Nonprofits exist to promote public services and improve the quality of life, especially for people in need. Because of their legal status, nonprofits may not earn the same way as for-profit enterprises. In exchange for added tax benefits, nonprofits may not sell goods and services to derive profit from their capital.
Nonprofits are not institutions for private gain. To generate income, they may pool financial support from donors. In this way, nonprofits can continue their advocacies, help more people, and build better programs in the future.
Fundraising is the lifeblood of any nonprofit activity. If you are interested in creating a charitable institution or improving pre-existing ones, begin by mastering fundraising strategies for nonprofits. Fundraising is no walk in the park. Only those with unwavering patience and dedication will succeed in this endeavor.
How do nonprofits raise funds?
Here is a list of fundraising methods some of the world’s most successful nonprofits utilize:
Hand out solicitation letters
Sending solicitation letters is one of the most straightforward tactics in nonprofit fundraising. Since it does not involve large-scale media marketing, it is also among the cheapest options available. Draft an informative but heartfelt letter to your intended sponsors and convince them to solicit for your cause.
Petition for a grant
Nonprofit grants or fundraising grants are monetary donations from private and public donors. Organizers for nonprofit fundraising should research companies, foundations, and government agencies that offer grants for nonprofits that align with their values.
Opting for nonprofit grants is plausible because mostly, they are major one-time gifts or staggered sustenance that lasts for a while.
Contract a sponsorship
If you cannot find donors willing to offer a grant for your cause, the best next thing would be to contract a sponsorship. Sponsorships are typically short and minor agreements. Still, nonprofits should carefully handle these agreements because sponsors may choose to renew said programs.
Host an event
Hosting events is one effective way for not-for-profit organizations to solicit financial support. Since galas, exhibits, and concerts attract public attention, they are perfect for brand advertisement. Nonprofits can plug brands in exchange for donations.
In this situation, event planning becomes necessary. This skill creates money-driving opportunities for nonprofits.
Create a charity contest
Similar to other promotional events, contests also help brands promote their products and services. Unlike galas and the other previously mentioned events, contests grab more public attention due to the dynamic flow of events. Fundraisers for nonprofits can request sponsorship for the prices, venue, and other related costs.
Create a charity contest
Similar to other promotional events, contests also help brands promote their products and services. Unlike galas and the other previously mentioned events, contests grab more public attention due to the dynamic flow of events. Fundraisers for nonprofits can request sponsorship for the prices, venue, and other related costs.
Start a crowdfunding campaign
Fundraising for nonprofits through crowdfunding is getting more popular nowadays. This fundraising method is ideal for bigger goals that typically do not have support from specific sponsors. If a cause resounds to the public, crowdfunding can quickly raise a considerable sum.
9 Fundraising strategies for nonprofits
Gain an edge against other nonprofits in your future fundraising events with these tried and true strategies:
1. Utilize social media advertising
Social media creates a space for the global community to interact with one another. Since all sorts of people and entities gather within this digital bubble, nonprofits access a stage to advertise themselves and attract potential donors and other interested individuals.
There are several ways to approach social media. According to Forbes, keeping up with social media trends bolster nonprofits’ position in cyberspace even within a short period. Riding the waves of TikTok challenges and other eye-catching fads will help your nonprofit organization get noticed.
Nonprofit leaders, administrators, and managers should know that building and maintaining social media presence is a tough challenge to beat. Moreover, it is an ongoing commitment. If you are interested in growing your nonprofit organization digitally, it is ideal to become more skilled at being a social media strategist.
2. Maximize your virtual interactions
Besides social media engagement, there are other means your nonprofit organization can solicit financial support. One of the most classic fundraising strategies for nonprofits is hosting forums. Present a well-thought-out program to persuade interested individuals to invest in your causes.
