Fundraising: What it is, types and difference with crowdfunding

The fact that non-profit foundations and associations do not have as their objective (precisely) the profit of their members does not mean that they do not need material resources to carry out their activities. Let’s see what fundraising is , how it is carried out and how it differs from crowdfunding .   

What is fundraising 

Fundraising consists of raising resources for NGOs (non-profit organizations), which may consist of money, objects, rights, services or volunteers.  

It is difficult to imagine how the different ENLs (non-profit entities) can get to work without financing, resources or manpower . Any association intended to support social, religious, political, cultural or scientific causes (to give a few examples) will need to draw on all the resources it can obtain. 

For this reason, fundraising is of capital importance to sustain the activities of these groups : it is very rare for there to be foundations or associations whose own assets are sufficient.   

Differences between fundraising and crowdfunding   

As can be seen, the meaning of fundraising is explained by understanding in what context it makes sense: in a non-profit context , in which the funds and resources obtained are entirely used to support the activities of the association.   

On the contrary, crowdfunding , although it has common methodologies with fundraising , has no place in the same context. Crowdfunding consists of raising money and resources for projects and businesses , so that they serve the purpose of financing business projects.     

Therefore, fundraising through fundraising aims to finance solidarity activities (undertaken by solidarity organizations and foundations) while fundraising through crowdfunding responds to lucrative purposes (undertaken by companies, usually startups).    

Different fundraising methods 

1. Face to face

It consists of directly collecting donations in person , and includes promotional actions in public places or cold doors. 

2. By phone

Donations are requested through individual telephone calls from a call center (or through the telephone numbers of the organization’s own members).   

3. Online

It consists of taking advantage of email marketing and digital content tools to attract donations, partners or sponsorships.  

4. By references

The idea is to obtain resources through “word of mouth” , so that each member of the association or foundation manages to attract another. 

5. Through institutional means

It consists of going, instead of individual benefactors, to public institutions or private sector companies that can, with their resources, finance the organization’s causes.  

6. Through fair trade

It is also possible to raise funds through the marketing of products made by members or donated by other benefactors, so that the proceeds are entirely used to support their own activities.  

Now that you know more about fundraising , what it is and how it can be carried out, you may be interested in exploiting the power of newsletters to raise resources for your foundation or association . In this way, you will ensure great dissemination and, therefore, a very high probability that others will be able to collaborate with your cause.