The Nine Fundamentals of Fundraising

The Nine Fundamentals of Fundraising
Chris Grasso
7/25/2013
Updated:
4/24/2016

Whether you’re trying to raise money for a school, sports team, church group, or a charitable organization, there are a few fundamentals to keep in mind. By mastering these nine basic concepts, you'll increase your chances of success as you seek to raise money for new equipment, travel expenses, ongoing operating costs, and other expenses.

9. Know Your Audience

Ideally, you should target a group of people that inherently likes the entity for which you’re raising money. For example, if you’re raising money for a local high school softball team, it makes sense to do fundraising activities during the season when fans are gathered for games. Likewise, a church youth group naturally finds support from members of its church. Identify your key supporters and understand their relationship to your group.

8. Expand Your Audience

Don’t rely exclusively on the same group of passionate people to fund your group. Instead, think of ways to expand your base of potential donors. Holding events such as car washes exposes your cause to people driving through a particular geographic area and gives them the chance to donate. Seek out opportunities to have information about your organization and upcoming fundraisers promoted in the local media. Radio stories, newspaper articles, and television features significantly increase the number of people who know about your cause and how to help.

7. Build Relationships

Obtain or create a contact list of your hardcore supporters as well as anyone who’s interested in your group. Use this list to communicate non-fundraising information with the goal of cultivating a relationship with donors and potential givers.

Another way to build relationships is to create and maintain an active Facebook page for your group. In addition to helping people know your organization better, it empowers your biggest supporters to tell their friends about your group. That’s especially important when you’re engaged in a fundraising campaign.

6. Ask for Donations

If you want financial help, you have to ask for it. One low-cost way to fundraise is by setting up a donation box in a location where there are potential donors, or sending an email blast to supporters with a simple goal to raise a particular amount of money by a certain date. It’s best if the goal is tied to something specific. For example, try raising $500 in five weeks to fund new hats for the high school marching band. People like being a part of a winning effort to reach a goal that will have a tangible, positive impact.

5. Sell Something

Other than selling the vision that your group has, you can also sell products people want. Companies like ABC Fundraising help you sell merchandise, discount cards, snacks, cookie dough, candy, and even flowers. With ABC Fundraising, you get free, timely delivery of the products people order, and low or no initial costs to your group.
This kind of fundraiser generates participation from a broad group of people.

The reason that fundraising sales are so popular is because they offer a good return on your investment of time. The Association of Fund-Raising Distributors and Suppliers estimates that sales-based fundraising generates close to $1.4 billion per year.

4. Be Transparent

People want to know how your organization plans to use their donation. Be specific and clear in describing why you’re raising money. With the exception of hardcore supporters, most donors don’t respond to a plea based on your organization’s tight budget. Instead, donors want to make a positive impact on people. As often as possible, tie your fundraising to the way it will make people’s lives better.

3. Give Something Away

From raffles for the latest tablet to giving away a new home (St. Jude Children’s Research Hospital), charities and other groups raising money understand the power of giving something away. The basic idea is to capture donations from people who may have little or no interest in your organization, but want the chance to win the prize.

You may be able to leverage more dollars by increasing the number of entries based on the size of the contribution. One entry may sell for $10, but for a donation of $50, the donor receives seven entries. Be sure to consult applicable state and federal laws before you announce and start your giveaway.

2. Seek Corporate Support

Many businesses have set amounts in their budget for charitable giving. Local businesses in particular may be keen to support local sports teams that promise to put the business logo on their team jerseys. Corporate underwriters often kick in dollars for local visual and performing arts events and groups in exchange for recognition in a printed program.

Some companies have a set time of year when they make a decision about which charities they'll support for the next 12 months. So, don’t be surprised if businesses ask you to come back around that time. Keep a list of these companies and when you need to call them back so your group or organization receives consideration during the planning process.

1. Enable Online Donations

Offering a place on your website where donors can give is essential. People are accustom to paying bills online, Internet shopping, and banking with their computer. Also, if you get a successful social media campaign underway, you want people to be able to respond to your appeal for funds immediately. Especially if you’re using an emotional appeal via social media, people may want to donate while they’re experiencing the feelings your fundraising message aroused. You may lose out on hundreds or thousands of dollars if you rely on people to write a check and put it in the mail.

Be sure that online donation systems are secure. Donors want to know their financial and personal information is protected. Additionally, be transparent if you’re using an online donation collection system that takes a percentage of each contribution. Shop around and find the best deal possible if you outsource online donation collection.

If you follow these basic steps, you'll enhance your fundraising efforts. Remember that you need to make your plea for funds heard in a sea of many worthy causes. Being communicative, innovative, and transparent gives your fundraising efforts credibility.

 

Chris is a freelance writer who also enjoy going fishing. He enjoys the sunshine and all kinds of outdoor activities. Email Chris at [email protected]
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