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Types of Fundraising

Types of Fundraising

Fundraising is an activity that is aimed at attracting and accumulating funds from various sources. Fundraising is a specially organized process of collecting donations for charitable organizations or for providing social programs. This activity can be considered as creativity because one has to choose the most significant project among the huge number of projects, therefore, the original call for help has bigger chances.

The main types of fundraising

There are the following main types of fundraising:

  • Project fundraising has the task of raising funds for the implementation of a specific project. This type of attraction of finance is most convenient for NPOs or cultural organizations. This can be explained by the presence of clear objectives for the use of funds, low fundraising costs, as well as commercial benefits from project financing;
  • Operational fundraising involves raising funds to cover current expenses. This is a less effective form of raising funds since they are not targeted and accumulate in the current budget of the organization. Money can go to the payment of wages, covering utility and material costs, as a result of which the interest of investors in such financing is reduced;
  • Fundraising is practiced mainly by non-profit organizations that are interested in donors, sponsors and benefactors. Such financial cooperation between the non-profit sector and business is widespread in solving problems in the social sphere, science, education, culture;
  • Fundraising in the social sphere is aimed at helping unprotected groups of the population, the poor, retirees, veterans, etc. This is the most traditional area of sponsorship, which is often carried out by relevant public and state organizations and foundations that have legal, financial and economic benefits;
  • Fundraising in science opens up the possibility for the company to enter the development environment of new technologies, promising theories. The company increases its chances of being ahead of competitors in scientific and technological progress. In addition, good communication is established with qualified experts in various fields;
  • Fundraising in education is addressed to primary, secondary and higher schools. This area has its own attractive features for sponsors. It creates an image of care for the younger generation, establishes links with young promising specialists;
  • Fundraising in culture is aimed at support in the field of visual and musical art, literature, theaters, cinema, museums, libraries. Businessmen are attracted in this area not only by wide opportunities for advertising but also by building a company’s reputation in a cultural environment that gives the maximum “access to society”. This is a great way for foreign sponsors to break through to the international market, thereby showing your interest in the culture of this country. Thus, human values and creativity are maintained.

Sponsors are also attracted to such areas as health, medicine, ecology. Currently, these areas of human activity are experiencing an economic and social boom, they attach special importance to the state and society.

Fundraising is widely practiced for the preparation and holding of special events such as balls, parties, contests, marathons, auctions, presentations, conferences, dinners. During such an event, it is important to mark each of the arriving guests, if necessary, to select a specific guest from the rest of the public.

In conclusion, it should be noted that fundraising is not asking for money, but planned work that is aimed at receiving donations made consciously. The essence of fundraising is the establishment of partnerships, the transition to a strategy of cooperation with people and organizations that can provide material support.

Category: General Issues

Tags: funding issue, fundraising