No matter how noble a charity’s cause may be, it is imperative that funding should be at the forefront to ensure success. There are various methods that a charity can use to gain access to funding and donations, even more so in today’s climate due to the popularity of technology and social media..
Social media is an accessible option for charities when it comes to fundraising, as individuals can make donations via smartphones and use fundraisers on social media websites such as Facebook. Although social media is invaluable, more traditional means of fundraising, such as events, continue to prove just as important. It is important that all charities utilise, or at least be aware, of every fundraising option available. The more funding, the more your charity can thrive.
1. Individual donors
A significant source of funding comes from individual donations – a study by CAF found that people in the UK gave £11.3 billion to charity in 2020. Therefore building a connection with the public should be a central focus of every charity’s strategy. Charities can achieve this by sharing how the organisation has made a positive impact. The impact can be shared with individuals that the cause resonates with by social media, advertising, events, direct emails (to name a few).
It is also important to recognise how supporters of your charity prefer to donate, as only 7% of donors used cash during January 2021. Your charity should make the process of donating as accessible and unproblematic as possible, as bank transfers and online payments are a preferred means of payment for many.
2. Crowdfunding platforms
Charities and individuals can use crowdfunding platforms, such as GoFundMe, to raise funds for various reasons. The platform lets the organiser share updates and achievements with people who have made donations so people can see how their money makes a difference.
How does GoFundMe work?
It is free to set up an account on GoFundMe but the website does deduct 2.9% + £0.25p for every donation made. Once the fundraiser is live on GoFundMe, charities can share the effort on social media to spread awareness.
Volunteers save charities a monumental amount of money. Although it’s often overlooked as a fundraising effort, the donation of time from individuals is invaluable. Although the most well-known method to volunteer is in charity shops, volunteers are needed for a vast number of roles. For example, the charity Smartworks requires volunteer stylists to provide unemployed women sessions to select interview-appropriate clothing.
City councils, the government, other charities, and private organisations can all provide grants to help non-profit organisations. Grants are typically announced on social media, websites and can also be found on the. Gov website.
Charities that earn less than 30k a year can even sign up to My Funding Central to identify funding opportunities.
5. Wills and legacies
Some charities can receive donations in wills after individuals gain a substantial sum of money unexpectedly.
6. Gift Aid
Gift Aid, a UK tax incentive, enables tax-effective fundraising from individuals. It increases the value of donations from UK taxpayers, as charities can claim an additional 25 pence for every £1 spent. Charities can do this by reclaiming tax from HM Revenue and Customs after individuals donate using the scheme. Gift Aid usage has even increased in popularity since 2020, as it was reported that more and more used gift aid on donations.
To summarise, there are countless fundraising avenues that charities can explore. We understand that funding is sparse, and every penny is often delegated to a particular aspect of the charity. If you need help or fundraising advice, do not hesitate to contact us.