The straightforward but “intentional” act of fundraising involves collecting funds from various sources with the solitary objective of supporting a project or event. The occasion could be a political rally, book launch, carnival, or performance. Since fundraising is a delicate subject, it requires a strong plan and careful execution to avoid ruining the prospective project.
What do you need to know before fundraising?
You must be aware that fundraising is more than just collecting funds; it’s also about figuring out how to use them in a purposeful and long-lasting manner. Therefore, keep in mind and pay attention to the following advice as you get ready for effective fundraising:
Understanding your donors will help you establish a stronger connection with them and will help you decide what to present and when to present it to avoid missing a chance. Put them in the image, understand how they can assist you, and be aware of their location. Be sure that they would want to be involved in your endeavor by paying attention to how they prefer to be addressed.
Sort your donors into groups based on their locations, hobbies, and desired modes of contribution. This is something to keep in mind as you plan your fundraising. The planning process is facilitated by designating individuals who belong to the same group as “A” and another individual as “B.”
Make a workable plan: At this point, you should have a good idea of what will work and what won’t. This provides you with the ideal route map for getting there. If you ran a fundraising campaign the year before, gather data on how it performed, compare, determine what you need to do differently, and make plans accordingly. Check to see if you need to extend your reach or if you need to remove something from the project that might not be of interest to your supporters. Following the creation of a strategy, you can move on to determine how to raise money, which typically begins with the creation of a proposal.
- The purpose of the letter, values, and mission of the organization.
- Project description
- Budget
- Impact
- Acknowledge the donor
- Call to action (what do you need the donor to do?)
What techniques are used to successfully raise money?
There are many different ways to raise money, and individuals or nonprofit groups can use any one of them because there is no one right way to do it. All strategies will work just fine, but the most crucial thing is that they are applied correctly. Typical techniques for raising money include:
- Email Marketing
- Online fundraising platforms
- Events
- Grants/Sponsorships
- Text messages
- Phone solicitations
Email marketing: One very advantageous aspect of using email marketing as a means of fund-raising is that it targets a broad audience. This implies that nonprofit groups writing to ask for donations do not need to spend a lot of money on text rates and can operate on a small budget. NGOs can also take advantage of the email’s ability to include testimonials and case studies from earlier projects to motivate potential donors. This entails creating a compelling statement that will stay in the donors’ minds and make them want to support the project.
Online fundraising platforms: This approach is the most common, and its popularity can be attributed to its digital benefits. A fundraising campaign can be created by entering some information on a website or an app, and people can donate when they post the links on their social media pages. The links continue forever, even outside of their network to individuals who might appear to be interested in the project. Additionally, using these online funding platforms offers accuracy because some of them have tools that let you monitor your progress as you raise money.
Events
Events are a means of collecting money that gather people under one roof for contributions. It creates a sense of cohesion and collaboration that elevates the suggested undertaking to an exceptional level. While raising money is the main objective of this event, it may also serve other purposes such as gaining media attention and raising consciousness, which may lead to increased popularity and even more revenue than anticipated.
Grants/Sponsorships
Organizations seeking to collect money for projects like education, health care, or start-up businesses frequently turn to grants and sponsorships. Typically, foundations that recognize that the fundraising effort is in line with their missions and values are the ones who finance these grants. In Nigeria, a few examples of foundations that fit this description are:
- Tony Elemelu foundation
- Rehoboth foundation
- Cleen foundation
- Breast Cancer Association Of Nigeria(BRECAN)
- Organized Centre for Empowerment and Advocacy in Nigeria (OCEAN)
The majority of the time, sponsorships are managed directly by businesses or companies as a way to advance their marketing plans or publicize their operations. These sponsors may provide cash support to an event, which is why we see initiatives like:
- Dangote Foundation empowers women with 130naira million naira grant.
- Cowbell increases Cowbellpedia Mathematics TV quiz show prize to 2 million naira.
- 7UP sponsored the 2021 Marketing Edge summit.
If all requirements are met and the sponsorship is managed correctly, grants and sponsorship effectively fundraise.
SMS texts
Any organization that chooses to send text messages to donors can benefit from the “Bulk SMS” concept. When using the SMS technique, the donor may be instructed to text “10” or “20” to the number 5555 if their donation is between N10,000 and N20,000, respectively. To improve the way the method is used by the company, the target audience must own a phone. Additionally, the technique comes with a lot of flexibility and accessibility, making it simpler for everyone to participate.
Phone solicitation
Cold calling, also referred to as phone begging, is essentially obsolete. Although businesses have used it for years and it has aided them in reaching their audience more quickly, some contact recipients have found the technique to be intrusive and unacceptable. However, some small NGOs may still find success in fundraising through phone calls.
The fact remains that all people and NGOs, no matter how big or small, typically have goals and projects to complete. Doing fundraising and converting it effectively and excellently is one of the best methods to get projects going and finished.