What is Fundraising? Definition of Fundraising, Fundraising Meaning and Concept
Definition of fundraising process, also known in the economic sphere as fundraising, is the collection of economic resources by a person or organization to later allocate said collected funds to an objective other than personal or business profit.
Generally, the main people in charge of the implementation of fund-raising actions or fundraising are NGOs, foundations and various types of associations. Sometimes its mechanisms are also used for other types of actions in areas such as politics.
By definition, fundraising pursues a basic objective: The obtaining of funds that serve to guarantee, in the first instance, the survival of the fund-raising entity itself, and then to be able to ensure that it fulfills its mission.
The proliferation of this type of fundraising strategies, and the potential increase in social action plans by governments and companies (especially in the West), has led to the emergence of institutions, organizations, and even companies, specialized in this field. country. In this way, a different source of financing is obtained from the traditional ones.
It should be noted that it is necessary to have a professionalization base to undertake this type of operation, which in a large number of cases reaches important figures to take into account and must cross economic, fiscal or legal barriers.
Search for efficiency in fundraising
The reason why NGOs and other organizations are moving towards the economic standardization of their processes responds to the need to obtain higher levels of efficiency, allowing them to achieve a greater optimization of resources and guaranteeing their collaborators and donors that their aid is fully used for the end they suppose.
From that point of view, having a fundraiser (those responsible for putting these recruitment strategies into operation) act with the diligence and rigor of a typical entrepreneur means going on the path of professionalization and better corporate performance.
In this sense, it is necessary to highlight the appearance in recent years of firms or companies specialized in this type of action and that, through subcontracting, offer their services to organizations that do not have the means or structure to undertake them.
There are various tools for fundraisers to meet their objectives, and through which they shape their marketing strategies :
- Personal and direct contact, cold door, in the streets or establishments.
- Dissemination through the media, mailing, social networks, etc.
- Sweepstakes and lotteries.
- Aid and subsidies.
- Cultural and sports sponsorships.
- Collection of essential goods (such as clothing or food).