Nonprofit Fundraising Strategies
Companies
Companies and businesses have their own ways to give back to the nonprofit community. Check out these four avenues for corporate giving.
Each section describes the fundraising method, highlights its importance, suggests ways to get started, and offers up best practices.
| Matching Gifts | Volunteer Grants |
| Corporate Grants | In-Kind Donations |
Individuals
Individual giving makes up nearly three-fourths of all charitable contributions.
People in your nonprofit’s community and around the world can give to your organization in a multitude of ways. Just click on one of the items to the right to learn more about it!
Each section describes the fundraising method, highlights its importance, suggests ways to get started, and offers up best practices.
Foundations
Foundations distribute grants to qualifying nonprofits who submit applications. Learn more about the two main types of grants.
Each section describes the fundraising method, highlights its importance, suggests ways to get started, and offers up best practices.
| Community Foundation Grants | Private Foundation Grants |
How Nonprofits Can Raise Money From Companies
Matching Gifts
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Matching gifts essentially double eligible donations that a company’s employees make to your nonprofit. After a donor makes a contribution, they can submit paperwork to their company’s HR department. If the donation and your nonprofit are eligible, they will cut a check to your nonprofit for the same amount as the initial donation. Matching gift programs allow companies to exercise their corporate philanthropy initiatives. They also help donors give twice as much without opening their wallets a second time.
In reality, it’s completely up to donors to submit the paperwork for matching gifts. However, that doesn’t mean that your nonprofit can’t actively promote matching gift programs to your donors! In fact, you should let donors know about matching gifts in all of your communications, on your donation page, and on your acknowledgement screens. If donors don’t know that matching gift programs exist, they won’t know to fill out the requests.
#1: Use a matching gift tool. A matching gift tool (like Double the Donation’s!) will help your donors research their employers’ specific matching gift programs. They can look up forms, guidelines, deadlines, and restrictions during the donation process or directly thereafter. #2: Thank donors and employers. If a company sends your nonprofit a matching donation, make sure you acknowledge both the original donor and the corporation.
Volunteer Grants
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Volunteer grants are sums of money that companies will distribute after employees have volunteered a minimum number of hours with an eligible nonprofit. There are individual volunteer grants that reward one employee’s volunteer efforts. Similarly, team volunteer grants are made after a group of employees volunteer together at a nonprofit for a certain number of hours. Volunteer grants allow corporate volunteers to give back monetarily to the nonprofits that they care about. Additionally, nonprofits benefit by receiving both volunteer time and charitable donations.
Just like matching gift programs, volunteer grants rely on supporters to actively submit their grant requests to their employers. However, you can still promote volunteer grants to your loyal volunteers and encourage them to submit their applications to their company’s HR department. Mention volunteer grants in your communications to volunteers and during special volunteer days and events. The more your supporters know about volunteer grants, the more likely they’ll be to submit those requests to their employers.
#1: Include volunteer grant info in your volunteer-centric newsletters. If you send out a special newsletter to your volunteers, use it to get the word out about volunteer grants and the impact that they can have. #2: Make sure your volunteers know how volunteer grants work. Make sure that you explicitly lay out the general rules for the basic volunteer grant programs. #3: Encourage corporate volunteer days. If you know that a local company has a team volunteer grant program, encourage groups of employees to volunteer together at your nonprofit. You can even form a closer corporate partnership with that company that will be beneficial down the line!
Corporate Grants
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Corporate grants are local, state, or national grants that companies distribute to eligible nonprofits. Sometimes, a company will select a nonprofit to give the money to. Other times, nonprofits send in their grant applications and the company will make a selection from the applicant pool. Companies tend to issue grants via their corporate philanthropy or corporate social responsibility offices or through a corporate foundation.
If a company selects a grant-recipient internally, there isn’t a whole lot an organization can do. However, if there is an open application process, the nonprofit should attempt to apply for the grant (when it fits in with the guidelines). Grant applications can take months to complete, and nonprofits should take the process very seriously.
#1: Use professional resources, when necessary. Your staff members may not be very well-versed in grant writing. If that’s the case, you can hire a professional grant writer. Just make sure that your budget has enough room in it for professional help. #2: Apply for relevant grants. If you’re an clean-air nonprofit, you probably don’t need to apply for a grant from a company focused on coal-based energy. Make sure that you apply for grants that align with your nonprofit’s mission.
In-Kind Donations
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In-kind donations are contributions of products or services that companies give to nonprofits. They usually encompass things like food and drinks for an event, free or discounted tax services during tax season, or equipment for a building project. In-kind donations usually come from companies with whom the nonprofit has a standing partnership or relationship with. In-kind donations help to ease a financial burden and allow nonprofits to complete the projects and host the events that they need to.
Most in-kind donations are given by companies who have close ties or partnership with the nonprofit in question. Therefore, you’ll need to make sure that you’re asking the right company for an in-kind donation. You’ll also want to start by formalizing your request with a letter sent to the CSR or corporate philanthropy office. If a company has specific guidelines for requests for in-kind donations, make sure that you follow them.
#1: Start with your closest connections. Ask for in-kind donations from companies that are physically close to yours and with whom you have an existing partnership. #2: Ask the right company for the right kind of donation. If you need flowers for your gala, ask a florist. If you need food for your next auction, ask a catering company. Find the right corporate donor for your needs. #3: Ask the right person. Instead of emailing and calling al the wrong people, find out who is in charge of philanthropic initiatives and contact that person first.
