Major Gifts
The non-profit organizations have to employ a variety of ways through which these organizations can fundraise as well as connect with the supporters. Different schools, community organizations, churches, or social service agencies employ different fundraising strategies, for long-term sustainability in future. Even though a non-profit organization may enjoy the presence of innumerable volunteers and dozens of donors, it may turn out to be hard to survive, given the existence of a huge number of NGOs in the market (Hauck, 2015). While there is a variety of a source that the nonprofit organizations can use for raising their charity funds, such as large and small family foundations, federated funds, government and churches, and others, it may be discreet to consider and critically analyze the fundraising approaches, that can help these organizations get their voice heard among millions of others.
The major gifts form an integral concept in the fundraising process of any nonprofit organization, as these are the largest single donation that an nonprofit organization will receive in a given period of time. However, the major gifts refer to a large sum of money that an organization receives, though the sum referred to as “large” for an organization will vary amongst organizations (Orgad, 2017). While seeking major gifts, the nonprofit organization has to identify the donors who did not merely donate a large sum of money on occasionally, but those who have been donating on a regular basis over the last 10 years. Next, it is important to update the donors about the pending projects, and engage them to volunteer on a one-time or even ongoing basis. However, a major gift officer should be hired by the nonprofit organization who will not only be persistent enough to ask the donor and remind him of his donation, but also can cultivate a good relation with the selected donor. While some organizations use major gifts proposal letter, for raising the funds, it is recommended that the major gifts officer meets the donor in person, explain the project and ask for him, so that he can be assured that his donated sum is being put to use. However, ethically speaking, though the officer can ask the donor for a minimal amount, he should not insist or exert excessive pressure on him to pay a higher sum than what he is willing to pay. In case of economic recession, it might be hard to collect major gifts.
The charitable legacies are also important sources of donation for an nonprofit organization, and this refers to the sum of money left by an individual in his will, for donating a share of his property to the NGO. Since legacies are only collected after a person dies, an nonprofit organization should not directly approach a person for it, but rather discreetly advertises it through its website. The way they should ask for legacies should also be very polite, such as they can ask “ Create Heaven for others before you reach it”. The organization can also post a moving advert that can also influence the donors offer legacies (Ionnau, 2015). However, in case unemployment continues to be a problem, people may invest more for future generation rather than paying for legacies. For ensuring transparency, the nonprofit organization fundraisers can keep on updating the donor how they have already started working on the projects, and in which aspects, they have decided to use up the donor’s legacy. They can also ask the donor to nominate a person, his son or daughter or wide, who would keep on getting updates about the utilization of the legacy sum on the projects, even after he dies.
Legacies
While collecting in memoriam funds, it should be noted that a person donates a sum of money for charity, in reminiscence of the death of a close one, and hence such funds must be raised with care. After the fund is being collected, the organization should not merely send a newsletter to the concerned person acknowledging their gratitude, but should also develop a lifetime relationship with the donor. During each year, on the date of the dead person’s death anniversary, the organization must acknowledge their condolence as well as gratitude to the family members (Mugo, 2015). Ethically speaking, the organization should not at all approach a person, and ask for in-memoriam fund, unless he is himself interested. However, putting the adverts near the cancer hospitals or on the websites are acceptable. Unless the organization tries to build up effective relation, with the in memoriam givers, it is impossible to expect a regular renewal from them. Thanking the dying person’s contribution, remembering him on his death anniversary, and mentioning his name on every little occasion, can influence the prospective donor continue donating for the NGO.
The grants refer to a large sum of money that the non-profit organizations collect or a specific program or purpose. While collecting the funds, the nonprofit organization must have a distant project in mind as per the needs of the community, and accordingly engage the attention of the donor (Herzer &Nunnenkamp 2013). A donor database should be created for keeping an idea about the prospective donors, and reaching them in need. Instead of relying too much on the private donors, the government should be approached and profit organizations that intend to engage in CSR activities. Since the governmental support towards the nonprofit organizations have largely decreased, the organizations can also look out for grant writing practices. Grant writing refers to the practice of completing an application process for funding provided by an institution such as a government department, corporation, foundation or trust. This can help in securing funds for the said organization.
