Fundraising, a term that often alludes to acts of generosity and kindness is much more than just one of the several forms of revenue for non-profits. Though it is largely regarded as a process to generate financial support, in depth— fundraising contributes a greater extent of value to the functional muscle of an organization.
The importance of fundraising runs deep in the strategic structure of NPOs, there’s more to it than meets the eye!
7 Ways How Fundraising is doing Good to your Non-Profit
- Pushes NPOs to outline and plan:
Fundraising revenue takes many forms – donations from philanthropists, financial support from corporations, sales and services and so on. The goal is not just to raise money but to raise donors and build enduring relationships with committed donors, who would foster the growth of the non-profit for the time to come.
Any donor would want to check for the authenticity and reliability of the endowment, in simple terms; donors would want to know if the non-profit knows what it’s doing. Therefore, fundraising impels NPOs to outline their resources, projects and timelines, and provide an action plan, while seeking foundation support.
- Drives introspection and evaluation :
In the course of preparing an action plan, non-profits are driven to perform organizational introspection, that is to say, the non-profits take an inside look at their strengths, weakness, and opportunities. This analysis helps NPOs to identify and realize the dents and dings in their resources and financial status, which would further provide a sense of clarity on the potential of the non-profit.
Another good deed that stems from fundraising is evaluation, an extended version of introspection.
Any sponsor or grantor expects and sometimes firmly asks for an evaluation report before agreeing to provide funding to a non-profit. This is to forge a visible agreement between the donor and the non-profit.
In such a situation, fundraisers are obliged to provide a transparent basis of programs and policies, required resources, and needed funds to the grantor or sponsor. In the process, non-profits can acquire a clear vision of their standing and can save excess costs, thusly increasing the confidence in the donor.
- Unifies Teams and Goals
Usually, in a non-profit, the employees and the volunteers remain dispersed over different project areas and essentials. Fundraising comes off as a binding factor over the various project areas and eventually brings together the entire workforce under one cohesive assignment.
It unifies the diversified goals of scattered smaller projects into one single larger mission; forming a mixed yet united robust team. Well, as they say, in unity, there is strength!
- Prioritizes Projects
With a credible action plan and an integrated mission base at hand, any non-profit would be more than willing to pursue the duties of the greater good, to take on the dedicated tasks and to spearhead on that holistic goal.
But, where do you start and where do you end?
Non-profits often face this uncertainty while allocating the resources to a project, choosing the significant or the urgent? It’s during these times of indecision, fundraising guides the non-profit managers to choose those projects that align with the mission of the organization.
- Makes Non-Profits Bigger and Larger
Donors are more likely to get attracted to non-profits who have a far-reaching awareness and visibility in the target community. Fundraising acts as a catalyst in making non-profits to invest efforts in reaching out to a wider span of audience. With a compelling demand to nurture social presence, fundraisers take up initiatives to revamp social media strategy and marketing tactics to enhance the appearance of the organization.
Partnerships with congenial organizations and an assorted panel of board members consisting of talents from all edges of the society are effective ways of attracting prospective sponsors and donors. Valuable relationships not just increase the outreach but also the operational proficiency of non-profits.
- Directs Non-Profits towards Higher Needs
Grant-making charities are meant for attending to the dire needs of people and communities belonging to the extreme end of deprivation. To become eligible for such foundation funding, the mission and objectives of a non-profit must align with the purpose of intense higher needs. This resultant benefit of fundraising helps non-profits stay on the right track and also keep their focus fixed on the necessities.
- Increases the Longevity of Non-Profits
The funding acquired from any source is bound to end one day or the other, irrespective of its time period. Once the non-profit runs out of funds, it is doomed to vanish out of existence. Fundraising keeps NPOs pulsating, offering life support during times of meagre revenue. A consistent blend of sponsorships, gifts and grants keeps non-profits thriving to withstand the coming years.
Hence, it is evident that fundraising means a lot more than just money. When rightly incorporated with strategic planning, non-profits are routed to reap its benefits!
Thinking of ways to organize the best fundraiser to raise big money? Reach out to our Angel Bins team and let us help you take that next big step!
Stand with us to put our souls and soles from all over the world to raise funds for noble causes!
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