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7 Ways to Create a Funding History For Newly Established Non-profits

It is difficult for early non-profits to get funding for projects and programs. Financing is much like a loan; You can’t get credit unless you pay in advance! So what is a new organization to do?

Here are seven ways to help your agency or organization create a financial history:

1. Partnership / Cooperation with an Existing Institution or Organization

Identify an existing agency or organization that has an established track record of regularly receiving payments. Ideally, the organization you choose to collaborate with should be highly visible in the community, and provide projects and programs that are approved by stakeholders, politicians, the media and their funders.

Establish and develop your partnership one project at a time. It is important that you do not commit yourself to a long-term relationship at the beginning of your partnership for many reasons. You may find that you don’t work well together, or you may find that they don’t capture the records as completely as you would like. They may not be the same in the way they decide to divide the funds, or perhaps over time, your programs will evolve so that there are more differences between you than peers.

Choose a partner who seems to share your vision and offers similar services or compliments to the population you want to serve. The purpose of an affiliate is to be able to use your experience, positive track record, and programming expertise as leverage to build your reputation in a positive way, and to get you paid in the future.

2. Seek Funding from Local Foundations/Charitable Organizations

Start by applying for small amounts of money from local agencies. There are many foundations in your immediate area that fund local projects. Try applying for smaller rewards for $100,000. 00 right off the bat. Some of your usual local organizations include, but are not limited to, The United Way, the cable company; the telephone company, and mega-chains like Lowe’s, BJ’s, Starbuck’s, and Walgreen’s. These companies like to fund where they are, and even if you are new, they have someone local who is willing to listen to your project ideas, and pay you a few dollars to make it happen. Make sure you are asking for the program/project money, not the start-up payment. Most financiers frown on applications asking for startup funding!

3. Apply to be a sub-agent of your local government’s BLOCK Grant Fund

Major municipalities, and all counties, and states receive government “formula” grants. Sometimes it’s a CDBG (Community Development Block Grant) or SSBG (Social Bank Services) Grant. In many cases, parts of this fund are allocated to provide funding for sub-funds: smaller organizations such as grassroots organizations, and local non-profits to provide specific community programs.

Call your local Community Development Office (usually a county or municipality) to find out what types of funding are available to your local nonprofit, and what criteria you need to meet to qualify for funding. Check out CDBG, and call your state agency. Health and Human Services to find out if you qualify for SSBG funds.

4. Try to do a program or project that is media friendly

For your first projects, it is important to get as much publicity as possible. For that to happen, your project will have to be interesting, public and media friendly. If you can get support from your local political community you are creating a win-win situation for everyone involved. The more people you have who are willing to support your project in general, the better it is for you. Make sure you give the press detailed information so that they either come to your launch event, or write about your project in the papers. If there is a photo opportunity, make sure you invite everyone who helped you, especially local politicians.

Keep everything you need to demonstrate the success of your project. It is important to keep a record of the success of your projects. How many people have you served, how much funding have you received to date and who have you partnered with. It will be your “portfolio”.

5. Join a Social Networking Site

Sites like Facebook, MySpace, LinkedIn, and Twitter just to name a few are becoming increasingly popular with non-profit agencies and charitable organizations. Visit and click “N” for non-profit. You’ll find that there are major organizations that have boarded the social media ship for purposes ranging from inviting friends and followers to attend their fundraising events, to promoting online charitable giving on a global scale.

Take the time to understand these sites and you will double your sphere of influence. You will create opportunities to reach people who would otherwise be unreachable, and you will appear to be more advanced in your approach to service, knowledge and effectiveness of the services you can provide to your target population.

6. Some examples of simple and productive partnerships to start a non-profit:

A type of Community Day event: This event usually lasts only one day, and provides a collection of services and opportunities that are diverse but free to targeted participants. This type of event allows you to engage both large and small partners. This event could be a health fair, reading fair, women’s health event, men’s health event, free health screenings, an event that informs people about various social services in their area, or a home fair. The possibilities are endless, limited only by your imagination.

You don’t have to limit yourself to one partner at a time. You can develop a partnership that includes several partners at once.

7. Here are some suggestions for organizations to collaborate with. They don’t give money, but they do

Educated and experienced volunteers, great support, and an amazing reputation to deliver:

– Cancer Society

– Your state’s Department of Youth and Family Services

– Parents Anonymous

– Your county’s one-stop career center

– Heart Association (and other similar organizations)

– Local YW or YMCA

– Local Boys and Girls Club (or similar organizations)

Agencies like this don’t have money for financial purposes, but they are very valuable partners to have. This doesn’t mean they won’t pay for anything, it simply means they won’t cut you a check. In addition, they have unlimited resources, an inexhaustible knowledge base, and a national sphere of influence.

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