V . Smart Fundraising techniques

Is a way of raising money to finance projects and businesses. It enables fundraisers to collect money from a large number of people via online platforms.

Crowdfunding platforms are websites that enable interaction between fundraisers and the crowd. Financial pledges can be made and collected through the crowdfunding platform.

Fundraisers are usually charged a fee by crowdfunding platforms if the fundraising campaign has been successful. In return, crowdfunding platforms are expected to provide a secure and easy to use service.

Many platforms operate an all-or-nothing funding model. This means that if you reach your target you get the money and if you don’t, everybody gets their money back – no hard feelings and no financial loss.

Main types of crowdfunding

• Peer-to-peer lending: The crowd lends money to a company with the understanding that the money will be repaid with interest. It is very similar to traditional borrowing from a bank, except that you borrow from lots of investors.

• Equity crowdfunding: Sale of a stake in a business to a number of investors in return for investment. The idea is similar to how common stock is bought or sold on a stock exchange, or to a venture capital.

• Rewards-based crowdfunding: Individuals donate to a project or business with expectations of receiving in return a non-financial reward, such as goods or services, at a later stage in exchange of their contribution.

• Donation-based crowdfunding: Individuals donate small amounts to meet the larger funding aim of a specific charitable project while receiving no financial or material return.

• Profit-sharing / revenue-sharing: Businesses can share future profits or revenues with the crowd in return for funding now.

• Debt-securities crowdfunding: Individuals invest in a debt security issued by the company, such as a bond.

• Hybrid models: Offer businesses the opportunity to combine elements of more than one crowdfunding type.

Famous  international crowdfunding platforms (not all of them are suitable for youth-led projects, but give an idea of how a crowdfunding project works.

• Kickstarter (big scale projects and products’ launch)
• Indiegogo (big scale projects and products’ launch)
• GoFundMe (also for small scale projects)

An example of crowdfunding by the company Pebble, they started a campaign to raise funds for The E-Paper Watch. In 37 days, they raised $10,266,845. Crowdfunding backers jumped at the chance to be one of the first to own a Pebble watch, one of the first affordable smart watches on the market. As months passed, backers became upset when production of the watch was stalled and they were left empty-handed. It raised questions about their ability to fulfill large orders on a short timeline with limited capital, and led to the announcement that “Kickstarter Is Not a Store.” Pebble delivered their first round of smart watches 10 months after their crowdfunding campaign ended.

You can apply for funding provided by a private, corporate, or government grantmaker. To acquire a grant, you must submit a well-written proposal to one of these entities in order to be considered eligible. Grant seeking is highly competitive. It’s especially difficult when requesting support for a new program or organization for the first time. Governments are a big nonprofit fundraising bucket. This includes funding opportunities from the national governments or from the European Commission, for instance.     *

Part of what makes grant writing so challenging is that typically every funder wants something different in the proposal. The essence of what a funder wants to see in a grant proposal is the same: what your organization needs the funding for, what difference it will make, and where the funder fits in. However, the narrative configurations, space limits, and the formats in which funders want this information can vary substantially. That’s why you need to take special care when crafting each grant proposal.

Nonprofit Grant Writing Dos & Don’ts

Grant seeking is highly competitive. There is a strong possibility of being declined the first time you approach a grant funder. Educate yourself on the misconceptions surrounding grants. Knowing the following tips will help your organization rise above the competition—even if you’ve never dabbled in nonprofit grant writing before.

Don’t: Submit a Grant Application “Cold”.

Before submitting a grant application, cultivate a relationship with the prospective funder. Search for a pre-existing connection between a person at the foundation and a member of your board, staff, or donor circle. 

If you don’t have a connection, create one! First, call the funder to introduce yourself and your organization. Outreach can go a long way to warm up the funder to receive your proposal. Stepping your engagement off on the right foot can put you substantially closer to winning a grant!

Do: Get a Green Light to Apply.

