Just like many other situations in life, the more options and alternatives available for generating revenue, the less vulnerable an organization is to sharp and unexpected drops in income. Small organizations tend to be dependent on one or two forms of fundraising, and then get into difficulties when these funds dry up. On the other hand, the most successful nonprofits tend to be dependent on a variety of funders that male up a healthy a diverse constituency with the potential of delivering a lot more than just cash (Estes, 2006). Therefore, a nonprofit can determine this mix of different fundraising processes in a number of ways.
First, the nonprofit needs to be aware of the two basic types of fundraising which are; fundraising for money and fundraising for contributions other than money. Second and the most essential aspect is the identification of potential donors who can provide the funding mix. In identifying this mix, it is important for the nonprofit to understand the purpose for which the funds are sought. In addition to this, other ways of determining the funding mix include; the amount of money to be raised, the time by which the funds must be raised, the availability of funding organizations in the community, past history of charitable giving, and strength of contacts with potential funding sources (Osinski, 1997).
Ideas alone cannot make organizations successful, people have to be present. Effective nonprofits have the Board of Directors, charged with the decision-making progress. The board supports and assists the Executive Director in making decisions. According to Estes (2006), the Board is important in the decision making process since it performs several tasks: establishes policies and general procedures that pertain to the operation of an organization; ensures that the organization complies with the established policies; monitors the activities of the executive director; assists in raising money and; monitoring the effectiveness of the organization in achieving its goals.
References
Estes, J.R. (2006) Resource Development for Nonprofit Organizations. Penn Social Policy and Practice, 2006, pp. 1-80.
Osinski, B. (1997) Effective Fundraising for Human Service Organizations. Journal for Nonprofit Management, 1997, Vol. 1, 1-6.
