As part of your nonprofit startup business plan, you should have developed a fund development plan that outlines your funding strategies and targets. It takes time, research, resources and a plan to be successful in fundraising.
Funding Strategy Assessment – Double The Donation
Development Plan Samples – New Hampshire Center for Nonprofits
Most of your startup funding will likely come from your nonprofit’s founders, board members, volunteers, community members, or other interested individuals. Any contributions you collect prior to receiving tax-exempt status may be considered personal income and therefore subject to taxation. Some donors may prefer to wait for IRS recognition before giving, and your initial support will not likely come from foundation grants since most institutional funders require proof of 501(c)(3) status.
Fundraising Strategies for Startup Organizations – Candid
You should inform donors if your 501(c)(3) status is pending. If the c3 status is granted, it will be retroactive to the date of incorporation if the application was filed within 27 months of formation. Once you receive your exempt status, donations received while your application was pending may be treated as tax-deductible contributions retroactive to the date of your organization’s formation. However, if your application is not approved, contributions would not be considered tax-deductible.
Registration with Oregon DOJ
501(c)(3) nonprofits must register with Oregon Department of Justice before soliciting donations or engaging in charitable activities. The Oregon DOJ regulates charitable activities, and registration is a key requirement for nonprofits in the state.
Fiscal Sponsorship
NAO Guide to Fiscal Sponsorship
If you enter into a fiscal sponsorship arrangement with a 501(c)(3) organization, this would allow you to apply for grants and solicit tax-deductible charitable contributions under your sponsor’s exempt status.
Funding Resources
Funding & Grant Opportunities – NAO Website
How to Secure Startup Grants for Nonprofits – DonorBox
Grants for Oregon Nonprofits – GrantWatch: search by location & category
Small Grants for Nonprofits in Oregon – Instrumentl