<Financial Funding Models #4-6>

Hello everyone,

Today, we want to continue introducing more financial fund models for nonprofit organizations. Last time, we talked about the first three out of ten, so we will introduce three more today!

If you missed our post about the first three types, please check out our last post!

#4

The fourth funding model type is called Big Better. As the name suggests, it is because the organization is often reliant on major grants from few sources to tackle a single issue. Often, the primary donor can also be the founder, who is personally affected by an issue. For example, medical research institutes are this type. They focus on developing treatments or detection methods for a particular disease, backed by a major donor. This characteristic is due to the fact that the problem can potentially be solved with huge financial commitment. Many organizations of this type are either medical research teams or environmentalist groups that require significant funding to get started. One example is Conservation International, an organization more than 30 years old. This organization’s funding model depends on few large contributors who are passionate about saving the environment and biodiversity. With its funds, the organization focuses on identifying and protecting areas of land that have a significant impact on ecosystems and global biodiversity.

#5

The fifth type is called Public Service Provider. This type is aimed at working with government agencies to improve essential social services the government is already providing. These services may include housing and education. In some cases, the government outsources their functions and supports the organization financially to achieve the common goal. As the organization grows, it searches for other external funding sources. One example in the United States is Teaching & Mentoring Communities (formerly known as Texas Migration Council). Established in 1971, this organization worked early on with the federal government and received funding to help immigrant communities. It focused its initial efforts in educating children about their different backgrounds and supported language programs. TMC successfully decreased its financial dependency on the federal government and found new funding sources. TMC has expanded into seven other states besides Texas and is currently working on new program, such as literacy, prenatal care, and consumer education.

#6

The sixth type is called Policy Innovator. This type aims at solving problems that are currently out of scope. They focus on solving social issues that are not compatible with government funding programs. By finding alternative, more effective solutions, they convince the government to support their efforts. Policy Innovators are different from our fifth type since Public Service Providers tap into existing government programs. An example is HELP USA, an organization based in the United States. In the 1980’s, this nonprofit worked to provide transitional housing in New York for the homeless by paying hotels to house them as so-called “welfare hotels.” HELP USA also focused on finding affordable permanent housing for low-income families. These efforts were viewed by New Yorkers as innovative and effective, which helped influence policy and allowed the organization to secure additional funding from government sources.

We will discuss the last four types in our next post! What do you think the most effective funding model is, from what we’ve discussed so far? Let us know in the comments!

The story continues...

Homepage
RUN USA
RUN Korea

SNS
RUN USA Facebook
RUN Korea Facebook
RUN Korea Instagram