You've started a nonprofit! Now, how are you going to fund it?

Nonprofit organizations often grow out of an unmet community need and/or is a passion project of the founder. Before you think about starting your own organization, look around your community. Is there another organization providing the same or similar services? If yes, I would encourage you to get involved in their work, rather than start your own. This reduces competition for funding, and will, quite frankly, make your life easier while still providing critical services to your community.

But, for the sake of argument, let’s say your organization fulfills a unique need, and you’ve created your own nonprofit. Now you and your board are thinking, “Where does the money come from?”

Here are some ideas to get you started:

Private Foundations Private foundations are one of the best sources of funding for new nonprofit organizations. This is because typically, their contact information is available online so you can reach out and speak with someone about your work. Building these relationships are key for future funding success. This is a great task for your board or key staff members.

The Minnesota Council of Nonprofits offers an annual Grants Directory which lists all foundation and corporate funders in Minnesota. It’s worth the small investment to have key information about funders to approach.

Corporate Giving Programs Board members and others affiliated with your organization likely work for companies with

corporate giving programs. Utilize these folks and encourage them to connect with their companies’ giving programs to promote your organization’s work and unlock corporate funding. Many corporations will direct their funds to organizations where they have employees on the board, so be sure your board members are making their employers aware of their status with your organization.

State and Local Grants Take a look at various departments within your State and Local government and get yourself signed up for all funding alerts. State and local funders are often looking to fund new programs that meet emerging community needs.

Dedicated individuals and volunteers It’s likely you have individuals around you that are dedicated to the work of your organization and have the means to support you financially. It’s also likely these folks have others in their networks that would like to support your work as well. Utilize your inner circle of individual supporters and ask them to connect you with others to expand funding opportunities. Do this through small gatherings, hosted by your board or other supporters, where they invite their friends/family/neighbors to learn more about your organization and how they can get involved.

Relationships are key. The biggest take-away here is that none of these strategies will work without building the relationships with each of the entities mentioned. Get to know individuals, program officers, government officials, and others who assist in making funding decisions. The more they know how important and unique your work is, the better chance you will have of successfully securing funding.