By Joan Wenglikowski & Ziyad Naccasha
Fundraising is the lifeblood of most nonprofit organizations. One of the best ways to strengthen a nonprofit’s fundraising efforts is to harness its’ Board of Directors and staff in these activities.
Nonprofits have a variety of options, including, but not limited to, turning to the business community for support to help sustain their missions. Engaging businesses, whether they are the vendors of the nonprofit organization, larger corporations such as financial institutions, or other community-based organizations, can help open the door to funding opportunities. Below are several strategies nonprofits may wish to consider when approaching the community for support to meaningfully enhance fundraising capacity:
1. Vendor Partnerships
Action Item: Lean on your Strategic Vendor Relationships
Nonprofits, and each of their board members (and/or their businesses), rely on vendors for supplies, services, or products. By tapping into those vendor relationships, nonprofits, and their board members, can explore opportunities for sponsorships, discounts, or in-kind donations with those vendors. Consider approaching those existing vendors with a proposal highlighting how supporting your nonprofit can also enhance their community engagement and showcase their businesses. You support their businesses and, if a community need arises, they may be willing to help support your causes.
2. Bank and Financial Institution Support
Action Item: Engage Local Banks/Financial Institutions for Grants and Sponsorships
Banks/financial institutions often have community grant programs, sponsorship funds, and corporate social responsibility (CSR) initiatives. Identify local banks/financial institutions that have a history of community involvement and propose partnerships and donation opportunities that align with their CSR goals. Nonprofits could consider hosting events or workshops in collaboration with these financial institutions to introduce the nonprofit to a wider (or possibly different) audience thanks to their relationship with those financial institutions.
3. Corporate Sponsorships and Donations
Action Item: Create a Corporate Sponsorship Program
Larger businesses are often willing to sponsor events, donate to causes, or even provide long-term (perhaps annual) funding for specific causes or projects. Consider developing a tiered sponsorship program where businesses can choose their level of commitment, offering benefits such as brand visibility at events, recognition in marketing materials, or opportunities for employee volunteerism, and add click-through links to sponsor websites on the nonprofit websites. If they win, you win. When these companies sponsor your nonprofit, also consider thanking them and recognizing them on your nonprofit social media channels. And periodically ‘like’ these corporate donors’ posts as a way to show support.
4. Grant Opportunities from Corporations or Government Agencies
Action Item: Research and Apply for Corporate or Government Grants
Many large corporations and government agencies offer grant programs specifically designed to support local nonprofits. Research corporations and government agencies in your community or those that align with your nonprofit’s mission and apply for all available grants. Ensure your proposals are well-aligned with any donor’s philanthropic focus to increase your chances of success. If you receive a grant, please timely follow through on all grant requirements, so that you can reapply in future years as a grantee in good standing.
5. Leveraging Community Donors
Action Item: Identify and Cultivate existing Donors in the community
Beyond corporations, there are many generous individual donors within the business community or through your local Community Foundation or service organizations who have the capacity to give significant gifts. Develop a targeted approach to identify these individuals, perhaps by engaging board members or existing donors for introductions. Consider speaking at these service organizations to showcase your nonprofit, and to meet potential donors or board members. Perhaps offer these donors opportunities for involvement in leadership, advisory or committee roles to deepen their connection to your cause.
6. Hosting Fundraising Events
Action Item: Organize High-Profile Fundraising Events
Businesses are often eager to participate in or sponsor events that offer networking opportunities and help foster positive publicity for their brand. Consider hosting galas, charity auctions, golf tournaments, or business luncheons where businesses can showcase their support for your nonprofit cause. Offering naming rights or key sponsorship opportunities can incentivize higher levels of giving. Auctions can be particularly fruitful events especially if the nonprofit partners with a local auctioneer who has a successful track record of raising funds for other nonprofits.
7. Employee Giving and Volunteer Programs
Action Item: Partner with Businesses for Employee Giving Campaigns
Many companies have employee matching gift programs or encourage employee volunteerism. Partner with businesses and government agencies to create campaigns that encourage employees to donate to your cause, perhaps with the company matching those donations. You can also develop volunteer programs that allow employees to contribute their time and skills, fostering deeper engagement.
8. Corporate Volunteerism
Action Item: Engage Businesses in Skills-Based Volunteering
In addition to monetary donations, businesses can contribute by offering pro bono services nonprofit discounts, or skills-based volunteering that directly support your nonprofit. This can include anything from marketing assistance to legal advice, allowing your nonprofit to benefit from professional expertise while strengthening ties with the business community.
9. Board Engagement
Action Item: Engage Board and Staff Members
Give your Board members a list of your current donors and ask them to add to that list the names of one or two companies they know, and with which they are willing to follow up to help secure additional sponsorships. When recruiting Board members, setting clear expectations is important. Many nonprofit Boards struggle to engage in fundraising because expectations were not made clear to Board members from the outset. Setting clear, achievable goals for Board members and staff can help alleviate confusion and boost engagement. Remember to recognize and celebrate Board members’ efforts.
Conclusion
By strategically engaging with vendors, banks, larger businesses, and major community donors, nonprofits and their board members can tap into a wide array of funding and support opportunities. Each of these approaches should be tailored to fit the specific needs and goals of both the nonprofit and the business involved. This list of strategies can be overwhelming so you may consider picking one and implementing it well before tackling the next one. With the right strategy, nonprofits can build long-term partnerships that provide sustained funding and resources to advance their mission.
About Joan and Ziyad
Joan Wenglikowski is a Wealth Advisor with EP Wealth Advisors in San Luis Obispo, CA. Previously was with Wacker Wealth Partners as a Wealth Advisor for 17 years. As a Wealth Advisor, Joan enjoys getting to know her clients personally and applying her knowledge and experience helping them achieve their goals. Joan specializes in personal financial planning including income tax, Social Security, and retirement planning. She places importance on being an advocate for local nonprofits and supports them by helping them work smarter not harder. Feel free to contact Joan at jwenglikowski@epwealth.com or (805) 541-1308.
Ziyad Naccasha is managing partner and co-founder of Carmel & Naccasha LLP. He proudly serves on a number of nonprofit boards and fundraising committees. Ziyad counsels companies, their shareholders and officers in a variety of matters relating to business formation & structure, employment litigation, and insurance needs. Ziyad also serves as outside general counsel to a number of local businesses for their contract, real estate, employment, insurance and litigation needs, and he works with business owners and their families in their transition between generations through estate and succession planning. If you have questions about this article, please contact Z at z@carnaclaw.com or (805) 546-8785.
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