How Nonprofits Can Raise Money From Individuals
Online Donations
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Online donations are contributions that a donor makes via a nonprofit’s online donation page. This donation method has quickly become the new norm due to the fact that nearly everyone is online in some capacity. Nearly every organization accepts donations online. While some might use a PayPal button, many opt to build customized donation forms on their website. These donation forms use dedicated payment processing tools to directly transfer funds to your organization’s bank account. Online donation forms allow nonprofits to raise money from virtually anywhere! As long as their website is up and running and donors have access to the internet, a nonprofit can fundraise. Not only are your efforts no longer constrained by physical location, but a good payment processor can also open up the world to your cause by processing donations from countries across the globe. Because most donors are on the web looking for information about organizations anyway, an online donations page is also extremely convenient for nonprofit fundraising.
First, you’ll need to optimize your website so that it creates the best giving experience for donors. Create a sleek and aesthetically-appealing site that supporters will want to stay on through the donation process. Then, you’ll need to create a great online donation page. You can create a form in-house with the help of your web developer. However, there are tons of tools that can help you build a great form in ten minutes or less with pre-existing features that provide a smoother donation process. Finally, make sure that donors can quickly find your donation page — prominently feature it throughout your site with clear CTA’s to help drive donations! Once you have a solid system in place for accepting gifts online, you’ll be able to use your incoming donation data to continually refine your strategies over time. Data management solutions and AI-driven software like Dataro have made it easier than ever to predict who will likely donate again, giving your future campaigns an immediate leg-up.
#1: Keep your form simple. Donors shouldn’t have to fill out multiple required fields and click through more than one page to give to your nonprofit. Make sure that the donation process is easy from start to finish. #2: Maintain consistent branding. If your donation page looks nothing like the rest of your website, donors will likely become suspicious and abandon the process. Include the same colors, fonts, and wording on your donation form as the rest of your site. A good donation form tool will provide easy customization options that help you maintain your organization’s image across your donation pages! #3: Integrate forms and payment processing. Funding your organization’s mission is integral to your operations and all those you help. Using a donation form that easily integrates with a dedicated payment processor can ensure that your donations reach your account reliably and quickly!
Online Shopping Fundraisers
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Online shopping fundraisers are a method of fundraising that allow individuals to support your nonprofit through their online purchases. Nonprofits can launch this fundraiser by partnering with an online shopping program. The right program will have many participating retailers, including ones that your supporters already shop at normally. Online shopping fundraisers are commonly thought of as passive fundraisers. However, in reality they do require a reasonable amount of marketing to encourage supporters to continue shopping through your nonprofit’s app or browser extension. With this one stipulation, online shopping programs are one of the easiest fundraisers to run as they can be hosted throughout the entire year and charge your supporters no additional costs to participate.
Your nonprofit will need to partner with an online shopping program. These programs handle a few core essentials: facilitating relationships with the participating retailers, providing the app and browser technology, and creating a branded experience for your nonprofit’s supporters when they make their purchases. Once you’ve partnered with an online shopping program, your nonprofit will just need to encourage your supporters to download the app or browser extension and remind them to make their online purchases through them. Some shopping programs also offer an online mall, allowing your supporters who prefer not to make any downloads to contribute to your cause.
#1: Partner with the right program. Do your research before partnering with an online shopping program. The best shopping programs will have partnerships with retailers your supporters already shop at, ensuring they won’t need to go out of their way to support your cause. #2: Promote your program regularly. As mentioned, shopping programs do best when they are regularly promoted. As supporters can participate in an online shopping program at no personal expense, the majority of your supporters will be happy to use your app or browser extension. Oftentimes, supporters stop participating not because they’re no longer interested, but simply because they forgot to log in. A little reminder from time to time can attract new supporters and help those currently participating! #3: Celebrate your top earners. Your shopping program should provide a report of your top earners. Celebrate their accomplishments and encourage them to continue contributing by saying “thank you.”
T-Shirt Fundraising
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For a t-shirt fundraiser, you simply create a design that encompasses your cause, either in coordination with another fundraiser or as a standalone campaign. When you launch your campaign and promote the t-shirts, your nonprofit’s donors can buy the shirts, showing their support for the cause. They’ll love receiving a tangible item that represents your cause in exchange for their contributions. When your t-shirt fundraising platform grants you complete control over your design, you can create t-shirts that fully represent your mission or commemorate an important milestone. Each time your supporters put on their t-shirts, they’ll be reminded of your worthwhile cause, forging a deeper connection to your organization. Not to mention, t-shirts have the added benefit of marketing your cause. Each time supporters wear their t-shirts in public, they’ll act as walking billboards. Others will undoubtedly take notice if your t-shirt outwardly promotes your nonprofit with your logo, slogan, colors, and other branded elements. In turn, they’ll be inspired to ask about your nonprofit or research the cause on their own.
First, choose a t-shirt fundraising platform that offers all the apparel options and design tools you need, like Bonfire. Designed for nonprofits, Bonfire is a leading t-shirt fundraising platform that offers quality apparel that can be customized to suit any cause. Upload your own artwork or start from scratch, leveraging their templates and free graphics. Create your design with the exact styles and colors you want. When you’re ready, launch your campaign and promote the opportunity to supporters. Buyers select their size and color preferences and then place their orders, and Bonfire will take control from there. They’ll print and ship all orders directly to buyers, and you’ll collect 100% of the profits you raised. With Bonfire, your team can leverage a whole suite of t-shirt fundraising tools. Verified nonprofits receive a customizable profile page to highlight their story, active campaigns, and key fundraising stats. You can send personalized thank-you notes, and leverage reduced donation fees from 8% to 3.5%. You can even equip supporters to launch their own peer-to-peer t-shirt fundraisers that benefit your organization. They can design the apparel in line with your branding standards and select your nonprofit as the beneficiary. Then, your organization will receive a direct payout.
