For Impact


Ten Nonprofit Funding Models

Funding Model and Funding Plans | | Nick Fellers

I think the Standford Social Innovation review is improving – markedly. When it first launched I thought the brand and concepts were strong but articles were way too academic/theoretical — as a ‘field guy’ I didn’t relate much. I’m starting to come back in to the fold. Thought this was a really cool article on Ten Nonprofit Funding Models – thumbs up to the framing these authors put around various funding models.

Quickly the ten models are:
1. Heartfelt Connectors
2. Beneficiary Builder
3. Member Motivator
4. Big Bettor
5. Public Provider
6. Policy Innovator
7. Beneficiary Brokers
8. Resource Recyclers
9. Market Maker
10. Local Nationalizer

Read through the article, you will see that these are (for the most part) really about how the fund development operation builds its case-for-support and funding base. For example, a University is a Beneficiary Builder. They offer services and provide enough value that people who have benefited in the past (alumni) will fund the model. We’re seeing huge success in this model and a marketplace that is something of an arms race (as every college competes to build the latest and greatest)… you’re seeing the funding model shift from student workers to alumni philanthropy… hence some of the ivy’s starting to announce that students will graduate debt free.

I think this article has a lot of legs. Very few organizations ever stop to think about their funding model and even fewer stop to think about it in this way.

Thanks to Sean Stannard-Stockton | Tactical Philanthropy for finding this article.