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- Appeal to a wide range of donors, from individuals to corporations
- Write a case statement that presents your story as compellingly as possible
- Choose, publicize, and carry out fundraisers suited to your organization’s goals
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What Is Fundraising?
Nonprofit organizations need money to pursue their missions, and soliciting individual donations is a major part of how they generate that money. Initiatives ranging from special events and direct-mail campaigns to grant writing and telethons all fall under the banner of fundraising. A fundraising effort can be as sophisticated as a celebrity-studded telethon for hurricane relief or as simple as a roadside car wash for a local youth group.
What Makes Fundraising Successful?
The success of a fundraising initiative hinges on your organization’s ability to:
- Set forth a compelling statement of why you need the money and whom it will benefit
- Identify prospective donors who will be receptive to your organization’s message
- Create a comprehensive strategy for approaching those prospective donors
- Assemble a dedicated team that’s well-equipped to execute the strategy
To capture the interest—and financial support—of prospective donors, your organization must state in clear, concise language the reasons why you’re fundraising. The phrasing of successful appeals conveys urgency by stating why you need the funds now, what the money will accomplish, and whom it will benefit. Today, there is also greater emphasis placed on how the donor will benefit, whether by feeling good or by advancing a personal interest or priority.
Fundraising vs. Sales
Fundraising and sales are not the same thing. Though donors
to a fundraising organization do often receive goods or services in return, the ultimate use of the funds is different. In business, the goal is maximizing profits and shareholder value, whereas in the nonprofit sector, the aim is public good. These differences in purpose influence the process by which funds are gathered, the amounts likely to be generated, and the sources of those funds.
In addition, there’s an emotional element of fundraising uncommon in business transactions. A person who’s committed to the empowerment of girls might buy a box of Girl Scout cookies regardless of the price or taste, whereas that person’s choice between two cookie brands in the grocery store might be determined by price, quality, ingredients, packaging, or other economic considerations.
Reasons to Raise Funds
Here are five general categories under which fundraising initiatives tend to fall:
- Operating expenses: Community organizations often use fundraising revenue to support the recruitment and training of volunteers, maintain office and activity buildings, keep membership and participation fees low, and provide services to the community.
- Building or capital expenses: Nonprofit organizations’ physical structures play a large role in their ability to plan programming and serve constituents’ needs. Many fundraising efforts are focused solely on upgrading or building new structures to support the organization.
- Program expansion: An organization’s ability to fulfill its mission depends on its community reach and the effectiveness of its programs. Some fundraising efforts are aimed solely at supporting program expansion.
- Long-term sustainability: Many nonprofits have established endowments as a permanent source of investment income to ensure long-term support for their work. Fundraising efforts may be focused on generating additional funds for such endowments once they’ve been established.
- Emergency response: News reports often include stories of the kindness of strangers who have pooled resources to help the victims of natural disasters or other catastrophic events. Emergency funds are created through informal efforts as well as through nonprofit organizations.
Beyond the money that it raises, a well-organized fundraising campaign can increase an organization’s visibility in the community and bring much-needed attention to its mission. It can also create a stronger organization identity and improve relationships among members of the board, the staff, and volunteers.
Who Raises Funds
Whether the fundraiser is a small school or a large, multinational advocacy group, every cause needs money to pay for programs and day-to-day expenses. In fact, organizations even need money in order to raise money, since the expenses associated with mailings, printing, and other fundraising materials add up quickly. Here are common fundraiser categories:
- Individuals: Caring individuals often launch fundraising initiatives without the support of nonprofit organizations to build support quickly for emergency relief or other assistance to community members.
- Schools: Educational institutions raise money to fund new equipment for athletic programs, pay for scholarships for students, upgrade classrooms, and provide training opportunities for teachers.
- Charities: Community organizations require donations to help feed the hungry, house the homeless, provide youth enrichment activities, and so on.
- Religious organizations: Churches, synagogues, mosques, and other religious groups raise funds in many ways, from weekly collection plates to direct-mail solicitations to spaghetti dinners. The money helps upkeep facilities, pay staff, and provide services to congregations and the surrounding community.
- Sports teams: Athletic organizations from the Little League on up use fundraising to cover the costs of equipment, uniforms, transportation, and referee fees.
- Advocacy groups: Activists frequently solicit financial support from community members and foundations that support their goals.
- Community foundations: Publicly supported organizations that make grants to initiatives in specific geographic areas often encourage a wide cross-section of community members to contribute funds.
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