#1: Combine t-shirt fundraising with other campaigns. The great thing about t-shirt fundraisers is that they’re highly versatile. You can combine them with a number of other campaigns, including peer-to-peer fundraisers and events (like walks and runs or conferences). #2: Choose a platform with no upfront costs. Platform fees and high payment processing fees will take away from your total profits, so the platform you choose should limit any additional costs. #3: Fully brand your design to your cause. Your design should incorporate any branded elements that represent your cause, like your logo, colors, and slogan. Remember, your t-shirts double as a marketing tool, so it should be apparent that your nonprofit designed it.
Text Donations
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As we now know, an effective fundraising campaign engages your donors and effectively meets their needs. A good example of this is text donations. These days, 96% of Americans own a mobile phone of some kind, bringing fundraising to donors’ hands no matter where they are. Made up of both text-to-give or text-to-donate efforts, text donations are contributions that supporters can make with a simple text from their mobile phone. What is the difference between text-to-give and text-to-donate? Text-to-give is a carrier-based mobile fundraising method. Nonprofits simply set up a short code (shortened phone number), a campaign keyword, and a predetermined donation amount. Whenever donors are inspired, they simply text the keyword to the short code and the donation amount is automatically billed to their cell phone bill. When using text-to-donate, nonprofits set up a specific number as well as a campaign keyword. Donors then text the keyword and amount to the nonprofit’s specific number. Then, they’re sent the link to the nonprofit’s mobile-responsive donation page. Once a donor fills out their info on this form, they never have to fill it in again. They just text the keyword and donation amount to give! Text fundraising can be used to supplement any effort but is especially effective during urgent fundraising efforts. Because it enables people to give quickly and conveniently, it’s great for needs that are more immediate. For example, many successful text donation campaigns were created in response to a national disaster, like the Red Cross text donation campaign for Haiti.
First, you’ll need to find a great text donation provider. To truly perfect your nonprofit fundraising strategy, you need reliable and capable tools to support you. Ensure you find a dedicated and comprehensive solution to help you raise money via text message. Then, you have to determine how you’re going to implement text donations. Will you only use it at fundraising events? Will it become an integral part of your overall nonprofit fundraising strategy? Whatever you choose, you’ll then need to promote text giving to your donors along with easy-to-follow instructions. That means posting your text fundraising number and guidelines on your website, social media accounts, newsletters, and direct mail offerings.
#1: Pick the right provider. Some providers only offer text-to-give or text-to-donate, and some offer both. Consider which solution is right for your efforts. #2: Choose a memorable keyword. If you want donors to give over and over again, make your keyword easy to remember and type. Try to avoid words that are overly complicated and might lead to typos. #3: Properly promote text fundraising. Because it’s a fairly new giving avenue, many people might not immediately think of texting as a viable fundraising method. Promote your text giving option so that donors know how easy it is to give to your cause.
Peer-to-Peer Fundraising
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Peer-to-peer fundraising is a way for your supporters to fundraise on your organization’s behalf. Peer-to-peer fundraising is usually tied to an event like a marathon or walkathon and requires your supporters to reach out to their friends, family members, and coworkers to ask for donations. Contributions are made through individualized donation pages that are linked up to your nonprofit’s main donation form. When supporters fundraise on your behalf, they are essentially recruiting new donors, giving your donor acquisition rates a boost! Additionally, peer-to-peer fundraising is also the most common way to fund events like marathons, walkathons, fun runs, and cycling events.
First, you’ll need to decide what event you’re going to pair your peer-to-peer fundraising efforts with. It tends to work best with active group events, like races. Then, you’ll have to purchase a great peer-to-peer fundraising platform. Make sure you pay attention to the platform’s features and pricing. You don’t want to lose money while you’re trying to raise money! Next, start recruiting supporters. You’ll need dedicated donors and volunteers who have shown a great interest in your organization in the past. Then, give them the materials to fundraise on your behalf! These materials could include social media templates or special training sessions.
#1: Choose the right supporters. Someone who has only given to your nonprofit once probably isn’t the best choice for a peer-to-peer supporter. Instead, look at past involvement and giving patterns to select dedicated fundraisers. #2: Offer support and training. Most of your supporters will have no fundraising experience. Give them the tools they need for successful fundraising. These tools include templates for emails and social media posts as well as video training seminars and email support. #3: Tell a story. Nothing inspires people to give more than a personal story. Focus your general peer-to-peer efforts around one specific story, Your fundraisers can talk about their own experiences when asking for donations. The more personally connected someone is to a cause, the easier it is for them to ask for donations for that cause.
Annual Campaign Donations
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Annual campaign donations are contributions for a nonprofit’s annual fund which is comprised of the money that keeps an organization running. Other campaigns focus on raising money for specific projects. An annual campaign is more of a general operational fund. Annual campaign donations can be checks, online contributions, text message donations, and more! Donations made to an annual campaign help keep a nonprofit running. Annual fund donations pay for salaries, office supplies, marketing materials, and equipment.
Nonprofit fundraising for an annual campaign should take place before any specific campaigns are launched. You’ll need to prepare marketing materials and start asking for donations from a variety of supporters in different ways. An annual fund is an ongoing process, so the work never really stops. But once you have a loyal base of donors who give regularly to your organization, your annual campaigns will grow each year.
