Revenue sources and financial sustainability of nonprofit organizations

Pros and Cons of Financial Grants to a Non-Profit Organization Non-profit organizations operate for many varying reasons. These not-for-profit groups must seek funds from numerous sources, including government grants, foundation grants, and private donations. Though each may help the non-profit organization meet its financial goals, each have their own benefits and drawbacks to the organization. When a non-profit group is searching for a grant, one source it may turn to is the local, state, or federal governments. When the government gives money to non-profit organizations in the form of grants it does not request that the money be repaid. One drawback to receiving or attempting to receive money from the government is that it has very strict policies on how the money is able to be used. The government often requires a non-profit organization to have one of three types of benefits in order to consider giving money to the organization. First, it will request that if money is given, it be used towards the operation of facilities the non-profit organization uses for enrollment coordination of their members. Secondly, the money may be used for a combination of technology or personnel expertise in order to determine the eligibility of the members. Lastly, the grant may be used to assist the growth in the collaboration between non-profits and government entities. As long as an organization is able to meet one or more of these requirements, they are able to qualify for the grant and may then apply (Saunders, 2010). If a non-profit organization is unable to meet the requirements set up by the government grants, or is unable to receive the grant due to competition, it has a few other options. A foundation grant is not related to the government, and is usually from a private foundation that is local, regional, or national. Unlike the government grant, the foundation grant does not have strict requirements for what the donation may be used for, except at the request of the foundation itself. Foundations make their donations available for a vast majority of non-profit organization targets, such as certain purposes, populations, types of organizations, or geographic areas (USAGovernmentGrants.org, 2010). There are many foundations that each have their own priorities and interests of what type of non-profit organization it would wish to donate to, whether it be charitable, educational, religious, or different. While finding a foundation to support specific non-profit organization needs may be difficult, the number of foundations to search through is virtually limitless. A non-profit organization should also seek the assistance from private giving. Private giving is also non-governmental because the donation is often given by an individual, in memory of an individual, or by a family. In times of economic struggle or tough grant competition, it is desirable for the non-profit organization to seek assistance through private donors. In many cases, private donors can or will make all the difference in certain fundraisers or campaigns. In recent years, non-profit organizations have seen changes in the availability of grants and funding. As the market has changed, it has been noted that the organizations that have been capable of obtaining more external funding are directly linked with its ability to have advanced administrative skills, while those that have not succeeded have been found to have mundane administration duties (Lazarevski, Irvine, & Dolnicar, 2008). The link most likely has to do with the overall quality and drive that the organization has. Therefore, if Operation Smile, a non-profit organization supporting good dental health, wishes to remain successful, it must analyze its current staff, operations, and passion for their project.