Let us first learn about the word ‘fundraising’. It is the process of gathering voluntary contributions of money or other e-sources by requesting funds from individuals, businesses, charitable foundations or governmental agencies. Fund-raising is nothing but the effort of gathering the fund for any type of project.
Fundraising is a very important way to get money for operations. An organisation can be profit- or non-profit making. A non-profit organisation uses the money for some cause or development, and the welfare of society. For example, a charity group can collect money for the welfare of students, old persons, poor people etc. They will spend the collected funds for the education of students, offering scholarships to some, helping the old people for their livelihood, and providing money to the poor so they can buy essentials for survival.
A profit-making organisation, on the other hand, will need fundraising to develop a project that will go towards making money for the organisation. In this, there is usually an individual or group of individuals who have strong ideas for a project that can be profit-making. So, they interact with an investor, explain their ideas to them and convince them to invest in the project and share the profit.
Crowdfunding is a strong online tool for fundraisers. It is similar to Facebook, on which different types of videos, images and projects are posted every second. If an investor is interested in your project, they can invest in it. This remains the same for a profit-making as well as non-profit making organisation.
In this method, the fundraiser contacts the investor through post or email and explain their project, asking them for investment. This method can also be employed for profit as well as nonprofit organisations.
Peer-to-peer fundraising is a very popular approach to ask your well-wishers to raise the fund on your nonprofit organisation’s behalf. Our supporter community can use their power and network to quickly reach its fundraising aim by making new peer connections.
Event donation is another popular way of fundraising. By organising events such as a walkathon, gala or charity auction, organisers can collect funds for their organisation.
In this method, individuals or groups directly ask individual supporters for money. It is best to clearly articulate what you are raising money for when individuals ask. When making your list, work outward from the individual to the closest, best-known potential supporter — the former can commission members, people you have worked with, recipients of awards, etc.
Events can range from small to large in scale. Large events provide more visibility but take more effort to do as well, but if it is an individual, then they can have a small meal gathering over lunch, brunch or dinner. These can make money, but costs must be controlled rigorously. They also require a dedicated committee to plan and execute location and food contracts. Large events are great for exposure and press coverage.
A foundation grant is the most valuable thing in fundraising. In this, individuals, companies, government or any other organisation provide free monetary assistance. A private foundation provides grants for education, healthcare, natural disasters etc. If you have a plan to develop an online fundraising software, then you can contact an expert of Logicspice. We have more than 12 years of experience in developing a number of custom fundraising software. To check out a live demo, click here.