#1: Highlight how donors can help you. Donors won’t just donate money because you ask for it. You have to explain how an annual campaign donation will ultimately help your organization further its mission and accomplish its projects. #2: Get everyone involved. An annual campaign is an “all hands on deck” affair. It cannot be successfully run by one person. Instead, encourage your board members, other leadership, and everyone in your nonprofit’s office to play a part in the annual campaign. Every little bit counts!
Event Donations
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Event donations are contributions that supporters make during a fundraising event such as a gala, walkathon, or charity auction. Depending on the type of event, the money raised might come in different forms. For instance, during a charity auction, fundraising dollars might come in the form of winning bids, whereas at a gala, donors might text in their donations or contribute via a donation kiosk. Event donations are just a small part of the event fundraising puzzle, but they’re important because they can encourage many people to give at once. Did you know that influence is a great motivating factor? If someone at your gala sees the person sitting next to them contributing to your cause via text message, they might be encouraged to give as well!
First, you’ll need to decide what kind of event you’re going to host. As any seasoned fundraising professional will tell you, planning and executing a fundraising event is no easy task, and most of them require months, if not a year, of preparation. To supplement your planning process, many nonprofits use event management tools to stay organized throughout the planning stage. Then, figure out how you’re going to ask for donations during the event. The method you choose will likely depend on the type of event you’re hosting. You could make a live appeal at some point during the event and encourage donors to use your fundraising tools to give. Or, you could set up a donation table or booth where those who want to can make a contribution.
#1: Choose the right event for your organization. If you’re a small and fairly new nonprofit, it’s not a good idea to host an elaborate auction or gala that will cost more money than it will bring in. Start small and plan events that will make money and be enticing to donors. #2: Find the right giving method. If you want people to text-to-give, invest in a great mobile giving platform. If you plan on setting up a booth or table, make sure you get a credit card reader so that donors who don’t have cash can still contribute. #3: Make several live appeals. Donors might not know that they can give during your fundraising event unless you tell them so! Actively promote any giving software that you’re using and make sure that attendees know where your donation table or booth is.
Pledge Fundraising
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Pledge fundraising is the best way to help your campaign gain momentum and draw on a wide variety of supporters. The process behind a pledge fundraising campaign is quite simple. Your supporters pledge to donate money by a specific point in the future (determined by your organization). This type of fundraising campaign allows your organization to offer a wide window during which supporters can gather and prepare their donation, ensuring more people are able to participate in your fundraising campaign. Pledge fundraising campaigns are most often held in response to natural disasters, political campaigns, infrastructural obstacles. However, they are also a popular form of fundraising for other, lower-risk types of fundraisers such as event-a-thons.
The best thing your organization can do to prepare for a pledge campaign is invest in a quality pledge software. Once you have equipped your team with a pledge software that will help you keep organized, it is important to set concrete goals and deadlines for your pledge campaign. Set clear and attainable goals for your organization and communicate these to potential pledgors, emphasizing that without their support you will not be able to accomplish the good you want to do for your cause. After concluding your pledge drive, make sure you effectively and efficiently collect the pledges and use the necessary tools to streamline the process!
#1 Personalize your ask. Make sure your fundraising ask draws on people’s emotional connection to your cause. Use a personal story or testimony about your cause to entice more people to pledge more money. #2 Track your pledges.Make sure you track your pledges using a pledge based crowdfunding software. This will help you better plan for campaign success based on real numbers like how much you’ve raised and how much you stand to gain. #3 Keep your pledgors updated. Make sure pledgors are aware of the progress of your campaign and understand what their pledges are accomplishing. This means informing your pledgors about how much they owe and what their contribution allowed your organization to do to further your cause.
Major Gifts
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Major gifts are typically made by donors with close ties to the organization. The definition of a major gift will vary depending on a nonprofit’s size and past fundraising efforts. For some, anything over $2,000 is considered major, while others would only count donations that are at least five figures. Major gifts are some of the most substantial contributions that a nonprofit can receive from an individual. They inevitably tie a donor more closely to the nonprofit that he or she makes the donation to. Additionally, donors can receive tax benefits for donating a substantial amount of money to a charitable organizations. Major gifts are important types of nonprofit fundraising for both parties involved.
You probably won’t immediately know who your major gift donors are. Unless someone has expressed an explicit interest in donating a large sum of money to your organization, you’ll have to do some research to find your major gift donors. Prospect research can be a huge benefit when looking for major donors. You can use prospect research to look at previous giving and involvement as well as common wealth markers and other indicators to better prepare your staff for a major donation appeal. It’s nearly impossible to find major gift donors without doing some research beforehand. It’s important to: #1: Segment your database into giving levels.
#2: Look at previous giving. Examine past donations to your nonprofit and other organizations.
#3: Research property ownership and other wealth markers.
#1: Ask for the right amount. If you ask for too much, your donor will be insulted. If you ask for too little, you’re leaving money on the table. Look at previous giving patterns and talk to the prospect to find what amount will work best for them. #2: Form a major donor club. If you want to offer an extra perk to potential major gift donors, you can form a major gift club or society. This can be a great way for your organization to communicate with major gift donors about where their donations could go and how they can give in the future. #3: Practice your pitch. You never want to go into a major gift meeting unprepared. In order to have the greatest success, you’ll need to practice your pitch and the different scenarios that could play out during the meeting.
