Five effective fundraising ideas for charities

Download the fundraising guide

 

It is no secret that the cost-of-living crisis has led to difficulties for charities, particularly when it comes to fundraising. Charities have had to meet increasing demand for services with financial uncertainty, as average donation amounts increased while the number of individual donors fell. 

 

Indeed, the Global Giving Indicators report, from fundraising software providers iRaiser, found that although there were 5% fewer online donations between 2021 and 2022, the average donation was 27% higher than the year before. The findings demonstrated the importance for charities to focus on looking after their existing donors, who were giving more at a time when charities were in need, while also finding a way to motivate new, or perhaps lapsed, supporters to get behind their cause. 

 

Creating a great donor experience is the key to reaching both groups of supporters, existing and potential. It means helping them to fundraise in a way that is convenient to them, making participation simple and seamless, essentially helping donors to fit fundraising in with their day-to-day lives. 

 

For nonprofits, this means offering diverse ways for people to give, essential for effective charity fundraising. Donor behaviour changes all the time and differs between demographics. Trends can be unpredictable. While digital donations have boomed since 2020, research has shown that cash donations have remained popular even among younger donors. However, further reports suggest that cash giving is generally in decline, as we move towards a more cashless society. 

 

Choosing one fundraising stream over another, therefore, is not advisable when donor needs are so varied. Choosing a diverse range of fundraising streams instead means that organisations not only meet the needs of their supporters, but also reduce their reliance on an income that may fluctuate due to external conditions, such as those experienced in the cost-of-living crisis. 

 

In this article, we explore just five types of fundraising streams that charities should consider when developing their fundraising strategies, from community fundraising to legacy giving, with insight from iRaiser’s latest fundraising guide. 

 

 

Five fundraising ideas for charities

 

1. Peer-to-peer fundraising

 

Peer-to-peer fundraising is one of three methods of fundraising that falls under the community fundraising umbrella. According to iRaiser’s fundraising guide, “13 fundraising ideas for charities”, Community Fundraising harnesses the collective power of masses, leveraging the strength of community connections to support your charity, capitalising on the power that a community has. Community fundraising is about donors mobilising their own community to support your charity through donations and/or events. 

 

Peer-to-peer fundraising specifically encourages your supporters to take the lead, running their own fundraising events on your behalf and spreading the word about your cause. Fundraisers can also be vocal advocates for your cause, inspiring their friends and family to join them in support. 

 

As iRaiser points out, “What could be more powerful than the appeal of a loved one to inspire generosity? This type of digital fundraising is based on the idea that people are more likely to make a donation when they are approached by someone close to them.”

 

With peer-to-peer fundraising, supporters can set up their own charitable fundraising pages, launch their own collections, and share them to collect donations and raise awareness for your cause. Fundraisers can use these pages to tell their own stories about why they’ve chosen to donate to a specific charity, helping them to reach a larger audience and hopefully maintain that support in future. 

 

 

2. Crowdfunding for nonprofits

 

Crowdfunding is the second fundraising stream to fall under community fundraising. Crowdfunding campaigns entail fundraisers reaching out to the general public to support specific projects or causes.

 

According to iRaiser’s guide, there are two key elements of crowdfunding for charity. Donation-based crowdfunding involves contributors donating “with no expectation of direct compensation, motivated by a desire to support the cause or project in question”. 

 

Reward-based crowdfunding, on the other hand, rewards contributors with “symbolic or material compensation in return”. This may be an invitation to visit the project, a free visit to the exhibition (if it’s a museum, for example), or an object emblematic of the campaign, iRaiser adds. 

 

Crowdfunding is a great way of allowing donors to have more control over where their donation goes to, in that they pledge to support specific projects. Donors become contributors, giving them a larger sense of involvement in achieving your goals while also allowing charities to keep them updated on progress towards them. 

 

 

3. Fundraising events

 

The third element that goes into community fundraising is charity events. Event fundraising brings together people “who support your cause and share a common interest”, while providing participants “with a unique and engaging experience”. 

 

As iRaiser notes, fundraising events can take many forms, from concerts to running challenges to gaming events, and can be organised by charities themselves or in partnership with other organisations (such as the London Marathon). The key attribute they share is their ability to build a community of engaged fundraisers who want to actively contribute towards the work of the charity they support.

 

You can find out more about community fundraising, how to make your campaigns stand out and charity event ideas in iRaiser’s full guide here.

 

 

4. Subscription-based models 

 

Another fundraising stream that charities may want to consider is subscription-based fundraising. Much like reward-based crowdfunding, it gives regular donors something in return for their donation, such as tailored ‘gated’ content exclusive to members. 

 

Parkinson’s UK launched Team Parkinson’s, offering members regular email updates, a fundraising toolkit and pin badge to help them raise awareness, and a postal subscription to their charity magazine. The service helps donors to volunteer, campaign, and connect with others on Team Parkinson’s for an annual donation amount that members themselves can set. 

 

“When you become a member of Parkinson’s UK, you become part of Team Parkinson’s,” the charity writes. “Parkinson’s UK is your charity. Team Parkinson’s is your community. Together we’ll improve lives and find a cure.”

 

 

5. Legacy fundraising

 

Legacy giving is a vital long-term fundraising strategy for charities. Research from Remember a Charity found that legacy giving has risen by 43% over the past decade, with one in five UK charity supporters aged over 40 now saying they have left a charitable gift in their will.

 

Legacy giving can be a deeply meaningful act for donors, helping them to make a lasting impact upon a cause they care about, after making sure their loved ones are taken care of. As a fundraising stream, its future-focused nature also means that it is less likely to be impacted by economic instability, providing a resilient source of income for charities even as finances wax and wane in the short term. 

 

Charities should not only look to engage donors in the present, but help them to support their cause in the future too, and that’s where legacies come in. 

 

Download the fundraising guide

 

 

In conclusion

 

Diversifying fundraising methods is essential for charities in today’s landscape. By integrating peer-to-peer fundraising, crowdfunding, events, subscription models, and legacy giving into their strategies, charities can strengthen connections with supporters and ensure financial stability. By leveraging these insights and utilising online fundraising tools like iRaiser’s Community Fundraising Platform, charities can optimise fundraising efforts and drive meaningful change.