The Appeal of Funding Smaller Organizations

Modern day donors want to fund smaller organizations where they know their money will have a huge impact. They want to see real change, and real results. This doesn’t always come from putting your name on a wing at their alma mater. They want to do things that will bring the numbers up or down significantly. This is why we are seeing such an interest in Donor Advised Funds (DAFs).

Engagement is key. Today’s donor wants to feel like they are making the real difference. They are looking at root causes of our greatest societal issues to tackle.

We also need to look at how easy it is for next generation donors to give their money. Providing the opportunity within a couple of clicks is key. Some credit card companies have recognized this trend, and they are allowing users to round up at every purchase and giving them the freedom to select their favorite NPO (not just national NPOs anymore).

This is great news for local nonprofits like shelters, mental health clubhouses, food insecurity organizations, and others.

I worked with a small grassroots nonprofit organization that served disenfranchised populations in the area. They had an unpaid co-founder Executive Director and a small team of core “staff”, along with several community volunteers; none were paid. The ED was exhausted and worked over 60 hours per week for free. Then COVID hit. She had even more to do and was launching a new program to address food insecurity. They received small contributions here and there from the community, just enough for supplies to keep things going. When they came to me, they had no idea what was possible. We encouraged them to write a grant to a local foundation and pushed them to include every expense, including a couple paid staff, in their budget. The grant application was requesting a couple hundred thousand dollars, and they thought I was crazy. A few short weeks later, they were fully funded and the ED, a single mother of five and battling cancer, received a full living salary for the first time. The organization flourished and changed the lives of hundreds of people in that community.

What does this mean for Community Foundations? Hit those root cause organizations hard. Really put it out there that you are helping them, supporting them, and leading them to success. Push for easier ways to donate. Lead the cause by navigating away from check-writing grant awards (use electronic means for issuing payments).

Do this, and you will attract today’s new donors.