countries, helping organizations raise the budgets for specific community projects.  Community groups/churches and other local service organizations  Local philanthropic networks and local affiliates of international networks: professional networks like local business/professional associations or local chapters of international groups like Zonta, Rotary Club, etc.  Governments: local, national, bilateral aid agencies, foreign embassies This is a very dynamic sector, with new online mechanisms being created all the time. Community organizations must be vetted by the host nonprofit to be part of these networks: visit their websites to see what the rules are and how to find whether your organization meets the qualifications for participation. See Appendix 3A for more information.  Multilateral and United Nation (U.N.) agencies: Some give small grants directly to community organizations; see Appendix 3B for listings. They also give big grants or contracts mainly to international NGOs; in this case, you may qualify to be a subcontractor/subgrantee on a large contract managed by a big NGO. You can explore any or all of these options, but it’s important to figure out which kinds of fundraising and funders are more appropriate for the size and maturity of your organization. Some of these opportunities require a lot of time and effort to pay off. Make sure that you have the internal capacity necessary (people, skills, time, and upfront costs) to do all the work required to complete the task successfully while also continuing your organization’s regular work.  Joint fundraising with other organizations: Funders are attracted to organizations that collaborate in a way that increases their reach or impact. So, consider fundraising with organizations that you work with on a regular basis or even for new joint partnerships or programs.  Training and scholarship opportunities for your staff, volunteers, and beneficiaries Do your research first before you approach any potential donors to make sure they have interest and capacity and to make sure you have developed a strong concept for why they should support you. It always helps to make a personal connection with the person making the decision whether to support your organization.  Conference fee and travel support: Some foundations, international NGOs, and professional networks offer grants to offset the costs of conference attendance for staff of small NGOs ONLINE FUNDRAISING A NOTE ON TAXES In the U.S., almost every NGO, no matter how small, is able to receive donations through the Internet. Usually this requires a contract with an online gift processor with Tax laws in countries like the U.S., Canada, and the United Kingdom (U.K.) help determine foundations’ 12