  Running a nonprofit is no easy feat; from managing volunteers to putting on events and everything in between, a lot goes into keeping a nonprofit running smoothly. One of the most important aspects of any nonprofit is ensuring enough funds to support the mission.
Diversifying funding sources is critical to sustaining operations and achieving long-term success. Relying on a single funding source can make an organization vulnerable to budget or funding priorities changes. Diversifying funding sources helps insulate organizations from fluctuations in any one area and can provide a steadier stream of income that can be used to support ongoing programs and services. In addition, having a diversified funding base can also help an organization attract new donors and supporters. By demonstrating that an organization has a broad range of support, potential donors may be more likely to invest in the organization, knowing that their contribution will have a lasting impact. As we get close to another new year, we thought it would be no better time to introduce some proven practical ways to fund a nonprofit. Remember, having a diversified funding stream is essential to ensuring stability and long-term success. 1. Grants One of the most common—and effective—ways to help fund a nonprofit is through grant funding. The most common types are Corporate, Foundation, and Government. While there are many opportunities available, it is essential to thoroughly research and identify funders with a giving focus that closely matches your organization's mission and needs. The next step is to develop a strong application sharing your organization's story and clearly identifying how your request aligns with the grant guidelines. Unsure how to begin to apply for grants? Learn how to get ready in one of our previous blogs, Proactive Ways to Get Your Nonprofit Grant Ready. 2. Individual Donations Individual donations can be a consistent way to raise money for your nonprofit. Soliciting donations can be done in various ways, including adding a donate button on your website and social media pages. We encourage you to make giving easy for your donors by offering multiple ways to donate; this can include venturing into the realm of text messages where donors can simply click to donate. In addition, utilizing the convenience of online payment apps like Venmo can simplify the fundraising process and allows nonprofits to reach a wider audience of supporters, including younger donors. 3. Corporate Sponsorships Corporate Sponsorships provide a way for businesses to align with charitable organizations. It is a form of marketing where each party benefits. The nonprofit promotes, advertises, and highlights its corporate partners in exchange for a financial donation. Therefore, it is essential to select partners who share your values. 4. Fundraising Events Fundraising events are another way to diversify your nonprofit’s revenue stream while cultivating relationships with donors. Creative and fun fundraising events are a great way to excite donors while generating interest and awareness of the nonprofit, gaining new supporters and volunteers, and bringing the community together. Annual Galas provide an opportunity to gather to celebrate the year’s successes while highlighting the need for future donations. Funds are usually raised through ticket sales, auctions, and appeals made during the event. Sporting events, including golf tournaments, walk-a-thons, and 5k races, are fun and easy and can be supported by volunteers. Fundraising events can be a powerful tool for nonprofits to raise money and support their mission. Are you looking to brainstorm ways to diversify your revenue streams? Schedule an On-Demand Strategy Consulting Session - we are here to help!
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  A Board of Directors is a vital, and in Massachusetts required, part of all nonprofit organizations serving as the nonprofit’s governing body. As a public entity, the IRS recommends a minimum of three board members, with at least 51% of the voting members being unrelated. This rule is to ensure the board functions independently and is not influenced by familial relationships, preventing conflicts of-interest.
