When a nonprofit seeks funding, it may begin with individual donations or institutional grants, then approach companies or consider an income-generating activity. Understanding these options requires knowing what each can provide, how to access it, and what commitments it involves.
A grant for an educational program differs from a general donation, while a sponsorship agreement differs from a company purchasing a service from the nonprofit. Donated equipment may be useful, but it does not provide the cash needed to pay salaries.
A resource map helps an organization identify its options and clearly classify its existing resources. This provides a starting point for comparing what is available with what could be developed.
1. An Initial Map of Available Resources
Options vary according to the organization’s country of operation, legal status, and mission. They can be organized into the following groups:
| Resource Group | Examples of What It May Provide | What the Organization Needs to Understand |
|---|---|---|
| Individual contributions | One-off donations, recurring donations, major gifts | Purpose, regularity, and follow-up expectations |
| Support from grantmaking institutions and funds | Project grants, operating support, capacity-building funding | Eligibility, permitted uses, and reporting requirements |
| Corporate support | Donations, grants, sponsorships, in-kind resources | The agreement and each party’s commitments |
| Government funding | Grants or contracts to deliver services | Program or contract requirements and payment arrangements |
| Earned income | Fees for training, services, or products | Delivery costs and the resulting surplus |
| Income from assets | Returns from waqf assets or permitted investments | Amounts available for spending, timing, and conditions of use |
| Noncash resources | Materials, equipment, services, and volunteer expertise | Suitability for the need and costs of use |
These groups are not entirely separate. A company may provide a noncash resource, while an individual may make a gift to establish a waqf. Organizations therefore need to describe resources from several perspectives while recording each contribution once.
2. What Distinguishes Each Group?
Individual Contributions
These include contributions made by people to support a campaign, program, or the organization’s general purposes. Contributions may be one-off or recurring, financial or in-kind.
A recurring donation describes the regularity of a contribution; it does not automatically mean the funds can support every organizational purpose. A donor may designate a monthly contribution for a particular sponsorship arrangement or program.
A major donor is an individual whose contributions are significant relative to the organization’s size and funding model. There is no single financial threshold that defines a major donor for every nonprofit.
The relationship may require personal follow-up and more detailed communication about purpose and results. However, the donor remains an individual: a larger contribution does not automatically become an institutional grant.
What should the organization examine? Purpose, the likelihood of continued support, communication expectations, and reliance on particular individuals.
Grantmaking Institutions and Funds
These bodies may provide project grants, operating support, or funding for systems development and capacity building. Funding may cover one year or several years.
Accessing it requires understanding the funder’s priorities and eligibility criteria, then submitting the requested proposal, budget, and documents. The agreement defines permitted uses, payment arrangements, and reporting requirements.
Not every grant is restricted to a project, and multiyear funding does not necessarily guarantee renewal.
What should the organization examine? Alignment with its work, covered costs, payment schedules, and its capacity to deliver and document results.
Companies
Corporate support can take several forms:
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Donation: A contribution without purchasing a service or receiving an agreed commercial benefit.
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Grant: Funding provided through a program with specified conditions.
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Sponsorship: Support linked to agreed benefits, such as visibility at an event.
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In-kind contribution: Materials, equipment, or services.
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Collaboration or partnership: An arrangement that may involve financial or nonfinancial resources.
If a company purchases training delivered by the nonprofit, the payment is earned income, not a donation simply because the purchaser is a company.
What should the organization examine? The agreement’s substance, expected benefits, delivery commitments, and relationship management costs.
Government Bodies
Where regulations permit and programs are available, a nonprofit may receive a government grant or enter into a contract to deliver services.
A grant supports specified purposes under its conditions. A service contract involves delivering agreed work or services in exchange for payment. This distinction affects budgeting, pricing, and monitoring.
What should the organization examine? Eligibility, the scope of commitments, payment conditions, documentation requirements, and whether it must cover costs before payments arrive.
Earned Income
A nonprofit may generate income from training, consulting, products, or services, subject to applicable regulations. Customers pay for what they receive.
It is important to distinguish gross revenue from the surplus remaining after costs. If a training program generates revenue of 100,000 and costs 80,000 to deliver, the surplus is 20,000, before any additional costs not yet included.
What should the organization examine? Actual demand, pricing, operating costs, service quality, and alignment with its mission.
Returns From Waqf and Other Assets
An organization may benefit from returns generated by a waqf—an Islamic endowment—or other assets it owns, or from income allocated to it by an independently managed waqf.
The asset must be distinguished from its returns: the asset’s value is not the amount available for spending. The use of returns is also governed by the waqf’s conditions and applicable religious and legal requirements.
What should the organization examine? Returns actually available, when they will arrive, permitted uses, and management and maintenance costs.
Noncash Resources
These include materials, equipment, professional services, access to facilities, and volunteers’ time and expertise.
Such resources are useful when they meet an actual need. Unsuitable equipment may create transport, storage, or maintenance costs rather than reduce the organization’s burden.
What should the organization examine? Actual need, quality, usability, and associated costs. Records of these resources should distinguish them from available cash.
3. Separate the Provider, Contribution Type, and Collection Mechanism
After identifying its options, the organization needs three levels of classification:
| Level | Question | Example |
|---|---|---|
| Provider | Who supplied the resource? | An individual, company, or grantmaking institution |
| Contribution type | Under what arrangement was it provided? | A donation, grant, sponsorship, or service payment |
| Collection mechanism and channel | How was it collected and received? | A crowdfunding campaign through a platform or a direct transfer |
This is a practical classification for organizing information. Legal and accounting treatment depends on the agreement’s substance and applicable rules.
A Practical Example
A company contributes 50,000 riyals to an educational campaign through an online platform, with no commercial benefit in return, and designates the contribution for that campaign.
| Item | Classification |
|---|---|
| Provider | Company |
| Contribution type | Restricted cash donation |
| Collection mechanism | Donation-based crowdfunding campaign |
| Channel | Online platform |
| Permitted use | The advertised educational campaign |
The amount can appear in an analysis of corporate contributions and an analysis of crowdfunding results. However, the totals from these classifications must not be added together as separate revenue. The same contribution is being viewed from two perspectives.
4. Contributor Numbers Differ From Channel Numbers
An organization may receive donations from thousands of individuals through one platform. It has a broad donor base but depends on a single technology channel for outreach or collection.
Likewise, it may receive grants from several institutions, reducing reliance on one funder while continuing to depend on institutional grants as a funding category.
The map should therefore distinguish between:
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Reliance on a particular provider.
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Reliance on a resource category.
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Reliance on a collection mechanism or access channel.
This does not mean every option must be used. It means understanding the existing resource structure before developing additional options.
A Practical Step Toward Building the Map
Start with one record for each contribution, identifying the provider, contribution type, value or description, permitted use, collection mechanism, timing, and follow-up requirements.
Then group the information according to the question being asked: Who supports us? Which resources recur? What does the funding cover? Which channels do we depend on?
The map’s value lies in giving the organization an accurate picture of its options and resources. Understanding these distinctions helps it decide which opportunities are worth developing and how to access and manage them.
