ANALYSIS OF STRATEGIES OF RAISING REVENUES BY LOCAL NGO 2

Analysis of Strategies of Raising Revenues Used By My Local NGO
Non-profit organizations, often abbreviated as NGOs, play an important role in
promoting causes that governments are either unable or unwilling to promote. Such causes
include environmental protection programs, human rights, social issues, and anti-poverty
programs. To fund their activities, most non-profit organizations have multiple revenue streams.
Methods of raising revenue used by my local NGO
The non-profit organization in my community provides a wide range of services to
victims of domestic abuse. The services include counselling, medical care, and legal services. To
raise money to cater for these services, the organization has opened multiple revenue streams.
One of its revenue raising strategies is use of government grants. It gets grants both from
the local and federal government. While generally reliable, the grants are often too small to
sustain its activities. They meet less than 5% of its financial needs.
In addition to government grants, its other source of revenue is funding from
corporations. In most instances, it raises money from corporations to fund its sensitization
events. Just like government grants, funding from corporations is usually relatively small. In
addition, most corporations only specific activities or events rather than all the activities of the
organization.
Its other revenue source, and by far its most important, is individual donations. These
donations include both low and major donors. More than 85% of the organization’s budget comes
from such kind of donations.
The most effective revenue raising method

ANALYSIS OF STRATEGIES OF RAISING REVENUES BY LOCAL NGO 3
Of the methods discussed above the most effective has been funding from major donors.
Even though their donations are usually infrequent, they are often large enough to sustain the
organization’s activities for as long as a year. For instance, the organization can get sometimes as
much as $5m from a single major donor. Getting such donors is not easy as it requires a lot of
effort to cultivate them. However, the efforts are usually worthwhile as the donations they make
contribute as much as 70% of the NGO’s annual budget.