A necessary function of nonprofit organizations is fundraising. While grant proposals are a significant and valid source of raising funds, there are other things your organization can do to encourage donations. Today we will take a look at some other ways your nonprofit organization can raise funds to achieve your mission.
Fundraising Events
Whether it be an organized run, gala, auction, or dinner, gathering people together for the purpose of learning about and supporting your mission is a great way to raise funds. Hosting fundraising events is common throughout the nonprofit world. One of the greatest benefits is that people can get involved at almost any level. From a $25 entrance fee to a $2,500 donation, you can create ways for everyone to play. In addition to raising funds, events provide the opportunity to raise awareness. Through inviting speakers, sharing stories, and showing pictures or videos you can communicate the value of your mission to constituents and influencers. In addition, hosting events like run/walks or theme parties creates an opportunity to tell the public what you’re about and invite them to participate.
Annual Donations
At least once per year, nonprofits can simply ask people to donate in support of their cause. Most often, this is done through a direct mail campaign and the target audience is anyone who may be interested in supporting your organization. It is wise to send this out during the late fall in hopes of tapping into the year-end donations. Did you know that 25% of all donations are made in the month of December with 10% made the last three days of the year? December breeds generosity as well as tax benefits, take advantage of this to invite people to exercise their generosity by investing in your nonprofit.
Memberships
Most regular corporations have stockholders, however, because nonprofits do not issue stock they do not. An alternative to this is offering membership. A formal membership structure may grant certain rights, such as voting power, towards board members and decisions. Although additional paperwork and administration is necessary to support membership, this is another great way to raise funds for your organization. There are two options for membership.
- Rolling Membership – this means that membership income is steady throughout the year as people will be paying their renewals as they expire. This requires someone to keep track of memberships and send out renewals accordingly. The alternative to this is:
- Annual Memberships or Memberships that are renewed one time of the year. This has its advantages, as you are able to time your renewal to bring in donations at a set time of the year, which helps with cash flow. On the other hand – you may lose out on potential members and funds if you’re not on top of membership offerings throughout the other months of the year.
Planned Giving
Planned giving is the act of making a commitment to give a charitable organization a gift, over time or in the event of death, as part of the donor’s overall financial and estate planning. All too often, this opportunity to generate donations is overlooked or avoided by nonprofits. Understandably, it is a tricky subject to broach, however, it is important not to underestimate the power of legacy. People want to leave a legacy in an area that they are passionate about. Keep in mind – you are inviting people who care about your nonprofit to make a lasting investment, to keep pursuing your mission. This is not a forced act but an opportunity that can be accepted or declined, but you will never know if you do not ask.
At Beck & Company, Certified Public Accountants and Business Advisors, we are an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. Specifically, we offer nonprofit services such as CFO, Controllership, and Accounting services. Contact us to see how we can help your organization flourish.