Lesson 1 Fundamentals of fundraising

Fundraising is the process by which people or organizations gather funds for different purposes. Organizations that are for profit and non-profit alike may conduct fundraising events. A “fundraiser” is a person or organization that raises money for a certain cause. Finding donations for a conventional commercial venture or to make money off of investors, business owners, or organizational shareholders is not the objective of fundraising. However, it is the action of lending support to a cause.

Types of fundraising

  1. Corporate Fundraising, also known as cause funding, encourages corporates to contribute to a nonprofit or a charitable cause. Here, the nonprofits approach corporates with their cause and the need for funds, and the corporates donate accordingly. This takes care of two purposes. Firstly, the NGOs are able to raise substantial funds to meet their needs in one place, and secondly, a company includes the same as part of its Corporate Social Responsibility activity.
  2. Online Fundraising is a way for nonprofit organizations to raise money via the internet. It usually involves an online donation page and can include mobile giving, peer-to-peer fundraising, and more..
  3. Direct Fundraising, similar to direct marketing in the corporate world, is a process of reaching out to people through emails and social media messaging. This process directly targets people who are habitual donors, or have previously contributed to your cause or organisation.
  4. Event Fundraising is an integral part of nonprofit organisations’ activities to raise money. These can happen through social events such as marathons, cooking competitions, book fairs, art exhibitions and blood camps. Through such activities, contributors partake in and enjoy the event, as well as spread the message about the event’s primary goal – is how to raise funds and spread awareness for a specific social cause. Link

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)