Wake Up! The Models are Here!

So you have identified a variety of peer funding models but which of them are actually strong and worthy of replication?  Let’s take a look at the three defining characteristics of a funding model, a topic that certainly may have put you to sleep in college but is now of great interest since you need to raise money!

Type of funding: A model typically focuses on a primary type of funding such as government or individual sources.  This source provides the bulk of revenue for that organization so that most fundraising is tailored to this source.  There may be smaller sources of revenue as well, but these warrant far less fundraising efforts.

Funding decision maker: The funding decision maker for that particular model might be a single government administrator or a few wealthy individuals.

Funder motivation: Decision-maker motivations of must be understood and capitalized upon.  Government agencies might be acting from collective interest, where benefactors might offer support through motivations ranging from altruism and collective interest to self-interest.  A good funding model recognizes those motivations and operates accordingly.

In the Spring 2009 issue of the Stanford Social Innovation Review, Kim, Perreault, & Foster cataloged “Ten Nonprofit Funding Models,” which take a look at strategic paths for growth.  Take a look at this link to see if any of the models fit the three categories in your organization:


You might find a good match in those ten models, in addition to your peer selection group.  In our next blog we will take a closer look at comparing the peer model you have chosen with your own funding model.



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