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10 Nonprofit Funding Models

10 Nonprofit Funding Models

Jennifer Victor-Larsen

on 22 January 2013

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Transcript of 10 Nonprofit Funding Models

Ten Nonprofit Funding Models HEARTFELT CONNECTOR Member Motivator Medical Research
Environmental Issues Big Bettor Essential social service providers:
Texas Migrant Council (using Head Start Funds) Public Provider Metropolitan Boston Housing Partnership (MBHP)
Iowa Student Loan Liquidity Corporation BENEFICIARY BROKER Organ Donation - American Kidney Fund (AKF)
Trust for Public Land MARKET MAKER http://www.ssireview.org/articles/entry/ten_nonprofit_funding_models/ Stanford Social Innovation Review
By William Landes Foster, Peter Kim, & Barbara Christiansen Spring 2009
Hospitals and Universities BENEFICIARY BUILDER HELP USA
Youth Villages Policy Innovator Big Brothers Big Sisters
Teach for America LOCAL NATIONALIZER The Greater Boston Food Bank (TGBFB), RESOURCE RECYCLER Susan G. Komen Race for the Cure
Make-a-Wish Build explicit connections between volunteers through fundraising events
works through a large network of affiliates
Structured way for people to connect
Proven funding from large cross-section
Concise and simple story
Natural avenue for large # of volunteers
Capabilities for broad outreach Individual benefits plus important social good
Loyal beneficiaries
Infrastructure to reach out and scale
National Wild Turkey Federation Membership based model.
Services are integral to everyday life (environment, religion, arts, culture, humanities)
Member receive benefits, shared collectively
Committed to core membership, even if it means turning down funding opportunities
Often launch with substantial backing
Grow quickly
Create tangible & lasting solution to a major problem in foreseeable timeframe
Articulate how large-scale funding will achieve goal
Wealthiest individuals/foundations are interested in issues and approach Government may outsource
Match with existing government program
Does a better job than competitors
Time to secure contract renewals Pressure on government to change the status quo
Innovative approach
Evidence that program works
More effective, less expensive
Compete with other nonprofits to provides government-funded services to beneficiaries
Able to demonstrate users with benefits
Develop supplemental services that maximize value
Master the government regulations
Raise money to supplement the fees from the program

Able to receive regular, on-going donations
Watch industry trends to prepare for fluctuations from donors
Strategy for attracting cash for operations Provide a service that straddles altruistic donors and payor motivated by market forces
Have a group of funders with a financial interest in supporting the work
Legal/ethical reasons why nonprofit delivery of services is more appropriate
Trusted program and brand name

Addresses an issue that local leaders consider a high priority
Compelling in communities nationally
Expansion fulfills the mission
Model can be replicated in other communities
Identify and empower high-performing leaders to run local branches

money is raised locally, from individuals, corporate donations and special events. Revenues from fees or donations
directly linked to their activities In kind donations typically account for the majority of revenues Revenue comes from the small administrative fees the state provides as part of the voucher program Rely on government money Funding comes from previously defined
and allocated government funding Relies on major grants from a few individuals or foundations rely on individual donations of members Some fee for service but rely on donors who have benefited Revenue comes from fundraising & ability to reach out to an ever-widening base of support
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