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Where to Find Fund Raising Donors

Where to Find Fund Raising Donors

Now that you know what the sources of money are likely to be for your non-profit, you will want to figure out how to contact the largest amount of them most effectively. You will of course want to know where to find the donors that can help your group succeed. There are several ways to get in touch with the groups and people who can help you:

•The library: Well before you start your fundraising efforts, you will want to frequent your local library. Your local library, as part of your community and a great information resource, is indispensable for your non-profit. Your librarian can help you find directories of government grants and programs that can help you, and can show you business directories that can help you find companies who may be willing to sponsor your non-profit.

At the library, you can also read books about successful fundraising and browse through newspapers and magazines to learn how other groups have managed to fundraise. Most libraries even have free community bulletin boards where you can appeal to volunteers or advertise your latest fundraising efforts for free. Without a doubt, the local library is one resource that no non-profit should ignore.

•Advertising: Many non-profits will seek donors by advertising in newspapers, on radio, and on television. Larger non-profits such as the United Way will often advertise year-round in order to encourage donors to come forward. However, even smaller non-profits will advertise locally.

You may well have seen your local food bank or shelter advertising for food and cash donations around holiday time, for example. Advertising tends to reach lots of people for the cost of one ad, even though individual ads in newspapers and radio can be quite expensive on their own. However, some non-profits find that they can sometimes appeal to a radio or local television station or publication to advertise for free. Even though the media makes their money through advertising revenues, they are occasionally persuaded to offer free advertising as a charitable contribution to a non-profit.

•Plugging into the Community: Most small non-profits are very community oriented - most of their money and most of their charitable activities are centered on one local area. If this describes you, then you need to become a part of your community so that donors in your area will become aware of your group.

When people see that your group is offering something to the community, they may be more inclined to donate. Plugging into the community may mean showing up for local events with group advertisements, taking out ads in local media, or passing on the word through word of mouth. Whichever methods you choose, it is often very important for a small or starting non-profit to be seen as part of the community in order to secure donations.

•Direct Appeals: Direct appeals mean that you approach people individually. This can be done door-to-door, by standing in front of a store or establishment, or by phoning or mailing people individually. The idea is that direct appeals are harder to resist than general appeals, and so more people are likely to at least give some money rather than say “no” entirely. The problem is that so many companies use this route that some individuals feel that this method is too intrusive and refuse every direct appeal made.

•Awareness Raising: You will find some enthusiastic donors and some volunteers and resources by letting people know about the problem your group is trying to correct and by telling people about your non-profit group itself. Raising people’s awareness about your group and your groups’ work is a big job. You can raise awareness in many ways:

•Reports in the media (interviews, articles)

•Advertising

•Visiting groups such as schools to let people know about your group

•Setting up booths at fairs, volunteer workshops, and other community events

•Going door to door to tell people about your group

•Sending mail campaigns to raise awareness

•Setting up events that will raise awareness (and money, too)

•Market Research: Every successful non-profit needs to do exact market research in order to find out who the most likely donors are for their group. There are market research firms that can do this for a sum, but if you are a small or new non-profit, you can do your own market research by using newspapers and your own community knowledge to find out who will be most likely to support your group.


Targeting Donors

Of course, you want to reach all the donors you can. The more people you appeal to for money, the more “yes” responses you are likely to get. For most non-profits, and especially for small non-profits, though, the very logistics of trying to reach all possible donors are simply impossible. Advertising in every newspaper and on every television show and trying to visit everyone in a city in a direct appeal is simply a lot of work - and a huge expense. Most non-profits can only contact a limited number of people, so you will want to do one of the following:

1) Contact as many people as humanly possible using the budget you have.

2) Contact only those smaller amounts of people who are likely to support your non-profit.

In almost every case, option #2 will result in more “yes” answers on a smaller budget. To understand why this is, consider the way each fundraising campaign would work.

Let’s say that two groups in the same community had a similar mandate and similar budgets. For the sake of argument, let’s say that both are women’s centers with a small $1000 budget each.