Before spending the time writing your proposal, research the foundation’s current funding priorities and restrictions. For instance, they may have a specific list of the types of funding requests that are likely to be denied. Grantmakers’ areas of focus constantly change, so make sure you’re up-to-date on what they’re aiming to fund. It may turn out that they’re not quite a match to your organization. Figuring this out early on means you won’t waste time writing a tailored proposal just for it to be rejected. 

To really improve your chances of funding, call or email the funder to introduce your organization and discuss the project or initiative. Prepare in advance what you plan to say to make the most of this crucial initial phone call. This helps to ensure your proposal is a good fit on both ends before time is spent crafting a proposal. Plus, this may help you determine exactly which angle to take with your grant writing. Don’t guess at the best fit or proposal strategy—get the green light to apply!

Don’t: Overlook Basic Application Instructions.

One of the biggest mistakes you can make is not adhering to a funder’s specified proposal requirements. Well before the deadline, review the foundation’s current application format, submission process, required attachments, and other instructions. This way, you won’t overlook important requirements.

Never cut corners! This will come across in your writing, indicating to the reader that you didn’t put enough thought and care into it. Ultimately, veering from the directions could land your proposal right in the reject pile without any further thought.

Do: Match the Foundation’s Funding Period.

Even worthy proposals will likely be disqualified if they’re not submitted within a foundation’s funding period. Just like foundations have guidelines for formatting your grant proposal, they have rules for when you can submit your requests, too. 

Before submitting or even writing your grant proposal, confirm the grantmaker’s timeline specifications. This way, your efforts will not be in vain.

Don’t: Skip a Compelling Financial Narrative.

A well-designed proposal budget is one that follows the foundation’s required format, matches the application narrative, and establishes that your funding plan is sound and achievable. To accomplish this, provide a financial outlook that’s accurate, supports a clear need, and reflects a healthy and sustainable funding strategy. 

Take it a step further by demonstrating which expense(s) will be supported through the foundation’s grant. Remember, the best grant proposals are those that evoke emotion and instill a need to take action through a compelling narrative.

Do: Prove the Last Grant Was an Investment Well Made.

Part of a smart grant seeking strategy is demonstrating that an organization deserves a foundation’s financial support. Achieve this by providing an impressive, timely report for any previous grant awarded by the funder. Conversely, one of the quickest ways to get declined is by submitting a request without first meeting reporting requirements.

Foundations view grants as investments and grantors as partners. Because of this, you need to show them that their contributions to your nonprofit are smart, well-made investments. Remember to be upfront about any shortcomings and explain how you’ve improved on them. By providing clear and honest reports, you showcase your organization as a smart bet for continued funding.

Don’t: Let Expectations Exceed Capacity or Probability.

One of the most crucial parts of a grant seeking strategy is knowing the funding environment and adhering to projections accordingly. Set realistic but aspirational goals. Start by researching the likelihood of a foundation’s support. This will help keep your expectations in check. 

Know that if your organization has received funding from a foundation and reported successfully before, the likelihood of continued support is higher. On the other hand, if it’s your organization’s first application and the grant opportunity seems highly competitive, your chances of winning a grant are lower.

In other words, the more competitive the opportunity, the harder it is to secure funding. Build a grants plan that balances many low-risk, higher-probability prospects with some higher-risk, lower-probability targets.

A fundraising event is an event designed to raise awareness and support for an organization’s mission. All events can be turned into fundraising events, or an opportunity to raise money. This can include concerts, silent auctions, half marathons, neighborhood cookouts, and more.

You can use fundraising events to raise money to fuel your missions. Events give donors and other community members the opportunity to engage in an active way, as opposed to simply giving a donation. Getting facetime with donors also gives organizations the chance to reiterate their mission and discuss ways people can get more involved in their work.

Types Of Fundraising Events

• Galas: A gala is a social gathering, typically featuring food, drinks, and entertainment, that is used as an opportunity to raise money for a nonprofit. Gala guests often purchase a ticket or a table in order to attend the event, which is how the nonprofit raises money. Galas may also include other activities, such as a silent auction.

