How to Raise Money to Build Your Nonprofit’s Capacity

So how does a nonprofit organization find money to build its organization? Here are the steps:

1. Create a plan. Develop a road map for the future that includes a budget for the real costs of the real infrastructure and capacity you need to get there.
2. Determine the ask. Split the overall cost for these infrastructure elements into reasonable ask amounts given the relative capacity of your donors.
3. Create the pitch. Create a compelling capacity funding pitch that connects these infrastructure elements to an increase in your ability to create impact in the community. A more seasoned development director means that you can raise more money, more effectively, more quickly. With that additional revenue, your services can reach more people.
4. Analyze your donors. Look for the individuals, foundations and corporations who love what your organization does, have the ability to give at the ask levels you determined in step 2 and understand the argument that money to build can allow your organization to do so much more.
5. Explore alternative funding. Find new ways to fund capacity building. For example, program-related investments (essentially loans to nonprofits) could be used to build fundraising infrastructure because once a nonprofit’s capacity to raise money has been increased, the loan could be paid back out of the additional revenue. Explore creative options with funders.
6. Make the ask. Present your plan and pitch to the donors you have identified, and educate them about the critical importance of capacity capital.

Money to build nonprofit organizations isn’t just lying around. But with a compelling argument for how money to build an organization can result in much greater impact, many more donors can become builders.