Establishing a non-profit organisation (NPO) might seem straightforward, but the real challenge lies in sustaining it and covering its expenses. Many NPOs attempt to operate solely on their own resources, but this is often insufficient.
To ensure long-term survival, a non-profit typically needs to seek additional funding sources. Understanding these funding options is very important. This article explores the various financing avenues available from individuals and businesses.
Membership subscriptions
A subscription is a financial contribution that a non-profit may request from all or some of its members to help cover its operational costs and/or to provide certain services or benefits.
The NPO can set different subscription rates for different categories of members. The maximum subscription fee must be specified in the articles of association. Without this specification, the NPO cannot charge its members subscription fees.
Depending on the NPO's activities, subscription fees may be subject to VAT. Consult your accountant to determine the applicable VAT regime.
Donations
Non-profits can receive donations, which are benefits (financial, material, etc.) given without the donor receiving anything in return. Donors can benefit from a tax deduction of 45% of the donated amount if the following conditions are met:
- The NPO is approved by the FPS Finance (conditions and procedure for obtaining approval).
- The donation is at least €40 (material donations are not tax-deductible).
- The NPO issues a tax certificate for the donation received.
Crowdfunding (or participatory financing)
Crowdfunding allows NPOs to present their projects to a large audience willing to invest financially. One form of crowdfunding is participatory financing via donations, which can be made with or without compensation:
- Crowdfunding without compensation: contributors make a donation to support your project and receive nothing in return.
- Crowdfunding with compensation: contributors receive a reward, usually in the form of your products or services, but it can also include invitations to events, public recognition, etc.
Here are a few platforms dedicated to the non-profit sector:
- Cosmos-Kosmos: a platform for artistic and cultural projects.
- Growfunding: supports projects addressing societal challenges and promoting positive social change.
- GoFundMe: allows crowdfunding campaigns (without compensation) for projects aimed at improving the world.
- KissKissBankBank: focuses on projects supporting independent culture, fighting discrimination, and protecting the environment.
Sponsorship
Sponsorship involves financial support from a company to an organisation or event, in exchange for visibility of the sponsor's name or logo.
Sponsors aim to gain benefits such as increased brand awareness or an enhanced image. The idea is that greater public recognition and appreciation will attract potential customers.
Anonymous sponsorship
This type of sponsorship provides support without the sponsor's name being visibly associated with the initiative. It offers no direct or measurable advertising return and is more philanthropic, driven by personal and altruistic motives. This can be done by companies, foundations, or private individuals.
Organisations to help your search for private-sector funding
Several organisations help NPOs raise funds from the private sector:
- Be Impact, through its Forward Impact programme, offers six months of coaching ( training, a pitching event for your project, mentoring, etc.) to raise the funds you need. The programme is open to companies and non-profits with a strong social or environmental impact.
- Fundraisers organise fundraising training courses.
- Promothea ; provides training and coaching to help NPOs with cultural or heritage projects understand corporate sponsorship mechanisms.
- Mon asbl offers a guide to help prepare sponsorship applications.
- Because it Matters : a platform run by the King Baudouin Foundation, listing and promoting over 30,000 non-profits. Its database contains official information on each non-profit, helping them position themselves as reliable partners to sponsors, donors, and volunteers.