Fundraising Tips That Commercial Businesses Can Learn From Nonprofits
Normal for-profit businesses can learn a lot from nonprofits, particularly when it comes to making a profit. Nonprofits are typically faced with restrictions when it comes to making money, mainly because all of the profits need to go back into the business in order to fund their mission and pay for operational costs. Nonprofits aren’t really designed to generate revenue, so they have to come up with unique ways to make money. This can lead to some innovative and unique ideas that regular for-profit businesses can learn from.
Donations can be a huge source of money
It might seem strange for a for-profit business to accept donations, but it’s completely normal and often a good way for smaller businesses to get started with new projects and products. For example, you might set up a donation drive as a smaller business to create a brand-new product, or to kickstart the development of something. Alternatively, you could offer older versions of a product, such as software, for free. However, you can encourage downloaders to donate to you before they receive your free products.
Crowdfunding can fund new projects
Starting a new project, especially if you’re a small business, can be costly. A common way for smaller businesses to start something big is to crowdfund. For example, they can use platforms like GoFundMe or Patreon to raise money for specific projects. It could be a brand-new video game from a developer, it could be a film project, a physical product to go alongside a digital release, or anything else that you can think of. It’s a great way to give your business a boost to start something new, but it’s important to be reasonable when it comes to expectations and what you can deliver so that you don’t disappoint your backers.
Creating a membership program
When learning how to start a nonprofit, one of the main sources of income you’ll have at your disposal is a membership program. A lot of people will pay a small amount of money each month in order to receive updates on where their money is going. For instance, you could tell people that their monthly contributions are going towards a good cause, but you need to show them some kind of proof and to give them updates. This is where the membership program comes in. You can build a list of people who donate regularly with your membership and then post updates with news, photographs, and more. As long as you can provide exclusive content and extra value, your membership program can generate a lot of revenue.
Offering your services and expertise as a consultant
Lastly, don’t forget that if you have expertise in a certain area, you could offer your services as a consultant to other small businesses or individuals. This is a lot more niche than the other ideas, but can be a great source of income for your startup if you’re willing to work with other businesses and provide your knowledge as a service.