Capital Campaigns
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Capital campaigns are large fundraising initiatives that aim to raise money for a specific project like a new building, an expansion to an existing structure, or the supplication of an endowment. They usually last for at least one year but can go on for much longer. Capital campaigns are split into two phases: the quiet phase and the public phase. During the quiet phase, a nonprofit solicits companies and major gift donors to try to raise between 60% and 90% of the total goal. The public phase is then opened to all donors and is when the rest of the goal is met. Capital campaigns allow nonprofits to raise money in a very targeted and purposeful way.
First, a nonprofit will need to complete a feasibility study. This study measures the community’s reception to the project. Feasibility studies help nonprofits determine whether or not they will be able to fund the campaign over the course of several months or years. If the feasibility study shows that the nonprofit has the capacity to launch the capital campaign, the organization will then begin the quiet phase and will start soliciting local businesses and major gift donors for large donations. Once 60% to 90% of the overall goal has been met, the nonprofit will transition into the public phase and begin asking for donations from members of the general public until the entire goal has been met.
#1: Be smart about your resources. While hiring a capital campaign consultant will cost money, they provide valuable skills that will be beneficial to your campaign. Consultants can assist with planning a strategy, conducting a feasibility study, and writing the case for support — all aspects that lead to a successful campaign. #2: Enlist the help of your board. Not only should your board of directors actively help you raise money for your capital campaign, but they should also contribute “lead gifts” of their own to show their support. #3: Create a separate donation page. Since a campaign can take months or even years to completely fund, it’s worth creating a separate donation page that is different than your standard fundraising page. You can use the URL for the campaign-specific donation form in your marketing materials as well.
Planned Gifts
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Planned gifts are donations set aside in the present that are then made in the future. Individuals often delineate planned gifts in their wills or bequests. Planned gifts are often substantial amounts of money made by very loyal supporters. Some planned gifts are anticipated, but sometimes a nonprofit will be pleasantly surprised by a substantial planned donation. Planned gifts offer donors the opportunity to express their appreciation for a nonprofit in a very tangible way.
To get started with planned giving, you’ll need to determine who among your donor base would be a likely candidate for a planned gift. Because planned giving is considered a major decision and can be a delicate topic, it’s best to thoroughly research a prospect or simply wait for them to approach your nonprofit with the notion. If you do thorough research, you will have a better handle on who might be a potential planned giving prospect.
#1: Form an advisory committee. Your staff is likely unaware of all of the technical, legal, and even ethical rules that surround planned giving. You might need to form a team of lawyers, financial advisors, and other experts before and during the development of your planned giving program. #2: Allow donors to choose what component of your organization their funds will go toward. A planned donation is a big commitment for a donor to make. Since they’re usually substantial amounts of money, it’s wise to let supporters choose a particular component of your organization to direct their funds to.
Phonathon
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A phonathon is a fundraising campaign that requires volunteers to call donors to ask for contributions. Schools and colleges use phonathons to solicit donations from alumni, but they can be used by any kind of organization. You can’t realistically go out and meet all of your donors. But if you can talk to them on the phone for a few minutes, it helps to humanize your organization. Donors then think of your nonprofit as a group of people trying to support a noble cause instead of a organization that asks for money every few months.
First, you’ll need to develop a phonathon script. While callers shouldn’t necessarily read the script word for word while they’re on the phone with donors, it should list out several talking points and responses that volunteers can use when they talk to supporters. You might also need to employ the help of a phonathon service or software to help you manage and track calls and process donations. Don’t forget: you’ll also have to have a list of donors’ current phone numbers. You can’t host a phonathon without numbers to call!
#1: Properly train your volunteers. If you want to run a successful phonathon, you need to properly prepare your fundraisers and volunteers. Some of them may have never asked for donations over the phone, and you want them to be as eloquent and equipped as possible. Proper phonathon training is essential. #2: Focus on your mission. Phonathon conversations should be engaging, but make sure that your volunteers stay on track. If you notice that someone seems to be getting off topic during a call, offer them feedback and perhaps additional training.
Direct Mail Donations
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Donations made by direct mail are usually made in the form of checks. Donors who use this method are usually older and prefer a more traditional giving method. Direct mail can be used by anyone as long as you provide a self-addressed envelope, and, until recently, was one of the most popular ways to donate. Direct mail donations are important because they help your donors form a personal connection with your organization. Additionally, a direct mail donation can give hesitant online donors an avenue to contribute. They might feel more comfortable sending in a check over making an online donation.
To get started with direct mail fundraising, you’ll need to determine who you’re going to send letter appeals to. Direct mail can be pricey, and you want to send out appeals to the people who are going to be the most receptive. Use your data on previous direct mail campaigns (or more advanced artificial intelligence tools) to predict which contacts are the most likely to give so you can raise more while mailing less for your next appeal. Next, you’ll need to write a great appeal. Donors won’t give to your organization just because you ask them to. You have to convince them to join your cause and support your mission. Then, start sending! Mail out appeal letters a few times a year. You don’t want to bombard donors, but you don’t want them to forget about you, either.
#1: Send out letters only to those donors who have responded to them in the past or who you anticipate will respond to them. Don’t waste money on soliciting donors who don’t contribute via direct mail. #2: Include images in your letters or cards. Donors won’t get past the first paragraph if they see a wall of text with no visual break. Include photos of the people or animals you help. #3: Don’t forget to include the self-addressed envelope! Supporters can’t give to your organization if they don’t know where to send their checks.
Recurring Donations
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Recurring donations are contributions that a donor elects to make on a regular basis. Usually, they are monthly or quarterly donations, but they can be made as frequently as weekly. Recurring donations can be made via check, text-to-give, or through an online donation page (if your form offers donors that option). Recurring donations give donors the ability to automate their contributions. They also boost donor retention rates.
