How does fundraising work?

Fundraising is a simple yet "intentional" act of gathering money from various sources for the sole purpose of supporting a project or event. The event can be a carnival, concert, book launch, or even a political rally. Fundraising is a sensitive concept, therefore it requires effective strategy and proper implementation that would not cause a flop on the potential project. 

What do you need to know before fundraising?

You need to know that fundraising is not just about getting the money but how to put it to use in a meaningful and sustainable way. So, while preparing for good fundraising, note the following points and take them to heart: 

Understand your donors: This helps you to connect with them better and you know what to present and when to present without blowing off your opportunity. Place them in the picture, know how they are capable of helping you and where they are located. Observe how they prefer to be addressed and be certain that they would want to be involved in your project. 

Categorize your donors: People reside in different places, have different interests, and want to contribute in different ways, so you should consider this while you plan your fundraising. You can name people who fall in the same category "A" and name another "B", this makes the planning process easier.

Create a working plan: At this stage, you must have realized what will work and what will not. This gives you the perfect roadmap to where you are headed. If you've had a fundraising program in the previous year, gather information on how it turned out and compare, see what you need to do better, and plan accordingly. See if you need to reach out to more people or if you need to cut something off the project that may not appeal to your donors. After you have mapped out a plan, you can go ahead to see the method you can use for the collection of funds and this usually starts with writing a proposal.

Who can write a fundraising proposal?

Any individual or non-governmental organization looking to raise some amount of money for a project can write a fundraising proposal. The proposal/letter is written to formally request funds from a potential donor and usually it contains the following information: 

• The purpose of the letter, values, and mission of the organization.

• Project description

• Budget

• Impact

• Acknowledge the donor

• Call to action (what do you need the donor to do?)

What are the methods that help to effectively raise funds?

Fundraising can happen in various ways and individuals or non-profit organizations can adopt any method because there is no perfect way to do it; each strategy works just fine but the most important thing is that it is properly utilized. Some of the common methods to raise funds include: 

• Email Marketing

• Online fundraising platforms

• Events

• Grants/Sponsorships

• Text messages

• Phone solicitations

Email Marketing: One of the very good parts of using email marketing as a way to raise funds is that it reaches a wide range of people. This means that organizations writing to solicit support do not need to spend exorbitant on text rates and they can work within a Iittle budget. NGOs can also leverage the opportunity of the email to add testimonials and stories from the previous project to inspire potential donors. This involves writing a catching message that will linger in the heart of the donors and cause them to want to be a part of the project. 

Online Fundraising Platforms: This is the most popular method and it can be traced down to the digital advantages associated with it. People can punch in some information on a website or an app to create a fundraising campaign and have people contribute when they share the links to their social media pages. The links go on and on, even beyond their network to other people who may seem interested in the project. Also, the accuracy that comes with using these online fundraising platforms is great because some of them have features that can allow you to track your progress while raising the funds. Examples of these online fundraising platforms include: 

• Gofundme

• Kick starter

• Circle up

• Naija funds

• Crowdcube 

• Indiegogo

• Patreon

Events

Events as a method of fundraising bring people together under one roof to make their contributions. It establishes a sense of community and synergy that shoots the proposed project to a level of excellence. While the goal of this event is to gather donations, it can also serve other purposes such as being in the face of the media and creating awareness which can translate to popularity and even more revenue than planned for. 

Grants/Sponsorships

Grants and sponsorships are common among organizations looking to raise funds for education, health, or a new business. These grants are usually funded by foundations that acknowledge that the cause of the fundraising aligns with their missions and values. Some of the foundations that fall into this category in Nigeria include:

• Tony Elemelu foundation

• Rehoboth foundation

• Cleen foundation

• Breast Cancer Association Of Nigeria(BRECAN)

• Organized Centre for Empowerment and Advocacy in Nigeria (OCEAN) 

Sponsorships are handled directly by businesses or companies and most times, it is a method to expand their marketing strategy or promote their business. These sponsors may help an event to happen financially which is why we see projects like :

• Dangote Foundation empowers women with 130naira million naira grant. 

• Cowbell increases Cowbellpedia Mathematics TV quiz show prize to 2 million naira. 

• 7UP sponsored the 2021 Marketing Edge summit.

Grants and sponsorship do the fundraising work well if all conditions are met and properly managed. 

Text messages

The " Bulk SMS" concept comes in handy for any organization that prefers to send text messages to ask for funds. The SMS method may ask the recipient to text "10" to 5555 if they are willing to donate 10,000 upward or text "20" to the same number if they are giving 20,000 and above. The target audience has to own a phone to help the organization utilize the method better. Also, there is so much accessibility and flexibility that comes with the method making it easier for everyone to participate.

Phone solicitation

Phone solicitation, also known as cold calling, is almost completely out-of-date. While organizations used it years ago and have helped to reach out to their audience faster, some call recipients have perceived the method to be intrusive and unacceptable. However, some mini NGOs can still use phone calls for fundraising as this may be effective for them.

The bottom line is that individuals and NGOs, whether small or big, usually have projects to accomplish and goals to achieve. One of the best ways to get projects running and complete is to do fundraising and convert it effectively and excellently.