Fundraising: what it is, types and how to run a fundraising campaign
Sources, types and steps to fund your projects, with email as your ally
Fundraising is the act of raising funds: all the actions an organization takes to obtain money and other resources to finance its projects. It is used mainly by NGOs, foundations and associations, but also by universities, hospitals, cultural projects and startups.
Resources are not just money. They can also be food, supplies, free services or volunteers’ time.
What does fundraising mean?
Fundraising combines the English words fund and raise. In Spanish it is translated as captación de fondos, recaudación de fondos or, in Mexico, procuración de fondos.
The person in charge of it is the fundraiser, or captador de fondos in Spanish. Large NGOs usually have an entire department dedicated to this task.
The term has two main uses:
| Area | What it means | Example |
|---|---|---|
| NGOs and nonprofit organizations | Obtaining donations, members and grants | A Christmas campaign to fund a soup kitchen |
| Startups and companies | Obtaining investment in exchange for a stake in the company | A funding round with investors |
Here we focus on the first, which is the most common.
Types of fundraising
Depending on where the money comes from, there are two main types:
Public fundraising. The funds come from public administrations: grants, agreements or public contracts.
Private fundraising. The funds come from individuals, companies or foundations.
Within private fundraising there are several sources, each with its own way of working:
| Source | How it contributes | Example |
|---|---|---|
| Individuals | One-off donations or membership fees | €10 a month as a member |
| Major donors | Large, personalized contributions | A patron who funds an entire project |
| Companies | Sponsorship, donations or corporate volunteering | A company that donates a percentage of its sales |
| Foundations | Grant calls | A banking foundation that funds social projects |
| Events | Charity dinners, races or concerts | A fun run with charity race bibs |
| Inheritances and bequests | Assets someone leaves to the organization | A charitable bequest in a will |
Companies that collaborate usually do so as part of their sponsorship or social responsibility strategy.
What is the difference between fundraising and crowdfunding?
Crowdfunding is a specific form of fundraising, not a synonym:
| Fundraising | Crowdfunding | |
|---|---|---|
| What it is | The whole strategy for obtaining resources | A collective online funding campaign |
| Who contributes | Individuals, companies, foundations and public administrations | Many people with small amounts |
| Duration | Ongoing, all year round | Limited, with a deadline and a goal |
| Channel | Email, events, phone, website, social media | A crowdfunding platform |
An NGO can launch a crowdfunding campaign for a specific project. But its strategy also includes members, grants, companies and events.
Get more donors by email
Send campaigns and newsletters to your members and donors with Mailrelay and measure the results of each send.
How do you run a fundraising campaign?
1. Define your goal. How much money you need, what for and by when. “Fund 500 meals this winter” mobilizes people more than “help”.
2. Get to know your donors. Who they are, why they support you and which channel they prefer you to use to reach them. A CRM helps you keep their data organized.
3. Tell a story. People give to people. Storytelling with real cases works better than isolated figures.
4. Choose your channels. Email, social media, events, phone or a landing page with the donation form.
5. Make donating easy. A clear button, few steps and several suggested amounts.
6. Say thank you and report back. Thank donors right away and later tell them what each contribution has achieved.
Email marketing in fundraising
Email is one of the most effective channels for getting donations, because it reaches people who already know the cause:
Welcome email. When someone subscribes, a welcome email introduces the organization and invites them to get involved.
Newsletter. A regular newsletter with updates and testimonials keeps members and donors engaged.
Fundraising campaigns. On key dates, such as Christmas or Giving Tuesday, a clear message with a goal and a donation button.
Segmentation. A member is not the same as a one-off donor. With segmentation, each one receives the message that suits them.
Thanks and results. An email that shows what the donations have achieved encourages people to give again.
If your organization is choosing a tool, this post on what NGOs should ask when choosing email software can help.
How Mailrelay helps you
With Mailrelay you can capture subscribers with forms, store whether they are members or donors in custom fields and send each group the campaign that suits it.
You can see who opens and clicks each send, and automate the welcome email. The free account includes up to 80,000 emails a month and 20,000 contacts, with human support by chat, ticket and phone.
Send your newsletters with Mailrelay
Up to 80,000 emails a month and 20,000 contacts for free, with human support on every plan.
Frequently Asked Questions
These are the most common questions about this topic.
What is fundraising in a nutshell?
It is the set of actions taken to obtain money and resources to finance an organization’s projects.
How do you say fundraising in Spanish?
Captación de fondos or recaudación de fondos. In Mexico, procuración de fondos is also used.
What is a fundraiser?
It is the person in charge of obtaining donations and resources for an organization.
Is fundraising only for NGOs?
No. Universities, hospitals, museums and cultural projects do it too, as do, in a different sense, startups looking for investment.
Which channel works best for attracting donors?
It depends on the audience, but email stands out because it reaches people who already know the cause and lets you measure every campaign.