How to Fundraise Effectively

Fundraising is an ancient act. In the United States, industrial pioneers in the early 1900s revolutionized the way non-profits raised funds^{[1]XResearch source} This led to government regulation on fund donations.These days, fundraising takes many forms for many causes and/or products. From a backyard lemonade stand to national dinners, people have found ways to raise money for many different causes.

Method 1

Method 1 of 4:

Knowing Your Product

Get to know what you are fundraising or selling. If it is a cause, have experience in its advocacy so that you can better tailor your pitch. If it is a product, use it to gather personal insight to its inner workings.
2
Be confident in your product or cause. Before you can fundraise for it, you must be 100% behind your product or cause. People are more likely to trust someone who is genuine about what s/he is selling.^{[2]XResearch source}
- Being confident requires extensive knowledge about what you are trying to fundraise for.
- Being confident requires some familiarity with public speaking and/or working with potential donors/clients.
Advertisement
3
Get feedback from a smaller audience, first. Before you try a bigger market, try talking with a smaller team first. You can meet with other members of the community you are involved with to talk about the key points in your fundraising plans.
- You can brainstorm ideas for speeches.
- You can talk about ways you may be able to fundraise (raffle, bake sale, auction, etc.)
- You can discuss potential weak points in your product or cause.
- You can practice public speaking skills or writing skills (such as brochures or other promotional material).
4
Research competitor information. Before entering the public eye with your fundraising, research what competitors are doing and how they have approached fundraising.
- For example, if you are an agricultural non-profit on a specific type of produce, you may consider reading a website of another agricultural non-profit. This will help you get ideas from a similar market, but help to minimize plagiarism or fundraising to an oversaturated market.
Advertisement

Method 2

Method 2 of 4:

Knowing Your Market and Audience

1
Research the information publicly provided. Knowing your audience is a basic key to success in fundraising, business, and public speaking. There is already a wealth of information available on products and companies; researching this information can provide essential background research such as product reports, annual earnings, customer demographic, etc.
- Often, you can find national market reports online under specific market demographics. For example, in the US, you can view agricultural market reports under the United States Department of Agriculture website.^{[3]XResearch source}
- Non-profit organization must publish (at least in the United States) an annual report that accounts for their yearly spendings and earnings.^{[4]XResearch source} These must be published publicly in order for the organization to keep their 501c3 non-profit status.
- You can also find out a wealth of information at organizational conferences, trade shows, or exhibitions.
2
Do direct customer research. Before you fundraise, do direct customer research to find out what customers think about your product or cause. This information will not only help you adapt your message, cause, or product, but also will provide great quantitative statistical information.
- You can hire a Direct Market Researcher as a consultant to research your client base. These consultants have the know how to directly gather information.
- You can publish a survey online using social media sites to poll your clients.
- You can email your customers to gather information.
- You can track anything that can be recorded to analyze for client/customer data. This may include attendance, sales, page views, page clicks, social media posting, etc.^{[5]XResearch source}
3
Brush up on generational labels. Language is very powerful, and very fluid. In marketing, a customer base may carry different generational labels. Knowing these labels, and their differences, can be a powerful marketing tool.^{[6]XResearch source}
- Gen 1 or Gen Z -- This is the “internet” generation, and are known as the kids from the youngest baby boomers. They are more technologically inclined than any other group.
- Gen Y -- This generation may also be known as millennials or “echo-boomers.” They are the children of the baby boomers. Studies have shown this generation is less likely to spend money, and more likely to stay at home.^{[7]XResearch source}
- Gen X -- This generation was born between 1965-1975. Research shows they are entering their “peak buying years,” where these members have the most disposable income.^{[8]XTrustworthy SourcePew Research CenterNonpartisan thinktank conducting research and providing information on public opinion, demographic trends, and social trendsGo to source}
- Boomers -- Boomers, or Baby Boomers, are the generation right after WWII. It is thought there are 76.4 Baby Boomers in the United States.^{[9]XResearch source} This large demographic are shown to be more affluent than the generation preceding them.
- The Greatest Generation -- This dwindling generation makes up those born between 1909-1945. From a marketing standpoint, these members have seen a vast history of marketing, fundraising, and advertising.
Advertisement

