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Ask Slashdot: With Grants Drying Up, How Is a Tech Non-Profit To Survive?

helios17 writes "Non-Profits like this have traditionally gotten started from the money grants provide. Most grants award vehicles, computers, and even pay for organization rental and utility costs. The problem fledgling and even established non-profits are encountering is the dwindling number of grants allowing for Operating or General Support costs. What good is a vehicle received via grant if you can't afford to put fuel in it? With the number of Operating or General Support grants shrinking and those available funds competed for heavily, should we be looking on line for help? Can efforts like this be a better way to approach it?"

34 of 178 comments (clear)

  1. Kickstarter. by Narcocide · · Score: 3, Interesting

    Lobbying is obsolete.

    1. Re:Kickstarter. by Splat · · Score: 5, Informative

      "Kickstarter cannot be used to raise money for causes, whether it's the Red Cross or a scholarship, or for "fund my life" projects, like tuition or bills."

      Welp, so much for that idea.

    2. Re:Kickstarter. by AK+Marc · · Score: 3, Insightful

      You can't raise money for a cause, but you can raise money for a project for a cause. "Donate here to my cause" is not allowed, but "donate here for my cause's project" is, right?

    3. Re:Kickstarter. by Anonymous Coward · · Score: 2, Funny

      Ah, the lobbiests, the lobbiest of them all.

    4. Re:Kickstarter. by Anonymous Coward · · Score: 5, Insightful

      Then replace Kickstarter with Indiegogo. They allow pitching for this and for nonprofits in particular.

      I just understood "kickstarter" in title as "crowdfunding", like "google it" for "search the internet" or "xerox" for "photocopier".

  2. More important: Why are they drying up? by Jane+Q.+Public · · Score: 4, Insightful

    Why are the grants drying up? Despite the much-hyped "austerity", in reality the government has spent more money in each of the recent years than ever before.

    So where is all the damned money going???

    1. Re:More important: Why are they drying up? by Narcocide · · Score: 2

      (The money got spent on War, mostly.)

    2. Re:More important: Why are they drying up? by BenJCarter · · Score: 4, Funny

      We aren't at war anymore. You must have missed the president guy's mouth noises on the subject.

      --
      For in politics, as in religion, it is equally absurd to aim at making proselytes by fire and sword. - Publius
    3. Re:More important: Why are they drying up? by Daniel+Dvorkin · · Score: 4, Informative

      lol leftist faggot, why not hand over the world to china

      And thus we see the right wing eating its own. Jane Q. Public is one of Slashdot's most reliably conservative posters--but one post that deviates from orthodoxy, and out come the McCarthyite claws. Kind of like how Grover Norquist was accused of being a secret Muslim the other day.

      I'll be over here cheering from the sidelines.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    4. Re:More important: Why are they drying up? by LordLucless · · Score: 2

      Yeah, because Anon. Coward trolls are well-known for their strict adherence to political dogma.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
    5. Re:More important: Why are they drying up? by countach74 · · Score: 4, Insightful

      What's sad is that "conservative" these days means pro military-industrial complex. There is nothing actually conservative about big government spending on military; the Republicans just want us to think otherwise.

    6. Re:More important: Why are they drying up? by grcumb · · Score: 5, Interesting

      Why are the grants drying up?

      In many cases, it's not that the money is drying up; it's that the money is increasingly 'focused' on projects rather than administration.

      There's a popular conception among donors that the best way to keep NGOs from existing for their own sake (and growing fat and complacent) is to cease providing core funding, instead providing money for individual initiatives. As a happy coincidence, this also keeps NGOs on the string, having to justify every single little thing they do, which makes it easier to ensure that NGOs don't do anything that might make the donors uncomfortable, like speak their mind, or have a conscience or tell the truth.

      The 'no core funding' argument has some merits, I'll grant (heh) you, as there have been NGOs who got caught up in navel-gazing, who got lazy and spent more time feathering their respective nests than actually, you know, doing good. That is absolutely something to be guarded against. But this move toward project funding has the unfortunate effect of keeping some NGOs on the fringe, struggling to stay alive. This applies particularly to those who challenge the status quo.