If you want to start encouraging donors to make recurring contributions, you should set up your online donation page to accept these kinds of donations. If this is a feature that your donation page provider or text-to-give software offers, take advantage of it! For direct mail donations, you can send donors information about the ease and convenience of recurring donations and encourage them to send in their contributions on a monthly or quarterly basis.
#1: Offer a lot of different donation schedules. Not every donor will want to give on a monthly basis. And some will want to give as frequently as once a week. Make sure that you include options to suit every preference. #2: Explain the impact of recurring donations. If donors see the importance that their regular contributions have, they will be more likely to donation on a recurring basis. Spell out to donors that, while one contribution could make a difference, multiple donations could help your cause in even more ways.
How Nonprofits Can Raise Money From Foundations
Community Foundation Grants
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Community foundation grants are sums of money that are distributed by local, state, or national foundations. These foundations are actually nonprofit entities and are run by the organization as a way to help other nonprofits receive funding. Grants can be applied for and received annually. Some foundations have a rigorous application process, while others will award the grant amount to a nonprofit that they choose internally. Additionally, if the grant occurs annually, then the nonprofit has a steady stream of revenue from that one foundation.
The application process for a community foundation grant can take months. You’ll want to make sure that you have a point person to head up all of your application processes and can communicate with representatives at the foundation. You might even need to bring on a professional grant writer to help your organization with the application process. If you decide to apply for several different grants during the same calendar year, you can put your organization on a grant application calendar.
#1: Apply for relevant grants. Many foundations will place restrictions on how a nonprofit can use a grant and what kinds of organizations can even apply. Make sure that you look at the guidelines and only apply for grants that you can realistically receive. #2: Ask questions when you have them. Most foundations will allow nonprofits to get in touch with them regarding grant-specific questions. If you have them, ask them! #3: Keep applying. If you don’t receive a grant the first time around, don’t get discouraged! It usually takes a few application processes before you receive the grant you’re going after.
Private or Family Foundation Grants
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Private or family foundation grants are very similar to community foundation grants. The only difference is the source; private or family grants are made by private foundations while community grants are made by either corporate or community foundations. Private or family grants can also be large sums of money that a private foundation gives to a nonprofit of their choice or after organizations have sent in their applications. Additionally, some of these grants occur on a yearly basis, meaning that organizations have a steady source of funds.
First, you’ll need to determine if you’re eligible to receive the private or family grant that you’re interested in. Most foundations have stipulations and rules that organizations must follow before being considered for grant eligibility. Study up on the grant you’re applying for and the foundation that is distributing it. Then start getting your application ready! Each grant will require different materials, but if you follow the guidelines very carefully, you should be more than prepared.
#1: Find the right grant. Private and family foundations often have a certain focus. For example, the Bill and Melinda Gates Foundation supports initiatives related to education, world health and population, and community giving in the Pacific Northwest. If your organization doesn’t have anything to do with those areas, you probably don’t need to apply for one of their grants. Find a foundation whose mission aligns with your own. #2: Follow all instructions. You don’t want to miss out on a large grant because you forgot or skipped over a crucial component of the application. Make sure that you follow all protocol and instructions.
Getting Started with Nonprofit Fundraising
Why Do People Give to Nonprofits?
Desire to Help
Altruism is one of the top reasons people give to nonprofits. Individuals like to help the people in their communities and around the world.
Some people are more inclined to support only local community charities, while others like to give to larger internal nonprofits. However, the desire to help others is one of the primary factors for donating.
Internal Satisfaction
Some people donate because it makes them feel good about themselves. This motivator can live in conjunction with the altruistic desire to give.
The impact of the donation is not lessened by the fact that the donor gives it out of self-satisfaction. When individuals help others, they naturally feel a little better about themselves, motivating them to give in the future.
Personal Connection
Sometimes, an individual gives because they have a particularly strong personal connection to the cause or organization they’re supporting.
For instance, a cancer survivor will be more inclined to give to a cancer research institute than someone whose life has never been affected by cancer. Personal connections can be a huge driving force behind charitable donations.
Societal Expectations
Many people will give to a charity because their friends, family members, or coworkers are doing so. They donate because of peer pressure.
Again, this motivational factor can be combined with any other. No one is only giving because their best friend made a donation. They’re giving for a variety of reasons, and societal expectations might happen to be one of them.
Tax Incentives
A donation to a nonprofit organization may grant a donor a charitable deduction against their income tax if they itemize their deductions.
The higher a donor’s income bracket, the more their charitable deduction will be. And while getting a tax deduction usually isn’t a primary motivator for giving, it can be an incentive for donors who give a lot of money to nonprofits.
Impulsivity
Sometimes, a donor decides to give to a nonprofit on a whim. They may have never researched it, but they want to give a little.
Granted, this doesn’t happen all the time, but some donor demographics (like millennials) are more likely to donate in what seems like random spurts. Sometimes, people just feel extra generous and want to make a donation.
Who Do You Need for Nonprofit Fundraising?
Executive Director
The executive director of a nonprofit is the point person in charge of overall organizational fundraising.
The executive director usually helps cultivate and solicit major gift donors and form corporate partnerships.
Development Staff
The development staff is comprised of people who actively solicit donations from individuals, companies, and foundations.
Each staff member might be responsible for a different area of fundraising or a different level of giving.
