Fundraising For NonProfits: Types of Fundraising
All charity is nonprofit but all nonprofit is not charity. However, nonprofit fundraising in important to both. There are several types of nonprofit fundraising activities. Some of them are listed below.
Annual fundraising implies raising fund for a year long project. There is a beginning and an end, during which unrestricted amount of donations is sought for. In this type of nonprofit fundraising, there usually is a regular set of donors to approach. There are mostly individuals – board members, special circle of friends and influential people of the society whom you approach for donations. The activity of collecting annual fund can be organized every year with the same group of people and with the same method, which saves you time and money, and is generally effective.
Corporate or Business fund
Most business house give donations for specific purposes. It also helps them to maintain their corporate image in line of Corporate Social Responsibility. It takes a bit of research in finding out which organization give money to what kind of projects. That will increase the probabilities in getting the fund. This process in the nonprofit fundraising is not a fast one. The companies usually take a lot of time to process your request, but once accepted it can be substantial and for a longer period of time.
National/ international government grants
Several government bodies, national and international has set amount of money alloted for certain causes. It takes some research in finding out and matching your project goals with the ones that’s on offer. These grants are mostly for certain period of time and not a long running one. However, if you win one grant, there is a high probability in winning in consecutive years.
Cause related marketing
Some business house work with nonprofit organizations by providing them product in their factory price. The charity organization gets donation in proportion to the sales of the product. The upside of such funding is that it’s restricted only by the volume of sales, and in the process the nonprofit fundraising organization also gets some publicity through the media campaigns of the commercial company.
Unrelated business income
It is when a charity nonprofit organization acquires a property and runs a business to turn it into a fund to run its activities. The kind of nonprofit fundraising activity ensures long term financial backing. They will happily be paying taxes and running their charity activities through the profit achieved by the business. Organizations with leaders with business skills can benefit from such fund raising activity.
Many charity organizations undertake regular fund raising exercise as part of the planned giving process. In planned giving, a donor or donors pledge to give certain amount of money on specific events, like his or her death or when they receive their salary or on their birthday.
Being sure of the type of nonprofit organization you are, and the kinds of funds you are seeking is every important in nonprofit fundraising. A well balanced plan including all these different types of fund collecting mechanism can mean success to your overall fundraising goal.