Even though fundraising generally pertains to attempts of accumulating revenue for non-profit organizations, it is in some cases applied in refererence to the recognition and solicitation of investors or additional sources of funding profit orientated entities.
Fund raising is fundamental in that it should be regarded as a separate operational function, particularly for non-profit organizations. And it is not just about raising funds, instead all fundraising campaigns by these organizations aim to fulfill charitable purposes and statutes on top of obtaining much needed resources.
In addition to cash benefits they can also do this kind for example, a donation in the form of a vehicle or volunteering services. Charitable organizations can be in the form of humanitarian concerns, scholarship merit awards for athletic or academic achievement, disaster relief, human rights, or other social issues.
Numerous non-profit organizations make use of the services of professional fund raisers. The fund raisers could be compensated for their troubles either through fees or by keeping a portion of the raised funds.
Fundraising is a comprehensive marketing task, and all fundraising activities should be systematically analyzed, planned, implemented and monitored.
During fund raising activities, four important aspects on the markets must be addressed and that is, individuals, businesses, foundations and government agencies for public subsidies. The systematic response of these donors is similar to markets in which publicity avenues such as newspapers and magazines are used among other approaches.
Online fund raising has several advantages over traditional methods, as internet based donations can be triggered directly either via direct debit or credit card. Even small donations can be carried out much more easily with the help of micropayment systems. Nonprofit organizations also seek to reach younger audiences on the cyberspace platforms.
Experiences seem to show that on average funds donated online amount only to a small proportion of total donations.and larger amounts are raised offline.
Fundraising also takes on a pertinent role in political campaigns, although the concept remains a highly controversial topic in U.S politics. Some advocacy organizations carry out fundraising on the basis of various policy issues as a way of influencing legislation.
Organizations in the U.S. formed for charitable functions are permitted to raise finances from various sources. They have to receive official appointment by the Internal Revenue Service (IRS). While some nonprofit entities which include fraternal associations fall under different IRS designations, and may or may not be permitted to raise funds.
Fund raising campaigns can be implemented using mailings for donor binding, reactivation mailings, upgrading mailings, phone based dialogue marketing, personal contact, mass media (press, radio, television), internet (e-mail, websites, blogs), mobile marketing or event marketing.