      And as noted here, it has a knock-on effect on all NGOs, who find they can obtain salaries and meet project expenses, but can't own any fixed assets or even keep a vehicle running. Perversely, this increases their operating costs, which have to be met somehow. And that results in bigger grant applications for project funding.

      Obligatory software analogy: This is similar to tech companies who see design, tech support, permanent staffing and even updates as cost centres and therefore areas to starve as much as possible. This can all too easily lead to more friction in the gears, longer ramp-up times, slower release schedules, reduced quality and sales, and yes, higher development costs, once everything's factored in.

      --
      Crumb's Corollary: Never bring a knife to a bun fight.
    7. Re:More important: Why are they drying up? by CodeBuster · · Score: 2

      So where is all the damned money going?

      Shrinking the National Debt? More still needs to be done, but this a good start. What we shouldn't do is go back to eating potato chips and drinking pop just when our pain at the gym of budget cuts is starting to pay off in the form of a smaller deficit waistline.

    8. Re:More important: Why are they drying up? by antifoidulus · · Score: 3, Insightful

      Actually, funding for a lot of these types of grants is drying up, this kind of spending has been in the Republican bullseye for a long time, and has suffered during recent budget "crises" due to Republicans picking these kinds of grants specifically to harp on(despite the fact that they make up less than 3% of the overall budget, and probably are one of the few effective government programs...) Basically they are trying to distract people from the fact that Republicans are unwilling to make real cuts and as an added bonus, are focusing on programs that primarily benefit their "enemies" (i.e. anyone who isn't either uber-rich or an uneducated white). Class act those Republicans.

    9. Re:More important: Why are they drying up? by stenvar · · Score: 3, Insightful

      So where is all the damned money going???

      It's going to entitlements, mostly. Increased taxes and spending are justified by progressives with phrases like "taxes buy civilization", but they choose to spend most of the new money coming in on increasing individual benefits (it buys votes, I suppose). A lot of the rest is spent on bailouts and subsidies to failing industries. Infrastructure and non-profits are stagnating or get cut.

    10. Re:More important: Why are they drying up? by Trepidity · · Score: 2

      The government should broadly decide what kinds of scientific research to fund, but it should not micromanage them, because red tape and micromanagement by bureaucrats is not how innovation happens. The government's job in funding scientific research is to allocate money and get the fuck out of the way.

    11. Re:More important: Why are they drying up? by PurpleAlien · · Score: 2

      this increases their operating costs

      This is the reason we run our non-profit, http://www.thetechfoundation.org/, on a per project basis with basically no running operating costs at all. We find funding for our projects in our spare time, not as an employment deal. We have gathered a team of people from around the globe who put their time and effort into the foundation, nonsalaried. Of course, people willing to do that are hard to find, but the ones that are willing to do this are the ones you really can rely on. We also did not just pop into existence one day, even though the actual body was only launched a couple of weeks ago. We combined the efforts of several companies, their past projects, leveraging their skill sets across the projects we want to achieve and find funding for those on a per project basis. If there is no project ongoing, there are no running costs.

      --
      My blog, if you're interested: http://www.purp
    12. Re:More important: Why are they drying up? by thomasw_lrd · · Score: 2

      Legal Defense for the IRS. And Prosecution of the IRS, and apparently line dancing videos for the IRS, and conferences for the IRS.

      I think this begs the question who the hell was supposed to be watching the watchers?

  3. Try the private sector. by Anonymous Coward · · Score: 2, Insightful

    Create a product, something that people want and fills a need. Sell it at a reasonable profit. Stop stealing money from society. The gravy train is ending, don't wait for it to jump the tracks. People are wising up to these criminals taking all our hard earned cash and pocketing it.

    1. Re:Try the private sector. by RogueWarrior65 · · Score: 4, Insightful

      Assuming that this isn't sarcasm, there's a lesson to be learned here. If you are willing to operate on a shoestring budget, you can accomplish a lot. But you also have to be willing to look at your idea and honestly assess it's value and whether or not it's time to close up shop and move on to something else.

