The process of fundraising would be very challenging and require nonprofit organizations to apply a variety of methods to be successful, particularly when the deadlines are tight and pressure is high. As there are so many different types of fundraising, it might become even harder to choose the right model and strategy for your purpose. There are no one-size-fits-all options for every organization. With that in mind, we’ve listed here some common forms of raising funds and different types of fundraising, along with their pros and cons.
Some of the different types of fundraising include using partnerships and sponsorships, crowdfunding, events, or even going door-to-door to reap all the benefits of fundraisers.
Partnerships are one of the most common types of fundraising. By partnering with some companies in the neighborhood, non-profits would get major donations as sponsorships or grants. And this is a mutually beneficial relationship. Businesses are associated with a charitable cause, while nonprofits would utilize the resources these firms have to offer.
Partnerships would amount to huge sums of money, making it ideal for major projects. Only a single sponsorship would secure the future of the organization. However, the bureaucratic nature would make it difficult to work with grant-giving businesses. This form of fundraising would require you to spend a lot of effort and time.
Crowdfunding is a method in which many people each donating small amounts, such as $1, $3, $15, or $50. This type is increasingly becoming a popular option for many nonprofits as it is usually a big money fundraising idea. To maximize the funds, it is advisable to post updates regularly, use compelling videos and images, provide incentives, and share via social platforms. Also, you have to create a good story that inspires other people. Compared to traditional forms, crowdfunding requires less money and time to organize. However, most crowdfunding sites often charge fees, which would reduce the amount of money you receive at the end of the project.
Another popular form of fundraising is to organize an event. From a marathon, art exhibitions, gala dinner to a concert or party, these occasions would create an avenue in which donors would interact and learn more about your campaign, organization or even high school sports team. As events are often considered as fun, they might attract many people, thus helping you raise a large amount of money. More importantly, these events would raise the brand and visibility of your organization. You can also build up a mailing list to spend for your online fundraising as well. However, this type is quite labor-intensive and needs plenty of detailed planning. You can even sell food at these events if you’d like as well.
Though door-to-door fundraising has gradually diminished over the past few years, it is still successfully applied by many organizations. The method is labor-intensive, but it can directly affect people being approached. This is a great option for political organizations when they want face-to-face or one-on-one interaction. Also, in those areas where the Internet, email, or direct mail is unattainable, door-to-door fundraising seems to be the only option.
Regardless of your funding model, having several different approaches and different types of fundraising to choose from can be a good practice. To choose the best options for your needs, it might take trial and error. Also, keep in mind to establish good relationships with your donors, both online and offline to maximize the chances in the future.