The majority of Gay & Lesbian Fund grants contain a challenge component. Why? Because we believe that a challenge component help the nonprofits that we support diversify their base of funding and introduces the organization to a wider array of donors.
If you offer a challenge component, we encourage you to use the various tools found on these pages to make the most of our grant.
What is a Challenge component?
Challenge components are capacity building options intended to provide a nonprofit organization with a unique tool to leverage new and increased donations from current donors, and from potential new donors.
Goals of the Challenge component
A nonprofit organization’s long-term sustainability is dependent upon the ability to engage and cultivate an active and diverse support base. We want you to use the challenge component to encourage and energize donors beyond us.
The challenge component is a tool to help your organization’s staff and leadership mobilize additional private resources to help build long-term sustainability.
How does it work?
Potential grantees are required to submit a grant or event sponsorship application to the Fund.
Once the grant is formally approved, grantees can begin raising money toward the challenge in accordance with the terms of the 12-month grant contract.
For every dollar an organization raises up to an agreed amount, the Gay & Lesbian Fund matches that dollar. The Fund only matches new and increased donations made in response to this matching challenge. We do not match dollars that have already been pledged nor do we match contributions already received prior to the beginning of the grant term.
“We conducted our second annual fundraising campaign through direct mail solicitation, and the challenge component from the Gay & Lesbian Fund for Colorado was vitally important to increasing our donor base. As a young organization that is steadily trying to prove our relevance and impact in the community, having the strength and power of the Gay & Lesbian Fund behind us lent us credibility, as well as dollars.”
Bettina Swigger, Executive Director
Cultural Office of the Pikes Peak Region