Soapbox Engage Blog

Whether you've been fundraising for decades or you're just launching a new nonprofit and getting your feet wet, it's valuable to get back to the fundraising basics. Taking it all the way back to the building blocks can help ensure you're not leaving any money on the table and get the most out of your fundraising efforts.

This blog will help you understand the basics of fundraising to build a powerful strategy for your organization!

Table of Contents

• Why donors give
• Types of nonprofit fundraising
• Understand the rules
• Resources for fundraising success
• Tools for online fundraising

What Is Nonprofit Fundraising?

Fundraising is the process of soliciting financial support from a wide range of sources and methods. It's the primary way that most nonprofits and charities get revenue to accomplish their mission. However, fundraising is about more than just asking for money. It's an effective way to build valuable networks and relationships around your organization.

Understand why people give to nonprofits

Great development professionals take the time to understand why people give their hard-earned money to charities and causes they value. Understanding the "why" can help you make stronger financial appeals and tailor your fundraising strategies to your unique audience.

Most people are motivated by the desire to help others and positively impact their community or the world. Some are driven by personal or religious convictions and a desire to feel good. Others donate money because they have a personal connection to the cause (for example, a cancer survivor is likely very motivated to support a cancer research foundation).

Truthfully, it's usually a complicated mix of emotions, convictions, and personal experiences that lead donors to give. However, there's usually one primary emotion driving people to make donations.

Three categories of nonprofit fundraising

There are three primary categories or places nonprofits can fundraise. Depending on your strategy, network, and mission, you'll likely incorporate a mixture of all three in your fundraising strategy.

Companies or corporate giving: Companies and businesses are usually eager to support local nonprofits through generous programs like matching gifts, corporate giving, or in-kind donations.

Corporate giving is definitely on the rise, especially as consumers increasingly value choosing products and services from socially responsible companies, and more employees want to work for businesses that give back.

Several corporate giving strategies or programs to be aware of include employee volunteer grants, matching gifts, corporate sponsorships, and gifts in kind. Usually, businesses will use one or two primary forms of corporate giving to support charities and causes that align with their mission and values.

Foundations and grants: Many nonprofits rely on donations and grants from foundations and government programs to fund their programs.

There are three popular types of grants available to nonprofits. Most organizations lean toward unrestricted funds that cover the daily operating costs of a nonprofit and program grants designed to finance specific projects. Capital grants are also common. They're designed to fund construction, acquisition, or renovation projects.

While grants can be a valuable fundraising source for established nonprofits, most foundations and grantors tend to avoid giving money to startup nonprofits. They want to be sure an organization is well established and can follow through with a plan before investing large sums of money. (However, some grants are dedicated to helping new organizations get off the ground.)

Individual donors: Individual giving is the most popular type of fundraising for nonprofits. It usually comprises at least three-quarters of all charitable donations and comes in countless shapes, sizes, and styles. Organizations are getting increasingly creative with their fundraising strategies.

More traditional fundraising strategies for individual donations include direct appeal letters, recurring donation programs, annual campaigns, charity events, planned gifts, and capital campaigns.

Technology has also opened the doors for all kinds of unique fundraising strategies like peer-to-peer fundraising, crowdfunding, phonathons, social media, virtual fundraising events, and a host of other ideas.

Successful nonprofits incorporate several strategies to connect with their "target audience." It's not necessary (or practical) to use all the strategies, but each method has its own strengths and benefits. Over time, you'll learn which approaches best fit your organization and appeal to your ideal donors.

Getting Started With Nonprofit Fundraising

Once you've established your nonprofit, there are a few things to be aware of and tools you'll need to streamline the fundraising process and your efforts more effective.

Fundraising is regulated; make sure you understand the rules in your area

Before you start soliciting donations, consider the national and state fundraising regulations. The IRS has specific fundraising guidelines that all charitable organizations must abide by. Additionally, each state (and some local governments) have their own regulations.

We get it. Running a nonprofit is demanding and overwhelming. It can be challenging to find the time to understand the rules and regulations of fundraising. For the most part, once you have all the correct paperwork and structures in place, things get much more manageable.

Many nonprofits strategically invite someone with in-depth knowledge about fundraising regulations to serve on their board and help ensure they stay on the "straight and narrow."

Necessary resources for fundraising success

There are a few standard documents, structures, and resources that every organization should have for fundraising success, no matter what kinds of fundraising strategies you're using.

