Nonprofit organizations face different financial problems in their everyday operations yet get very little or no financial funding from different organizations. Among the problems is accessing digital innovation and technological transformation, adapting to market forces, and meeting regulation and compliance requirements. Besides, financial deficits are also a significant challenge in daily operations such as travel, communication, training workshops, and meeting emergencies. Therefore, assistance is necessary from the different funding organizations by advocating for a policy change that will reflect the desired funding model. Distinguishing between the beneficiaries and the funding source of the nonprofit models is essential to understand how these organizations have well-developed funding models.
Different Funding Sources
There should be a consideration for different funding sources that are mainly used by nonprofit organizations to address these problems. The nonprofit funding models include; Heartfelt Connector, Beneficiary Builder, and Member Motivator, funded by many individual donations, Big Bettor that is primarily funded by one person or few individuals or organizations. Besides, Public Provider, Policy Innovator, and Beneficiary Broker are funded mainly by the government. In contrast, the Resource Recycler is mostly supported by corporate funding, and Market Maker and Local Nationalizer have different funders (Foster, Kim, & Christiansen, 2009).
Heartfelt Connectors build clear connections between volunteers through particular fundraising events to fund the organization. For the Beneficiary Builders, most of the funding is from the fees that beneficiaries pay for services offered by the nonprofits, as is the case in hospitals and schools. They establish long-term relationships with the people who have benefited from the service to offer auxiliary support (Foster et al. 2009). Member Motivators depend on individuals who donate because they believe the issue is essential in their daily life, and they also get a collaborative benefit (Foster et al. 2009).
In the case of Big Bettor, the nonprofit relies on significant grants and some individuals or foundations to fund their operations. The majority of the donation is from the primary founder, who mainly develops the organization for medical research or focuses on environmental issues. Big Bettors attract significant donations because the problem being addressed is easily solved with a massive amount of money or because the organization uses a unique and captivating approach to solve the problem (Foster et al. 2009). Nonprofits that use the Public Provider work with government agencies to provide essential services hence accessing government funding. Policy Innovators entirely depend on government money by developing more efficient and cheaper programs to address social issues hence convince the government to fund these programs. Also, Beneficiary Brokers compete with one another to offer government-funded services such as housing, employment, healthcare, and student loans to beneficiaries. Nonprofits that use Resource Recycler collect in-kind donations from corporations and individuals and later issue the donated goods to needy clients. They could not buy the goods on the market. For the Market Makers, they provide services that mount a generous donor and pay by market forces. On the other hand, nonprofits using the Local Nationalizer funding model create a national network of locally-based operations. The organizations focus on issues, including poor schools and scenarios where the government alone can't adequately address it (Foster et al. 2009).
As the nonprofits engage in their activities, it is essential to devise capacity building to nurture and grow the nonprofit organization’s capacity. Different theories are emphasized to explain the capacity building for these organizations. Organizational and management theory explains the operational decisions and trade-offs faced by groups in building their financial capacity. The organization should identify the basic needs and assets of the targeted community or population through surveys, focus groups, meetings, individual interviews, or other community indicators. Through this, the government will be willing to support the organization besides other volunteers that may donate to the nonprofit to facilitate their operations. It will include the majority of the above-identified nonprofit funding models.
The proposal aims at improving access to healthcare services to cover the identified geographical area of the healthcare organization that will be developed. The barriers to access to health services have been identified as the high cost of care and unavailability of the services, leading to unmet health needs, delayed care, inability to get preventive services, financial benefits, and preventable hospitalizations (DeVoe et al. 2007).
The funding organization will help finance the health facility to offer subsidized health services and provide mobile healthcare services. Among the intended mobile healthcare services are; general examination, screening and imaging services, occupational health, and emergency services. Also, preventive services such as immunizations, screening for different health problems, and pediatric screenings for hearing, vision, and development besides counseling on the practice of healthy lifestyles (Gullotta and Bloom, 2003) targeting a total population of one hundred thousand individuals in the first year three months, the nonprofit will require funding from different sources besides the government. Therefore, the funding organization will sponsor the acquisition of the required equipment and money to meet any emergencies and subsequent facility growth of the organization.
Many nonprofit organizations benefit from the government through tax exemptions. The organizations must adhere to the state laws regarding this and also follow the rules on fundraising efforts. The organizations are not allowed to take part in electioneering. They also have limited power to advocate for policies that affect their cause and cannot dedicate any substantial part of their activities to lobbying. They are also not allowed to divert any benefits to any person or organization (Fremont, 2009). Organizations that receive contributions from private parties that are tax-deductible to the contributor may not engage in direct lobbying activities to preserve the tax-exempt status.
Different funding sources may be applicable to support nonprofit health organization advocacy. Corporations, the government, individuals, and other nonprofit foundations are significant sources. Since the organization aims to meet the healthcare needs that have not been by the government, the government should be a significant funder besides other corporations willing to support the delivery of the services.
DeVoe, J. E., Baez, A., Angier, H., Krois, L., Edlund, C., & Carney, P. A. (2007). Insurance+ access≠ health care: typology of barriers to health care access for low-income families. The Annals of Family Medicine, 5(6), 511-518.
Foster, W. L., Kim, P., & Christiansen, B. (2009). Ten nonprofit funding models. stanford social innovation review, 7(2), 32-39.
Fremont-Smith, M. R. (2009). Governing nonprofit organizations: Federal and state law and regulation. Harvard University Press.
Gullotta, T. P., & Bloom, M. (Eds.). (2003). Encyclopedia of primary prevention and health promotion. Springer Science & Business Media.
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