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Essential tools for nonprofit fundraising: From crowdfunding to grants
Fundraising is the lifeblood of non-governmental organizations (NGOs) and nonprofits. Raising funds enables nonprofits to fulfill their missions, whether they support humanitarian efforts, environmental conservation, or community development.
With the right tools and effective strategies for your nonprofit funding, you can encourage companies and individuals to build trust in your organization. And a fundraising plan, whether through crowdfunding or grant proposals, brings in the support to propel your organization's mission forward.
In this guide, we look to inspire and equip you with all of the essential tools for successful nonprofit fundraising.
Understanding the Fundraising Landscape
Nonprofits need funds for salaries, operations, projects, and other overhead costs. As such, they cannot rely on only one funding source or one method to request it. Aim to diversify.
Why diversify? Relying on one fundraising method or one donor type can be risky. A nonprofit's income is often unstable and can vary from one month to the next. By diversifying fundraising methods, nonprofits can ensure steady funding streams. It takes a community to support your mission, and varying strategies will aid in targeting those donors who can support you.
Funds can be attained through varying methods, such as:
- Email and direct mail campaigns
- Events, from sporting events to music festivals and banquets
- Corporate sponsorships
- Digital adverts
- Social media marketing campaigns
- General social engagements
- Mobile pledges
Essential Tools and Tips for Nonprofit Fundraising
To execute a successful fundraising plan, explore these tools and methods.
Crowdfunding Platforms
Crowdfunding taps into community support for specific projects or causes. Donors can choose their amount and watch it snowball with the contribution of others to reach the target. Through crowdfunding tools, a nonprofit can raise an average of $9,237.55. Here are some top fundraising platforms for nonprofits:
GoFundMe: Simple to use and widely trusted, with no platform fees for charities.
Indiegogo: Ideal for creative campaigns and projects, with a 5% platform fee.
Fundly: Strong mobile app with no platform fees and easy to share on social media. Other features include analytics, event management, and easy setup.
Mightycause: Offers advanced team and event tools. This platform is specialized for nonprofits.
When using crowdfunding to raise money for your nonprofit, follow these tips:
- Set clear goals and tell the audience what impact their dollars will make.
- Hire a freelance expert in campaign strategy, grant writing, or design to give your campaign the professional edge it needs.
- Engage regularly with your donors.
- Use engaging visuals and personal videos to increase your campaign impact by 150%
- Gamify the campaign with levels, points, leaderboards, and more to make it enjoyable and competitive.
- Use features to excite and engage your donors — from goal thermometers to urgency timers.
Grant Funding Tools for Nonprofits
Grants are an essential source of funding for many nonprofits, but securing them requires careful research and strong proposals. Large amounts often come from the government, businesses, or corporations. Many times, the sponsorship is named for a specific expense or initiative. There are three common types of grant funding:
- Operating support or unspecified funding is for the general operation of a nonprofit. Startup grants assist a nonprofit in its registration and launching.
- Program development grants or specified funding are designated to a purpose or project of the donor's choosing.
- Capital support is a generous grant for a large need, whether land acquisition, machinery purchases, renovations, building needs, or any other substantial costs that will support the nonprofit's operation.
Tools like Grant.com, Foundation Directory Online, and GrantStation can help nonprofits find opportunities to request grants for various projects or capital needs. To write a grant proposal that stands out:
- Be clear and concise: State your mission, goals, and how the funds will be used.
- Tailor the proposal: Customize each application to align with the funder’s passions and priorities.
- Show impact: Provide evidence of past success and demonstrate how the grant will make a difference.
Organizational and Marketing Tools
Numerous online tools can help manage teams, track income, and analyze community engagement. Next time your sponsor requests a rundown of how their grant has been spent, you can relax knowing everything has been tracked and recorded.
- Marketing tools like Hubspot, Google Analytics, Mailchimp, and Zapier effectively generate leads and automate workflows. With these tools, you can also set up subscriber emails to inform your followers of events or success stories from your nonprofit.
- Team collaboration platforms like Slack and Zoom are excellent for team communication. Tracking conversations and being able to delegate team leaders and participants can lead to more successful fundraising plans.
Tip: Try the Google Ad Grants program for digital advertising, which has given over $10 billion in free advertising to over 115,000 nonprofits.
Donation and Donor Management Tools
Set up easy donations with detailed reporting with these online tools, perfect for fundraising:
- PayPal for Nonprofits: Easy setup and trusted worldwide with one-time or recurring donations and low transaction fees.
- Donorbox: Low platform fees for a scalable campaign. Software add-ons allow for easy integration into your nonprofit website.
- Bloomerang: A comprehensive donor management platform with donor retention tools, automated communications, and detailed reporting.
Social Media and Peer-to-Peer Fundraising Tools
Social media is a powerful tool for building your nonprofit brand's personality and gathering a following. A nonprofit marketing strategy also empowers followers to spread your message and fundraise on your behalf. This peer-to-peer fundraising method expands your reach and can get the attention of influencers and brands who can partner with you for campaigns and competitions.
Social media is one of the most powerful tools for nonprofit fundraising:
- Facebook fundraising tools have motivated 18% of donors worldwide to give.
- On Instagram, 75% of users take action, such as visiting a website or donating after looking at an Instagram advertising post.
- Trigger action on Twitter! 55% of people who engage with nonprofits on Twitter end up taking action.
- On YouTube, 57% of people who watch nonprofit videos go on to donate to the cause.
- On average, 15-18% of donations in peer-to-peer fundraising campaigns come directly from Facebook referrals.
Peer-to-peer fundraising is hugely beneficial as it grows your online following, instills trust, and makes your followers feel like they are doing some good in the world.
Events and Community Fundraising
Hosting galas and sports events like charity walks, charity auctions, music festivals, or community fairs allows nonprofits to connect with donors personally and gain long-term support and donors. Nonprofits can also gain event sponsors' support, community relationships, and awareness.
Key tips for a successful event include:
- Create a budget: Consider food vendors, health and safety stations, decor, rental costs, and entertainment.
- Plan early: Secure a venue, apply for licenses, decide on your goals, and gather sponsorships beforehand.
- Use other nonprofit fundraising tools: Funds from crowdfunding on grants can ensure you run a successful event.
- Plant the nitty-gritty: Prepare it before the big day, from volunteer management to ticket sales and promotional materials.
- Offer incentives: Attract donors with auction items or event experiences.
- Follow-up: Always thank attendees and keep them engaged with your mission.
Strengthening Your Nonprofit's Fundraising Strategies
By understanding your donor audiences, adopting diverse fundraising strategies, and streamlining your marketing plans with online tools, you will grow a committed community ready to support your cause.
If you're looking for help with managing fundraising campaigns or writing grant proposals, Fiverr’s experienced freelancers can support and appeal to your audience more deeply through social media content creation, grant proposals, or more. Explore Fiverr freelancers today to find the support your nonprofit needs.
- Patrick Hughes brings extensive grant writing expertise, a deep understanding of client needs, and a commitment to exceptional service.
- Maddie Cohen is an experienced content creator with a background in journalism, specializing in crafting compelling, mission-driven fundraising emails that help nonprofits resonate with donors and secure vital support.
- Bob P. delivers well-researched, conversion-focused content that engages readers, helping nonprofits communicate their mission and drive impactful results.
Visit Fiverr for Nonprofits and discover how freelancers on the platform support global organizations in fulfilling their missions.