Method 3

Method 3 of 4:

Knowing Your Numbers

As lovely as it would be to have an unlimited budget, make sure you know your organization’s money goals before you plan a fundraiser. This will help you better plan on what sort of fundraising you will need to do.
2
Set goals. To entice people to give to your cause, set specific goal amounts and make it clear what the money will be spent on. For example, if you’re presenting your goals, state something like:
- ”We are here this evening to raise $100,000 for John’s medical bills. John spent two weeks in ICU and could use our help.”
- If you do not know a specific amount, try and be specific with how the money will be spent. “All proceeds from this auction will go to building a new roof for our local school.”
Do not expect one person to fund your entire campaign. Instead, consider your audience and what they are likely to spend. By thinking about the average amount your donors will spend, you will have a more realistic expectation of how much money you will raise during an event.^{[10]XResearch source}
Advertisement

Method 4

Method 4 of 4:

Knowing Your Pitch

1
Assess different fundraising events. There are hundreds of ways you can raise money for a cause, from a bake sale to a $100-a-plate gala. You must consider some of the following before hosting an event:
- How much you intend to raise -- Think about why you are raising money. If it is an amount you can make by asking the general community, consider a car wash, bake sale, or selling candy. You can involve younger community members to participate in this fundraising, but note that this probably will not raise a million dollar.
- Who you are asking to donate -- Consider the type of people you are asking to donate. If you are a local politician asking businessmen to donate, you will probably be raising more money than a local community club. If you are looking to fundraise around more affluent individuals, consider a formal dinner or party.
- Who will be involved -- The type of fundraising you will be doing may depend on who is involved. If you are trying to raise money for a school activity, you may want to plan an event where children, teenagers, and adults can be involved.
2
Practice and plan. Fundraising takes a lot of work and planning. If you are planning an event, make sure you give yourself ample time and resources to plan before the actual event. Consider:
- Will you need to book a venue? How many people do you expect to show up?
- Will you be serving food and/or drink? Do you need a local permit for this?
- Will you be playing music? Will you book a band, dj, or singer?
- Will your or others be speaking at this event? What tone do you want to set for this? Do you want a formal speaker or a funny one?
- What sort of dress code should those planning the event wear? What do you expect the donors/clients to wear?
- What sort of advertisements will you allow? Will you hand out flyers? Will you make brochures? Will you show a video or picture slideshow to promote your work?
- How will you acknowledge your donors? Will you send out personalized thank you cards?
If you are fundraising for an event, get like-minded people involved! It is easier to promote your cause or product when you have others believing in the same thing. Ask friends, family, employees, neighbors, etc to help you in your endeavors.
The most important step to fundraising is making sure everyone is happy. Always thank your donors and everyone involved with the project. This will help to establish friendships and potential future donors for additional causes.
Advertisement

Expert Q&A

Search

Add New Question

Question
How do I choose a fundraising platform?
Direct Relief
Humanitarian Aid Organization
Direct Relief is an award-winning humanitarian aid organization, active in all 50 states and more than 80 countries. They focus on helping people affected by emergencies and natural disasters. Direct Relief has been highly rated by Charity Navigator, GuideStar, and the Center for High Impact Philanthropy at University of Pennsylvania, for their effectiveness, efficiency, and transparency.
Direct Relief
Humanitarian Aid Organization
Expert Answer
Do your research before you choose a platform to make sure you pick the one that's right for you. Be sure to check the fine print when you're donating through an electronic platform, because there can be hidden fees. Generally, if you donate to an organization through its official website, around two to three percent of that donation goes to things like credit card processing fees. Some external donation sites have even higher fees that can reach upwards of ten percent, although others like Facebook and the PayPal Giving Fund waive all fees for donations to charities, so it's important to do your research.
Thanks! We're glad this was helpful.
Thank you for your feedback.
If How.com.vn has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission.Support How.com.vn
Yes No
Not Helpful 0 Helpful 0