Finance Origins for a Non-profit organization

Non-profit organizations seek to serve the public and thus raise funds for such specific cause. Yi, (2010) notes that in 2004 there were around 1.4 million non-profit organizations in the United States, but the number is increasingly growing. Fundraising is dependent on the generosity of the public and the effort these organizations put in marketing their products to raise the needed funds to meet their mission.

Non-profit organizations get their finance through individual donations, gifts and bequests, fees from own products and services, foundations and government grants and contracts, corporate contributions, loans or program related investments, interests gained from investments, and tax revenue membership fees and dues. Relationship fund raising which seeks to ensure more funds per donor develops the full potential of the relationship between the donor and the organization by making the donors feel valued and important (Moon, & Azizi, 2013).

This means that whether the organization gets financed through fundraising or the products they offer, the key objective should be the needs of the people and bringing about change to their lives. In so doing, the organizations should employ a donor-based approach that brings fundraising and fundraisers closer to the mission of the organization as evidence of inseparability of fundraising and the cause so that donors can feel as shareholders in the organizations cause (Moon, & Azizi, 2013). It is good to open the hearts and minds of the donors to make friends before fundraising.

Non-profit organizations do not exist to raise funds though they spend to raise those funds. Yi, (2010) notes that organization’s size impacts positively on fundraising efficiency and organizations that allocate more resources on labor in fundraising, as compared with materials and equipment, raise funds efficiently.


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