There are several sources for you to avail funding for your organization, and to make the most of this opportunity, you will have to understand the various types of donors, their priorities and their core values. Most donors can be classified in to the following categories:
- Foundations: Foundations are non-governmental entities that are established to provide grants to smaller organization, research institutions and NGOs. Most NGOs rely heavily on foundations mainly because they provide grants for a long duration. Different foundations have their own specific areas of funding and NGOs should conduct proper research before approaching a foundation for funds.
- Corporations: Corporations are business houses and private firms that provide funding to NGOs. Corporate Social responsibility has opened up new gateways for NGOs in developing solutions to various societal issues. Private sector, local businesses and International Corporations have huge potential to financially support the Not for Profit sector. Corporations generally support NGOs though donations, in-kind support and employee matching donation programs.
- Individuals: Individuals tend to support NGOs by giving donations or volunteering. Individual donors believe in your organization and your mission and therefore support the organization. Even though they may not donate a huge amount of money to the cause, they tend to contribute money on a regular basis. Also they help you in spreading the word about your cause.
- International Donors: These include bilateral and multilateral donor agencies which majorly fund large international organizations. NGOs can also receive funding from development assistance agencies of countries, UN agencies, and multilateral development banks; worldwide sources also include international foundations, multinational corporations, international religious organizations, and larger international NGOs.