The first center decides to use all the money trying to reach all the donors it can. Volunteers go door to door at no charge, ads are taken out in newspaper and radio, and appeals made outside stores. The group talks to many thousands of people over the course of several months and spends their entire budget on the process. They raise plenty of awareness and plenty of money, but there are several drawbacks to this method:

•Lots of “no” responses. These are not essentially a problem except that each “no” response costs money or time (the time it took to appeal to the person and the expense taken to mail a letter or to contact someone). Plus, lots of “no” responses tend to reduce morale, as volunteers wonder whether their efforts are really doing any good. Every fundraising effort will bring in plenty of “no” efforts, but by casting the net wide, the first group has all but ensured that they will have many such replies.
•Lots of unseen appeals. Advertising is great, but general untargeted awareness raising and direct and indirect appeals tend to have a high miss rate. If door to door volunteers are used, then there may be many people who do not open their doors or who are not at home. If newspaper ads are used, there may be many newspaper readers who do not look at advertisements and so miss the well-worded appeal. If booths are set up at community events, there may be many who walk by without a glance.

Of course, with any fundraising strategy, there will be some people who do not see an appeal, but indirect and unpersonalized approaches tend to increase the rates of this type of non-response.

•Fatigue syndrome. The volunteers of this first group are working very, very hard. While that may bring in plenty of good responses, it may also leave many volunteers too fatigued by the effort to keep making appeals. Remember: one of the secrets of fundraising is that it must be continual in order to ensure long-term success of the non-profit group. How many volunteers could keep up the dizzying pace that this group has set?

•Hit and miss, disorganized method. With no plan and no real idea of who this group is trying to appeal to, volunteers are relying on blind luck to find donors. Some people may be appealed to a few times by volunteers while others may not get the message about the group.

•Consumption of time. While these volunteers are certainly doing a commendable job getting the word out about the group, they have left little time and energy for the mandates of the group. Presumably, they are raising money in order to do some good, but have they the energy and volunteers left to actually implement the money in a positive way?

In contrast, let’s think of the second group. They decided to appeal to a smaller amount of people - let’s say 300, but they chose each person they decided to contact carefully.

They contacted corporations they knew were supportive of women’s groups, contacted companies run by women, and campaigned aggressively at a local women’s college. They also wrote for several government grants designed especially for groups that help women.

Certainly there are disadvantages to this method - they did not raise awareness about the group over such a wide segment of population as the first group, they still got plenty of “no” responses, and they had to spend lots of time before fundraising in order to determine who to appeal to.

Despite this, the second group is likely to have a higher ratio of “yes” answers in a much shorter period of time, because they are appealing to the very people - women - who are most likely to have the inclination and money to support a women’s center. The advantages of this second strategy are:

•The people who were asked were more likely to say “yes.” The donors that were appealed to already had some built-in reason for saying yes to supporting the women’s center.

Less convincing was needed and less of a chance of a “no” helps keep volunteer morale high. Plus, donors who have a built-in reason to support a women’s center are more likely to donate again (presumably, their reasons for donating will still be there) so this second group is already setting down the basis for on-going financial support.

•By using targeted appeals, the group was able to target people individually. Rather than having many people walk by a stand or pass over an ad, this group was able to meet face to face with the groups and people who were more likely to help them, reducing the chances of a “no” response.

•By targeting their donors, the second group already had a built in organizations structure. They knew who they had to contact and how to appeal to them. There is less risk of overlooking an important donor source or of asking the same people twice.

•Time and money were saved. Rather than spending lots of time and money on a huge campaign, the group was able to do some research for free at the library and then appeal directly to groups and people that were interested. Interviews with some groups could easily be set up for free, and government applications and a campus presence would also be inexpensive or free. Less time was wasted talking to those who have no interest in the project.

This is a fictitious example, but it sets out quite clearly why donor and market research is important before you start fundraising.

In this example, the market information was clear - women are likely to support a women’s center as they understand the issues and problems women face.

In some cases, though, the donor target may be less clear. Who in your community would support an animal shelter or a literacy project?

There are a few basic ways to do some research. The first step is to visit your local library and look up groups similar to yours in your area and in other areas. Who supports them? The same groups of people may support your group. If your non-profit consists of a few volunteers, you can find out what sort of people your non-profit appeals to by asking your volunteers a few questions:

•What shows do your watch? What publications do you read? What radio station do you listen to?

•Where did you hear about our group?

•Where do you go for entertainment? What other groups do you belong to?

•What appealed to you about this non-profit?

