On August 14, we published a blog post in collaboration with the Future of Good, giving a primer on Community Bonds!
In the post, we explored why not for profit organizations need to diversify their funding sources, and the advantages/disadvantages of some of the financing tools available to not for profit organizations.
Here are the key takeaways from the article that we wrote:
Grants are essential but inconsistent
As one of the tools most readily available to not for profit organizations, we discuss grants quite a bit. While essential and hugely valuable, there are drawbacks to relying on grants. One of the main disadvantages is the relative lack of flexibility and stability.
In all cases, it’s the granting body that defines how a grant can be used, and typically, a not for profit organization will have to find a project that fits the granting parameters. Furthermore, it’s the granting body that decides when and under what circumstances the grant is available.
While organizations should pursue grants, caution should be taken in relying solely on grants for funding. In particular, for major capital development projects, relying on grants will likely be insufficient.
Using a range of tools provides a more secure funding base
In considering how to establish a secure funding base, organizations should seek to diversify their funding sources. This could include any range of funding vehicles including: fundraising, crowdfunding, social entrepreneurship, community bonds and grants.
A range of purpose specific funding tools like grants or community bonds, and flexible funding tools that can be used for anything, like donations or social entrepreneurship, will provide your organization with the ability to escape the endless granting cycle and plan for growth!
We’re strong believers in leveraging the entire investment continuum when reviewing how to effectively plan for long-term financing. Much like you wouldn’t hammer a nail with a screwdriver, you should consider the tool being used when considering what you’re trying to fund.
Community Bonds are an effective tool to finance your next capital development project
Whether you’re seeking a tool that can help to reengage existing supporters, or looking for a new tool that can jumpstart your capital development ambitions, Community Bonds are an effective resource for organizations of all sizes. They provide your community to feel a sense of ownership over the project being funded.
The full article is available on the Future of Good website. If you’re interested in reading click here:
What’s a community bond, anyway?
If you’re interested in learning more about community bonds, or signing up for our Community Bonds 101 webinar, to see if this innovative financing solution is right for your organization, click the link below: