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KBLX 102.9 Nonprofit Weekend Tip! How are Nonprofits funded?

How do nonprofits receive funds?    

Traditionally,  the majority of  Nonprofit funds are generated from grants   Some grant funding sources are; Federal, State, County, City and from Private foundations like Kaiser, Chevron, Target, Blue Cross, Blue Shield, Kohl’s  and more  

Another Traditional fund development source is fundraising; car washes, annual events like;  concerts, luncheons, walks and more  

New ways to raise funds, creative out of the box ways, are through website sales and donations and Donor Cultivation

But Let’s Not Forget Donors, Individual contributors/Investors who believe in your vision and mission and act as ambassadors and become annual annual donors


Nonprofits can also have Trust funds and Endowment funds set up to keep on giving - By investing Trust funds and Endowment  funds and gaining interest earned dollars - Those interest dollars can be placed in fund reserves, more importantly, the interest earned dollars are not restricted and can be used in any way needed to support the Nonprofit's mission

Definition of a Charitable remainder Trust fund Nolo publication link:

http://www.nolo.com/legal-encyclopedia/charitable-trust-tax-deduction-break-29702.html

Definition of Nonprofit Endowment Funds:

"A fund that is made up of gifts and bequests that are subject to a requirement that the principal be maintained intact and invested to create a source of income for an organization. Donors may set up an endowments to fund a specific interest; and a nonprofit's governing body may set up an endowment. In any case, an endowment requires that the principal remain intact in perpetuity, or for a defined period of time, or until sufficient assets have been accumulated to achieve a designated purpose"

Link From The Merrill Lynch Center for Philanthropy & Nonprofit Management
http://www.mainecola.org/Portals/0/DOCS/Prudent%20Non%20Profit%20Investing.pdf

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