• Donor Appreciation Event: Donor appreciation events are completely free to the donors attending. Do not sell tickets or ask for donations. Instead, they use the event to express their gratitude to donors, reiterate their mission, and offer suggestions of ways donors can continue to engage with the organization. When you take a fundraising approach and don’t ask for money, you can focus solely on creating connections with your supporters and building on relationships. Essentially, events where you don’t ask for funds ensure the focus of the event is entirely on your supporters themselves, not their wallets.

• Live or Online Auctions: An auction is a sale at which goods are sold to the highest bidder.

• Silent Auctions: Silent auctions follow the same concept as an auction, but instead of an auctioneer announcing and describing each item, items are laid out for attendees to survey and make bids on “silently” by writing their bid on a bid sheet in front of the item. Mystery boxes, grab bags, and punch walls are a few great fundraising ideas to help you sell some of the less expensive auction items that you have received for your fundraiser.

• Virtual Fundraising Event: A virtual fundraising event is an event that is online or has an online component with the intent of soliciting funds or other donations. In times when in-person gatherings are not feasible, virtual fundraising events are a viable alternative to in-person events. Even when in-person gatherings are possible, you can continue to use them to provide another form of engagement.

• Hybrid Fundraising Event: Hybrid fundraising events are set up to include both an in-person and virtual element to them. They simultaneously or asynchronously combine offline and online experiences. Simply live-streaming your in-person event technically qualifies, but a stellar hybrid experience is one that is multi-channel and interactive. These events allow the hosting organization to appeal to and engage audiences both at a physical venue and online. Moving into a post-pandemic life, we can expect to see more hybrid events in the nonprofit and for-profit sectors. These events allow organizations to make the most of the tools at their disposal.

Establishing corporate partnerships can be a major source of fundraising. With so many organizations emphasizing social responsibility, you may find that companies are willing to sponsor or underwrite your organization’s programs or events, especially if your group’s efforts align with the company’s mission or values. Corporate partnerships also often include matching gift arrangements, with the company matching any dollars donated by their employees with an equivalent donation.

• Individual donations range in monetary amounts. You should always have a way for individuals to give, regardless of the amount, and a system set up to provide them with a formal donation acknowledgement letter (email).  This will include a statement declaring your nonprofit’s tax-exempt status, the donor’s name, the donation amount, the donation date, and a description of the purpose of the donation. When a donation is bigger – or over $5K – these are referred to as major gifts.

• In-kind donations are donations of a particular product or service, rather than funding. Think: access to  software or space for an event.

• Earned revenue are funds where the person providing money will receive a good or service of equal or greater value in exchange. This includes (but is not limited to) ticket sales, payment for services/work, advertising, class/camp/workshop fees, artwork sales, and merchandise fees.

8. Taxes donations

In most EU countries it exist the possibility for both enterprises and individuals to donate a % of the annual taxes to a non profit organisation. The procedure for both donating and receiving is rule by the law.

Steps to corporate partnership success

• SWOTA

This helps you to identify your organisation’s strengths, weaknesses, opportunities, and threats in relation to your ability to be successful with corporate partnerships. The “A” is the practical Action list resulting from it (too many SWOT exercises just languish on the pile of paperwork, don’t they?). This is where having a clear intention helps, so you can compare the SWOTA against what “success” looks like.

• Assets inventory and valuation

It’s foolish to invite a corporate to “partner” if you don’t know what you have to offer. Partnership is a mutual exchange – not philanthropy. It’s also risky not knowing the market value of your assets. Step two features a world-first DIY asset valuation model, called the Ph Formula, created by a media expert. By the end of this step you’ll have an inventory of all your assets that can be offered to a corporate, enabling you to package up a partner and sponsor proposal easily and quickly with a robust investment.

