Times are tough in numerous countries and many South Africans are finding things financially difficult. Not-for-profits are also feeling the pinch. There is less donor money available and the cancellations/uncertainties around USAID funding are having knock-on effects. What else can organisations do to expand their resourcing?

Aside from endeavouring to increase income from existing sources, new and innovative funding sources should be investigated – within the capacity of the team of staff members and volunteers. 

Self-generated income should always be considered. Money that is earned/made, rather than raised from donors, has many benefits. Such income is undesignated and does not have to be spent on specific projects (as is required of most corporate, trust, government and lottery funding). It can be used to set up or swell an endowment fund. (The esteemed Professor Eric Atmore will cover such funds during the Online Papillon Fundraising Conference on 20 and 21 May.) Earned income can be held in reserve for emergency and unforeseen needs. It can also be allocated to the vital situational analysis, research and development of new projects – which few donors are comfortable to pay for. 

Making money also impresses donors. It shows that the board and senior managers within an organisation are thinking laterally and recognising that full reliance on donated income can place an entity in jeopardy. 

Self-generated income should always be considered. (It) can be held in reserve for emergency and unforeseen needs ...  (and) development of new projects.

The ‘Catch-22’ often encountered when considering setting up a form of business within an NPO is the need for start-up capital – something else that few donors are likely to provide, with too many having seen such concepts come to nothing over the years (mainly as they started too big, rather than being allowed to grow organically). Enter rewards-based crowdfunding. Requesting (mostly) small amounts of money: donations-based crowdfunding, as offered by BackaBuddy, Fundnation and GoFundMe, is generally better known in South Africa than is the rewards-based model, enabled by platforms such as Thundafund and Kickstarter. 

Although largely used for business start-ups, video games designers, musicians (SA group Fokofpolisiekar have raised R2 million on Thudafund to date), film makers and authors, regularly turn to rewards-based crowdfunding. And, as the name implies, ‘backers’ receive rewards based on the level of their giving. For instance, I supported my favourite historian, Dan Snow, in his vision to start History Hit TV.  This dedicated history documentary streaming channel substantially exceeded its crowdfunding target and has thousands of history-loving subscribers around the world today. And I continue to enjoy the ‘reward’ of my subscription fee remaining constant for life!

Co-author with me of the book, Crowdfunding for Non-profits, Erica Schofield, is CEO of Thundafund, and our joint writing experience highlighted how successfully NPOs are securing set-up costs via rewards-based crowdfunding. The key is to think up interesting and innovative ‘rewards’ for people supporting such initiatives. These are usually (but not exclusively) linked to the intended business venture. The Online Papillon Fundraising Conference will feature advice on this form of start-up funding. Speakers, Rose Ndungu and Suraya Willams will share valuable tips.

For conference bookings, please click on the link: https://www.papillonpress.biz/conferences/2025-annual-online-fundraising-conference/

 Photo by Micheile Henderson on Unsplash