Fundraising

Why is Fundraising Important for Nonprofits?

Most charitable nonprofits rely upon the generosity of donors for some or all of their funding. Consequently, fundraising is an activity of major importance to the nonprofit sector. Many fundraising focused businesses and consultants help nonprofits identify and cultivate individual donor prospects. There are others that offer special databases for tracking gifts, and yet others that match nonprofits with corporate sponsors. Additionally, some organizations, such as the Association of Fundraising Professionals (AFP), are focused on serving the many individual consultants and businesses that provide fundraising-related services to nonprofits.

How Can a Nonprofit Successfully Raise Funds?

The National Council of Nonprofits does not provide funding for nonprofits, nor does it offer nonprofits advice about how to attract funding. However, so that nonprofits can stay informed about ‘best’ practices and compliance issues, the National Council tracks trends in fundraising activities and also engages in advocacy work relating to regulations and government policies that impact fundraising. In turn, the National Council of Nonprofits encourages nonprofits to inform their partners in government and philanthropy about the challenges posed by fundraising regulations or various practices engaged in by government and private funders that can erect barriers to the efficient and effective use of a nonprofit’s resources. 

Government Partnerships

Nonprofits that partner with government may face complex challenges. Read the National Council’s Special Report, Costs, Complexification, and Crisis: Government’s Human Services Contracting "System" Hurts Everyone.

Visit our web portal to stay up-to-date on government contracting issues, and please tell us your story about how government contracts impact your nonprofit.

Stay Informed

On the path to successful fundraising, it is crucial to stay informed about the major issues that shape the landscape of fundraising today, including some of the challenges and regulatory requirements of which even the smallest nonprofit should be aware. We suggest familiarity with the following topics:

• Accountability Practices in Fundraising  
• Acknowledging Gifts and Contributions
• Charitable Registration
• Corporate Sponsorship
• Ethical Practices in Fundraising
• Fiscal Sponsorship
• Gift Acceptance Policies
• Laws that Regulate Fundraising
• Professional Fundraising Consultants and Grant Writers
• Unrelated Business Income

Resources

• Association of Fundraising Professionals 
• Chronicle of Philanthropy 
• Foundation Center 
• Fundraising and Development Toolkit (Texas Commission on the Arts)
• Learn about strategies for email fundraising from this case study shared by Third Sector New England.
• TechSoup’s Learning Center includes reviews of donor management software.
• Network for Good offers free online fundraising webinars.
• Learn about fiscal sponsorship as a way to raise funds when your organization is not yet tax-exempt.
• Internet fundraising - go paperless!  Catalog Choice has a section of its website devoted to digital and online fundraising.
• Good article from the Nonprofit Risk Management Center on fundraising risks, the complications of raising funds over the internet, and raising funds soon after becoming a nonprofit.
• The website of the Federal Trade Commission aims to educate consumers to protect themselves from charity fraud.
• Share with your donors nine tips for legal compliance that the IRS wants every taxpayer to know before deducting charitable donations.

Also visit the section on Fundraising in the National Council's online bookstore.