Key board roles include Chairperson, Secretary, and Treasurer. Board Leadership have legal duties including the Duty of Care, to participate actively in decisions making on behalf of the organization; Duty of Loyalty, to put the interest of the organization before their personal and professional interests; the Duty of Obedience, they are legally responsible for ensuring the organization complies with applicable laws and adheres to its stated mission. The board is responsible for key decisions around the strategic planning, the mission and goals, and financial oversight, staring the organization towards a sustainable future. They also work to build relationships with funding organizations and other key stakeholders. Board membership is a highly sought-after position for individuals who want to give back to their community or sector. Sought Out Expertises of Board Members Nonprofits search for board members that can provide knowledge, expertise, and direction in various areas of the organization. A healthy board is a diverse board. On average they are made up of 15 members. Many members have backgrounds in finance, marketing, public relations, governance, leadership, and more. Nonprofits are encouraged to create inclusive boards that range in diverse backgrounds and cultures. Historically, board members are appointed as a volunteer and not compensated for their service. Board Responsibilities According to the Council of Nonprofits, boards have three main legal duties they are responsible to focus on. Those include:
Strategic Planning One of the most important roles of the board is to develop and approve the strategic plan for the organization. The strategic plan sets forth the mission and vision for the nonprofit and outlines the goals and objectives that it hopes to achieve. The board is responsible for making sure that the strategic plan is aligned with the values of the organization and that it reflects input from all stakeholders. Resource Development Another key role of the board is to ensure that the nonprofit has adequate resources to achieve its goals. This includes financial resources, human resources, staffing, and other types of resources that may be necessary. The board is responsible for developing and approving budgets, overseeing fundraising activities, and ensuring that expenses are controlled. Fiscal Oversight In addition to setting direction and ensuring adequate resources, the board also has a responsibility to provide oversight to make sure that the nonprofit is operating effectively and efficiently. This includes reviewing financial statements, monitoring compliance with laws and regulations, and assessing programmatic results. The board also assists by establishing policies and procedures to govern the operation of the organization. Evaluation of Executive Leadership The Executive Director is known to be responsible for the day-to-day operations of a nonprofit, but the board is responsible to analyze the performance of their leadership. Boards are tasked with completing an annual performance review of the Executive Director. In this review, they can clarify the organization's goals and expectations and address any concerns they might have. Many times this duty is carried about by the board chair, but all board members will have access to the findings. Alternatively, if a nonprofit does not have an Executive Director, the board is responsible for the hiring process and setting the compensation for that role. Looking to make your current nonprofit board more effective? We encourage you to reach out to us and schedule a free consultation. With over two decades of nonprofit experience, we will be happy to assist you!  Nonprofits exist to serve causes larger than themselves, unfortunately, they are typically underfunded and with many grassroots organizations operating on shoestring budgets. That's why grants are such an important component of a nonprofit’s fundraising strategy. Grants often provide much-needed financial support to further the nonprofit's mission, including supporting programs and operations. For many nonprofits, grants are the vital lifeline that allows them to provide services and keep their doors open.
Grants come in many types, sizes, and through a variety of funding sources, they can be written with a variety of focuses, though the most common is for programs or projects. Additional grant opportunities include capacity building, capital expenses, and general operating support. Unfortunately, most people don’t realize grants can be difficult to obtain. According to Instrumntl, only 10% of first-time grant applications are awarded funding. Typically, the higher the grant award the fiercer the competition is for funding. That is why it is critical to research funding opportunities, implement a robust evaluation process, and focus energies on foundations that closely align with the organization’s mission. A few key reasons why grants play an important role in nonprofits are: Expand Impact Nonprofit organizations are at the forefront of efforts around the world when it comes to strengthening communities and improving the lives of vulnerable populations. Grant funding helps nonprofits expand their impact across a broad array of service areas including food and housing insecurity, youth development, healthcare, diversity, education, animal welfare, older adult service, veteran services, workforce development and more. Research is at the heart of most successful grant programs. Funders are typically looking to identify outstanding organizations working to tackle pressing challenges in their communities. A robust assessment process often evaluates nonprofits on a variety of factors such as the demographics of the audience served, the organization’s financial history and stability, leadership capabilities, program outcomes and impact, and sustainability plan. Diversifying Revenue Sources A diversified revenue stream is a crucial component of a nonprofit's fundraising plan. It prevents organizations from becoming overly dependent on any one source of funding, providing stability and sustainability. Grants are also a powerful way to diversify income. They are available through a variety of sources including corporations, foundations, municipalities, and federal agencies. Tapping into the power of grant funding can be an incredibly effective way for nonprofits to grow and thrive. If your nonprofit is interested in applying for grants, we encourage you to reach out to us for more information on how we can help you access the funding you need to help your organization thrive.   The term “impact” can be difficult to define, particularly for nonprofits that often operate in areas that are hard to quantify. However, measuring impact is important in order to track progress and ensure that resources are being used effectively.
