In the past, I have written about the basic principles that are critical prerequisites for nonprofit organizations that need to raise financial support. In this article, I’ll delve into the mechanics of running a fundraising effort by looking at four categories of fundraising: direct solicitation/pledge, professional programs, self-directed programs, and grant funding.

Direct appeal/promise. With this type of fundraiser, you are literally asking people to contribute money to your organization, either through an individual donation or a pledge. This is the simplest and most direct method of financing your nonprofit and should be a component of most financing plans. However, to be effective, you must be able to clearly articulate the purpose of your program and why someone should support it. This requires that your program be a more attractive target for someone’s donations than some other cause. After convincing someone to donate, you need to maintain a constant flow of communication with your donors, bringing your program before them regularly if you want them to continue to support you. That can be done through a variety of creative methods, one of the best being monthly newsletters. Technology has made this much easier and cheaper than it used to be. Instead of the hassle of dealing with printed material and postage costs, you may want to consider a number of online mass email tools that allow you to send out newsletters, promotions, etc. Via email. They all come with pre-built templates that make it easy to create engaging communications. Another often overlooked tactic is to send a receipt/thank you letter for every donation, not just at the end of the year. Just remember that donor cultivation is a never-ending process. As soon as you start to let it slide, you’ll see your support slide with it.

Professional programs. This is an event or program based fundraiser that includes the hiring of a fundraising professional. These types of programs can be very effective in raising considerable sums of money in a relatively short period of time. They can also be very good at exposing your organization to a much larger audience quite quickly. Examples might include golf tournaments, candy sales, carnivals, etc. Another good thing about this approach is that the fundraising company you hire brings most of the creativity. There are great prepackaged campaigns that are totally turnkey. You provide volunteers and the fundraising company provides the experience. Recently, my daughter’s school held a “fun run” event where the kids lapped around a 1/16 mile track. They worked for several weeks securing return sponsorships from parents, grandparents, and anyone else they could corner long enough. The event was completely turnkey. I was really impressed with what this company was able to do. Kids even received daily prizes for signing up sponsors. It was a very fun and energetic event for the children. My daughter had a blast! But better yet, the school raised a good sum of money. Most fundraising companies are paid by charging a reasonable percentage of the haul, although some charge a flat fee. However, hiring a professional requires homework on your part. Fundraising companies are not all the same. Many are just above being considered a scam, and some charge exorbitant percentages. Always, always take a look at a company you’re considering. Talk to nonprofits that have used them. Make a Better Business Bureau inquiry. All it takes is connecting with a bad fundraising company to really damage your organization’s reputation. Also look for hidden overhead costs above the company’s rate. It’s not impossible for a fundraiser to cost more than it makes. I just know what you’re getting into.

Self-directed programs. These are similar to professional programs, except your organization takes care of everything. There are advantages and disadvantages to this. On the plus side, it can be less expensive than hiring a professional and may allow more flexibility than a prepackaged program. The downside is that it often requires much more effort on the part of the organization and its volunteers. Additionally, the administrative cost of creating the necessary materials from scratch can sometimes outweigh the economies of scale associated with a prepackaged arrangement. However, some fundraising programs lend themselves better to do it yourself. Another example from my daughter’s school is the semi-annual consignment sale of her children. It is a huge hit in the community and nets about $100,000 a year. The PTO does all the work…and believe me, it’s a lot of work. Dozens of volunteers are needed, and planning for the next one begins immediately after the last one ends. But, it is extremely successful and profitable. The key to any self-directed program is making the effort to do it right. No half efforts. One of the reasons the Girl Scouts are so successful is because their cookie sale is legendary for its efficiency and, well, great product. You can too. Shows like this, done right, don’t even feel like a fundraiser to their supporters. They will be looking forward to the next one. Just be prepared to work hard. It can really be worth it.

Grant funding. This is such a misunderstood topic that it hardly belongs in this article. In fact, we’ll only scratch the surface here. Grant funding is different than any of the above. It usually involves applying for funding from a foundation or government agency, often with no personal relationship involved. Contrary to what some unscrupulous freelance “grant writers” may tell you, it is very difficult to secure and maintain. You will need to have established a successful program that a funder will want to help you improve. Start-up funding is almost non-existent. Also, grants should never replace past efforts. We have seen organizations lucky enough to get big funding and then neglect the grassroots altogether. There is no faster way to self-destruct. When the organization loses its funding, as it often does, there is no community support to keep it going. We are not against subsidies. It can be a great resource for you. Just be realistic about it. Do extensive research on agencies and foundations that support causes like yours. Hire an experienced grant writer or learn how to do it yourself. Be careful…good grant writers are expensive. If you get a quote that sounds too cheap to believe, it probably is. Also, be prepared for rejection…a lot. You can be one of 100 or more organizations competing for the same funding. It could take years to try or you may never get it. One of the best pieces of advice we can give is to never rely on grants as your organization’s primary source of support. Eventually you will feel disappointed.

There is much more that could be said. Many books have been written on each of these topics. The goal is to get you thinking about ways your nonprofit can successfully tackle the monster it’s funding.