Ways of Attracting Money by Non-profit Organizations - Essay Example

Ways of Attracting Money by Non-Profit Organizations Ways of attracting money by non-profit organizations A non-profit organization is a group of people organized for purposes other than generating profits and its income is never distributed to its members. These organizations are organized under laws, and use surplus revenues to achieve their targeted goals. Some may be a charity or service organizations. Hopkins (2013) argues that being termed as non-profit organizations does not imply that they are not after making money, rather the organizations do not have owners and therefore money realized in them is not used to benefit any owners. Where there is excess surplus, they may be restricted to use it.Their main aim is not to be successful in terms of prosperity, but to give value to the groups of people they deal with. These organizations target to help people globally (Neal, 2001). Moreover, organizations are self-governing meaning they are separate from the government and they control their own activities and also non-compulsory involving some meaningful level of voluntary services. Resource Attraction This is the attraction of funds from other sources to non-profit organizations. An organization’s resources are obtained from the communication of its needs. These organizations have different marketing strategies that are utilized to get money or revenues while spending little of what they have. For a non-profit organization to be financed it should determine whether the purpose of being financed is viable financially. It should ensure that it demonstrates some competitive advantage to ensure program viability. Marketers learn about the stakeholders who are involved for the course of the organization. The agency of these non-profit organizations understand the world of marketing and tactics more than they are given credits and are better than many institutions think and they need to be treated and also understand that an agency may need to raise funds. Marketing Tools These are the tools used by the non-profit organizations to attract more funds or resources and accomplish its goals. Communication program: According to McLeish (2011), marketing can be seen as a systematic philosophy and approach used in carrying out business. It is important to understand that marketing requires interacting business activities and reinforcing the premises that each area of management has a task to play to have a successful operation. Pricing: In non-profit organizations, price is the link between the resource allocation and the resource attraction. The company’s price of a product allows it to attract more resources than what they use in the production. Some of these organizations use more than one constituency donors and clients to get more resources for the day-to-day operations. The funding agencies provide these organizations with different amounts according to their performance and needs. Policy goals shape the non-organization’s mission and this impresses the donor to release more funding. Products: product policies are also put in place and donors or funding agencies feel the product ability in helping both men and women hence overcoming a serious problem and contributing positively to both local and societal problems. Product distribution channels: According to Neal (2001), a non-profit organization uses some channels of distribution to deliver its products to the audience. It looks into account where best to sell its products, how to access information from its distribution channels and how to collect donations. Attracting Money from Donors For a non-profit organization to attract money without spending more it needs to create strategies to attract the donors’ interest. Develop a case for support: For a non-profit organization to attract money from the funding agency or donor, it needs to develop a case for support showing the reasons for the funding. This will draw the donors’ interest to invest in such an organization. Fundraising responsibilities: Young (2007) points out that, the team members should be the first to contribute to the organization by subscribing some amount to carry out operations so that the others may follow. The participation by the team members is what matters most in comparison to the amount. Good stewards: Commitment to stewardship will always retain the current donors and employ new donors. Funding these organizations shows an extension of their faith by being led by the mission and visions as evidence that people are not stewarding the donors’ money but instead they are stewarding their trust. Creating annual donors: Organizations should focus on their obvious prospects such as recruiting the board, staff and volunteers then move on to the people they serve. Creating a culture of fundraising: Team members of the whole organization should be concerned in the process of empowering and training everyone in the organization on the concepts of fundraising. Develop a domain: This is where the organization will be able to plan from so that they augment the fundraising. Identify donors: These organizations identify the interest of the donor and classify the interest of different donors’ and put together the similar interests. This classification helps to identify the donor who is most likely to fund the organization hence supporting its mission and developments. Market research: A non-profit organization should gather information that is viable to present to donors’ for the purposes of being funded. It should present its mission and visions to the targeted donor or donors in a way that will draw their attention to donate money or resources to the organization. Create value proposal: A good proposal is essential and likely to attract the donor. These proposals convey the benefits of contributing to a non-profit organization. It is made to support the development of the non-profit competitive advantage. In addition to that, this proposal gives the reasons why the donor should fund the non-profit organization. Long-term debt owed: Donors will be attracted to fund a non-profit organization that is debt free. It is important for these organizations not to have debts because the donors’ neither attracted nor interested to fund them because it will act as a sign that the organization cannot manage its resources well. Taking care of neglected areas: The donor will not be attracted to release the money unless the neglected areas are taken care of. Once those areas are given some attention, the donor will be very much impressed to release the fund to the organization. Non-profit organizations are required to have high code of ethics to attract donors’ in order to release money to support them. These organizations are not for wealth making instead they are there to help and support other people. References: Hopkins, B. R. (2013). Starting and managing a nonprofit organization: A legal guide. Hoboken: Wiley. McLeish, B. (2011). Successful marketing strategies for nonprofit organizations. Winning in the age of the elusive donor. Hoboken, N.J: Wiley. Neal, K. A. (2001). A primer on nonprofit PR: If charity begins at home. Sarasota, Fla: Pineapple. Press. Young, D. R. (2007). Financing nonprofits: Putting theory into practice. Lanham, MD: National Center on Nonprofit Enterprise and AltaMira Press. 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