There are a variety of ways to measure impact, and the method(s) used will depend on the specific goals and objectives of the organization. Some common methods include surveys, interviews, focus groups, observation, and data analysis. No matter which method(s) you choose, it is important to make sure that the data you collect is reliable and valid. This means ensuring that your methodology is sound and that you have a good sample size. Additionally, you will need to make sure that you are collecting data on the right indicators. Once you have collected your data, it is crucial to analyze it carefully. This will help you to identify any trends and make sure that you are achieving your desired impact. Some effective ways you can measure your nonprofit's impact are: Output of Programs This is the most basic level of measurement and simply involves tracking the number of programs or services delivered by the organization to your targeted population. For example, a soup kitchen might track the number of meals served, while a literacy program might track the number of people who complete the program. The more data you can collect, the better! Outcomes of Programs This approach goes one step further than outputs and seeks to measure the changes that have occurred as a result of the programs or services delivered. For example, a food pantry might track the number of people who report having enough to eat after receiving their weekly food distribution, while a career development program might track the number of people who gained employment after completing the program. Long-Term Results This is the most holistic approach to measuring impact and seeks to measure the long-term changes that have occurred as a direct result of the organization’s work. For example, a soup kitchen might track the number of people who are able to break out of the cycle of poverty after receiving meals, while a literacy program might track the number of people who are able to gain employment and achieve financial stability after completing the program. Internal Growth Another way to measure impact is by looking at how your organization has changed over time. This could include changes in funding, staffing, programs, or reach. For instance, if your organization has doubled its budget over the past five years, that would be an indication of increased impact and growth in the right direction. Staying consistent with tracking and analyzing the data will help your nonprofit not only run a more sustainable organization but it will be well prepared when it is time to seek funding. Many funders require nonprofits to report on their impact in order to begin or continue to receive support. Measuring the impact can help build credibility and legitimacy both with the public and with potential funders. Your organization is making a huge impact in your community - show them with the data! Let Us Help You Have questions about how you can begin measuring the impact at your organization? We encourage you to connect with us or learn more about our On-Demand Strategy Consulting service which focuses on building your nonprofit's foundation to prepare you for success.   The time has come to get your nonprofit in gear for grant opportunities. We know every penny counts in your budget and extra funding can go a long way in helping you achieve your mission. But where do you start? How do you make sure your organization is prepared when the time comes to apply for grant opportunities? Follow these five steps to get your nonprofit ready for grant opportunities.
1. Review Your Mission and Goals The first step is to review your mission and goals. What is the main purpose of your organization? What do you hope to achieve? Be as specific as possible. Once you have a clear understanding of your mission and goals, you can start to identify areas where additional funding would be beneficial to help you carry out your mission. 2. Identify Your Target Audience Who do you serve? What are their needs? When you know who your target audience is, you can start to develop programs and services that address their specific needs. These programs and services will be directly helping the target population that you have identified but it also will make it easier for funders to understand who this potential grant money will be serving. 3. Develop a Budget Now it's time to develop a budget. It is important to identify how much money you will need to implement your nonprofit’s programs and services. This process might take some time but it will help you and your board to make realistic yearly projections on growth and funding needs. Having an established budget is a good sign to funders that your nonprofit is structurally sound. 4. Compile the Data Every year thousands of grants are applied for and granted to nonprofits. However, there is one very important metric that funders are looking for when reviewing your applications - the impact you are making! We see so many hard-working nonprofits focused on the day-to-day efforts each year and making the people they serve a priority, but they forget to track all the progress they are making. Be sure to capture this data, it will increase your chances of the grant proposal being funded. 5. Develop a Timeline The more you understand the financial needs of each of your programs the more impact they can make in your communities. Developing a timeline around each program’s needs can help you align your requests with the various funders giving cycles. For example, if you have an annual winter coat drive each year, you would need additional funding for those items in the fall. 6. Practice Writing Writing your grant proposal in-house? Many Executive Directors are tasked with this responsibility even when many times writing is not their strong suit. We encourage you to dedicate time each month and practice your grant writing skills. These practice runs will get you prepared for when the real-time arrives to write your grant proposal. Learning to research the various grant guidelines, documentation needed and proposal specifics will get you acclimated with the process. Want to learn more about our grant writing services? Magic Lamp Consulting solely serves nonprofits with strategic consulting and grant writing services to help stabilize these important organizations that serve our communities. Connect with us today to chat about your nonprofit's organizational or funding needs.   If you're running a non-profit organization, you know that every dollar counts. You may be reluctant to spend money on professional services when you could use that money to fund your programs directly. However, hiring a grant writer can be a wise investment that pays off in the long run. A grant writer can help you identify potential funding sources and write compelling proposals that are more likely to be funded. In addition, a grant writer can provide valuable advice on how to best structure your organization and programs to meet the needs of funders. While there is no guarantee that your organization will receive funding, working with a grant writer can increase your chances of success.