    2. Re:Try the private sector. by ub3r+n3u7r4l1st · · Score: 2

      Your description fits the bankers perfectly.

      Most charity started from a very little budget, have no expectation of profit, and created for the sole purpose of benefiting the society. Those who started up for some maligned purpose are easily AND quickly caught up by IRS or their state's attorney general.

      Besides starting a non-profit have several purposes:

      1. Re-define your character, especially if you have a shady past

      2. If you have monstrous (federal) student loans, you can qualify for PSLF for TAX-FREE forgiveness after working 10 years full time in any 501(c)(3) organization, including those you started. (Orgs that are tax-exempted on other sections of the tax code, such as 501(c)(4), does NOT count.) You must be making payments (Hint: use income-based repayment) and in good standing in order to count. If you have private student loans, too bad.

      3. If your org involve in running a business, and as long as you are not breaching any contracts or engage in obviously fraudulent behavior, anyone who try to pull a McDonald-coffee-style lawsuit against your org can be getting very bad publicity given the fact that you are a non-profit. It acts as a very good natural shield against nuisance, NIMBYs and other pests that comes in your way when advancing your noble purpose.

  4. Capital versus Operating expenses - Capital Wins by Yo_mama · · Score: 3, Informative

    I worked for The Seattle Foundation for a while (a while ago) and they serve as sort-of an intermediary between people wanting to donate and non-profits seeking funding. Donors vastly prefer to fund capital acquisitions over operating costs - it's just sexier and feels cooler to people who think in terms of growing things (money, power) by default. "Hey, I got them this new truck," sounds better than "I paid for gas and an oil change for this old truck they've had for a decade." You will find donors who believe in a cause and fund both, but they also want to have the freedom to say no and not be taken for granted.

    I have to wonder if some of this is the changing values of our population and culture.

    --
    Never understimate the power of human stupidity -Lazarus Long
  5. Run your non-profit as a for-profit by AK+Marc · · Score: 2

    The mistake I see with so many non-profits is that they are run without trying to make a profit. Go make a profit, make as much as you can (just don't pay dividends). They are businesses at the core, even if non profit businesses. Forget that at your peril.

    1. Re:Run your non-profit as a for-profit by Anonymous Coward · · Score: 2, Interesting

      Partially correct. There are no caps on the amount of untaxed income your non-profit can have as long as it they are associated with its purpose, but there is a cap on the amount of tax-free income that can be earned from unrelated activities. Even in that case, you can typically continue to operate as a non-profit as long as the appropriate taxes are paid on the unrelated activities. However, your last point is 100% correct, and the most important: talk to a lawyer.

  6. Wellcome to the world of non-profits! by hedgemage · · Score: 4, Interesting

    I have worked for a variety of non-profits and written grants for them. I'm surprised that there ever was money for operating expenses available for tech-based non-profits since every foundation I've petitioned for grant money has specifically said that they do not provide operating costs. Instead, I write grants with a specific project in mind. This could be "build a new wing to the university library", "Fund staff to inventory the museum collection in storage," or "run a week-long day camp for inner-city youth that teaches non-violent conflict resolution methods."
    Unless you have some kind of revenue stream, you are going to be relying on donations and volunteers just like a community clothes closet for the homeless. Sounds like now that the gravy train of easy money is drying up these tech non-profits are being forced to demonstrate how they benefit the public good. I'm sure that there are many worthy causes, but now their in the wild competing for the same dollars and mind-share as food pantries, elder advocacy groups, and animal shelters.

    1. Re:Wellcome to the world of non-profits! by hedgemage · · Score: 4, Informative

      Replying to my own comment because I thought of another good point.

      Non-profit does not mean you can't make money. In fact, as long as you follow the rules for organization, reporting, etc. you can make money hand over fist. Think about how every private school in the US is able to function and some grow quite fat off of those tuition dollars. If you have a tech-based non-profit that (for example) provides computer programming education to disadvantaged youth, or provides systems and education for the elderly, there's nothing to stop you from doing consulting, selling spare parts, or charging for other services as long as those proceeds are plowed right back into the organization to feed your key mission.