Nowadays, you do not have to be physically present to host an event. Renowned charities like the World Wild Fund for Nature (WWF) and the United Nations International Children’s Emergency Fund (UNICEF) regularly hold internet-based activities to reach global audiences. This strategy helps both to earn revenue despite the lack of live events. It serves as a mode of passive income.
Compared to social media engagement, hosting events and making a mark on sponsors build a nonprofit organization’s credibility. Besides being known, charitable institutions must earn the trust and confidence of their patrons.
3. Coordinate with prominent social figures
Fundraisers for nonprofits typically earn sufficient and regular revenue when they have already established a brand that sponsors recognize. Nonprofits may not convince anyone to offer even a single dollar without such a brand. It is a common problem for greenhorns in fundraising.
Many newbies partner with recognizable social figures or institutions to deal with this situation. Local fundraisers tap with community churches or city sports teams to campaign for them. From that point, fundraisers can expand their linkages, starting with the supporters of said churches and sports teams.
Being partners with many famous individuals and entities is ideal, but nonprofit organizations should be careful who to associate with. Some individuals and entities may have clashing values with your community members or vice versa. This situation may confuse and frustrate nonprofits due to conflicts of interests.
4. Launch advocacy campaigns
Nonprofit organizations with strong public opinions may attract sponsors. Being vocal with public sentiments and other social issues can create an impression that a charity fights for specific causes and communities. If potential sponsors discover your organization and relate to your beliefs, they will likely send support through various means. Most of the time, sponsors choose to render financial aid.
Being strongly opinionated can lead to political involvement. It is allowable for nonprofit organizations to express political beliefs and preferences, but they must not engage in political campaigns. Unlike private entities, nonprofit organizations have legal restrictions that prevent them from openly influencing others to make a political choice.
For example, nonprofit organizations may not campaign for a presidential candidate. But this restriction does not prevent any candidate from endorsing organizations that align with their beliefs and openly support them.
5. Capitalize on sponsors’ self-satisfaction
About 96% of people who donate are motivated by a sense of responsibility to give back to society. They feel inspired after sharing some of their earnings with others, especially among less fortunate individuals. After donating, the sense of responsibility turns into satisfaction.
In sum, donating or sponsoring is a mix of willingness to help and self-gratification. While a donation is an act that benefits another, it can also be for self-satisfaction. It is essential to highlight this fact because fundraisers for nonprofits can take advantage of it.
Nonprofits can capitalize on these feelings by showing the positive impacts of the donation on the chosen beneficiaries. Seeing that their contribution has made significant meaning to others, donors or sponsors may feel the urge to donate or sponsor again in the future.
6. Undertake regular assessments
Most fundraising strategies for nonprofits focus on how organizations should be sensitive to the needs and preferences of sponsors or donors. Many forget that it is equally important to observe and understand the nonprofits’ needs. Nonprofits should undergo regular assessments to understand their strengths and weaknesses. If one fails to estimate its capabilities and failures, an organization may not function to its fullest. This inability can potentially raise the risks of loss and other possible mishaps.
Assessments also serve as benchmarks of previous charity events. No nonprofit organization is perfect, but the people composing it should continuously strive to do better and avoid similar problems in the future. With this mentality, nonprofits will have a more balanced view of fundraising and other related events.
7. Consider rebranding
Sometimes, change is inevitable. If a nonprofit organization no longer embodies the image that it previously represented, perhaps the next best decision is to undergo a rebranding. Rebranding can be a total flop or a success. If handled poorly, the change in the corporate image may discourage past, present, and potential sponsors from supporting the nonprofit organization. The rebrand can also create a disconnect between the organization and its values.
It is also possible that rebranding can cause tremendous success for nonprofits. The change can refine the organization’s image and values and align them according to the public’s vision. Rebranding also creates a distortion that may capture the attention of seemingly uninterested sponsors. Most of the time, the changes are drastic and noticeable.
Note that rebranding may also include changes in internal systems and the flow of organizational activities.
