What is Fundraising?

Fundraising is the process of gathering voluntary financial resources from individuals or organizations to support a specific cause or project. It usually involves a collective effort by the assigned team or committee to plan and execute various activities to engage potential donors and, as the term suggests, to raise funds. Although often associated with charity events, fundraising can also be carried out in for-profit organizations, educational institutions, and community projects to bridge the gap between demand and supply. 

Types of Fundraising

There are numerous fundraising strategies, each with its unique approach and target audience. Some of the most common types include:

1. Corporate – This type of fundraising means partnering with corporations that can provide substantial financial support in exchange for brand exposure, community goodwill, or tax benefits. In this way, both parties mutually benefit from the partnership. 
2. Grants – Grants are typically awarded to deserving organizations that will use the financial aid to further their missions. Unlike corporate fundraising, grants from foundations, government agencies, or corporations must be applied for and do not necessarily benefit the grantor. 
3. Online – Virtual fundraisers have gained much popularity and support, especially in recent years. Some of these digital strategies are:
   • Crowdfunding Platforms like GoFundMe and Kickstarter, allow individuals to create campaigns and solicit donations from a global audience.
   • Social Media Fundraising on Facebook and Instagram. 
   • Online Auctions on websites like eBay and CharityBuzz.
4. Direct – This generally means soliciting donations directly from individuals by email, phone call, or door-to-door. Direct fundraising is a more personal approach than the previous ones. More often than not, the solicitor or fundraiser already has a relationship with the potential donor. 

Fundraising Ideas

Regardless of the type, all fundraising efforts have one common goal: to raise money. When the need arises, these are some fundraising ideas to consider: 

• Evergreen Fundraising Ideas: Run For A Cause, Volunteer Grants, Tree Planting
• Arts and Culture Nonprofit Ideas: Battle of the Bands, Local Art Exhibition, Food Festival
• Community Fundraisers for Nonprofits: Yard Sale, Pet Day, Charity Auction
• Online Fundraisers: Charity E-Sports Tournament, Social Media Campaigns, Online Fundraising Platforms 

How does fundraising work?

To ensure a successful fundraising event, there should be a clear objective from the get-go and a dedicated team to help see through its completion. This is how it works: 

• Planning: This initial phase involves setting clear objectives and timelines. Fundraisers must meet and identify the specific needs and goals of the campaign to help create a focused plan. Once the purpose is clear, it will be easier to move forward to the following parts of the planning step: choosing the suitable fundraising method, crafting a compelling pitch, and considering donors. 
• Execution: Launching the campaign involves promoting it through various channels, engaging volunteers, and managing the logistics of events or online platforms. That’s why this phase will require careful coordination and consistent communication to ensure everything runs smoothly.
• Monitoring and Adjusting: No matter the preparation, the chances of unforeseen circumstances derailing the event are never zero. Therefore, throughout the campaign, it’s crucial to monitor progress and make necessary adjustments to get back on track if challenges arise. This might include tweaking strategies from time to time or addressing any issues head-on.
• Completion and Evaluation: By the end of the campaign or the event, fundraisers must immediately but thoroughly process donations, deliver any promised rewards or acknowledgements, and evaluate the overall success. Key metrics such as the amount of funds raised, donor acquisition rates, and the overall impact of the initiatives will be a crucial benchmark to measure success. These metrics will also be helpful to identify the fundraising’s shortcomings.

In addition, this last phase is also the time to thank donors and share the campaign’s outcomes.