Board Members
A nonprofit’s board of directors is often heavily involved in the fundraising process. Board members can provide connections and introductions to corporate partners, major gift donors, and other sources of revenue.
Additionally, board members are usually expected to make some kind of contribution at least once a year, if not more frequently.
Volunteer Fundraisers
Sometimes, a nonprofit’s volunteers can become involved in the fundraising process. They might man the phones during a phonathon or go door-to-door during a specific campaign to ask for donations from individuals.
Volunteers can also be instrumental during a peer-to-peer fundraiser. They can ask their friends and family members for donations.
What Resources Will You Need for Nonprofit Fundraising?
Not every fundraising method will require the exact same set of resources. You won’t need the same tools for a capital campaign that you would need for a text-to-give campaign.
However, there are some standard resources that are crucial for nonprofit fundraising success regardless of how or why you’re asking for donations.
How to Promote Your Nonprofit Fundraisers
The first step to any great campaign is a dynamite campaign idea. From here, you need to promote your fundraiser proactively.
Your nonprofit marketing plan can make or break your campaign! You’ll need a comprehensive, multi-channel approach to reach the widest audience possible. Here are a few primary ways you can promote your nonprofit fundraisers.
This is one of the quickest ways to generate awareness for your nonprofit fundraising campaigns! Plus, programs like Google Ad Grants and Microsoft Ads for Social Impact provide free access to paid advertising platforms to approved nonprofits. With these programs, you can promote your donation form and campaign pages (or any mission-centric page). After conducting research, you’ll select your keywords. Then, you’ll craft ads that inspire users to visit your site’s landing pages and donate to your cause. Whether you want to promote a specific event or boost your donation page, paid advertising is a surefire way to do that! There’s a lot that goes into creating these ads and managing a Google Ads or Microsoft Ads account, though. Many nonprofits partner with a dedicated agency to craft winning ads. That way, your team can focus on hashing out the details of your fundraising campaigns.Paid Advertising
Contrary to popular belief, direct mail is not dead. In fact, it’s viewed as one of the most personal marketing methods, and nonprofit fundraising research estimates that 16% of donors prefer to give via direct mail. Send flyers and fundraising letters, asking recipients to donate to your organization. To stand out among stacks of bills and junk mail, put some thought into your design. Add eye-catching graphics, and brand it to your organization by using your official colors and logo. Then, make it as simple as possible for them to donate by including the URL for your donation page, a QR code that will automatically take them there, and a perforated mail-in slip to send their donations.Direct Mail
Email is one of the most effective forms of nonprofit marketing. In fact, for every 1,000 fundraising emails they send, nonprofits raise an average of $42, according to recent nonprofit fundraising statistics.
To use this channel, include a snippet about your current and upcoming fundraisers in every nonprofit newsletter you send. You can also spotlight impactful donors, share updates from past campaigns, and share stories from your beneficiaries to encourage more donations.
In any case, put some time into organizing each newsletter in an appealing format and creating standout subject lines to boost your open rates.
Word of Mouth
Few marketing techniques are as powerful as word-of-mouth advertising. Encourage your supporters to reach out to their family and friends, letting them know about your cause and its current nonprofit fundraising campaign.
You can supply your volunteers with templates to make sure they properly represent your cause. Alternatively, you can give them free rein over their outreach. Your most passionate supporters will jump at the opportunity to champion your cause.
When someone hears about your nonprofit from someone they trust, they’re much more likely to get involved. Even something as simple as them sharing one of your nonprofit’s social media posts can connect you with new supporters.
Social Media
Anyone who follows your nonprofit on social media obviously has an affinity for your cause! Get them involved in your nonprofit fundraising by posting about your campaigns on social media.
Between Facebook, Twitter, Instagram, and TikTok, there are several bases you’ll need to cover. Here are a few tips to inspire more people to support your fundraisers:
- Adjust the content based on the platform. For instance, Instagram lends itself well to eye-catching photos, while Facebook is best for long-form content updates. Your core message can stay the same, but the format you present it in should change to appeal to each platform’s audience.
- Share campaign updates. Share updates on your work thanks to your supporters’ contributions. This will show that their donations actually do make a difference and that your nonprofit uses funding responsibly, inspiring followers to give to your current campaign.
- Interact with your followers. Social media opens up two-way communication for nonprofits. You can reply to comments on your fundraiser posts and like followers’ posts about your nonprofit.
No matter your approach, tell your followers how to get involved. Direct them to your donation page, event registration page, or any other campaign page.
Nonprofit Fundraising Cycle
Click on one of the icons to learn more about that step in the cycle.
Identification is the first step in the fundraising cycle. It involves using prospect research or other methods to determine which donors your nonprofit will be targeting for the specific campaign you’re launching.
When looking for individuals to ask for donations, it’s best to start with those who have frequently given to your organization in the past. Previous donations are the best indicators of future giving, after all!
You can also use prospect research to help narrow down your prospect list. The results of your prospect screening will depend on the type of donor you’re looking for. The candidates for a major giving program will likely be different than those for a broad text-to-give campaign.
If you’re looking to obtain corporate donations or foundation funding, you’ll need to identify companies and foundations whose missions align closely with yours. This will make it easier to make your case when asking for donations.
Qualification is really an extension of identification. It involves someone from your nonprofit reaching out to a prospect to gauge their interest in giving to your organization.
Qualification is often used for major and planned giving donors or corporate partnerships. Because it usually involves a face-to-face meeting with a prospect (known as a “qualification visit”), it can’t be used for every single donor.
