Fundraising describes a wide range of activities that includes the collection of funds, donations of goods and/or services, support through volunteering, sharing contacts and connecting with other people, and regular reporting and working with the community.
Every non-profit organization should incorporate community fundraising into its work for several reasons, such as:
- A larger community of supporters
- greater legitimacy in the community
- good PR
- increased social influence
You will also be able to react quickly in emergencies and quickly gather community support.
When we raise funds from the community, we focus on building connections with all important groups and individuals in the community and plan our communications and activities accordingly. Effective community fundraising requires strong communication, outreach strategies, and a deep understanding of the local community's values and priorities.
Community fundraising models rely on active participation from donors, volunteers, and community members. It often includes events and activities that engage and mobilize the community. Those models are designed to leverage the collective power of people to address pressing social issues and challenges.
Non-profits can use many effective community fundraising models to support their work. Each model has its strengths and challenges, and non-profits should choose the model that best fits their goals, resources, and community.
In this article, we will explore some of the most effective community fundraising models that can help your organization to provide support for your mission, work, and activities.
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The donation model
The donation model implies a monetary payment to the organization's account or through an electronic payment point on the organization's website. This fundraising model is well known to everyone, both organizations, and citizens, and allows one-time support for the organization.
Implementing an electronic payment point requires a little more resources, but it allows the organization to make the first contact with all supporters and immediately thank them for the donation. An electronic payment gateway also enables the collection of contacts, which makes it easier for fundraisers to nurture and deepen relationships with supporters.
The donation model often achieves the supporter's first contact with the organization. Therefore, it is especially important that you clearly communicate the call to action and the outcome of the donation both on the site and in other materials you use. Also, it is important to highlight how backers can contact your team if they have additional questions or concerns.
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Donation boxes
Donation boxes are a fundraising model that allows the widest community to provide one-time support to the organization and its work. We often see them in locations where many people pass by, such as stores, pharmacies, shopping centers, or post offices, and you have probably noticed that they are most often located next to the cash register or the entrance.
The reason for this is simple: people decide to donate more easily and quickly if the donation box is close to the place where they have already bought or paid for something. If they see a clearly marked donation box, they will be more than happy to drop in change if it clearly and precisely communicates its intended outcome.
That is why it is important to pay attention to the design of the donation boxes so that they attract the attention of passers-by through photography, visuals, and/or a combination of contrasting colors. In addition to the purpose for which the money is collected, it is necessary to put the organization's name, website, and contact information. This is important for fundraising and promoting your organization in the community, especially if you provide services.
Of course, to set up donation boxes, it is necessary to obtain the consent of the owner or user of the business and public space. The rights and obligations of both parties are regulated by an appropriate contract, which includes reporting to the organization on how it spends the collected funds.
In the region, local Red Cross offices have set up boxes in chain stores, malls, and post offices to collect funds for their programs and beneficiaries.
You can find donation boxes at most regional airports precisely because of the greater number and flow of people.
Donation boxes can be set up for a limited period within the companies. With their donation, employees can support the organization's work, and the company often undertakes to double the funds collected. This allows the company to organize a charity activity for its employees with an element of gamification.
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Crowdfunding
Crowdfunding is another popular community fundraising model that has grown in popularity recently. It involves soliciting donations from many people, typically through an online platform.
Crowdfunding campaigns are targeted at specific projects or causes with clear goals and can effectively engage a wide range of supporters. The campaigns are limited in time, usually lasting between 30 and 45 days.
Of course, money is not the only goal of crowdfunding. In addition to funds for your new projects, you can test the community, expand the number of supporters, connect with new donors, and raise the organization's visibility and awareness about their work.
An example of a crowdfunding platform in Kosovo is kosovaideas.com, the first crowdfunding platform committed to projects in all fields of art, culture, civic engagement, and sustainability realized in and for Kosovo. It connects project owners with their communities in and outside Kosovo.
One of the examples of a successful crowdfunding campaign is Foundation 17's campaign to open a new gallery intended to serve as a space for the education and activism of artists. With various donors' help, 15,000 euros were raised in 2021.
Another example is a campaign to equip the music school In Tune opened in the Gjakova Municipality. Through the community's help, funds were raised through the Kosovaideas platform to buy the necessary equipment and materials.
Fundraising Model Canvas
The abovementioned three community fundraising models are not the only ones. As a fundraiser or non-profit professional, you may be familiar with the traditional Business Model Canvas, which helps companies map out the key elements of their business strategy. But have you ever heard of the Fundraising Model Canvas? This tool is specifically designed for non-profits and can help you map out the key elements of your fundraising strategy.
The Fundraising Model Canvas is primarily a visual tool that shows your fundraising strategy's elements. With the help of Fundraising Model Canvas, you can concisely present the logic and structure within your organization, gain a clear insight into why and how certain activities are carried out, and develop your appropriate fundraising model.
It is divided into nine sections, each representing a key aspect of your fundraising approach. By filling out each section, you can create a comprehensive overview of your fundraising strategy and identify areas for improvement.
So, what are the nine sections of the Fundraising Model Canvas? Here is a brief overview:
- Value Proposition - This section defines the unique value that your non-profit provides to donors and supporters. What sets your organization apart from others, and why should people choose to support your cause?
- Community - This section identifies the different types of donors and supporters that your non-profit targets. This could include individual donors, corporate sponsors, foundations, or other groups.
- Channels - This section outlines your non-profit's various channels to reach donors and supporters. This could include email marketing, social media, direct mail, events, or other methods.
- Activities - This section lists your non-profit's specific fundraising activities. This could include donation drives, grant applications, crowdfunding campaigns, or other fundraising initiatives.
- Resources - This section identifies your non-profit's resources to execute its fundraising strategy successfully. This could include staff, volunteers, technology, or other resources.
- Partners - This section lists the key partners and stakeholders that your non-profit works with to support its fundraising efforts. This could include board members, volunteers, partner organizations, or other groups.
- Revenue Streams - This section outlines your non-profit's various revenue streams to generate income. This could include donations, grants, sponsorships, or other funding sources.
- Cost Structure - This section identifies the costs associated with your non-profit's fundraising activities. This could include staff salaries, marketing expenses, or other costs.
- Impact - This section outlines your non-profit's impact on its community or cause. This could include the number of people served, the funds raised, or other metrics.
Using the Fundraising Model Canvas, you can better understand your non-profit's fundraising strategy and identify areas for improvement. Whether you are a seasoned fundraiser or just starting, this tool can help you create a more effective and impactful fundraising plan.
If you want to learn more about Fundraising Model Canvas, improve your fundraising strategy, and find out how to choose the right fundraising model for your organization, save the date for fundraising training that will be held in June by Citizen Engagement Activity fundraising experts with the support of Catalyst Balkans. In order to be informed of the exact date and all details, follow the Kosovar Civil Society Foundation (KCSF) on social media.
This article is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Catalyst Balkans and do not necessarily reflect the views of USAID or the United States Government.
The Citizen Engagement Activity in Kosovo is a five-year initiative implemented by Kosovar Civil Society Foundation (KCSF) in partnership with the United States Agency for International Development (USAID).
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