It is a well-known fact that grant writing can be a time-consuming and challenging process, especially for non-profit organizations that may not have the internal capacity to dedicate the necessary staff hours required. A professional grant writer can be a valuable asset to any non-profit, providing expertise, knowledge, and support throughout the grant process. Below are four benefits you should consider when hiring a Grant Writer for your nonprofit. 1. Access to Expertise A good grant writer will have up-to-date knowledge of the funding landscape and know where to look for new opportunities. They will also be familiar with various funders' applications and reporting requirements. Many times grant writers will already know the specific funders that would be interested in helping your organization and mission. There are thousands of different grants available with precise timelines. A good grant writer will have intimate knowledge of many of them. They will be able to match your nonprofit's individual needs with the right grant programs. Additionally, if they don't know about a particular grant program that aligns with your organization or programs, they will be resourceful enough to find grant opportunities that align specifically with your organization's goals. 2. Saves You Time Hiring a grant writer for your nonprofit will save you and your limited resources of staff and volunteers time and money. Outsourcing the writing to grant writing professionals leaves more time for your team to focus on the core mission and daily activities of the organization. The grant-writing process can be long and tedious, but a good grant writer has the ability to see it through to the end. They will follow up with the funding agencies as needed to make sure that your organization’s application is complete and has been received. And if there are any problems with the grant application, they will work tirelessly to resolve them so that your organization can get the funding it deserves. 3. Improves the Chances of Success It’s not their first rodeo! Grant writers do this for a living and chances are they have written many similar grants that your own nonprofits needs assistance with. Their past grants that have been awarded speak volumes for the success that they can potentially bring to your very own organization. A good grant writer will help you develop a competitive proposal that aligns with the funder's guidelines and priorities. They have learned the terms, the data, and the specifics that make grant applications a success. Using their expertise increases the chances of funding for your organization tremendously. 4. Enhances Your Organizational Capacity Working with a grant writer can help build your internal capacity by providing training and mentorship on the grant process. A good grant writer not only develops the grants but teaches the Executive Director and other members of the team about the process as a whole. Many times additional information on a nonprofit is needed before the grant application process can begin. Grant writers can help you become “Grant Ready” for current and future funding opportunities. Grant writers are known for their superior organization and efficiency in their work. They have established systems in place for keeping track of deadlines, required materials, and progress on each grant application. This ensures that nothing falls through the cracks and that your organization's grants are submitted on time. Taken the burden directly off of the plate of your busy staff and volunteers. Bonus: Grant writers are an investment to your nonprofit! A lot of times nonprofits do not leave space within their tight budget for grant writing services. We understand each organization is trying to do the most it can with the limited resources available. Grant writing is one of the most underfunded aspects of a non-profit, but it is honestly one of the most essential activities of running a successful nonprofit organization. It creates sustainability and growth for the future of the organization. It’s more than grant writing. Grant writing professionals bring a second set of eyes that can look at the current state of your nonprofit and offer forward-thinking, strategic business planning, and help create a clear vision for your organization. We encourage nonprofits to no longer see grant writing as an expense, but as an imperative activity to sustain their organization's longevity. Interested in learning more about our nonprofit consulting and grant writing services? We are passionate about the nonprofits we serve and utilize our expertise to raise the money you need to make a difference in the communities you serve. Connect with us today to chat about your nonprofit's organizational or funding needs!  It is the start of a new year and a perfect time to start with the basics. One of the most fundamental things that nonprofit organizations can do to be prepared for developing a Grants Program is to define their organization's Mission, Vision, and Values. If you have already have written them, the start of a new year is the perfect time to review them. Vision Statements don't often change but if your vision has become outdated it might be time to update it.
