Back to the Fundraising Basics

Back to the Fundraising Basics

Asking for donations is the "bread and butter" of the development professional's job. You are fundraisers, after all. But that doesn't mean you're immune to intimidation, self-doubt, and even a bit of uncertainty or confusion. It IS intimidating to ask people to give their hard-earned money to your nonprofit.

Whether you're a professional fundraiser or a member of your local PTO, we've gathered some tips, tricks, and basic best practices to help you either review the basics or get started fundraising toward your goals.

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Back to the Basics: Who to Ask for Donations

The first thing to think about when fundraising is who to ask for donations. There are three primary categories of donation requests to consider.

Individual donations

Individual donations make up the most significant portion of all nonprofit contributions. Asking people to support your cause is a powerful, sustainable fundraising strategy used by nonprofits of all sizes. You're probably familiar with many of the common strategies to make individual asks:

Online donations: Many nonprofits use a custom online donation page to receive individual contributions. Online donation pages make it easy for people to give immediately in response to social media appeal campaigns, crowdfunding, or peer-to-peer fundraising campaigns.

Direct mail letters: Sending appeal letters might seem old-school, but it's still a proven tactic for connecting with supporters and asking for donations. When you have your donor lists segmented well, this can be a really effective strategy.

Mobile donations: With more people than ever reading email and accomplishing tasks on tablets and smartphones, mobile donations are an essential way to ask for contributions from individuals. Mobile donations include donations made from smartphones, tablets, or other mobile devices (including text-to-give, QR codes, and mobile-friendly donation pages). This is one of the fastest-growing methods of giving for individual donors.

Product fundraising or sales: Selling branded merchandise can be an effective fundraising strategy for some organizations, clubs, or nonprofits. Some donors feel extra incentive to make donations when there's something tangible in return or a way to show their support for your cause.

Most people have altruistic motives for donating to nonprofits and organizations. Still, there are certainly tax incentives for charitable giving, too.

Corporate donations and sponsorships

Businesses and corporations can be invaluable supporters for nonprofits and organizations. Many corporations have an internal corporate social responsibility department or initiative. While they might have limitations on the types of organizations they support or the amount of money they can contribute, many corporations are eager to be generous.

Matching gifts: Some businesses will match the amount of money an employee donates to an eligible nonprofit up to a certain amount, essentially doubling the contribution. These funds often go unclaimed because many people don't know about their employer's matching gift opportunities.

Corporate grants: Corporate grants usually come in the form of one donation that the company donates to a nonprofit on an annual or semi-annual basis. Often corporate grants go to specific projects or initiatives that align with the company's mission or area of expertise.

In-kind donations: Some businesses donate products or services instead of cash donations. For example, a computer software company might donate software or even volunteer hours of their employees' time to help your nonprofit. Or an office supply store might donate paper and markers to your after-school tutoring program.

Volunteer grants: Some businesses offer rewards to employees who volunteer their time at eligible nonprofits. Once the employees give a certain number of service hours, they can request a volunteer grant from their employer.

How do corporations benefit from giving to nonprofits? Businesses want to demonstrate their care and concern for the community, environment, or specific causes aligned with their values. Of course, they also receive tax benefits, and many companies leverage their generosity to build trust with current and potential customers.

Donations from foundations

Foundations are charitable organizations that often give grants to nonprofits. Each foundation has its own focus or criteria to determine which nonprofits to support. Usually, foundations focus on nonprofits working on a specific cause or mission, in one particular geographic area, or based on the size of the nonprofit.

Foundations usually have some kind of application process where nonprofits can apply for a grant to fund a specific project or need. The most common types of grants are foundation grants and challenge grants.

Foundation grants: These are usually large donations that nonprofits can apply to receive annually from community, private, or family foundations.

Challenge grants: Challenge grants are usually given to a nonprofit after a specific objective is accomplished. Challenges often involve some kind of fundraising initiative. For example, an organization might work hard to raise $50,000 in six months to receive another $50,000 in matching gifts.

Foundations exist to support causes, advance missions, invest in communities. Finding great nonprofits to financially support helps them achieve their goals.

5 Popular Ways to Ask for Donations

While there are countless ways for nonprofits, individuals, and groups to ask for donations, we gathered some of the most common and effective fundraising strategies and some basic information about each one to get you started.

1. In-person requests for donations

This fundraising strategy is beneficial because you're able to personalize the request. Sitting face-to-face, you're able to gauge an individual's interests, concerns, and commitment levels and cultivate a personal relationship. While it might feel very intimidating, it can be a very effective fundraising strategy.

These fundraising meetings are an excellent opportunity to share about your organization's vision and mission or share about specific projects that need funding.

Because in-person requests can be very time-consuming, it's not a "one-size-fits-all" strategy. Most development professionals rely on this fundraising strategy with major gift donors, potential planned giving supporters, businesses or corporations, and sometimes new donors they're trying to establish a relationship with.

For the greatest success in one-on-one fundraising, take the time to research the potential donor. Learn about previous charitable giving, interests, and any other helpful information. Also, practice your "pitch" until you feel confident in the major points, but be prepared to adjust the donation amount you ask for at the meeting.

Pro tip: As you learn more about each supporter, keep those details updated in your CRM system. Birthdays, kids, hobbies and interests, and other personal information can really help you personalize each conversation and demonstrate that you're listening and you care about them.

2. Asking for donations via email

Emails are a powerful fundraising tool for nonprofits because it's very versatile. You can communicate with one donor or countless people for very little money and as frequently as you want.

