Nonprofit Localized Event Funding, Research Paper Example

Nonprofit organizations and events have several different ways in which they can be properly funded.  The challenge for non-profits is to effectively research and find these resources without missing out of any potential opportunities.  For a local nonprofit community book festival, the event can be funded through state and local government grants, corporate donations and private funding.

The first method that this event may be funded is through applying for state and local government grants (Foster, Kim & Christiansen, 2009).  These grants can be offered to any organization, group or individual based on very specific or broad criteria.  Oftentimes, nonprofit organizations attempt to utilize these fiscal resources because grants are essentially free money that never has to be repaid.  Grants can involve a lot of paperwork and man hours, but most require no fiscal obligation or investment and can pay for part or all of the nonprofit book festival.

Another financing method for the festival is through corporate donations.  This is very similar to government grants in that it often takes a lot of man hours and resources to procure a corporate donation.  However, companies often are willing to make such donations because they can be used as tax write-offs each year (McNamara, 2010).  Companies can often provide part or all of the financial requirements to engage in a nonprofit event.  Typically, a major selling point for corporate donations is when a company is able to sponsor the event.  Sponsorship provides a lot of advertising to a nonprofit event through banners, flyers and other resources.  This is a great way for corporations to advertise to local communities while still providing a service that can be considered tax deductable.

Finally, the nonprofit book festival can also attempt to receive funding through private individuals or organizations.  Many wealthy individuals or persons within the community that may have a stake in the outcome of such an event can be willing to provide financial support for the entire event.  These individuals may be more difficult to find, but fundraising events are usually the best resources for private funding (National Trust, 2009).  Local business associations, neighborhood groups, or other clubs may have fundraising events to procure private funding through the generous donations of individuals within the surrounding community.

References

Foster, W.L., Kim, P., & Christiansen, B. (2009). Ten nonprofit funding models. Stanford Social Innovation Review, Retrieved from http://www.ssireview.org/articles/entry/ten_nonprofit_funding_models/

McNamara, C. (2010). Overview of nonprofit fundraising sources and approaches. Retrieved from http://managementhelp.org/fndrsng/np_raise/fndraise.htm

National Trust for Historic Preservation. (2009). Nonprofit organization and public agency funding. Retrieved from http://www.preservationnation.org/resources/find-funding/nonprofit-public-funding.html