Every fundraiser has been a beginner once, and starting at a non-profit with no fundraising experience can be scary. The strategies that work for fundraising at non-profits are not always obvious and take some practice. The success of your non-profit depends on how well you master and execute these strategies.
As I continue to grow and develop my fundraising skills, I have put together a guide for newcomers and non-profit community managers, with skills and strategies to help you take your fundraising to the next level.
Hopefully, you find it easier to meet your annual funding goals after reading this blog post.
Understanding the Landscape
Before you set out to become a fundraiser, it is important to understand the world of fundraising and what you need to succeed in it.
Different types of fundraising
There are different ways to get donations (or funds) into a non-profit. Many fundraising activities belong to one of four main ways to fundraise.
- Individual giving
- Corporate sponsorships
- Grantmaking
- Events and Campaigns
Most non-profits have one or two of these as their main sources of funds. However, it is good to understand all four to take advantage of every funding opportunity.
- Individual Giving
Individual giving refers to donations by individuals as opposed to organisations or foundations. This includes one-time donations, recurring gifts and major gifts from private donors. It accounts for the majority of charity donations given to non-profits and is arguably the most important form of fundraising.
Raising funds from individual donors requires building genuine relationships with your supporters, especially if you intend to get recurring donations. It is ultimately rewarding since it has a low barrier to entry and can offer a more predictable source of funds compared to grants. Leverage social media, a solid brand image and lots of impact stories to tug on the hearts of supporters.
- Corporate sponsorships
Corporate sponsorships are financial or in-kind contributions from businesses in exchange for recognition, marketing benefits, or other forms of value.
Unlike pure philanthropy, sponsorships typically involve a business transaction where both parties receive tangible benefits. The nonprofit gets funding while the business gains visibility, goodwill, and marketing opportunities.
You can take advantage of corporate sponsorships during events. Get companies to pay for tables at galas, or sponsor a marathon. We recently partnered with a top AI company for our AI Hackathons.
- Grantmaking
Grants are funding awards provided by foundations, government agencies, or corporations to support specific projects, programs, or organisational needs. They typically involve a formal application process, specific requirements, and reporting obligations. The application process can be tedious, and the chances of securing an open grant are low, as they are very competitive.
- Events and Campaigns
Fundraising events go beyond simply raising money. They raise awareness about your mission, create shared experiences that strengthen community bonds and deepen supporter connections to your cause. Typical events include galas, formal dinners and athletic events like marathons.
It is important to understand the economics of fundraising events. They require a lot of time and money to execute, so you have to begin planning early. Your guest list matters since the people you invite need to connect with your impact and be in a position to give. If properly done, event fundraising could generate a lot of revenue for your nonprofit.
The fundraising cycle
The fundraising cycle is a systematic process that most organisations use to attract, acquire, and retain donors. It is called a cycle because each step leads to the next.
You are fundamentally just building and maintaining these relationships during the fundraising cycle. The first step is to figure out who would be most interested in supporting your organisation (identification). These could be past volunteers or people who have given to similar organisations. Next, figure out who is most likely to donate/ who has the funds (qualifying). Then, build the relationship. Send out emails, make phone calls and organise gatherings where you can form a connection (cultivating).
At this point, you can request a donation from them (soliciting). After they have donated, send them thank you emails and updates showing how their help has made an impact (stewardship).
For this, you should adopt a good CRM and get skilled at relationship management.
Building Your Foundation as a Non-Profit
Storytelling
A successful non-profit needs a mission and an impact story. Getting these is easy because doing good in the world will always be inspiring. Ensure you leverage storytelling through social media and a strong brand image to create a compelling case for why you should get support.
Your donors need to feel connected to your story and the organisation. Use a CRM like Salesforce, DonorPerfect or Bloomerang to keep track of all interactions with your supporters, profile donors and view transactions.
Legal Considerations and Compliance Basics
Soliciting donations comes with significant regulatory responsibilities that vary by location and fundraising method. At minimum, most organisations need proper tax-exempt registration (such as 501(c)(3) status in the US).
Also, fundraisers must maintain transparent financial records, provide proper gift acknowledgements that meet the requirements for tax deductions, safeguard donor data under privacy laws, and avoid deceptive practices.
Failure to meet these legal obligations can result in significant penalties, loss of tax-exempt status, and damaged donor trust, making compliance not only a legal necessity but also a cornerstone of ethical fundraising practices.
Essential Fundraising Skills
Communication
Being able to attract volunteers and donors depends fully on how well you communicate. Have a brand out there on social media and craft a decent website with a compelling narrative. Keep up with email campaigns for events, activities and do not let your community feel ghosted.
Prepare before solicitation
When it comes to making a fundraising request, things can feel uncomfortable. At the end of the day, no one wants to feel pushy. It is important to note that the awkwardness usually comes from the fundraiser's fears. Donors expect you to ask for support, and they are happy to oblige.
Prepare before solicitation. Research your prospect’s past giving patterns and giving capacity to make sure your request aligns with their values. For a request to be appreciated, there needs to be a strong connection between the donor and the organisation. Make sure you have cultivated a positive relationship with the donor and that they are fully immersed in your story.
Phrase your ask as an opportunity rather than an imposition. You're inviting supporters to participate in meaningful work they already care about.
Data Tracking and Analysis
Monitor key metrics like donor acquisition cost, retention rates, average gift size, lifetime value, channel conversion rates, and ROI for each activity. Implementing a proper database system, like a simple spreadsheet or a CRM, centralises donor information and makes it easy to personalise messages.
Part of the requirements by large donors and grant foundations is reporting. They will need to see your financial reports and a breakdown of how you are using donations to do impactful work. So, make sure you are evaluating performance.
Gratitude and Providing Updates
Finally, send out thank you emails and messages to volunteers, donors, and any person who supports your organisation. It is likely that someone who started as a volunteer could end up becoming a recurring donor. Cultivate every relationship you can.
For your donors, keep updating them about the progress you have made. You can do this by sending out progress reports and newsletters annually or quarterly.
References
Fundraising 101: The Ultimate Guide for Fundraising Beginners
