Running a small nonprofit in Australia can be challenging, particularly in the early days. One of the largest challenges is finding stable funding sources for your mission and programs. Luckily there are many options available. When combined, these can provide diversified funding for your nonprofit.
1. Government Grants
Government grants are a big source of funding for nonprofits. These grants are offered by federal, state and local government agencies for projects that align with their priorities. Some popular grant programs are:
- Federal: The Australian Government Department of Social Services has grants for community organisations, some are listed on the Community Grants Hub. The Department of Foreign Affairs and Trade (DFAT) and associated bodies have grants for organisations working in foreign jurisdictions.
- State: Most state and territory governments have their own grant programs for nonprofits. Search their grant portals and websites.
- Local: Local councils run small grants for local projects and community initiatives. Some councils also advertise opportunities from other sources that are open to groups operating in their region.
2. Philanthropic Foundations
Philanthropic foundations are independent organisations that fund nonprofits. They have specific areas of focus, such as education, health or the environment. Some notable Australian foundations are:
- The Myer Foundation: Arts, education and community development.
- The Ian Potter Foundation: Projects in arts, environment and medical research.
- The Phillips Foundation: Helping nonprofits build resilient communities through education, sport and social activities.
Private Ancillary Funds (PAFs): PAFs are a unique type of philanthropic foundation established by individuals or families. They offer a structured and tax-effective way to give to charities over multiples years. These are worth adding to your radar as they can provide a stable source of funding if you can strike a strong relationship with the funder.
3. Corporate Sponsorships
Corporate sponsorships can be a good source of funding for nonprofits. Companies provide financial or in-kind support to organisations that align with their values and marketing goals. To get corporate sponsorships, nonprofits need to develop strong proposals and show the benefits of partnering with them. This usually includes objectives, KPIs and quantified impact.
4. Fundraising Events
Fundraising events can be a great way to raise money and connect with your community. Some popular fundraising ideas are:
- Gala dinners: Formal events with auctions and entertainment
- Trivia nights: Fun and interactive events that attract a big audience
- Walkathons and runs: Ask participants to raise money through sponsorships
- Online fundraising campaigns: Use platforms like GoFundMe or GiveNow to reach a wider audience. Do your research to find out the fees they charge, payment terms and conditions of use.
5. Individual Donations
Individual donations can be a big source of funding for nonprofits. Ask for donations on your website, social media and fundraising campaigns. There are many tools to receive and process donations (GiveNow, Raisley, SupporterHub, MyCause, Stripe & Paypal to name a few).
Consider offering tax deductible receipts if your charity has deductible gift recipient (DGR) status.
6. Membership Fees
If your nonprofit offers services or benefits to members, consider charging membership fees. This can be a steady income stream and build a loyal community. Check if there are any restrictions on your organisation running this model, as it requires additional governance.
7. Generate Revenue
You can charge for goods and services while achieving a social or environmental mission. Selling branded merchandise is an example. This can be a way for nonprofits to fund their programs and reduce the dependence on external funding.
Build a Funding Roadmap
A simple exercise that can help clarify your funding options and priorities is to build a funding roadmap:
- Develop a strong case for support: Clearly state your mission, programs and impact
- Diversify your funding: Identify multiple funding sources so you're not too reliant on one
- Research funders: Make sure they match your mission and priorities
- Understand the effort: Learn about the requirements and effort required to apply for and maintain each funding source
- Build relationships with funders: Attend networking events and meet program officers
- Track your outcomes: Show funders the impact of your programs
- Write great grant proposals: Follow the guidelines and show the value of your mission and projects
Diversifying your funding streams can be a daunting task, but with adequate research and prioritisation, it can promote stability in your organisation and reduce your reliance on any single source.
Disclaimer: At the time of writing, the author has no affiliation with any of the organisations or platforms mentioned in this article. The information provided is for educational purposes only and does not constitute an endorsement or review of any specific organisation or platform. Readers are encouraged to conduct their own research to determine the best fit for their needs.