With so many new nonprofits being formed and obtaining their tax-exempt status, you'll need considerable effort and creativity to raise the funds the organization will need to carry out its mission. The field of competition will narrow somewhat after you are firmly established and have developed the necessary relationships with grant-makers. However, there will always be some degree of competition for limited funds as the global economy shifts and adjusts. Too many organizations forget to think creatively and locate funding streams well outside the proverbial box.

House Parties

House parties have become very popular in the last few years, in large part due to the relative ease of organizing them, low overhead, and good financial returns. They are parties in private homes, with invitations distributed to selected individuals who share a common interest.

The program can be simple, but it should include a table with informative literature, a short video presentation, and ideally a brief talk by your board president or another highly respected person whom the attendees know. Follow the program with a formal request for contributions. You can keep overhead costs very low with donated food and drink.

Auctions

Benefit auctions have been catching on as a means to make a considerable amount of money. There is a lot of pre-event work associated with auctions. You must verify with your tax advisor exactly how to navigate any local or state regulations pertaining to benefit auctions, and be prepared to document the entire event to remain compliant with the IRS. Remember, you may be incurring a tax liability and not all funds may be deductible, so do not hold an auction without doing your homework. There are numerous software applications to assist nonprofit organizations with the bookkeeping associated with benefit auctions.

The Benefit Concert

Benefit concerts will come up in discussion at some point and you need to be prepared. Unless you are working with A-list talent who are donating their fees and all ticket sales, concerts are terrific for outreach but are rarely a sure way to raise funds. If you are still determined, contract with a professional promoter in your region who knows the business. Negotiate a fee and then let that person take the project to its conclusion.

The Phone Bank

We all hate getting those phone calls during dinner. However, the reason organizations use phone banks is that they are very effective. There are a number of large national phone bank operators who work exclusively with nonprofits and are worth investigating if that is a route you want to go.