Overview
Securing capital is integral to any development project, particularly in low-income communities. For this proposal, Terrascope has identified two ways of acquiring money: external means (federal grants, NGOs) and local efforts (community fundraising). Furthermore, to target these money resources, our strategy establishes primary and secondary schools as the direct link between financial resources and the community, avoiding external agents and bringing control to the local people themselves. This plan envisions any combination of 4-5 primary and secondary schools in close proximity coming together to form one unified NGO with a shared staff responsible for filing federal grants and NGO engagement and parents/community members associated with these partnered schools participating in local fundraising efforts.
| Form of funding | Benefits | Drawbacks |
|---|---|---|
| FEDERAL FUNDING | Federal grants are widely available1 Acquiring a federal grant establishes credibility for the receiver, making them attractive for additional funding elsewhere1 There are no limits on how many federal grants one can apply to1 | Federal grants are highly competitive, making it challenging to receive funds2 Grant proposals require significant drafting expertise, research, and planning to be most successful2 Federal grants are highly restrictive. Guidelines of the grant must be read thoroughly and strictly followed2 Some grants (reimbursement grants) require the grantee to have existing spending power. The spent amount is repaid to the grantee later by the government3 Generally, federal grants will only cover 80% of the requested amount. The remaining 20% cost of the project must be privately funded3 |
| NON-GOVERNMENTAL ORGANIZATIONS | Application process is not as cumbersome as for federal grants3 Funding proposals can be easily edited to appeal to individual donors / philanthropists3 Quicker disbursement of funds compared to federal grants3 | Require a detailed proposal including what the project is, the estimated cost, and how the NGO may benefit (social media promotion, reports, using NGO logos)3 Competitive environment, funding not guaranteed1 |
| COMMUNITY INITIATIVES | Complex grant application process is avoided No time restrictions/deadlines for crowdfunding platforms Direct community involvement establishes more personal connections with donors Lack of fees compared to applications for NGO and Federal grants4 | Typically lower donation amounts compared to grants Funding depends on large exposure/attention that must be maintained4 May not be as sustainable and/or reliable as other funding options4 |
FEDERAL FUNDING
The government can allocate funds to individuals or groups for development projects.
Image: Image: “Economic Justice.” NNEDV, nnedv.org/content/economic-justice/). Accessed 1 Dec. 2023.
NON-PROFIT FUNDING
NGOs typically support community efforts by providing the necessary funding for development projects.
Image: Gerber, Bill. “How to Get Funding for a Non-Profit Startup.” Www.accountingdepartment.com, www.accountingdepartment.com/blog/how-to-get-funding-for-a-non-profit-startup. Accessed 1 Dec. 2023.
COMMUNITY FUNDING
Finally, communities themselves can get together and contribute funds that they can use to finance their projects.
Image: “Do You Have Unclaimed Money? How to Find Lost Accounts and Funds in Your Name.” TODAY.com, 28 July 2023, www.today.com/money/unclaimed-money-rcna96469. Accessed 1 Dec. 2023.
EXPECTED INCOME
Image: “The Mystery of Money.” CBC.ca, 2 Feb. 2023, www.cbc.ca/radio/ideas/mystery-of-money-1.6734524. Accessed 16 Feb. 2023.
References
- “Pros and Cons of Government Grants for Nonprofits.” GivingLoop, 5 Oct. 2019, www.givingloop.org/blog/pros-and-cons-of-government-grants-for-nonprofits/.
- Cuellar, Henry. “What Is a Grant? | Rep. Henry Cuellar.” Cuellar.house.gov, cuellar.house.gov/constituentservices/grants/what-is-a-grant.htm.
- Frontera, Alma. VP Operations & Programs, Foundation for Puerto Rico. Microsoft Teams, Nov. 2023.
- “The Pros and Cons of Crowdfunding for Nonprofits.” PRIDE Philanthropy, pridephilanthropy.com/blog/pros-and-cons-of-crowdfunding.