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’
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