1. Grants

Often, a significant portion of the funds for NGO projects comes from grants offered by corporations and local and federal governments. Grants don’t have to be repaid. Competition for these awards, however, tends to be stiff. Writing a grant proposal can also take a fair amount of time, effort, and expertise.

Pros:

• Money doesn’t have to be repaid
• NGO may be able to automatically qualify for funding from the same donor year after year
• Can be for large amounts

Cons:

• Funding for grants can dry up
• There may be heavy competition to qualify for certain grants
• Requires a grant writer on the team to fill out applications

Tips for grant fundraising: 

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1. Describe your idea with passion, but do not forget to make your application clear and understandable. 
2. Work on good relations with the donor organization. Whatever happens, aim at long-term partnership and build your attitude accordingly. 
3. Reflect the value of volunteer and in-kind contributions for the project to make sure the donor knows that aside from their money, other resources will be contributed to the project.

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‍2. Donations

NGOs often engage in a variety of fundraising activities to help fund their operations and fulfill their missions. Fundraising efforts can range from offering a website donation link to hosting elaborate events like galas, festivals, and auctions. There’s no limit to the possibilities when it comes to fundraising. In fact, Doctors Without Borders even organizes charity video game marathons to help raise funds.

Pros:

• Money doesn’t have to be repaid
• Funds can come from any donor - individual, business or organization who’s interested in supporting the NGO
• Fundraising activities provide a way to publicize an NGO and its cause

Cons:

• Planning fundraising events can be time-consuming
• Fundraising needs to be ongoing; it’s not a one-and-done event
• May require finding businesses and individuals to donate time or products (for example, for auctions) 

3. Membership

Another way for NGOs to raise money is to charge for membership. To attract members, the NGO may offer exclusive benefits and perks. For example, PETA (People for the Ethical Treatment of Animals) offers members a subscription to its magazine as well as a calendar, vegan recipes, and discounts on products.

Pros:

• Money doesn’t have to be repaid
• The perks offered to members are usually low-cost
• Members feel more invested in helping the NGO

Cons:

• Membership fees are typically low, so it takes a lot of members to raise significant funds
• NGO needs a membership coordinator or department to run program
• Perks need to be enticing enough to draw members

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4. Corporate Sponsorships

Just like private individuals, many corporations engage in philanthropy, and many do so by financially sponsoring NGOs. There are a variety of ways a corporation can sponsor an NGO, including direct donations, event partnerships, and matching gifts. This allows a corporation to give back, potentially get a tax deduction, and become affiliated with an NGO that has a powerful and positive mission.

Pros: 

• Corporate sponsorships can be of significant value
• Partnering with a corporation can amplify the NGO’s message faster and further
• Corporations may get tax benefits with the donation

Cons:

• May require a dedicated individual or team at NGO to find corporate sponsorships and manage the relationships
• Continual support from a corporation isn’t guaranteed

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