Hello STEEMIT Community!
Our last post’s topic was- which long-term model works best for an organization, especially when the organization enters a new community to help it grow. Today, we will talk about the other management model that also is very important- the financial funding model.
Out of the countless organizations such as governments and corporations, non-profit organizations are also very important. Since there are also countless non-profit organizations, many different funding models are used. Non-profits are usually aimed at helping some cause through financially support, which means how they acquire that resource is also important. As we, Raise Uganda Now, strive for sustainability, many other organizations are also having discussions regarding how to best achieve this goal. Some of these topics may be familiar, but we hope this will help us evaluate and understand some of the non-profit organizations we can commonly see.
There are ten major nonprofit funding models. Today, we will introduce three of them.
#1
The first is called Heartfelt Connector. These organizations are mainly focused on causes that match existing concerns and interests, while targeting a general audience. These organizations obtain their funding by providing easily accessible ways to support those causes. The well-known Make-a-Wish Foundation is one example. This foundation focuses on supporting children with critical illnesses, something many people are willing to support.
#2
The second type is called Beneficiary Builder. This type is mainly focused on building a pool of specific individuals who have directly benefited from the organization in the past. Hospitals and universities often use this funding model. For example, universities may tap their alumni for donations, whether for a particular scholarship or endowments, to support its current students. Since the alumni are beneficiaries of the school and sometimes scholarship/financial aids, they are more willing to give back to the school.
-Copyright belongs to the McNeese State University Agriculture Alumni Chapter.-
#3
The third type is Member Motivator. These rely on individual donations from members who are heavily affected by some issue. Therefore, solving the issue is integral to the members and the members benefit from this collective effort. One example in the United States is the National Wild Turkey Federation (NWTF). This organization is aimed at protecting wild turkey habitats and promoting wild turkey hunting. Turkey hunters are very willing to donate to this group because preserving wild turkeys will benefit them directly.
We will end our post here for now! If you have never thought about this, it might be very helpful to think about any non-profits around you and what their funding models might be! Can you tell us any other examples of these three types we discussed today? Please comment below to help our discussion.
The story continues….