Fundraising

Fundraising is a process by which non-profit organizations (NGOs), foundations, associations, etc.) collect resources in order to support their projects and activities.

The resources that are raised through fundraising are very varied, depending directly on the nature of the non-profit organization, including food, medicine, clothing….
But usually it is about raising money or finding volunteers.

1. Differences between fundraising and crowdfunding

Starting from a common goal, to raise money, let’s see the main difference between fundraising (typical of non-profit organizations) and crowdfunding (typical of small entrepreneurs and startups).

Fundraising has nothing to do with generating profit, the goal is not to make money just for the sake of making money and accumulating it, the funds and resources raised are used entirely to support specific projects and activities.

Crowdfunding, on the other hand, shares many aspects with fundraising, but crowdfunding consists of raising money and resources for profit, the primary purpose being to finance business activities and projects.

2. Types of fundraising

Non-profit organizations have different ways to raise funds, some of them are:

• Face-to-face.
  It is the traditional fundraising, it is usually carried out in the street, door to door or in businesses.
  The goal usually is to out to obtain recurring income.
• By phone.
  With the same purpose as the previous one, but in this case the recruiter contacts the potential donor through a phone call.
• Institutional.
  The idea here is to get resources from public institutions or private companies (subsidies, patronage, etc.).
• Media campaigns.
  They are used to attract more capital to the organization online or offline.
• Crowdfunding platforms.
  Also used in this type of platforms and concept of fundraising by non-profit organizations.
• In social media platforms.
  The current possibilities and potential reach of social media are very attractive for obtaining donations.
• Word of mouth (Member get a member).
  Attract members that will also attract people around them and thus increase recurring income.
• Sales, auctions and extra activities.
  This income is obtained through fair trade stores, raffles/auctions or any other activity not previously mentioned that generates direct income.

3. How to create a fundraising campaign

Creating a fundraising campaign is of vital importance for any non-profit organization.
In summary, the steps you should take to create a fundraising campaign are:

– Establish a clear objective. Without a goal or KPIs you cannot set the path that will lead to the expected results.

– Define the audience.
Audience segmentation allows you to be more effective in any type of campaign.

– Plan the actions. At this point, define where the actions for the campaign will be carried out: conventional mailing, email marketing, telemarketing, social networks, etc.

– Agree on deadlines
The planning will not be complete without clear deadlines for the completion of the various tasks that are necessary for the campaign.

– Create material or content.
Depending on the actions defined for the campaign, the texts to be used, videos, images, sales arguments, etc. must be created.

– Design the value proposition.
The story must be created to capture funds and connect with the audience.
It is essential to define a clear and differentiating message.

– Follow-up.
After launching the campaign, the campaign and its KPIs must be monitored to measure its success.

– Always thank donors.
After obtaining a donation, a personalized thank you should be offered to each donor, to acknowledge their positive action.

– Conclude and analyze the fundraising campaign.
Once the fundraising campaign is finished, the results should be evaluated.
This study will serve as a basis for improvements in future campaigns.