Every cause needs resources to move forward. A food bank can’t stock its shelves, a booster club can’t send the team to state, and a shelter can’t cover vet bills without a reliable way to raise money. That’s where fundraising comes in. The scale and tools change depending on your organization. The core ideas don’t.
What Is Fundraising?
Fundraising is the process of gathering voluntary financial contributions to support a cause, organization, or project. It brings together individuals, businesses, and community groups who give money, goods, or services — through campaigns, events, or online appeals — so a mission has the resources it needs to operate and grow.
Fundraising isn’t only for large charities. A parent-teacher association raising money for new library books is fundraising. So is a church funding a mission trip, a startup running a crowdfunding round, or a neighbor collecting donations after a storm.
What stays constant is this: people give because they believe in what you’re doing and trust you to follow through. The ask is easy when the relationship is real. Build that first.
Why Fundraising Matters
Most organizations can’t run on a single income source. Grants end, membership dues plateau, and one-time gifts don’t cover recurring costs. Fundraising gives you a way to diversify revenue and build support that renews year after year. When it works, it does more than cover costs:
- Funds the mission: Covers programs, staff, and the day-to-day work supporters rarely see.
- Builds a community: Turns one-time givers into repeat donors and volunteers.
- Creates stability: A base of recurring giving smooths out the seasonal swings every organization feels.
- Signals credibility: A track record of successful campaigns tells grant makers and partners you can deliver.
Types of Fundraising
Fundraising takes many forms. Most fall into six broad categories, each suited to different goals and different kinds of organizations.
| Type | How it works | Best for |
| Event fundraising | Raise money through galas, auctions, walkathons, or dinners where people gather and give. | Nonprofits, schools, and community groups with an audience to convene |
| Online giving & crowdfunding | Collect donations through a website, donation form, or public crowdfunding page. | Any cause wanting fast, wide reach beyond its local area |
| Peer-to-peer | Supporters create their own pages and raise money from their networks on your behalf. | Causes with passionate volunteers and social reach |
| Grants | Apply for funding from foundations, governments, or corporations for a defined program. | Nonprofits and schools with clear, fundable projects |
| Major gifts & capital campaigns | Cultivate large gifts from individuals toward a specific goal, like a new building. | Established organizations with strong donor relationships |
| Corporate giving & matching | Partner with businesses for sponsorships, donations, or gift-matching programs. | Groups with community or business ties |
Most successful programs mix several of these. A school might run an event fundraiser in the fall, keep a donation form open year-round, and lean on peer-to-peer fundraising during a spring campaign. If your cause depends on grants or business support, resources on grant writing and corporate matching gifts can help you add those channels.
The Fundraising Process: How It Works
Whatever type you choose, most campaigns follow the same path:
- Set a clear goal. Decide how much you need to raise, by when, and what it will fund. A specific target — “$10,000 for new equipment by June” — motivates better than a vague ask.
- Know your audience. Understand who is likely to give and why. Good donor management software helps you track supporters and tailor your outreach.
- Choose your method. Pick the fundraising type, or mix, that fits your goal, timeline, and the people you’re reaching.
- Make the ask. Tell a clear story, show the impact, and make giving easy on every channel you use.
- Thank and follow up. Acknowledge every gift quickly. A prompt, personal thank-you is the first step of your next campaign.
- Measure and learn. Review what worked, break down your results, and carry the lessons into the next effort.
Fundraising Strategies That Drive Results
A few habits separate campaigns that hit their goal from those that don’t:
Lead with story, not statistics. People give to people. One real story of impact moves more donors than a page of figures.
Make giving effortless. Every extra click costs you gifts. Offer mobile giving, saved payment options, and a form that takes seconds to complete.
Segment your supporters. A first-time $20 donor and a decade-long major giver need different messages. Donor segmentation lets you speak to each group directly.
Build recurring revenue. Monthly donors give more over time and cost less to retain. Invite one-time givers to become sustaining supporters with recurring giving.
Show your impact. Close the loop. Report back on what gifts accomplished so donors give again.
Tips for Running a Successful Campaign
- Start with a realistic budget, and account for fundraising fees so your net matches your goal.
- Build a timeline with clear milestones, and tie big pushes to moments like year-end giving or GivingTuesday.
- Recruit and brief your volunteers early. They are your reach.
- Promote across email, social, and in person. Most people need several touches before they give.
- Track everything in one place so you can see what’s working while there’s still time to adjust.
The Right Tools Make Fundraising Easier
You can run a small drive with a spreadsheet and a donation jar. As your campaigns grow, the manual work adds up: tracking gifts, thanking donors, reconciling totals, and reporting to your board.
GiveSmart, Momentive’s fundraising platform, brings donations, events, and donor records into one place. Your team spends less time on data entry and more time building the relationships that drive giving. Pair it with event management software for galas, auctions management, and donor management software to keep every supporter relationship warm.
Frequently Asked Questions
What is the purpose of fundraising?Â
Fundraising exists to secure the money, goods, and services a cause needs to pursue its mission. Beyond covering costs, it builds a community of supporters, diversifies income so no single source becomes a risk, and creates the stability an organization needs to plan and grow.Â
What are the different types of fundraising?Â
Common types include event fundraising, online giving and crowdfunding, peer-to-peer campaigns, grants, major gifts and capital campaigns, and corporate giving or matching programs. Most organizations combine several. The right mix depends on your goal, your timeline, and the supporters you can realistically reach.Â
How do you start a fundraising campaign?Â
Start by setting a specific, time-bound goal and identifying who is likely to give. Choose a fundraising method that fits, build a clear story around the impact, and make the ask across every channel. Then thank donors promptly and review your results to improve the next campaign.Â
What is the difference between fundraising and crowdfunding?Â
Fundraising is the broader practice of gathering support through many methods, including events, grants, and major gifts. Crowdfunding is one method within it: raising small amounts from a large group of people online, usually through a public campaign page with a shared goal and deadline.Â
What makes a fundraising campaign successful?Â
Successful campaigns pair a clear, specific goal with a compelling story and an easy way to give. They reach the right people with the right message, thank donors quickly, and report back on impact. Consistent follow-up turns one-time gifts into lasting support.Â
Who can fundraise?Â
Anyone can fundraise. Nonprofits, schools, churches, clubs, sports teams, community groups, startups, and individuals all raise money for causes they care about. Rules and tax treatment vary by organization type and location, so check local requirements — but the core practice is open to everyone.Â
