Social Science Series #7: Fundraising for
What is fundraising?
Types of fundraising
- Direct mail
- Online donations
- Door-to-door solicitation
- Phone solicitations
- E-mail marketing
- Partnerships/ sponsorships/ grants
- Peer-to-peer fundraising
- Growth-method: aims to increase the NGO’s donor base
- Involvement: aims to strengthen relationships between NGOs and donors
- Visibility: consists of a plan to increase an NGO’s public recognition
- Stability: aims to ensure an NGO’s long-term viability
- Efficiency: allows an NGO to raise money while keeping costs low
- Reminding the donors of the NGO’s mission, such as by including the mission statement at the top of solicitation letters or emails
- Creating objectives for the NGO and explaining to donors how their gifts contribute to the objectives
- Building a team to help reach the objectives
- Financing options for different types of donors; for example, an NGO can conduct an online raffle for a few dollars per person for smaller donors
- Utilizing new marketing techniques, such as social media apps, to send out fundraising materials
- Using past fundraising campaigns as a guide to help choose a fundraising strategy that has proven effective in the past
- Starting online fundraising
Types of donations
- One-time donations: occurs when a donor gives a specific amount to an organization, once.
- Recurring gifts: when a donor decides to commit to a consistent recurring donating schedule.
- Stock donations: Rather than selling or liquidating appreciated securities, donors can donate long-term appreciated securities such as stocks, bonds, and mutual funds. A transfer authorization form must be filled out by either the donor or the donor’s broker.
- Planned gifts: the donor arranges to contribute a major gift allocated at a future date. Examples are gifts of equity, life insurance, real estate, personal property, and cash.
- In-kind donations: gift of goods, services, time, or expertise. (Source: Common Bond Communities: A Guide to Types of Donations to Nonprofits)
Fundraising benefits for individuals
- Giving back to the community: Contributing to NGOs will help benefit more people by adding value to the NGO’s work. An individual can donate time and skills to help an NGO’s team reach its objectives sooner and easier, as well as give back to the community more effectively
- Publicity and marketing: when contributing to an NGO, supporters can request referrals to send to clients or post online. Exemplifying and promoting their voluntary contributions and funds raised towards a particular cause enables individuals to better market their personal services, as it increases their credibility and improves their reputation.
- Showcasing values: contributors will be able to showcase the experience and contributions in their professional field, demonstrating their dedication to social initiatives.
- Leadership opportunities and skills development: Through this experience, donors will gain a greater level of client exposure and improve their ability to undertake more responsibility for pro bono cases. It is a great opportunity to expose oneself to new skills, take charge and get involved in a new area of work.
Fundraising benefits for corporates
- Societal impact and community involvement: by participating in philanthropic efforts, corporations can make a positive impact and benefit their surroundings, society, and community.
- Better brand image and marketing opportunity: corporations often seize the opportunity to involve in social initiatives by publicizing their community involvement and requesting references from NGOs to share examples of their work on their platforms.
- Increased employee satisfaction and engagement: corporates can demonstrate their core values, create a sense of community within the organization, and build trust among the employees, leading to an increase in employee morale, attitude, and workplace culture.
- Encouraging professional and personal growth of employees: fundraising culture indirectly impacts society, as such behaviors promote individual volunteerism and encourages employees to participate in philanthropic causes.
- Increased client loyalty: companies can either attract more clients or gain the trust of existing ones by donating their time or skills.
- Increased creativity through expanding social initiatives: the expansion of these initiatives encourage and empowers employees to become more creative and innovative through developing new social involvements for the corporate.
The impact of COVID-19 on fundraising
Due to the COVID-19 pandemic, NGOs and corporations have dealt with turbulent changes and waves of uncertainty. Consequently, these organizations have adjusted by implementing strategies like virtual fundraising in order to maintain their services despite forced closures, months of remote work, and inconsistent reopening plans.
When the COVID-19 pandemic hit, all industries experienced a shift towards remote working and the cancellation of many in-person events. To combat this, NGOs continued to strategize ways to make virtual communication more effective by adapting to these new conditions.
Those successful NGOs heavily used digital marketing and fundraising tactics during the pandemic, switching their efforts to social media and email campaigns. Many in-person fundraising events became virtual events.
(Source: Wealth Engine: The Impact of COVID-19 on Nonprofits and the Outlook for 2021; AFP Global: 2021 Fundraising Slightly Ahead of 2020 Figures, Buoyed by New Donor Retention)
Regulations and laws regarding fundraising in the USA
(Source: IRS: Charitable Contribution Deductions; IRS: The IRS Encourages Taxpayers to Consider Charitable Contributions; IRS: Exempt Purposes – Internal Revenue Code Section 501(c)(3); WildApricot:5 Nonprofit Fundraising Laws You Should Know About; Labyrinth, Inc.: Fundraising Legal Requirements)
How does JCWO raise funds?
Our fundraising is carried out through direct mail, online donations, phone solicitations, e-mail marketing, crowdfunding, partnerships, sponsorships, grants and peer-to-peer contact. Among these, the most common strategies used by JCWO are:
- Grant applications: more than 200 applications submitted yearly;
- Pro-bono services: alliances established with companies for corporate legal, intellectual property and accounting requirements of the organization;
- Donation requests: more than 1,000 letters sent annually to companies and individuals;
- Online donations: registered in 25 fundraising sites, including transparency, shopping, direct donation and crowdfunding platforms;
- Ad-honorem collaborators: continuous volunteer agreements with field experts to assess our programs.
The support of corporations and individuals remains essential to sustain JCWO´s cause and mission. We strongly believe in the power of teamwork over individual efforts, valuing the key of having a multidisciplinary team, supported by multiple allies, donors and collaborators, to achieve all goals.
JCWO invites private, public, and non-profit entities, as well as professionals and individuals who wish to join this cause, to contribute through any of the available channels specified above and on our website. When donating, contributors can claim a receipt that describes the amount of funds or goods gifted and its value, which can be used for tax deduction purposes, in accordance with the law.