Fundraising for Beginners: A Comprehensive Guide
What is nonprofit fundraising?
Nonprofit fundraising is the process of asking for support from donors which can include individuals, businesses, foundations, and government agencies. The term donation is broad and can be in the form of monetary support, in-kind contributions (non-cash gifts such as goods or services), time (such as volunteering) and various other ways in which people share their generosity.
Importance of nonprofit fundraising
Fundraising is important for nonprofits because it enables them to support the community in various sectors including healthcare, sport and recreation, arts and culture, and educational support. Fundraising can also raise the awareness of an organization’s mission, and build relationships with donors and supporters.
Many people working at nonprofits advocate for the government to provide more funds to support the sector; however; unfortunately that is not the current reality. To ensure a strong and sustainable sector, nonprofits must raise funds from the community. The work of an organization is not possible without sustainable funding as it will allow your nonprofit to do the work of its mission well into the future.
Myths about fundraising
Fundraising is ultimately about communicating the value of your work to the general community. Still, there are many myths about fundraising which can hold organizations back from achieving their goals. Some of the more common misconceptions are:
Fundraising is only about asking for money. People give in many different ways, and organizations should not discount the power of various forms of generosity, including those that don’t include cash. All the ways in which people contribute to your organization can be considered fundraising.
Fundraising is complicated. Fundraising is not a complicated mystery, but it is important to have a fundraising plan, and to be consistent.
Businesses give most of the money. Research has in fact shown that individuals are more generous than corporations.
People automatically give when there’s a need. There are some that believe people will automatically give once they see the value of your organization’s work in the community. While it is important to share the value of your cause with those in the community, most people still need to be asked before they give.
Types of nonprofit fundraising
There are a variety of different ways and sources that a nonprofit can use to fundraise and seek support from such as:
Individual Giving. Seeking gifts from individual people, families or groups.
Major Gifts. A substantial financial gift which can be instrumental in your organization’s future sustainability.
Grants. Refers to money that does not need to be repaid, typically from a foundation, government source, or corporation. In some cases, the money has to be used for a specific purpose outlined by the granter, or there are instances where a grant can be used for the general operating costs of your organization.
Fundraising Events. A nonprofit fundraising event is an event designed to generate excitement, engage volunteers, and even attract a broader community of supporters than an organization is used to. It can be a concert, silent auction, half marathon, neighborhood cookout, and more. Nonprofits use fundraising events to raise money to fuel their missions. Events allow donors and other community members to actively participate in the organization’s cause.
The nonprofit board of directors role in fundraising
Regardless of the type of mission or nonprofit status, all types of organizations require clear direction and oversight. This oversight is often provided by the board of directors, the governing body of individuals made up of different members with varying skills and levels of experience in fundraising. One of the board’s most important responsibilities is figuring out how your organization will be funded, and participating in that funding. Some of the basic functions a board should fulfill in regards to fundraising are:
Creating a plan to secure long-term funding.
Ensuring there is a fundraising budget.
Understanding the basic administrative process of how your organization handles donations.
Following through on tasks as it relates to fundraising.
Setting fundraising goals
Fundraising goals for your nonprofit are important because they will help guide your organization, and it makes the priorities clear for everyone. Ideally, goals should be set annually, and everyone from board members to staff should be involved in the process. Your goals should be:
Specific: There should be a clearly defined objective for performance.
Measurable: You should be able to quantify your progress.
Attainable: The goal should be realistic given your resources and capacity.
Relevant: The goal should relate to the mission of your organization.
Timebound: The goal needs a deadline.
Communicating your fundraising goals to the community
One of the most important aspects of fundraising is to be able to effectively communicate the benefits of your work to others, and to get them as excited about the cause as you are. One of the ways that your organization can communicate a consistent message about the value of your work and your goals is through your nonprofit case for support. When you focus on communicating then the work of fundraising becomes less about asking for funds, and more about communicating the benefits of your organization.
Finding donors to support your cause
Finding prospective donors for your nonprofit organization is important because it can help you identify potential major donors and learn more about their backgrounds. This can help your nonprofit craft an effective appeal and build strong donor relationships.
There are different ways to find potential donors for your nonprofit organization. One effective strategy, especially for small organizations that lack capacity, is to start looking for supporters within your own donor data. Whether you use donor management software or a spreadsheet, there’s a good chance your organization has a list of people that are already connected to your organization. These can be donors, volunteers, or those that exist in your personal network.
Building relationships with donors
The key to fundraising is to build strong relationships with your donors. This can be done in many ways such as: personalizing your communication with those that support your organization, thanking your donors for their support, keeping donors up to date about your organization’s progress, and creating opportunities for your supporters to volunteer.
Starting out in fundraising as a beginner can seem intimidating; however, luckily there is no need to start from scratch. There are many resources available to assist you so you are certainly not alone. Taking the time to learn the skills needed to become a stronger fundraiser, reviewing what others have done, and crafting a plan in collaboration with your team members will put you on the right track to helping your organization secure funding to support the work of your mission.
