There was a time when nonprofit organizations, or NGOs, did their work at an arm's length from donors. Today, NGOs cultivate relationships with current and potential donors – those who support an NGO's work through public or private foundations. Why network with donor agencies? There are several important reasons to reach out to agencies and organizations that provide or might provide your NGO with financial or other types of support.
One of the primary reasons for your NGO to network with public, private, or corporate foundations is to share your story. The more information you can share with others, the more your message is distributed, the more you increase the chances of someone hearing about the good work you and your staff are doing to make positive changes in people's lives. Spreading the message about who you are and what you do not only through social media, newsletters, and mails, but face-to-face with board members and staff of foundations sheds light on projects and programs your organization is engaged in. Verbally sharing your stories with others not only heightens the awareness of your NGO's work, it also gives others who might fund a programor project, the opportunity to learn about your NGO and to ask questions. Failing to communicate with others signals that your organization is inactive.
Another main reason to network is the information you will gather about what other NGOs are doing and which foundations are funding. You will learn about upcoming opportunities, obtain leads to other funding options, and it may enable you and your organization to establish partnerships with other NGOs and foundations in order to collaborate to work on a specific program or project.
Networking with donor agencies may be beyond your comfort zone. However, know that Board members are usually experienced business people and/or wealthy individuals. They are expected to be cultivated or "courted" over time – many years, in fact, – before they will commit a substantial amount of money to a specific cause.
Donors may have a number of reasons for supporting an NGO's work. Most want to work with an organization that is making a difference in the world and with an organization that shares his/her vision for making that difference. Some donors are content with being recognized in an annual report for their support. Others prefer to remain anonymous all together. However, there are donor agencies that want to take an active role in the work your organization is doing.
Trust and openness are the basis of good NGO-donor partnerships. Such partnerships take time to build. The way in which a donor expects to work with your organization varies according to the donor agency itself. For example, a foundation that donates millions of dollars may require a significant amount of accountability in terms of reporting by your NGO regarding how you spent the donor's funding. Other foundations are fine with a final report at the end of your project. Most fall somewhere in between.
Note that, depending upon where your NGO is located in the world may determine the extent to which a donor is allowed to participate in the work of your organization. Some countries do have legal restrictions that require a foundation and NGO to work at arms length – meaning that the staff of each organization cannot do work, even volunteer work, for the other organization. Make sure that you are familiar with any legal requirements before establishing a relationship with a donor organization.
NGO leadership conversing with the donor agency about how much the agency wants to be engaged in your project and specifically how they want to participate, before you accept the funding, will go a long way in solidifying the NGO-donor partnership for the long term.
