I am frequently contacted by new organizations trying to get grants. When I say “new” I mean new with no budget. Maybe you are one of them? He has a great cause, a 501(c)(3) status, and no money to go on. Many new projects believe that grants are the best way to get off the ground, and there are plenty of novice grant writers who would like to convince you of this. In my opinion, this is not the best strategy.
Most of the time, a funder does not want to be the first investment. A new nonprofit organization must show that it has some money and has put it to good use. For many this may seem like an impossible task, but it is not. This is basic fundraising. Here are five easy suggestions:
1. Garage sale: You probably had one as a kid. This is a great way to announce the formation of your new organization to the community. Explain that all proceeds go back to the cause. If you and your board members contribute, chances are good that you’ll reach your first goal of $500 easily.
2. Party at home: take advantage of your relationships for the first financing. Advertise a spaghetti dinner at your house and explain how the $10 a plate is supporting the mission of your new nonprofit. If you have a relationship with a church, you can even host the event there and have the added support of the congregation after Sunday services.
3. eBay: Yes, a new non-profit organization can grow quickly using technology and this is just advice. Technological resources are so abundant that I will leave the subject in its own dedicated article. Until then, eBay is a basic step even for beginners. Explain in your sale that the funds are being used to support a new non-profit organization.
4. Recycle: Recycle newspapers and cans and take them to your local recycling center. You and your board members can even ask family and friends to recycle. Explain that you are more than happy to pick up materials from home on a schedule and that all proceeds will go to a good cause.
5. Board Members: We advise new nonprofits to have at least six on their board before seeking grant funding. Boards are viewed by funders as an integrated system of checks and balances for managing the money they invest in the nonprofit. Six is a good number. If each of your six, when they get to the board, donates $50, you have your first $300. If each of the six commits to $25 over the next four months, their grand total within four months is $600.
Combine these efforts and your nonprofit organization may well have its initial $5,000 to $10,000 within the first four to five months of its existence. Organizations with budgets this small are good candidates for the next step: small grants from local foundations.