Lesson 1: Fundamentals of fundraising

The goal of fundraising is not to find donations for a traditional commercial endeavor or to gain money off of investors, business owners, or organizational shareholders. It is, nonetheless, the deed of supporting a cause.

Fundraising is the process of raising money through multiple financial contributions by individuals, charities, businesses, for- profits, non for profits organizations and SMEs for various purposes.

The terms of Fundraising are becoming more popular everyday with several organization, enterprises and SMEs to choose this process for providing support for their causes.


Types of fundraising

  1. Corporate Fundraising,(or cause funding): Corporate assistance may involve both charitable donations to a charity and help from a firm for mutual benefit, although the primary goal is to support the organization’s objective. They are generally established by a nonprofit organization and are hoped to be long-lasting. SMEs and non-governmental organizations contact businesses with their cause and financial need, and corporations react by providing gifts. In that way NGOs and businesses might produce a significant quantity of money and company might include this into its Corporate Social Responsibility activities.
  2. Online fundraising: Nonprofits and entreprises are still not exploiting internet fundraising to their full potential. This type of fundraising meets numerous needs but does not replace many other effective fundraising methods. It is a fundraising tactics that should be combined with other fundraising methods. Digital and online fundraising may be done via the organization’s website, mobile contributions, email giving, social media campaigns, email campaigns, fundraising platforms that harness social networks and online crowds, and credit card processing.
  3. Direct Email Fundraising: The funding process where direct mail fundraising, attract new contributors or members, and educate, develop and enhance the level of existing donations. In a direct mail campaign, it is critical to understand the ideas, practice, and discipline of direct marketing and fundraising. This strategy primarily targets those who donate to your cause or organization on a regular basis or have done so in the past.

When deciding on this sort of fundraising, a company or a small business should keep the following factors in mind:

➢Write an effective letter that captures and holds the donor’s attention.

➢Be explicit, repetitive, and confident in your request

➢Thank donors as soon as possible and as sincerely as possible

➢Send out entertaining and useful newsletters or other materials in response to direct mail letters

  1. Event fundraising:  Events may be used by organizations and companies to celebrate and enhance connections with existing contributors, recruit or expose your purpose to new donors, generate fundraising experience for your employees, directors, and volunteers, and perhaps raise funds. Marathons, culinary contests, book fairs, art shows, and blood drives are all examples of fundraising activities. Contributors spread the word about the main purpose of the event, which is to collect money and awareness for a certain social cause, by participating in and enjoying the event via such activities.

What is the difference between fundraising and crowdfunding?


No precisely defined term

Time frame is specified

Variation of the target amount

Target amount is fixed (stage funding possible)

All funds raised go to the organisation

All-or-nothing principle

Donations can be used for different purposes

Concrete and planned implementation concept (proof of concept)

The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the National Agency and Commission cannot be held responsible for any use which may be made of the information contained therein.