Children's Defense Fund revenue sources and funding strategies

Children's Defense Fund: A Nonprofit Organization

Nonprofit Organization Revenue Origin Matrix

Before filling in the matrix, complete the following:

Select a nonprofit organization.

What sector does the organization belong to?

Summarize the organizations purpose.

Use the matrix below to help you evaluate the pros and cons associated with the different sources of revenue available to the nonprofit organization you selected.

Money Type

Why should the nonprofit organization want this money?

Why should not the nonprofit organization want this money?

Government Grants

The Children's Defense Fund (CDF) takes no money from government or state entities.

The mission statement of CDF states they have never taken government grants. This is due to the possibility of creating a conflict of interest.

Foundation Grants

CDF collected $14,926, 934 from foundations and corporations to be used to further their mission. Philanthropic and sponsorship opportunities, volunteers can help engage their workplaces.

Can be hard to approach if you don't have personal contacts, funding opportunities may be limited to areas where foundation or corporation has a presence, organization must be well established, highly regulated and very lengthy process, competition from similar organizations.

Private Giving

CDF collected $3,676,230 from individuals who support their mission. Fastest growing source of funding, ongoing source that can grow over time, online giving makes it easier to reach people.

Not easy to start a program, requires diligence and perseverance, individual donor program can be unsuccessful if not using donor management software, it takes time to build a good list, economy can affect giving.

Social Enterprise-Earned Revenue

CDF collected $6,499,996 from various social enterprises. You can influence how much you make, innovation can equal income.

Must market and sell to be successful, depending on "product" economy can have an affect.

Short Answer

(Pros and Cons, 2011).

CDF total revenue: $25,103,160.

Introduction

The Children's Defense Fund (CDF) arose out of the Civil Rights Movement in the 1960s. The organization was founded by Marian Wright Edelman, the first Black woman admitted to the Mississippi Bar. Mrs. Edelman directed the NAACP Legal Defense and Educational Fund office in Jackson, Mississippi, worked with Dr. Martin Luther King Junior as counsel for his Poor People's Campaign. Her early career was dedicated to defending the civil liberties of people struggling to overcome poverty and discrimination. In 1969, Mrs. Edelman began the Washington Research Project, a public interest law firm that monitored federal programs for low-income families. Out of that initiative she founded the Children's Defense Fund in 1973 (Our History, 2010).

Discussion

The Children's Defense Fund mission statement indicates that the organization is a national (United States) entity. Their goals are to assist in ensuring the physical and spiritual well-being of impoverished minority children and those with disabilities. CDF is a private, nonprofit organization, supported by foundation and corporate grants, and individual donations. They do not accept government grants (About Us, 2010).

CDF has been instrumental in lobbying to enact legislation to protect and preserve the rights of juveniles by working to raise standards by improving policies and programs for children. The organization has long been recognized for careful research on children's survival, protection and development in all racial income groups and for independent analysis of how federal and state policies affect children, their families and their communities. Their aim is to influence the child policy agenda by letting the public know how effectively elected officials stand up for children.

The Better Business Bureau reports 83% of the funds collected by the Children's Defense Fund are used for programs, while 8% are used for fund raising activities and 9% are spent on administration costs. CDF collects and analyzes data, publishes reports, and conducts presentations and workshops on issues related to accessibility of affordable child care, prevention of violence, welfare reform, teenage pregnancy, health insurance coverage for children and other priority areas. CDF's Child Watch Visitation Program, in conjunction with coalitions of local organizations active at the community level, escorts legislators, business executives, members of the clergy, as well as other civic leaders to sites ranging from neighborhood clinics and after school programs, to day care centers and group homes for teen mothers. CDF's Freedom Schools, part of its Black Community Crusade for Children, is staffed by college-aged young adults and offers six to eight-week sessions for boys and girls age 5 to 18 to develop and nurture individual reading, conflict resolution, and social skills (Better Business Bureau, 2009).

Conclusion

CDF provides a voice for all children of America who cannot vote, lobby, or speak for themselves. Focusing on the needs of poor and minority children as well as those with disabilities the organization endeavors to educate the nation about the needs of children, and encourages preventive investments to mitigate issues before children can become sick, drop out of school, get into trouble, or suffer from family related issues.

In my opinion it seems the Children's Defense Fund mission statement reflects the purpose of the organization, but fails to demonstrate how the organization intends to fulfill that purpose clearly. The mission statement should be more forthright about their political activities, to enable contributors to investigate which candidates receive their support and determine if they support the candidate's entire agenda, or just the portion applicable to the issues supported by the Children's Defense Fund.