A business plan and purpose statement: Every modern nonprofit should take the time to develop a business plan with a strong purpose statement and clear messaging. Business plans and purpose statements can be invaluable tools when you're applying for loans, grants, or even corporate sponsorships. Some major donors might even ask to see these documents. A good business plan can also help you attract quality board members.

A specific budget and financial goal: Whether you're fundraising toward your general operating funds or raising money for one particular project, you need a budget and a specific financial goal.

It takes money to raise money. A healthy nonprofit always keeps an updated overall budget for the organization and for each fundraising campaign. And once you have a budget, you'll need a specific fundraising goal. Knowing how much money you need will influence your fundraising strategies and tactics.

Marketing materials: Successful fundraising involves telling many people about your goals and inviting them to join the mission. This means you'll need some excellent marketing materials to get the word out.

Whether you're leaning toward more traditional brochures, appeal letters, and flyers, or you want to incorporate social media graphics, email campaigns, and other digital content, the sky's the limit, and there's so much room for creativity. What's most important is that you emphasize quality over quantity with your marketing materials.

Choose the right tools for fundraising online

No matter what kind of fundraising you plan to do, there are a few tools almost every organization needs for fundraising success.

A website: Don't laugh, but you'd be surprised how many nonprofits still don't have even a basic website. You don't need anything fancy, but you do need a website that potential donors can visit to learn more about your organization. (Unfortunately, your Facebook page doesn't count.)

A custom donation page: It's the digital age. Every nonprofit needs a mobile-friendly online donation page for successful fundraising. The Soapbox Engage Donations app enables you to make an unlimited number of secure donation forms with just a few clicks. You won't need to get a degree in computer programming to create or maintain these donations forms, and you can customize them to your heart's content!

It's essential to choose a donation page app that can handle a wide range of fundraising strategies, from one-time online donations to peer-to-peer campaigns. The Donations app does it all with style!

Additionally, whether you're accepting recurring or one-time gifts, each transaction is processed on your website and saved directly to your Salesforce or Microsoft Dynamics account. This can dramatically reduce your overhead and paperwork time--development professionals rejoice!

A CRM system: While we're on the subject of donations, your nonprofit needs a CRM system to collect and organize all the essential information about your current and potential donors, volunteers, and everyone else in your network.

A CRM (constituent relationship management) system allows you to gather all the contact and donation information in one searchable location so you can contact an individual or a group of people with just a few clicks. It can also help you keep track of essential fundraising data and compare information to ensure you're getting the most out of your fundraising efforts.

Online event management tools: Most nonprofits rely on in-person or virtual fundraising events as a core part of their overall fundraising strategy. You'll want a flexible tool to handle everything from ticket sales and reservations to event marketing analysis.

The Soapbox Engage Events app will grow and expand to meet your needs. And it can handle everything from automated email confirmations to members-only ticketing options. So, if you just need an easy platform for people to reserve their spot at your next free gathering or a robust event management software for dozens of events, we've got you covered!

A quality online event managing tool will be a huge time-saver and help you stay organized as you build your fundraising strategy and host more events.

Fundraising event ideas: Now that you've got all the basics laid out, it's time to start doing some fundraising! Whether you're thinking of hosting a backyard BBQ or a full-on festival, the Soapbox Engage blog is packed with strategies and creative ideas to help fill your fundraising calendar.

Don't be afraid to ask your followers and donors what kinds of fundraising events they would be interested in. It's also essential to be willing to try a wide range of fundraising strategies and events.

One scrappy fundraiser for InterVarsity Christian Fellowship/USA said, "A lot of fundraising is like slinging spaghetti at the wall to see what sticks. Don't be afraid to try and fail and try again until you find what sticks to your ideal audience!"

Here are three more resources to help you reach your fundraising goals.

• Create a Powerful Branding Strategy for Your Nonprofit: Branding isn't something that only big corporations or large nonprofits need. Every nonprofit should take the time to develop a branding strategy. It's possible to do this on a shoestring budget, too! This blog will help you get started.
• 7 Fundraising Metrics Every Nonprofit Should Track: Whether you're just starting out or your organization has been around for decades, it's critical to track and use the right data to assess your fundraising performance. The right metrics can help improve your donor care, build relationships, boost your retention rates, and raise more money. This blog will help you understand the top metrics every nonprofit should track to ensure you're getting the most out of your fundraising efforts.
• How Petitions Can Help Boost Nonprofit Fundraising: Online petitions have become a popular way for nonprofits to rally supporters and grow their community of followers. Even organizations that steer clear of all things political can leverage petitions to boost networking and fundraising efforts. This blog offers some valuable insights and strategies for incorporating petitions into your fundraising.