NGOs are becoming increasingly popular in Poland. Many people wonder how they are funded. Can they run a business and earn money? Is it worth giving them donations? You will learn from this article who maintains NGOs, how they do it, and what funds cover specific projects. If you are interested in the sources of funding for NGOs, read this article!
First of all, volunteering
Over 60% of NGOs cooperate with volunteers, and 35% rely solely on social work. So, it’s fair to say that, to some extent, NGOs function thanks to the involvement of people who do not receive remuneration for their work. However, this is not enough to finance the activity, which is why the entities apply for grants. In the case of associations, regular membership fees are also the essential sources.
Grants for a specific purpose
Most organizations seek grants for statutory purposes, specific activities, or projects. They usually get it through calls for proposals organized by local governments, public administration, companies, or corporations. It is worth noting that many subsidies are distributed from public funds. An NGO must complete an application or submit an offer to obtain a grant. The starting point, however, is to find a suitable call that allows the organization to achieve a specific goal. Do you have an idea and want to get funds? Try for a subsidy!
Doing business
It happens that a non-governmental organization collects fees from its beneficiaries or sells services or goods. This is a common way of obtaining funds. It is a paid public benefit activity. Sometimes, this activity turns into a business and requires registration. Then, a given NGO becomes an entrepreneur and has the same privileges (but also responsibilities) as any other entrepreneur. Many organizations give up this because of numerous formalities and complications. In addition, the business must earn large enough to be profitable.
Donations
This is perhaps the most common and well-known form of NGO financing, which has gained popularity thanks to special Internet portals. Everyone can donate – both online and „in real” for statutory purposes for the selected entity. It’s important to keep your payment confirmation because it allows you to claim a tax deduction for your donation.
In addition to donations from private funds, non-governmental organizations can be supported with material donations. However, before we deliver it to a specific place, you need to make sure that it is useful. Every donor should remember that even the most needy NGO does not accept everything but only what they will actually use.
Public fundraisers
They are organized, as the name suggests, in public places. During the events, you can offer money or gifts in kind. Fundraisers are registered on the zbiorki.gov.pl portal. A fine may be imposed for organizing it illegally. Once the collection is complete, a report must be submitted. The rules on public fundraisers are extensive and worth reading in detail.
Charity auctions and lotteries
Support for NGOs is often organized during different occasions, such as company events, festivities, or concerts with auctions or lotteries for a specific social purpose. You can win prizes there, funded by sponsors or donated by donors. It is important to know that organizing a lottery requires permission from the customs office. Financing NGOs is connected with completing formalities for all activities.
Reasonable attitude
Running a non-governmental organization involves financial responsibility. Regardless of whether a given entity has a sponsor or profits from charitable SMSes, donations, or loans, it collects funds to be settled. That is why it is so important to be meticulous and methodical. This improves the effectiveness and strengthens the credibility of any organization.