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Basics of Fundraising for Nonprofit Organizations

According to numerous nonprofit organizations that focus on charities, fundraising is both a blessing and an inconvenience at times. Of course, fundraising aids organizations in bring in fresh support and fans, it also never really ends and there are fundraising rules for nonprofit organizations being observed. But despite the negatives, there are tons of reasons why charities should definitely consider fundraisers beyond simply opening doors for opportunities.

The Legal Side in Fundraising

Fundraising involves a lot of legal requirements and the first of which is actually applying to become a tax exempt charity. By applying for the title, it allows charities to tell all the donors that the contributions they provide can possibly be tax-deductible. The ‘possibly’ heavily depends on whether or not the individual will itemize their deductions on the personal tax return.

Non-exempt charities are also called unincorporated nonprofit associations that do not apply nor receive exemptions but can raise funds; the main difference is that the donors cannot apply their contributions as tax deductions.

Above all else, nonprofits are required to duly register under their states of incorporation in order to be allowed to raise funds. In case a charity does facilitate fundraisers in other states, they are required to register under the said state. Even though they are legible for out-of-state grants, the charity has to strictly follow fundraising rules for nonprofit organizations specified under those states.

Different Types of Fundraising

Over the years, nonprofits have implemented various methods for fundraising. Until only recently, the most frequent and successful methods are telephone fundraising, direct mail fundraising, and telethons or television specials.

There’s no denying that these tried and tested methods are still effective. But nowadays there are new methods that nonprofits can consider like email fundraising, online fundraising, social media fundraising as well as other techniques that make use of smart devices like text-to-give. For some, they are a new concept, but that doesn’t mean they don’t work.

Even huge fundraisers that use events like bike-a-thons, walk-a-thons, and marathons are greatly enhanced and advertised through crowdfunding. The chief driver for individuals in giving donations is direct mail, despite the fact that digital marketing grows at a rapid pace on a yearly basis. Multi-channel fundraising is one of the most crucial methods. Now, fundraising campaigns make use of other elements like varying kinds of media. Apart from that, donors are usually motivated with one kind of method, like direct mail letters for example, but make their donations through online options with the help of phones and computers.

The majority of nonprofit organizations also apply for grants from the government, corporations, and foundations. The fundraisers are done to protect futures funds and endowment funds through the help of planned giving programs; these will encourage donors to include the cause of their choice in estate planning.

Before, people heavily questioned the partnership of corporations and nonprofit organizations. But today, the public demands all corporations be involved in corporate social responsibility. Conscious consumerism has paved the way for businesses across industries to partner with charities through sponsorships, cause marketing, and other programs like donation matching and employee volunteer programs.

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