Pros and Cons of

Typical Funding Sources for Non

Profit Organizations

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Corporations

Pros Philanthropic and Sponsorship

Opportunities Volunteers can help engage

their workplaces

Cons Can be hard to approach if you

don’t have personal contacts Funding priorities may be

limited to the areas where the corporation has a presence

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Earned Income

Pros You can influence how

much you raise Innovation can equal

income

Cons Must market and sell to

be successful Depending on “product”

economy can have an effect

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Federated Funds

Pros Clear process Your organization can

influence how much you raise (though campaign presentations)

Cons Organization must be well

established Highly regulated and very

lengthy process Time consuming to maintain Competition from similar

organizations

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Foundations (private)

Pros Often a source of large gifts Possibility of multi year grants One large grant can give a non

profit its start Guidelines, format and application

process is clear

Cons Foundations can switch giving focus Turn-around time of application and

receipt of grant can be lengthy Funding priorities may be limited to

specific geographic location

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Grants (government)

Pros Large source of funds Clear guidelines and

process

Cons Application procedures

may be long and tedious Highly regulated Federal appropriations

shift Political influence could

be needed

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Individuals

Pros Fastest growing source of funding Ongoing source that can grow over

time Small gifts from many individuals can

add up On line giving makes it easier to reach

more people

Cons Not easy to start a program Requires diligence and perseverance Must invest for success Individual donor campaign can be

unsuccessful if you are not using donor management software

It takes time to build a good list Economy can effect giving