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Today's News Tip! How to think about going after Funders - 10 Nonprofit Funding Models

Check it out!

Found in:

Nonprofit Management Institute New Skills for a Complex World. September 11-12

Stanford Social Innovation Review -- Informing and Inspiring Leaders of social change

Great Article written By William Landes Foster, Peter Kim, & Barbara Christiansen | 27 | Spring 2009


"The models are ordered by the dominant type of funder. The first three models (Heartfelt Connector, Beneficiary Builder, and Member Motivator) are funded largely
by many individual donations. The next model (Big Bettor) is funded largely by a single person or by a few individuals or foundations. The next three models
(Public Provider, Policy Innovator, and Beneficiary Broker) are funded largely by the government. The next model (Resource Recycler) is supported largely by
corporate funding. And the last two models (Market Maker and Local Nationalizer) have a mix of funders." 

Again check out the article it has some good information. Must read!!

 The 10 funding models:

   1. HEARTFELT CONNECTOR - Some nonprofits, such as the Make-a-Wish Foundation, grow large by focusing on causes that resonate with the existing concerns .....

    2. BENEFICIARY BUILDER - Some nonprofits, such as the Cleveland Clinic, are reimbursed for services that they provide to specific individuals,
            but rely on people who have benefited in the past from these services ..........

    3. MEMBER MOTIVATOR  - There are some nonprofits, such as Saddle back Church, that rely on individual donations and use a funding model we call Member
Motivator. These individuals (who are members of the nonprofit) donate money because the issue is integral to their everyday life ....

   4.  BIG BETTOR - There are a few nonprofits, such as the Stanley Medical Research Institute, that rely on major grants from a few individuals or foundations
to fund their operations ...

    5. PUBLIC PROVIDER - Many nonprofits, such as the Success for All Foundation, work with government agencies to provide essential social services,
such as housing, human services, and education, ...

    6. POLICY INNOVATOR - Some nonprofits, such as Youth Villages, rely on government money and use a funding model we call Policy Innovator. These
nonprofits have developed novel methods ...

    7. BENEFICIARY BROKER - Some nonprofits, such as the Iowa Student Loan Liquidity Corporation, compete with one another to provide government-funded
or backed services to beneficiaries ...

    8. RESOURCE RECYCLERS - Some nonprofits, such as AmeriCares Foundation, have grown large by collecting in-kind donations from corporations and
individuals, and then distributing these donated goods to needy recipients ...

    9. MARKET MAKER - These nonprofits generate the majority of their revenues from fees or donations that are directly linked to their activities. Most
Market Makers operate in the area of health and disease, but some also operate in the environmental protection ...

    10. LOCAL NATIONALIZER - Most of the money for programs is raised locally, often from individual or corporate donations and special events.
Very little of the money comes from government agencies or fees...

A good quote from the article, "As society looks to the nonprofit sector and philanthropy to solve important problems, a realistic understanding of funding models is increasingly important to realizing those aspirations."

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