A qualification visit can be a nerve-wracking experience, even for a seasoned fundraising professional. The most important thing to remember, however, is that the conversation should be focused on the prospect. Don’t spend the whole meeting talking about how great your organization is or how badly you need money for an upcoming project.
Instead, pay attention to the prospect’s interests and preferences. Listen to them, and you’ll be far more prepared when it comes time to actually ask for a donation.
Cultivation is arguably one of the most important stages in the nonprofit fundraising cycle. It involves an organization and a prospect getting to know each other a little better.
It’s commonly likened to tending to a growing tree. Before a tree can become full-grown, you have to care for it, water it, and make sure that it gets lots of sunlight and nutrients.
Treat your prospect relationships with the same care and deliberation that you would when growing a tree. Follow up with a prospect after a qualification visit. Invite them to a free event. Have a board member give them a call.
Obviously, you don’t want to overdo it. If you water a tree too much, it won’t flourish. Keep in touch with prospects enough so that your organization is in their minds but not so much that you start to irritate them.
You’ve worked hard to get to this point, and now it’s time to ask a prospect for a donation!
If you’re asking a major gift prospect, solicitation should take place in person or, in rare circumstances, over the phone (if a face-to-face meeting isn’t possible).
However, for less intense nonprofit fundraising methods, solicitation can take place in any number of ways. You could ask for donations via email, social media, letters, text message, or over the phone!
When soliciting a donor for any amount, remember to make a genuine ask. Remind prospects of what their donations will go toward and emphasize their gift’s impact.
Make the solicitation about your donors and how they can help your organization. Donor-centric solicitation methods are more successful that ones that focus on you and your nonprofit.
The nonprofit fundraising process isn’t over just because a donor has said “Yes!” and given to your organization.
The stewardship process begins as soon as a check has been written or an online donation has been made.
You should immediately send donors a thank you note, letter, or email. Of course, a letter won’t be received as quickly as an email or phone call, but the sooner you can thank donors, the better.
You should also continue to steward your relationship with your donors in the weeks and months after they make a donation.
Offer supporters other opportunities to get involved based on the size of their donation and their own personal interests. You can invite them to events, encourage them to sign a petition, or ask them to volunteer with your organization.
Make sure that your stewardship activities are in line with donors’ relationship with your nonprofit and their past involvement. In addition to keeping a comprehensive database of past interactions, many nonprofits are also turning to artificial intelligence tools like Dataro to make predictions about future engagement and which supporters might give more. These insights can help you approach stewardship more proactively, resulting in more long-term support for your mission and stronger relationships with donors.
Nonprofit Fundraising Ethics and Laws
Nonprofit Fundraising Registration
Where to Register?
In the United States, 40 of the 50 states require charitable solicitation registration in some form or another.
There is no standard form to fill out, so if you plan on asking for donations in a state, you have to submit your paperwork with that state.
Many states will, however, take the Unified Registration Statement, although they often require additional paperwork, forms, and sometimes a nonprofit’s IRS form 990.
If you know you’re going to be actively asking for donations in a particular state (where your nonprofit is based, for instance), you should definitely register with that state.
Additionally, if you have an online donation form, your donors could donate from any state; it’s wise to register with every state to avoid fines and penalties for soliciting donors in a state in which you aren’t registered.
What’s Needed to Register?
Because each state has different requirements, the paperwork your nonprofit submits will likely be different.
However, since 32 states take the Unified Registration Statement, it makes it a little easier for your nonprofit to get all of your ducks in a row.
You’ll also probably have to submit your IRS form 990 as well as different attachments, such as audited financial statements, articles of incorporation, and/or bylaws.
Many large nonprofits have third-party firms complete the registration process for them, but a nonprofit can complete the charitable solicitation registration process themselves.
Some state registration applications are available online while others still require paper submissions. Additionally, in many cases, states require charitable solicitation registration on a yearly basis.
When to Register?
Charitable solicitation registration must occur before a nonprofit begins fundraising. Otherwise, the organization could incur penalties or fines and might not be able to fundraise in that state.
Additionally, some states require nonprofits to register and report their financial results if they have assets that are tied to a charitable trust.
Are There Registration Exemptions?
Some nonprofits are not required to register with states before asking for donations. Nonprofit hospitals, educational and religious institutions are usually exempt from registering with the state.
Additionally, if a nonprofit is small or doesn’t bring in a certain amount (determined by the state), they are exempt from registering in that state.
Nonprofit Fundraising Laws
Donation receipts are required for single donations of $250 or greater. They can be sent as emails or letters, but they must be received by January 31st of the year following the donation. They are also required if a donor received goods or services in exchange for a single donation greater than $75.Donation Receipts
Nonprofits cannot take part in “electioneering.” This means they are prohibited from doing anything to impact someone’s chances of winning (or losing) an election for public office. If an organization participates in electioneering, they could have their 501(c)(3) status revoked by the state.Abstain from Political Fundraising
Additional Fundraising Resources
Fundraising Ideas Generator
Narrowing down your options doesn’t have to be impossible.
Use Bonfire’s free fundraising ideas generator to find a campaign idea that’s tailored to your cause, budget, and any other preferences!
How to Ask for Donations
We get it; asking for donations can be tough.
But don’t worry! We’ve got your back with our tips and tricks for asking for donations. Check them out!
Fundraising Best Practices
Don’t start fundraising without a little help.
Read through our fundraising best practices to make sure that you’re starting your efforts off on the right foot.
Fundraising Software Types
It’s hard to raise money without software.
Fundly has listed out the different types of fundraising software that your nonprofit needs to succeed!
