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Financial funding is the lifeline of charitable foundations. Without it, charities can’t organize events, and create grants. Below are just some of the ways by which charities can get the necessary funds for their activities.

Donations and Gifts

The most basic source of funds for charities is gifts and donations from individuals and organizations. While it may look easy at first, it’s actually quite hard to get funds this way. Big, established charities will find it easier to get donations compared to new foundations because the trust factor is there.

Charities that are just starting out may need to send letters of appeal to organizations asking for donations. However, donations don’t come easy- you have to attach documents proving the charity’s legitimacy and plans for any funds that get donated. One benefit to gifts is that they are usually exempt from tax. Here are a few examples of companies that donate to various charitable foundations: Microsoft, Home Depot, Lowes, Lawsuit Funding, FedEx, Kroger and Google and there are millions of others too. To find companies to donate to your cause you simply need to ask them, and if you’re just starting out you may find it easier and less intimidating to approach smaller companies first.


Large foundations that have already established themselves as self-sufficient can give smaller, newer foundations financial support by giving them grants. Most grant-giving foundations prefer charities that are just starting out, and will usually steer clear of foundations that are capable of generating funds on their own. As with gifts and donations, you need to present proof that the money from the grant will be put to good use.


Although more common for profit organizations, non-profit organizations like charities can sometimes take out loans to supplement their funding for projects. This is risky, because charities usually don’t have stable sources of income, so getting a loan will be difficult, and gathering funds to pay the loan back may be even harder.

If this is a concern, you can look for an investor willing to offer your charity an equity finance. Instead of having to pay back the investor for the loan, the investor acquires a stake in the foundation instead.

Products and Services

If your charity has a lot of manpower, but not enough funding, you can try selling products and services to raise funds. It is common to see charities conducting their own fundraising events. It could be concerts, plays, or movies, and the ticket sales could go to the foundation. You can also use the talents of your volunteers to produce goods and sell them, like how Girl Scouts sell cookies or certain clubs sell accessories or greeting cards.

Charities can also make use of assets that they have to earn money. For example, if your charity owns a covered court as a meeting ground, you can rent out the covered court during days where you don’t need to meet to raise money.


Contracts are commercial agreements between two parties that state what each party must do to complete the contract. Usually, charities offer work and services in exchange for money. Charities usually do cleanup work after huge events or take part in organized gatherings in exchange for funds. When it comes to contracts, make sure that the clauses don’t clash with your charity’s values and don’t distract you from your actual mission.


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