The community funds are largely beneficial during chronic illnesses, personal tragedies or natural disasters. While collecting funds for community issues, money can be launched online, or by approaching people randomly on the streets. In any case, sufficient evidence suggesting the veracity of the facts should be disclosed to the donors, to earn their empathy (Sargeant & Jay, 2014).
In case of corporate funds, the charity fund is being collected from the recognized organizations of the country which intend to participate in responsible charitable activities, for ensuring long-term sustainability, and better goodwill in future. Hence, the volunteers may call the HR manager of a big organization for a meeting on recent projects, explain about their upcoming projects for which they are seeking funds, and speak in the interest of the company (Cooke, 2014). For example the nonprofit organization may propose that after the completion of the project, they will publicize about the company’s share of contribution, and that will be beneficial for the latter.
The public charitable trusts can be of large help for the NGOs and in presence of the two trustees- the settler and another person, the trustees can be asked to become lifetime members of a charitable group. However, the organization should necessarily earn sufficient recognition, and must work for a uniquely noble work, before asking trustees to invest.
In Memoriam Giving
Different foundations led by the large and recognized private organizations engage in philanthropic activities, and the nonprofit organizations can also approach these foundations to work in collaboration with the nonprofit organizations. The nonprofit organizations will collaborate with the foundations on a regular basis, on fundraising projects as well as taking initiatives (Amaral et al., 2016).
With the advent of technology, the digital media can also be employed for collecting funds from the prospective donors. The nonprofit organizations can not only advertise their organization, and their charitable programs via television channels and radio channels, but can also record their charity initiative programs and put the video clips on their website pages. The organization can also think of creating its own app, asking its donors to download the same, and make payment via smart phones.
The social media tools can be largely beneficial in raising awareness amongst the public regarding the social initiatives undertaken by an nonprofit organization. To enhance the nonprofit organization visibility, an nonprofit organization can open up its official pages on Facebook, and Instagram, and upload pictures of their social actions (McPherson, 2014). This will help them earn donor credibility that they actually do invest the collected money for bringing social changes.
Like any profit seeking organization, the non-profit seeking organizations also operate under intense pressure, and amidst a competitive world, it is very difficult to ensure their long-term sustenance. Hence, to ensure the same, two factors should be taken into serious consideration. First of all, the nonprofit organization should essentially employ the use of unique and highly innovative fund raising initiatives that can help them attract the attention of maximum donors. Secondly, the organization must ensure transparency and accountability in their actions.
Conclusion:
The donor will lose their faith, if they feel that the nonprofit organization they are contributing to, is not updating them about the status of their projects. Besides, it should be noted that the nonprofit organizations run their works, completely on the basis of the generosity and compassion of the donors, who may stop donating, if do not receive sufficient respect and acknowledgment for the same. Hence, it is important to keep on thanking and acknowledging the support of the donors, even when there is no upcoming project to ask support for.
Reference List:
Cooke, D. (2014). Corporate Fundraising: What’s the key to unlocking corporate wealth?.
do Amaral, J. A. A., Petroni, L. M., & Hess, A. (2016). Fundraising Strategies Developed by MBA students in Project-Based Learning Courses. Journal of Problem Based Learning in Higher Education, 4(1).
Hauck, K. (2015). Crowdfunding as a Financing Tool for NGO Projects. An Analysis of Motivational Factors for Contribution.
Herzer, D., & Nunnenkamp, P. (2013). Private donations, government grants, commercial activities, and fundraising: Cointegration and causality for NGOs in international development cooperation. World Development, 46, 234-251.
Ioannou, E. (2015). Supporting Environmental NGOs in Times of Economic Crisis.
McPherson, E. (2015). Advocacy organizations’ evaluation of social media information for NGO journalism: The evidence and engagement models. American Behavioral Scientist, 59(1), 124-148.
Mugo, I. N. (2015). Conditional donor funding and its implications on NGO autonomy in East Africa (Doctoral dissertation, University of Cape Town).
Orgad, S. (2017). Caring Enterprise in Crisis? Challenges and Opportunities of Humanitarian NGO Communications. In Caring in Crisis? Humanitarianism, the Public and NGOs (pp. 83-109). Springer International Publishing.
Sargeant, A., & Jay, E. (2014). Fundraising management: analysis, planning and practice. Routledge.
Whelan, G., Moon, J., & Grant, B. (2013). Corporations and citizenship arenas in the age of social media. Journal of Business Ethics, 118(4), 777-790.
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