      Too many people think that non-profit means you aren't a normal business. You are! You simply have convinced the government that it is in the public's best interest to let you exist free of the burden of taxes.

  7. Re:meanings by Xicor · · Score: 2

    i forgot to mention... a non-profit organization can even give income to its employees.

  8. Re:Get a government job by Daniel+Dvorkin · · Score: 3, Informative

    You never hear about the government laying people off unless they misbehave, and government salaries and benefits are way higher than the private sector.

    Can I move to your planet? It sounds like a good place to get a job.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  9. Endorse a Theme Park by guttentag · · Score: 2
    The (Alan) Grant Method
    1. Find an eccentric millionaire who is building a theme park on an island off Costa Rica related to your specialty
    2. Agree to visit and endorse the park on the condition that said millionaire fund your operation for three years
    3. Ensure funds are in your account before you get on the helcopter
    4. Pack a large tranquilizer gun, laser pointer and sat phone
    5. ???
    6. Non-Profit!!!

    (most of this stuff should be obvious, but the laser pointer is included to help you pass the time making dinosaurs chase after the little red light while you wait to be rescued)

  10. Why should you survive? by onyxruby · · Score: 3, Interesting

    Why should your non-profit survive when compared to any of the others? The overwhelming majority are staffed with good people with good intentions who work for very little money. The problem is one over-saturation for the market and a donation fatigue from a public that is burned out. There are hundreds of thousands of non-profits in the US alone and every single one of them thinks that /they/ are the most important.

    When a business starts to think that they 'deserve' our money we accuse them of entitlement (e.g. Circuit City) and vilify them. A non-profit really isn't any different in that they serve a function that costs money and in order to survive need to take in money. Like a business they can merge, be bought or go bankrupt.

    Frankly if more non-profits started to merge it would enable greater economies of scale and efficiencies, just like a business. It would also enable them to spend more money on their mission and less money on overhead. Services from secretarial to bandwidth to phone banks could be shared at greater efficiency across more organizations.

    Perhaps my answer seems callous, but the bottom line is that no organization is entitled to survive. Non-profits need to embrace what the business world has done and go through a series of mergers for the greater good. Are your clients better served by your merging with another organization because you are stretched so thin that you are no longer effective?

    People typically start and run non-profits because their ego tells them that they can do better than the person already running a like kind service. Society as a whole would benefit enormously if non-profits put their missions before their egos. These warm hearted organizations need some cold blooded business acumen.

  11. so just claim your org is pro-war by decora · · Score: 5, Funny

    example:

    old slogan: we give used computers to poor people

    new slogan: by recruiting young people into the Infosec milieu, we help america defend against the goddam commie chinese hackers and the motherfucking russians who are trying to make our power system go offline so they can invade our country, kill our leaders, and convert us to non-americanism.

    1. Re:so just claim your org is pro-war by thelexx · · Score: 2

      Don't forget the sapping and impurification of our bodily fluids!

      Deny them your essence!

      --
      "Gold still represents the ultimate form of payment in the world." - Alan Greenspan, 1999
  12. Re:there are nations worse than China by khallow · · Score: 3, Insightful

    They also had a good culture that did not engage in much territorial expansion, like the Europeans did.

    China's history is chock full of territorial expansion. That's how it was created in the first place and how most subsequent empires became established, for example. And it has modern military adventures such as the conquest of Tibet or the overthrow of French Indochina.

    The big dispute was over Chinese trade with foreigners.

    For a few brief decades. China has had many other disputes over the millennia.

    The big question, is who won the Cultural Revolution?

    The Culturan Revolution wasn't a "dispute", but rather the stamping of ants, 1984-style, to show who was in charge. The ants lost. The ones doing the stamping won.

    Don't confuse "culture" with "capability". China in the past didn't have the capability to project its power very far. It was able to win wars in Sri Lanka for example at extraordinary cost. Today it like every other major country has global reach. I believe it will be different and the culture will turn out to be not all that different after all.

  13. Re:Forget nonprofits by KGIII · · Score: 2

    Yeah, I tried that with ShowMeYourPussy.com - it doesn't work.

    --
    "So long and thanks for all the fish."