Even in a small group, you will hear similar responses. These answers are important clues about what your donors are watching, where they are going, and what appeals to them. You can further establish your target donors by considering where people who believe in a cause or idea would go or what they would see. Consider the following ideas:

•Pet shelters are likely to be supported by people who like animals. If they like animals, they may read about them, own them, or visit them. Advertising in pet journals, at pet kennels or grooming centers, appealing to owners outside of pet stores or zoos are likely places to find target donors or at least people who love animals enough to contribute some money to a cause that concerns them.

•Arts groups are likely to be supported by people who like the arts. Where are such people found? At universities, art galleries, theaters, art groups, book clubs, libraries, cafes that hold poetry readings, arts publications, bookstores, art stores, art classes, and other like places.
•Non-profits that have to do with children are likely to appeal to families. Where would such people be found? Parks, schools, PTA meetings, churches, playgrounds, fairs, toy stores, fairs, children’s days at the zoo or art gallery, parenting publications, and other like places.

•Non-profits that have to do with community development may seem to be a varied bunch, both those who are worried about issues such as poverty or issues such as housing regulations would tend to congregate around town hall meetings, soup kitchens, or other like places, depending on their individual concerns.

•Non-profits that have to do with the environment attract people who are worried about the state of our planet and resources. Where are such people to be found? At natural health food stores, environmental protests, town hall meetings that have to do with preserving parks, environmental stores, “green” publications.

•Non-profits that have to do with International issues attract people who are worried about international policies and the state of the larger world today. These people may be considered about worldwide human rights, about international policies and other similar issues. These people may be found reading the ‘world’ section of the newspaper, attending protests to raise information about human rights, and other like events. People who either have family overseas or who are from overseas often have a built-in interest in International issues.

•Non-profits that have to do with education attract people who are worried about education and literacy. These people are to be found at literacy centers, the library, schools, PTA, meetings, and other like areas. If your education mandate has to do with children, then your target donors can be found in similar places as the target donors for non-profits that have to do with children.

You can probably see a pattern here. People who are concerned about an issue are likely to express their concern by spending time at specific places and time attending specific events or reading specific publications. People who are interested in a specific issue often like specific related things. If you want to target your audience of donors, you should be asking yourself where potential donors can be found and then target your fundraising to some of these areas.

As you target donors, keep asking yourself a few marketing questions:

•Where can I find people who are interested in the issue our non-profit is furthering?

•What do people interested in our issue read? Where do they go? What groups do they belong to?

•What sort of person is so likely to be interested in our groups’ issue that they will be willing to help our non-profit financially?

•What companies in my area have contributed to similar non-profit groups in the past?

•What sort of fundraising effort would be most likely to draw the people who are most likely to be interested in out group’s mandate?

•Are there government agencies or philanthropic agencies that tend to give money for causes that are similar to our group’s mandate?

Targeting your donors at first may seem to be only a way of narrowing down your choices, as you are basically trying to attract only a smaller percentage of people to your cause. However, if your group only has limited resources (and this is true for many starting or small non-profits) then targeting your donors by choosing to ask those donors can help you get the best results possible in the shortest period of time.

Think of it as making educated guesses about who can help. The idea is not to ask only those who are most likely to help, but rather to focus on specific groups of people before expanding out to other donors.

Once you have targeted specific groups on donors, you may wish to expand and seek help and support from donors that seem less likely to be interested in your group’s cause. In some cases, you may be pleasantly surprised to find unlikely donors who are willing to help you raise money.

For example, across North America, there are motorcycle enthusiasts who regularly take part in a “teddy bear” drive around Christmas in order to raise money for children who might not otherwise have a holiday. Many people are surprised to see gruff-looking biker enthusiasts carrying teddy bears on their Harley Davidson’s for charity, but this is exactly what happens each year.

Your group needs to be careful not to overlook sources of donations and fundraising money simply because you have a preset notion of what people would or would not support your group. Sometimes, fundraising money comes from unlikely sources and it is often a good idea to contact some unlikely groups to see whether in fact they may be ardent supporters of your cause.

How much time and effort you spend trying to contact donors outside your targeted donor group will depend on many factors, including how much time and effort you have for such campaigns and it will depend on how much money you have been able to raise through more targeted fundraising. If you have been able to raise all the fundraising money you need through targeted donor hunting, you may simply not need to expand your list of donors too much and instead of trying to find new sources for money you may want to direct your efforts to fulfilling your group’s mission.

