How do Nonprofits Function Financially, and What Motivates Donor Support

Abstract

The paper will start with general information on nonprofits, how they operate without actually making a profit, their goals, and the specifics that come with running a nonprofit. Then, the paper will go into the finances of a nonprofit; how they are able to make money from donors, how they distribute their money, and how they record transactions. Bouncing off from the ideas of how a nonprofit makes money, the paper then analyzes how a nonprofit can get donors, why donors would want to donate to a nonprofit, and the psychology behind that; it will also discuss the different types of donors and how a nonprofit can attract that specific donor. Lastly, the paper will explore more specific examples of homeless nonprofits in the New Jersey/ New York area, like the Apostles' House, and analyze how effective their efforts are to get donors.