September 21, 2023

Fundraising: Definition and Types

What is Fundraising? 

Fundraising is the process of getting money as donations, for a cause from, individuals and businesses. An individual who raises the money from them is known as a fundraiser. 

It was usually used to collect money for non-profit organizations, but, over the years fundraising has changed a lot and it is now performed to fund various important causes. 

These causes may involve anything, from helping a group of people injured in a war, to supporting religious causes. Traditional fundraising was performed offline whereas modern-day crowdfunding is performed online. 

The main political campaigns that have advantaged from fundraising. US President Barack Obama also coordinated a fundraising campaign before he got elected in 2008. Aam Aadmi Party is an amazing example of fundraising for political campaigns in India.

Need advice on Fund Raising
Let LegalSalah help you

Types of Fundraising

Fundraising is actually a challenging job. If you’re trying this for the first time, it can become quite difficult and hectic. We’ve listed out some fundraising methods below which you go through before starting out.

There are many types in which fundraising happens.

  1) Capital campaigns:

These are limited campaigns that are constrained by time for a particular project. As these are time-specific, they need a good amount of preparation and clever execution, that’s why many non-profits do this.

2) Corporate support:

As the name suggests, this is a philanthropic way of giving by a corporate company to an organization. The organizations include NGOs and other non-profits. Non-profits go to corporate companies and explain their mission. Few corporations give their causes either from a set budget. Few companies show their interest in sponsoring an NGO’s capital campaigns as it adds to brand outreach. It is called Cause branding.

3) Online Fundraising:

This method is one of the simplest ways to raise funds for a cause. As it is online, it can target a larger audience which might be impossible physically. Most non-profits in India aren’t using the power of online fundraising. You have got fundraising platforms like Milaap, which leverage crowdfunding to collect funds for your project.

4) Earned Income:

Earned income is the amount of money earned by producing goods or services given by a non-profit. For example, an NGO might create handmade goods and accessories like purses and sell it. If you’ve ever purchased any of those handmade accessories, you have contributed to that NGOs earned income. This usually needs a marketing plan and the “Being human” brand is an amazing example of it as anything you buy under the Being Human brand contributes to the Being Human Foundation.

5) Grants:

Grants are amounts of cash given to organizations or individuals for specific purposes. An individual who is chosen for a grant must keep track of all the data which may be required in the future. There are some grants by the government as well. 

6) Membership Campaigns:

This is one way of collecting people to know more about your organization and the work that you do. Gathering in members enhances the chances to raise more funding for your campaigns as many members get converted to donors in a short period. 

7) Special Events:

Raising in funds to support a cause from special events can prove to be the most effective way as you not only get funds but, enhance awareness about your brand and the importance of the cause. Many artists, like Justin Bieber, etc support a few charities, and they organize charity concerts to give a certain share of their earnings for charitable purposes.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *