How can a non profit organization raise money?

Nonprofit organizations, that are also

charitable institutions, can raise money from a variety of sources

including events; corporate, foundation or government grants;

individual giving; or program income. Charitable institutions are

commonly defined as those having a 501 (c) 3 letter from the

IRS.

Events, also call special events, are held for

the purpose of raising money. They usually also have a secondary

purpose for the agency to meet prospective donors and friends.

Examples include galas, auctions, Golf outings or any event that is

intended to raise money for the charity. Some charities also have

raffles, either as part of their event or instead of an event.

Raffles are considered a game of chance by the IRS and are not tax

deductible for the donors.

Grants, whether corporate, government or

foundation, are offered by the funding institution by issuing a

Request for Proposals, typically referred to as a RFP. The RFP will

detail what the priority funding area is for the institution and

invite nonprofits that are charitable institutions to submit

proposals to provide programming within that scope. The funding

institution then selects the organizations that are best aligned

with their interests.

Individual giving is any gift that is

received, for any amount, which is given by an individual who

receives nothing in return, other than the ability to deduct the

gift. Individual giving includes planned, major and annual

gifts.

Program fees are fees charged by the agency.

It may be a class fee or an annual fee. It is usually a

participation or service fee.