Fundraising is a process of seeking and gathering funds. Traditionally, fundraising refers to the process of gathering money for nonprofit organizations, however, it can also refer to the solicitation of capital from investors or other sources such as for-profit enterprises. Raising funds can be intimidating and challenging for entrepreneurs. After all, it is always difficult to persuade people to donate money to you or invest in your business.
Here are 5 ideas for fundraising.
1. Hosting Events
Hosting events is a great way to raise funds. There are various types of events that you can host. You can host a brunch, dinner, a party, or even an exhibition. A lot of events require admission fees. You can raise funds by charging individuals who attend the event.
To bring awareness to your event, you can promote your event to the media such as news channels and can also set up a website that provides the event’s details and the opportunity for other businesses to sponsor.
Hosting an event can help raise money and also promote your business. By talking to attendees and networking, more people will get insights about your business. After knowing more about your business those attendees may become your potential customers.
You can donate a portion of the profits you gain through the event to charity, or the target market your business intends to serve. Of course, the main goal is to keep the profits you gain through the event for your business, however, donating the money to people in need or your target market can potentially lead to more customers and also more awareness of goodwill for your business.
2. Enter Contests
If you are running a business, joining a business plan competition is an excellent way to raise funds. Normally, the competition committee requires participant businesses to submit the materials related to your businesses. After reviewing all participants’ proposals or summaries, the committee selects entrepreneurs to give live presentations of their businesses. After running a series of competitions, ultimately, the committee will choose one business as the winner.
A lot of universities launch business competitions, including Columbia University, Harvard University, Rice University, New York University, MIT, Purdue University.
Click here for the list for the 15 largest college business plan competitions.
Crowdfunding is the practice of funding a business by raising small amounts of money from a large number of people. You ask people or groups to donate money to fund your business. In exchange, you can offer those people a discount or early bird products.
Nowadays, people more and more do crowdfunding via the Internet. There are multiple crowdfunding websites, including Kickstarter, Indiegogo, Patreon.
4. Online and Mobile Fundraising
Online and Mobile Fundraising has become popular in recent years. Fundraising organizations use mobile and online fundraising providers to attract donors worldwide.
Your website and social media platforms can both be used for fundraising. You should update your online donation page to optimize it for mobile because most people search for and find your website through a mobile device. If you don’t use social media, then this is a good time to get on board as in this day and age, social media platforms are very popular. It is the easiest way to send out a message for fundraising to a large group or audience.
5. Professional Fundraisers
Hiring fundraisers to raise money is worthwhile. Professional fundraisers, also called fundraising consultants, are experts in raising funds through donor and event management. They can help you to maximize results while minimizing burden. They can bring the best practices, national perspective, valuable tools, and focused efforts to your business.
Fundraising requires a lot of time and energy. Without outside counsel, raising funds can be a heavy burden. Some non-profit organizations outsource part of the fundraising simply because they don’t want to do it themselves. Bringing on outside counsel to help minimize the workload burden can be an appealing option.