Raising Money for Nonprofits

It gets harder all the time and this article from The Business Review examines the current situation.

An excerpt.

“Gail Wilson-Giarratano prepares for a grilling when she asks for money for Girls Inc. of the Capital Region, a youth program for inner-city girls in Schenectady and Albany.

“Gone are the days when corporate donors wrote checks for the “nice” programs or the “cute” girls, said Wilson-Giarratano, the nonprofit’s CEO and its chief fundraiser.

“That doesn’t fly anymore. They want to see financials, business plans, sources of revenue. They want to know how you’re changing the communities in which you exist,” she said.

“The recession has left corporate donors with less money to give, and they are scrutinizing charitable requests with a keen eye. Now, more than ever, return on investment weighs heavily in determining who gets what.

“That element of improving the community is really elevated now. Donors want to know how sustainable and reliable you can be to have an impact. They want to know if their money’s at risk,” said Doug Sauer, CEO of the New York Council of Nonprofits in Albany, a 2,000-member trade group.

“Funders are scrutinizing how organizations manage their money—from programming costs to long-term investments—and most don’t want their contributions to replace government cuts.

“People want to know if you’ll be around,” Sauer said.

“Last year Wilson-Giarratano, along with Girl’s Inc.’s chief operating officer and its program specialist, prepared over several months to make a formal pitch for a grant from Time Warner Cable.

“In making the pitch, the three spent more than a half-hour showing an on-site video, answering questions about income sources and fundraising practices, detailing their programs and offering tangible proof that the girls are learning about technology, math and science, areas necessary to qualify for one of Time Warner’s annual “Connect a Million Minds” grants.

“Basically, it was like bidding for a job,” Wilson-Giarratano said.

“The presentation helped the nonprofit secure $15,000. Girls Inc. was one of only three or four local nonprofits to receive grant money from the broadcasting company.

“Stewart’s Foundation is sensitive to recent government cuts for charities, said Susan Dake, president of the foundation, the charitable arm of Stewart’s Shops Corp.

“As such, it will give short-term aid to nonprofits that lose government funds, provided they have a solid recovery plan.

“We need to make sure that the organization stays strong. You can give people a lot of money, but if they’re not strong you’re not doing them a favor,” Dake said.

“The foundation also considers a nonprofit’s other funding mechanisms before granting money, as having a limited number of supporters can be a red flag.

“Sometimes they may get a little desperate and ask us for the whole thing. We don’t want an organization to be dependent on a single donor,” Dake said.”