What is a Vision Statement? A Vision Statement is a one-sentence statement that defines the aspirations of the organization. It paints a picture of what the world will look like, showing the impact that you aim to create. The vision defines the desired long-term results of your nonprofit's work. It is a short, clear picture defining why you exist, it is your sense of purpose and is used to direct and guide the organization forward. Vision Statements Examples: Habitat for Humanity: A world where everyone has a decent place to live Smithsonian: Shaping the future by preserving our heritage, discovering new knowledge, and sharing our resources with the world Alzheimer's Association: A world without Alzheimer's Oceana: seeks to make our oceans as rich, healthy and abundant as they once were Microsoft's original vision statement was "A computer on every desk in every home". Over the past forty years, the world has changed and the company has evolved. Microsoft's new vision statement reflect those changes, it is "to help people and businesses throughout the world realize their full potential" allows the company to again reach into the future and make an impact. Is your nonprofit's Vision Statement as clear and strong as it could be? Recently someone asked, "What makes you different?" I explained, "I am a grant consultant with a background in software and technology." If you're asking why that matters, you probably haven't had a chance to step behind the scenes of a small to mid-sized non-profit. These organizations are doing everything they can to fulfill their mission on a shoe-string budget. Most often, they have a very small staff, they start the day running and give 110%. Many of these organizations don't have their own technology staff or staff with technology expertise, leaving a knowledge gap.
I am excited to announce that Magic Lamp Consulting & Grant Writing Services will be co-organizing a NetSquared Central Massachusetts Meetup Group to help bridge the technology gap. NetSquared, a program of TechSoup, is a global network of #Tech4Good Meetups, they are volunteer-run groups with a mission to connect nonprofits with technology communities. NetSquared provides an informal way to network and learn from experts on everything pertaining to digital for nonprofits. NetSquared Central Massachusetts has announced the first three monthly Meetups, which will be held at the Leominster Public Library.
Learn about Magic Lamp Consulting & Grant Writing Services on our website, Facebook, Twitter and LinkedIn pages.  As Thanksgiving approaches and I sit listening to the sounds of the Trans Siberian Orchestra's "Carol of the Bells" penetrate my soul, I am inspired to take pause and reflect on where my journey has brought me. Life has been a crazy adventure with lots of twists and turns that have brought me to where I am today. With sadness comes joy, with downs there are ups and adversity opens the door for opportunity.
I am honored and fulfilled to have a career in grant writing. It allows me the opportunity to collaborate with amazing nonprofit organizations that are making an impact every day in our communities. These organizations influence people of all ages, cultures, incomes and from all walks of life. They are educational organizations dedicated to cultivating a sense of inquiry and encouraging a sense of curiosity in students; animal welfare organizations making an immense difference in the quality of life of vulnerable animals, and health support organizations that provide a healing community for patients that may be dealing with a devastating diagnosis. These organizations are vital to our communities. They are dedicated and work tirelessly to bring about hope and positive change. Today I am grateful. I am grateful for those who dedicate their lives to make an impact, to make society a better place, and are driven to make a difference. |
AuthorDebbi Mallinson enjoys working in collaboration with nonprofit organizations to develop a grant strategy to support their mission. Archives
October 2022
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