Are you struggling to figure out what to include in the “Other financing sources” section?
Have you ever just not bothered to count a bunch of free stuff that an individual donor or a local business, or a corporate partner gave your nonprofit as an actual donation?
You are ignoring a goldmine of opportunity!
Don’t undervalue what other supporters have given your nonprofit, because it’s not cash.
In-kind donations, which is how non-monetary donations (i.e. not cash or stocks) are classified, are a key funding stream to include in any grant application. Things like a van for mobile outreach, pro-bono nursing for your drop-in clinic, volunteer or seconded staff to donate their expertise, donated medical supplies, computers, clothing, food purchase discounts, office or event space….You can even include in-house staff time and resources, if you are not asking for, or are not permitted to ask for, staff salary.
Why?
In-kind donations are an acceptable way to bump up the value of “other funding sources”, especially if there is to be some sort of funding split.
For example, the grant you’re applying for will only cover 50% of project costs, so you need to have other sources of funding.
(Note: there may be a limit on the percentage of funding you can count towards other funding sources. Check the RFP carefully; it is also sometimes noted directly in the budget spreadsheet.)
Funders love to see that you’ve got other donors giving to your organization. It actually boosts your credibility and your chances of winning a grant. Showing them you’ve got diverse streams of financial support coming in, including in-kind support, shows a potential donor that others believe in you and your mission so much, they are willing to do anything to support you–even if they can’t provide cash support right now.
In kind donations also demonstrate sustainability, a track record of community support, and the ability of your organization to understand, and source, the diversification of funding streams.
Here’s what I want you to do today:
- Tally up all of the in-kind donations your organization has received in support of a particular project or program for which you’re currently seeking grant funding. Use the current fiscal year as a time limit.
- Put a dollar amount on everything. If your nonprofit can/did give a tax receipt for it, or if the donor put a dollar amount on it themselves, use that number. Otherwise, determine how much would it actually cost for your organization to acquire that thing/space/time, and use that number. Don’t skimp, but don’t inflate. Be realistic.
- Take a minute to soak in the goodness and radiate gratitude to peeps who give what they can, how they can, saving your nonprofit money and supporting its work.
- Add those figures into the “Other funding sources” section of the grant application, or the specific sections/budget lines for “in-kind” donations.
- Repeat.
There you go, Superhero! You just counted a whole bunch of support that you can use to show a potential funder you got that money.