If, on the other hand, you find that you require more money and have had smaller success with targeted donors (because, for example, a group with a similar mandate has also been fundraising your area) then expanding your list of potential donors may be one way to get more money for your non-profit.

Where to Find Fund Raising Donors

The Hottest Charity Fundraising Tactics

As mentioned earlier, charities use a number of different techniques to raise funds. These techniques may or may not be suitable for you, depending on your specific requirements and aims. So it is better to consider and evaluate the effectiveness of each of these techniques in order for you to make sure that what you’ve considered is the best.

Here are the techniques:

Doorstep Fundraising

Also known as door-to-door fundraising, the doorstep fundraising is basically the process of knocking into someone’s door and asking for a cash gift for charity purposes. Some fundraisers do this also by asking the home owners to sign up for a regular gift to charity which usually occurs in two different ways, either by standing order or direct debit. The fundraisers who do this technique may represent a single charity institution, or a number of different causes.

It is typical in doorstep fundraising that the ones who knocks someone’s door are volunteers. Yes, volunteers are an essential part of charity fundraising. They are deemed important knowing that they can help expand the operation especially if more people are volunteering. So in doorstep fundraising, the volunteers will collect cash and or one-off gifts. They, however, do not handle the responsibility of asking households to sign up to a regular gift for the ones who usually do this are those who are employed by the fundraising companies. These fundraising companies may not be part of certain charitable organizations. They are just contacted by charities to do the work.

Street Fundraising

Street fundraising is to some degree similar to that of the doorstep technique that it is performed outdoor to attract people. However, unlike the door-to-door technique of raising funds, the street fundraising is also known as face-to-face fundraising simply for the fact that people involved in this kind of activity ask the passers by to sign up and give them money for charity sake. They raise funds either by direct debit or standing offer, depending on what is preferred by the fundraiser. Also, most of the fundraisers who do this technique often wear bib simply as they own way of showing concerns for the charitable institutions, especially to the ones that take good care of homeless children.

Many of those who consider street fundraising are often disliked by passers by for several reasons, some are personal. The teams that are disliked by people are often referred to as “charity muggers” or “chuggers”, for short.

Telephone Fundraising

From the outside, let’s proceed to something that is housed inside an office or home with telephones as the major fundraising tool – the telephone fundraising. On the most basic, the telephone fundraising is used by charities in a number of ways. On one hand, they try to call their established supporters to put some increase on the amount they give for charitable purposes. On the other hand, there are some charities and fundraisers who use the phone to give their prospective supporters a special gift for a special appeal, and they later end up recruiting fundraising volunteers who will do the task for their benefit. Usually, the ones who do this technique sell raffle tickets as their way of increasing their raised funds.

The telephone fundraising tactic is often considered by the younger generation of fundraisers perhaps for the reason that they believe they can reach their targets from anywhere.

Mail Fundraising

When it comes to mail fundraising, charities and fundraisers often do this tactic in a number of ways. One of the most common is the so-called “personally addressed mail”, which is simply the process of mailing letters addressed to your personally.

This tactic is not considered just to ask for money. Most of the charities do this by also sending newsletters, magazines, and annual reports to keep their supporters aware of how the charity is doing and how they have achieved with the money that has been donated to them. There are also some instances when charities send mails to their prospective supporters with catchy messages designed to catch your eye and make you interested enough to know what’s included in the mail.

There is also the so-called “unaddressed mail”. Basically, this fundraising technique has something to do with sending mailings or leaflets to your letterbox that don’t carry your name and address. They are often left blank or sometimes addressed to the occupier.

According to some experts, this fundraising technique is considered by many charities to get their information out to their potential new supporters. Unlike the mailings addressed to you, this is pretty less expensive as charities and fundraisers don’t have to pay for names and addresses and the delivery is much cheaper than the normal post. It is also expected that those charities and fundraising companies that consider this technique have certain aims to reach bigger audience. It is for this reason actually that the fundraising through unaddressed mails are often deemed as perfect for the very large scale communication campaigns. It can also be targeted to areas where the fundraisers think are likely to be the home of people who are willing to support their organization and campaigns.

TV and Radio Advertising

TV and radio advertising are also becoming an effective means of raising funds for charity. It is important to remember though that most of the TV and radio advertising requires a much higher initial investment, the reason that it is deemed perfect only for the larger charities. But out of the high cost, TV and radio advertising provides charities the advantage of reaching a huge audience, including people who would be unlikely to be reached in any other way. Also it raises awareness of charitable issues and it attracts support from a massive number of people. It is for these advantages that most of the larger charities prefer this technique than the other possible ways.

