Grants vs. Marketing: Which Bring in the Most Funds for Nonprofits?

The question arises concerning the proportion of time that should be spent on different funding methods on the nonprofit end. Do we have our fundraising team put more effort into our grant writing or our marketing? Which method brings in the most profits in order to do the largest amount of work under our mission? 

Nonprofit organizations use a variety of resources that make up their yearly income, however, research and surveys were reported to show the largest profit is traced back to individual charitable donation. "According to Giving USA, total charitable giving in the U.S. reached more than $298.4 billion in 2011. Of that amount 73% came from individuals." (Joanne Fritz @ http://nonprofit.about.com/od/fundraising/a/fundraising101.htm) 

Individual donations are a direct result of marketing efforts. Every time a nonprofit organization responds to a comment on Facebook, blogs about a class offered at the YMCA, or posts a tweet about an upcoming event- they are engaging audiences and building community support, which turns into individual donations. Below is a graph showing individual contributions for the year ending 2011 that again, reiterates that over 70% of charitable funding is completed through donations. 

There is a popular quote that states, "it's better to have a 100 friends then 100 dollars." Friends, or community support in this matter, are the reason philanthropic organizations are able to live out their mission. This blog is not meant to deter any nonprofit from grant writing. The point is that marketing is the drive behind the support and funding for a nonprofit. 

While social media sometimes takes the back-burner of a nonprofit's weekly agenda due to the time and budget constraints, social media is one of the biggest tools that can be used to increase attention to your organization, your mission, your event, and build your community support/network. By using social media to market your nonprofit- you will drive traffic to your website and your events. Studies show that people who attend an event or are emotionally connected are more likely to sponsor it. Using social media or marketing in general brings in more revenue and support than grant writing for a nonprofit.