8. Consistently connect with donors
Knowing your donors is essential in building a reliable and consistent revenue. Since nonprofits cannot engage in for-profit activities and derive income that way, they rely on the goodwill and contribution of others. Understanding sponsors help nonprofits influence their sponsors by making decisions that will benefit them.
Track every participant during nonprofit fundraising events. Be as detailed as possible. Keep a record of sponsors’ demographic, psychographic, behavioral, and geographic segmentation. These factors will be your indicators of how sponsors may react to specific activities. For instance, some sponsors prefer supporting the local Black community because they have African American roots.
Studying the specific details of sponsors help nonprofits become more sensitive to them. There are times that nonprofits endeavor specific activities that disappoint the sponsors. Severe mishaps may prompt sponsors to withdraw their donations.
9. Offer membership exclusives
Nonprofits should value the loyalty of their sponsors. The recurring support and contribution of said sponsors can turn into a sustainable financial source for nonprofits. To encourage sponsors’ commitment to your organization and its beliefs, you may offer them exclusive and unique perks.
Membership perks come in different shapes and sizes. For example, premium sponsors may have a special seat separate from other attendees during galas. If your nonprofit has a country club, only premium members may have unlimited access to the golf court.
It is also possible that loyal sponsors may offer different amounts of contributions. Since some give more than others, it is only rightful to implement a caste system of attainable perks. Nonprofits should decide on an equitable distribution where sponsors who give more may receive more perks than those who do not contribute as much.
Recommended courses to help you with fundraising
The trends of fundraising are ever-changing. Keep up by expanding your academic repository. Here are three helpful courses you should check out:
Not-for-profit organizations regularly interact with donors to raise revenue and awareness for their projects. When the pandemic happened, many organizations unintentionally lost connections with their sponsors. A study exhibited that at least 37% of its US-based nonprofit organization respondents received significantly smaller donations since 2020.
Most nonprofits that stayed afloat during the pandemic underwent a digital transformation. It has become necessary for organizations to experience it to continue social change and promote charitable services. If you are fundraising for nonprofits, How To Use Digital Strategies In Nonprofit To Acquire New Donor Prospects is a course you cannot miss.
This webinar offers you a step-by-step guide on how nonprofits implement digital strategies. Nonprofit managers and personnel can upgrade their skills in building and maintaining relationships with donors through modern and digitalized techniques.
As a bonus, attendees can unlock resources such as sample letters, brochures, and grids helpful in attracting potential donors.
Many nonprofits fail to succeed because the management cannot establish good connections with sponsors. If you struggle with this matter, you might be interested in our special treat.
Securing Your Special Event Sponsorships For Nonprofits is a series of beginner-friendly webinars for caseworkers and nonprofit administrators. It starts by helping listeners understand what typically goes wrong when soliciting sponsorships from donors. From that point, you will learn proven tips and techniques that will enhance your skills in communication, management, organization, and so much more.
Many people do not realize what they are missing when approaching sponsors. Some people do not even know who is a good target, while others fail to create a lasting relationship with sponsors. If you have a burning passion for not-for-profit organizations, attending this course is an absolute must.
What is your nonprofit’s case for support? If you do not have a solid answer, consider finishing this course. Craft A Winning Case For Support In Nonprofits provides a critical guide to fundraisers for nonprofits and other stakeholders who wish to engage in this industry.
This course is beginner-friendly, but it also works as a perfect refresher for those with years of practice in fundraising. It breaks down what a case is and how each of its components plays an integral part in the overall success of nonprofit events. Every section contains lessons derived from the author’s diverse professional experience.
In less than an hour, discover multiple ways to increase the success rate of your nonprofit cases. This course does not only aim to educate interested parties but also inspire them to aim for excellence.
Find your ways to success
The lists above prove that there is more than one way to succeed in fundraising for nonprofits. Refrain from boxing yourself within a singular possibility because the better option would be to mix and match. Pick the strategies and combinations that work best for you.
Your privacy is secured and your information will not be shared