Most nonprofits choose to send emails weekly or monthly to keep readers updated on projects, events, and other happenings around the nonprofit. Then they add donation appeals sporadically to those regular email updates when there are specific fundraising campaigns or financial needs.

When sending an email donation request, make the ask near the beginning, so people don't lose interest before reaching that part of the email. Clearly explain why you're asking for donations and include links to your custom online donation page and details about giving via mail or phone.

Pro tip: Taking the time to segment your email lists can significantly improve the effectiveness of your email appeal campaigns. With a segmented list, you can customize the "ask" and target individuals who are most likely interested in a particular project or need.

3. Direct mail fundraising campaigns

Appeal letters or direct mail fundraising campaigns might seem like an old fundraising strategy, but they still work! Because they tend to be more formal, direct mail appeals tend to be a great strategy when asking for more significant donations from individuals or businesses.

Appeal letters are a great strategy to clearly present a project or cause for which you need money. Nonprofits can outline all the details about what they hope to accomplish with the funds, specific donation requests, and details about how to make a donation.

Because appeal letters can be costly to print and mail, many nonprofits use these letters to connect with major donors, loyal supporters, businesses, and other strategic partners. Limiting your mailing list can save you valuable time and money and increase the effectiveness of this fundraising strategy.

Pro tip: Even though this is a direct mail letter, include details about how to make donations online, by phone, and by mail. Many donors prefer to make all their donations online. Setting up a customized donation page that "matches" your appeal letter (in appearance and content) is an excellent touch. That way, supporters know they're in the right place when they type in the web address.

4. Fundraising via social media

Asking for donations on social media can be an effective fundraising strategy. Still, it's not typically going to result in major gifts. Instead, social media fundraising campaigns are just as much about spreading the word about your organization and mission as they are about raising money.

Social media is a quick and inexpensive way to engage a large audience on a very regular basis. Post on your social media pages regularly and share a variety of content, not just appeals. Add a donation button or tab to your pages and share status updates with a link to your donation pages from time to time.

While savvy nonprofits do use their own social media pages to make appeals and direct people to their online donation pages, peer-to-peer fundraising is another great way to leverage social media to raise more significant sums of money.

You can also use Facebook Live to turn fundraising events into virtual events or give live updates about things your followers and supporters are interested in.

Pro tip: Don't forget to add a donate button to your Facebook page! This allows qualifying nonprofits to fundraise directly from their Facebook page!

5. Fundraising events

Nonprofits have been hosting fundraising events practically since the dawn of fundraising. They can be big, formal galas or fun, festive charity runs. Whatever type of event fits your nonprofit, you can turn it into a great way to connect with current and potential supporters and make a direct ask for donations.

Because most fundraising events have some kind of cost involved (renting space, providing food, etc.), it's essential to ensure you get a good return on your investment. Make sure you and your team leave plenty of time to plan the fundraising event.

Pro tip: Use an events registration tool like the Soapbox Engage Events app to make ticketing a breeze. Even if you're not selling tickets to your next fundraising event, using this tool to streamline the signup process can save you valuable time, energy, and even money.

2 Key Times to Ask for Donations

While there are countless opportunities to ask for donations throughout the year, there are two strategic times most nonprofits ask for donations each year.

Year-end giving

The holidays are a very strategic time to ask for donations because many year-end festivals have some element of generosity and charity. Many people are in the giving spirit or are looking for opportunities to take advantage of tax benefits. Some donors have a better understanding of their finances at this point in the year, too. All of these factors (and more) make November and December the peak giving time each year.

Take advantage of this giving trend by putting together a year-end giving campaign. Send out year-end appeal letters and use a variety of communication channels to remind your supporters who you are and what your organization does.

Giving Tuesday and other strategic days

Speaking of year-end giving, many people around the world begin their year-end giving by participating in Giving Tuesday. The creators of Giving Tuesday wanted to inspire more giving back during the holiday season, so they launched this global day of giving the Tuesday after Thanksgiving.

Many nonprofits consider Giving Tuesday the official launch of the year-end giving season, and they create Giving Tuesday campaigns to promote their organization and encourage donors to give. Include details about your upcoming Giving Tuesday campaigns in your emails, social media posts, and letters throughout November so that donors are primed and ready to get involved.

Giving Tuesday and other "cause days" can be very strategic fundraising days for nonprofits who plan ahead and learn how to leverage the momentum around these days effectively. If there's a "cause day" that specifically relates to your nonprofit's mission, don't miss the opportunity to leverage the day for fundraising!

For example, a nonprofit that works toward conservation or to prevent climate change might use Earth Day or Arbor Day as a strategic fundraising opportunity.

Now that you've got the fundraising basics down, here are three more resources to keep you reaching your fundraising goals.

  • 5 Ways To Boost Your Wording When Asking for Donations: Whether you're crafting an email to potential donors, a social media post, or an invitation, or the donation page for your website, the words you choose matter. How you ask is just as important as who you ask for donations. You need strategy and the right words to inspire your partners to donate, and this blog offers five easy ways to boost your wording when asking for donations.
  • 6 Tips to Design an Effective Giving Tuesday Landing Page: Whether you choose a simple landing page or a full-blown website for your Giving Tuesday or giving day fundraising, there are some practical things you can do to drive more visitors to your page and increase donations. This blog will help you build an effective Giving Tuesday landing page for your nonprofit.
  • Making the Right Fundraising Ask: Smart Strategy for Successful Appeals: It can be tricky to know exactly how much to ask for from potential donors. Asking for too much can cause frustration and opt-outs, and asking for too little can be downright insulting to donors. The wrong amount can cause even a great appeal to fall flat. This blog will help you create more individualized ask amounts for your next appeal campaign.