Newspapers and Magazines Advertising

Aside from TV and radio advertising, advertising on newspapers and magazines is also now becoming a popular tool of charity fundraising. This type of fundraising is often adopted to bring in new supporters. Most of the charities and fundraising companies consider it to provoke a certain response, and what is included in the adverts posted are a cut-out coupon, contact number and address for charity purposes.

Perhaps the downside of this technique has something to do with the cost for the reason that just like advertising on TVs and radios, buying advertising space in newspapers and magazines can be very expensive. And, this too is only perfect for larger charities.

As you may notice, the hottest tactics of charity fundraising are associated with almost all the means of communication. This is simply for the reason that fundraising is a process of communicating. It gives you the chance to meet and deal with people of different personalities, and it somehow test how tough you are when it comes to rejections and disliking. Yes, most of the fundraisers are disliked by the public, but when it comes to charities, who would have thought to reject when the cause is so decent and honest? I guess, none!

How the Money is used by Charities

So you’ve learned all the hottest tactics of raising funds for charitable purposes. Now, are you wondering how the charities use the funds they raised through those tactics? The details mentioned below will give you ideas about this concern, so read on.

It is often said that charities primarily spend their income to achieve their charitable purposes, such as helping disabled and street children, pursuing a cure for cancer, animal protection, campaigning for child abuse, so forth and so on. These purposes are in the first place introduced to the supporters making them aware of where their money is going to be used.

However, there are some instances when the picture becomes so complex especially when it comes to charities trying to make a difference outside their local area. It is maintained that in this kind of situation, the proportion of money they receive from their supporters has to be used on supporting the organizational needs that usually have something to do with the management and the administration. This may seem not so brilliant though, but it is important to understand that charities need to support their own organization for them to continue running for a charitable cause. This is very common to the non-profit organizations.

Also, a portion of the money the charities received from their supporters sometimes cover the cost of the fundraising itself. So to keep the organization running and delivering its services, they need to invest and re-invest on fundraising. So it follows that the income they get from their supporters is also utilized for this common aim.

The Cost of Charity Fundraising

When it comes to the cost of fundraising, the charities often find a number of different figures. The cost may vary from cheap to expensive depending on a number of factors that affect the total amount of how much the charity will need to run the event. In the first place, the cost of fundraising may differ according to the sources of the fundraised income. According to certain reports, it cost much less to ask for grants from companies, trusts, and government agencies than it does to raise funds from the general public. The problem then occurs as these sources are not available for every charity. It is for this reason that charities often spend much in thinking for ways on how to solicit funds from the general public.

The charity fundraising cost may also vary according to how big or small the organization is. It is often observed that larger charities often find it cheaper to raise funds from the general public because they can support all the economies needed. The smaller charities are much deprived of this opportunity mainly for lack of resources.

In addition, the cost of fundraising often differs according to the number of volunteers involved in the event. It is said that the more the people are volunteering to perform the charitable deeds, the more chances for the charity to spend less just to support their fundraising event. Well, it is for this reason actually that volunteers are deemed a very important part of charity fundraising. So if you are thinking to fundraise for a charitable cause, then start encouraging volunteers as early as possible.

Finally, how much the charity will spend for the fundraising can be identified through the fundraising techniques used by the organizations. As mentioned earlier, the techniques can be cheaper or expensive, depending on what is needed. For instance, TV, radio, newspapers and magazines advertising costs higher than street and doorstep fundraising simply for the reason that the charities need to pay for the advertising charges whatsoever. With this, it is important to know exactly what fundraising technique will best suit your needs.

Charity fund rasing with a number of great techniques involved is now becoming so popular to the general public. However, it is important to keep in mind that fundraising is governed by certain rules and regulations. Everything that is included in the plan passes through a sort of censorship, which basically holds true in marketing and advertising. The fundraising adverts and appeals, for example, are required to confirm to a code of conduct designed to prevent advertising of something that can be offensive or misleading. It is even held illegal for the charities to hold more personal information than is required for a particular purpose. But whatever is the case maybe, we can’t deny the fact that fundraising is so effective in accumulating funds for charities’ sake.