Everything You Ever Wanted To Know About Fundraising - August 22, 2008 -

Fundraising refers to the solicitation of monetary funds from individuals, businesses, charitable foundations or government agencies. This is the primary method used by nonprofit organizations to maintain operations. Organizations usually use this method to raise money for religious causes, fund independent research, help veterans or injured military personnel, funding for academic scholarship for students, human rights advocacy, or disaster relief projects.

Fundraising techniques

Organizing a special event is one method of fundraising. The event is usually called a fund drive or fund pledge. If the event is broadcast on television, it is usually called a telethon. An alternative source of the fund is the endowment, in which an individual or group pledges to support an organization on a yearly basis.

Some non-profit organizations employ the services of professional fundraisers. These professionals are either paid with non-monetary compensation or a percentage of the funds raised. The latter method of compensation is not preferred and in fact, it is forbidden by a regulatory board in the United States.

Though fundraising usually entails solicitation, there are other organizations that sell products for profit for the purpose of donating the proceeds to support the organization. Churches usually have food fairs or cook-offs to raise funds for church activities.

Although fundraising is usually the territory of nonprofit organizations, politicians also do it during political campaigns. Campaign fundraising has a bad reputation, though, because it occasionally leads to undo influence from certain organizations who contribute heavily to a candidate, and then hope he will feel obligated to favor their platforms. Nevertheless, campaigns cost money and politicians who arent independently wealthy (and even those who are) view fundraising as a necessary evil in a bid for election.

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