• Prospects list

Instead of asking the board for contacts (which might get you a donation, but not a partnership) our process identifies corporates and brands that fit with your brand values, target market and geographic reach. An initial “suspect list” of over 200 is refined to a “prospect list” of 60, then honed to a “hot list” of 20. This manageable list can then be thoroughly researched prior to approach.

• Credentials presentation

The first meeting with a corporate is a professional presentation – not a coffee chat. This is business – and time is money in their world. We’ve perfected a 15-minute credentials presentation that is compelling and gets you to a yes (or no) fast.

• Partnership model

The way you wish to engage with corporates and brands is wrapped up in an outward-facing corporate partnership model. This contains a minimum fee for companies to align with your brand and an internal “rules of engagement” that the entire organisation must adhere to (including, if federated, state partners in readiness for national opportunities).

• The approach

This is often where not for profits start, another reason for failure. The approach is far more successful when you have your ducks in a row from steps one to five. We’ve refined a technique for getting a corporate to notice – and agree to meet with – you, including a cut-through communication template.

• Securing partners

Because of the work done in steps one to six, getting corporates across the line is much quicker. Providing a Q&A to the corporate enables you to discover what they want, and this makes negotiation efficient and enjoyable. Our program provides all the legal templates required for both partnership and sponsorship, which protects your IP and clearly articulates the obligations of each partner. Large corporate partnerships agreed on a handshake really are a thing of the past.

A sponsorship is when a company commits money or resources to a nonprofit event or program in exchange for specific promotional benefits. In exchange for supporting, the company gets their name and logo on things like:

• Banners
• T-shirts or wearable swag
• Posters 
• Brochures 
• Other marketing and communications collateral

The business objective of sponsorship is to reach a specific target audience and to earn a “halo” for supporting a good cause or activity. By aligning themselves with purpose-based organizations, sponsors give their businesses a competitive edge that goes beyond product and price, It’s marketing.

Sponsorship is win-win and work-work. Both benefit from the partnership, but success depends on them working together to ensure the other’s success.

Types of Sponsorships

Depending on your needs, there are several different types of sponsorships that can help you:

• Financial or cash: This is the most common type of sponsorship where cash is exchanged for benefits, perks, or publicity. 

• In-kind: Similar to a financial or cash sponsorship, except goods or services are given instead of cash. It can come in the form of:

• A venue partner 
• A prize sponsor
• A food sponsor

• A digital sponsor (social media filters, apps, media wall, etc)

• Media event: Helps provide support for promoting your event. Sponsors can be a media outlet giving a free advertisement or they can give money to help fund your advertising.

• Promotional partner: Similar to a media event sponsor, except in this case, it’s an individual boosting your event through their own channels. For example, a social media influencer could be a promotional partner. 

An Example of a Sponsorship    

If you’re looking for an example of sponsorship in action, take a look at the Boston Marathon, which is run by a nonprofit organization, the Boston Athletic Association or BAA. The event has a number of longstanding corporate sponsors, including running shoe maker Adidas.

Key Tactics to Get a Sponsorship

• Research potential sponsors. Look at your existing supporters. Evaluate each one to see if their goal and interests align with your values and audience—or if they could help you find other new sponsors.

• Tell your organization’s story. What makes your organization special? Define your key pitch elements and weave them together to tell a story that will appeal to potential sponsors.

• Provide sponsor incentives. Sweeten the deal by communicating what a sponsor will get out of the partnership (and how it’ll boost their visibility). Include examples of their organization will be featured, like: 

• Marketing and promotional collateral 
• Branded videos
• Social media content
• Event swag and goodies

• Reach out to established companies. Partner with established companies that have a positive reputation, have built trust and can boost your organization’s profile.

• Use data to legitimize your pitch. Data is everything. Don’t forget to take those important insights from your audience and feature them in the pitch.

• Find the right contact. Make sure you know who the right contact is. Often, this can be someone in the marketing department.

• Build a connection over time. A good relationship always starts with a strong foundation. Take time to get to know your potential sponsor and build a connection over shared values and concerns.