What sort of protocols should you have in place for non-profit funding initiatives?

Written By Steps To Faculty Published July 12th, 2010

Non-profit funding is a very important matter to any organization that is less interested in turning a profit than in securing a public good. However, there is always a right and a wrong way of doing things and non-profit funding is no different. Below are three considerations that must always be uppermost in mind when looking at how best to execute non-profit funding initiatives.

Step 1 – Consideration 1 Always have the executive board oversee any funding initiative

One of the chief things that damages non-profit organizations is that they fail to recognize the importance of transparency: an executive officer may be trustworthy in truth, but it is always better to trust but verify. As a general rule, when someone knows that the board will be asking questions at every meeting, that person will automatically become a lot more careful.

Step 2 – Consideration 2 Always make sure that any funds do not come with ‘strings attached’ that might compromise the aims or principles of the organization

This is so important: when raising funds for various projects, organizations are always impressed by large (and usually much-needed) donations. However, if a donor attaches illegal or unethical conditions to a donation or simply wants a programmatic shift put in place that goes against the stated mission of the organization, then the organization must step away. It is better to scale back a program or initiative than to have the organization lose its own soul.

Step 3 – Consideration 3 Always review the legal stipulations in the pertinent jurisdiction before accepting a donation or grant from a private party

Different American states may require different documentation when donations are finalized; it is a simple matter, but avoid falling prey to technicalities that can result in the state meddling in the donation process.


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