Nonprofits all have the goal of bettering the world and making a difference—but these charities still need to find funding to continue their mission. That’s why fundraising is always top of mind for many nonprofits. That said, there are many different reasons any given nonprofit fundraises every single year. Not only is fundraising a huge opportunity for a nonprofit to bring in donations, but it’s also a great way to raise awareness around a cause or bring in new volunteers. Below, we’ll go into more detail on the main reasons why fundraising is important for nonprofits.
Four simple reasons why nonprofit fundraising is important
Nonprofit fundraising is integral to the health and longevity of any nonprofit. Here are the three main reasons why your nonprofit should re-evaluate your fundraising strategy every single year.
1. Fundraising helps further your mission
The main reason that fundraising is important for nonprofits is self-explanatory—to raise money! Outside of raising money for their cause, nonprofits have normal bills to pay. From raising money for the next fundraising event to making sure payroll is covered and the electricity bill is paid, money is always a necessity for any nonprofit.
Fundraising is also incredibly important for planning the upcoming budget for the following year. Determining salaries for employees, planning projects, and making sure you can cover rent for the upcoming year all require very diligent budgeting. If less money comes in than expected, fundraising strategy may have to be completely rethought and restructured. Knowing with complete certainty how much money you can allocate toward any given project is fundamental to nonprofit fundraising.
2. You can share your cause with the world
Fundraising is also a critical way for nonprofits to share their cause with community members and reach new audiences. The importance of fundraising online cannot be understated—online fundraisers can serve as a landing page where nonprofits can explain what their mission is in a concise way. From there, the steps are quick and easy for people who are interested in donating.
If you start an online fundraiser for your nonprofit, you can think of this as a great way to market what your nonprofit aims to do. You can either share great content about your cause on your fundraiser, or you can push people in the direction of your website. With huge advancements in the peer-to-peer fundraising sphere, it’s now easier than ever to reach donors you couldn’t before.
3. Fundraising brings in volunteers
One of the most underrated aspects of nonprofit fundraising is that it can help bring volunteers to your nonprofit. In the nonprofit world, people willing to donate their time can be just as valuable as people willing to donate their money. In fact, Independent Sector has assigned a value of $25.43 per hour to volunteer time.
Think of all the money your nonprofit could save if you had dedicated volunteers who lent their expertise to your cause. Depending on the nature of your cause, you can ask volunteers to assist with cause-based projects. Or, you can have them help you with future fundraising efforts.
4. Fundraising keeps supporters invested
Yearly fundraising is a huge opportunity to show the impact your nonprofit is having year after year. When you start your fundraiser, incorporate the achievements of the previous year into your marketing. Be sure to quantify exactly how your nonprofit contributed to making the world a better place—did you plant 500 trees? Raise $100,000 for childhood cancer research? Tell your supporters! The story of your nonprofit will appeal to the heart of a donor, but statistics that demonstrate what your charity is able to accomplish will encourage them to donate.
Five new fundraising methods you should try
In the last few years, nonprofit fundraising has been completely revamped. With the invention of online donations and mobile giving reshaping the future of nonprofit fundraising, the different strategies behind fundraising are endless. Implement the fundraising methods below to boost donations this year.
1. Try out peer-to-peer fundraising
Nonprofits are no longer fundraising alone. Peer-to-peer fundraising works by allowing people to start fundraisers on behalf of your organization as an offshoot of a fundraiser that you already have. This is different from simply starting a crowdfunding fundraiser, as it allows supporters to create customized fundraising campaigns that are personal to them.
This way, they can tell the story of your nonprofit as it relates to their life, encouraging friends and family members to donate. A great time to begin a peer-to-peer fundraiser is around Giving Tuesday, when people are thinking about different ways they can support charities they care about.
2. Launch a Giving Tuesday campaign
Giving Tuesday campaigns are a significant way to bring in donations during the holiday season. If you aren’t familiar, Giving Tuesday was started in 2012 with the intention of motivating people to donate to deserving causes every December. Over the last few years, the movement has picked up a massive following with over $400 million dollars raised in 2018 alone. Not sure where to get started with your Giving Tuesday campaign? Check out these Nine Nonprofit Giving Tuesday Ideas You Need to Know.
3. Encourage DIY fundraising from your supporters
DIY fundraising allows those who support your mission to develop their own fundraising events or strategies for your organization. For example, if an individual wants to organize a charity concert, they can set up their own event and fundraiser to share with their network. When organized through a peer-to-peer platform, all money will go directly to your organization. GoFundMe Charity even offers the option to sell event tickets through a nonprofit fundraiser, keeping everything your supporter needs in one place.
You can help get them started by sharing charity fundraising event ideas on your website. Make sure you iron out the details and explicitly state how your organization would like DIY fundraisers to be operated. This way, your staff can be hands-off and focus on other fundraising efforts.
4. Pick the right charity fundraising software
Choosing the right fundraising software can make or break your nonprofit’s online fundraising goals. The key is to find nonprofit fundraising software that meets your organization’s needs and doesn’t break the bank. When researching different software, be sure to note if there are any fees associated with the platform, what kind of data management options the platform offers, and if there are any contractual obligations in signing on.
5. Ask for in-kind donations
In-kind donations are a wonderful alternative for donors who aren’t able to give money to nonprofits. In-kind donations are non-monetary donations from individuals or corporations. Depending on what would most suit your organization, you could accept in-kind donations ranging from toys for kids to canned goods. Consider including in-kind donations as a part of your year-end giving campaign and distribute the goods you receive during the holiday season.
Ready to step up your fundraising this year?
Even though running a nonprofit can be expensive, fundraising software doesn’t have to cost thousands of dollars. GoFundMe Charity provides an online fundraising platform with no subscription costs or contracts. Whether you’re planning your next charity event or you’re interested in learning how to raise money for a charity walk, GoFundMe Charity is the perfect place to start. Sign up and start fundraising for your nonprofit now.