How to find funding for an association?

How to find funding for an association?

An asso­ci­a­tion needs fund­ing to sus­tain its activ­i­ty, espe­cial­ly when it reg­u­lar­ly organ­is­es events. Find­ing fund­ing then almost becomes a full-time activ­i­ty. Diver­si­fy­ing your sources of financ­ing is also essen­tial so as not to risk find­ing your­self sud­den­ly with no cash.

Con­tents

  1. Dues and mem­ber­ship fees
  2. Gifts, bequests and dona­tions
  3. Sub­si­dies
  4. Patron­age and spon­sor­ship
  5. The banks
  6. Crowd­fund­ing
  7. Prof­itable events and activ­i­ties

1. Dues and membership fees

Dues and mem­ber­ship fees col­lect­ed from your asso­ci­a­tion’s mem­bers are part of its first financ­ing resources. It is pos­si­ble to increase them over time in order to be able to invest in projects. It is impor­tant to ensure that con­trib­u­tors are informed in advance, and that they under­stand what their mon­ey is being used for. Organ­is­ing an infor­ma­tion meet­ing or send­ing an explana­to­ry email will allow you to involve them in your projects. They will then be in a bet­ter posi­tion to con­tribute because they want to and not because they have to. You can also demon­strate that you are mak­ing efforts to obtain fund­ing through oth­er means — grant appli­ca­tions, event organ­i­sa­tion, etc. In this way, you make them under­stand that your objec­tive is not to take their mon­ey, but to improve the ser­vices pro­vid­ed by the asso­ci­a­tion. Anoth­er thing to pay atten­tion to is amend­ing the asso­ci­a­tion’s statutes and reg­u­la­tions.

Please note that con­tri­bu­tions are in no way a reserve fund for your cash flow. They must cor­re­spond to spe­cif­ic expens­es that are includ­ed in your annu­al bud­get.

2. Gifts, bequests and donations

Gifts, bequests, and dona­tions, whether mate­r­i­al or finan­cial, can be made by indi­vid­u­als or com­pa­nies. Gen­er­al­ly, they are wel­come to start an asso­ci­a­tion. Gifts and bequests some­times hap­pen at unpre­dictable times, while dona­tions can be col­lect­ed thanks to a com­mu­ni­ca­tion cam­paign and a spe­cif­ic event.

To encour­age dona­tions, make it clear to poten­tial donors that their action will result in a deduc­tion on their income tax.

3. Subsidies

Sub­si­dies are pub­lic grants allo­cat­ed to asso­ci­a­tions that car­ry out projects of gen­er­al inter­est. They include all types of aid grant­ed by the State, pub­lic insti­tu­tions, local author­i­ties, social secu­ri­ty bod­ies, or gov­ern­ment organ­i­sa­tions.

If a grant is for a spe­cif­ic expense, the asso­ci­a­tion must be account­able to the gov­ern­ment or organ­i­sa­tion that award­ed the grant. It then pro­vides it with a finan­cial report that shows the com­pli­ance of the expens­es incurred. It must be sent with­in 6 months after the end of the fis­cal year for which the grant was award­ed.

For more infor­ma­tion, go to www.gov.uk.

4. Patronage and sponsorship

Con­tact peo­ple inter­est­ed in your asso­ci­a­tion’s mis­sion to ask them to be its patron or spon­sor.

Patron­age is very inter­est­ing, both for the asso­ci­a­tion and for the patron. This is called a win-win action. Indeed, you col­lect mon­ey with­out hav­ing to pay any­thing in return; the patron ben­e­fits from tax breaks and a reward­ing image.

Spon­sor­ship is intend­ed to pro­mote the image of the spon­sor. You will there­fore have to pro­vide the spon­sor with vis­i­bil­i­ty in a spe­cif­ic place, on your web­site, or on offi­cial doc­u­ments.

5. Banks

Con­trary to what we think, an asso­ci­a­tion may request an excep­tion­al over­draft per­mit if it needs it to reg­u­late its cash flow. It can also take out a bank loan or an equip­ment or prop­er­ty finance lease.

6. Crowdfunding

Crowd­fund­ing makes it pos­si­ble to test the attrac­tive­ness of a project by request­ing funds before it starts. If the funds raised are suf­fi­cient, the project will be launched and you will leave with more cash flow than if you start­ed from scratch.

For the crowd­fund­ing cam­paign to be suc­cess­ful, you already need a fair­ly large net­work of con­tacts, includ­ing peo­ple who will be ready to par­tic­i­pate quick­ly. The objec­tive is then to cre­ate a chain reac­tion to con­vince peo­ple out­side your net­work of the qual­i­ty of your project. Gen­er­al­ly, rewards are offered to par­tic­i­pants: good­ies, first goods pro­duced, etc.

7. Profitable events and activities

Organ­ise prof­itable events and activ­i­ties that will allow you to finance your asso­ci­a­tion’s projects. “Prof­itable” or “lucra­tive” does not mean that the mon­ey goes into your pock­et. This means that you sell prod­ucts and col­lect mon­ey, but it must be rein­vest­ed. It is a legal require­ment.

Thus, you can organ­ise:

  • sales of cakes or good­ies — t‑shirts, water bot­tles, caps;
  • ser­vice days — car clean­ing, Christ­mas gift wrap­ping;
  • events relat­ed to your mis­sion.…

The pos­si­bil­i­ties are end­less… it’s up to you to find the right solu­tion! Let your cre­ativ­i­ty take over and be care­ful because most of these activ­i­ties require a min­i­mum of cash flow upstream.

Fund your asso­ci­a­tion by organ­is­ing suc­cess­ful events! Dis­cov­er all the ben­e­fits of our solu­tions by click­ing below:

Organ­ise an event

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