In our last post, we discussed the best practices for charity fundraising. Once the motive has been established, it is time to determine which funding model should be used in order to benefit the company and the community to extent in which it is capable. While these models are implemented, ensure they are protected with a comprehensive Nonprofit Insurance Program.

According to The Bridgespan Group, when nonprofits and funding sources are not well matched, money doesn’t flow to the areas where it will do the greatest good, resulting in programs being cut, curtailed or never even being launched. Here are some common successfully implemented funding models for charities and nonprofits to adopt.

Heartfelt Connector- These nonprofits resonate with audiences by focusing on a topic that pulls at the heartstrings of viewers and focus primarily on medical, international and environmental issues. By providing a compelling and significant story, these nonprofits gain the donations of millions nationwide. When considering this model, nonprofits should identify is the cause has a large following already, if the nonprofit can convey the importance of the cause and communicate its urgency, and decide how these ideas are going to be distributed.

Member Motivator- These nonprofits motivate their members to donate in order to benefit themselves collectively. For those considering this policy, determine whether the donations will benefit the members directly, if the fundraising can be adequately managed, and if the member involvement will continue to uphold the original core values of the nonprofit.

Big Bettor- These organizations rely on the few sponsors that fund their operations and focus primarily on medical and environmental research. If this model is considered, nonprofits should identify whether their research is able to solve a problem tangibly and determine how large-scale donations will be put to good use.

Public Provider- These nonprofits work with government agencies to provide essential social services such as housing, human services, and education with allocated government funds, says Bridgespan. In order for this model to be successful, nonprofits should decide if the organization is a match with a preexisting charity and if they are willing to dedicate the effort to renew pertinent contracts.

At Charity First, we are dedicated to protecting the nonprofit industry. We work to ensure these organizations are safeguarded from the scope of risks they face over the course of their lifetime. For more information about our services, contact our knowledgeable specialists today at (800) 352-2761.