Question

Compare and contrast the terms “fundraising” and “campaigns.”

Determine the three largest sources of gifts and provide an example of each.

Identify two gift solicitation methods and discuss the advantages and disadvantages of each.

Answer 1

Fundraising is defined as the concept where the process of gathering voluntary financial contributions are made and seeked by engaging businesses, individuals, governmental agencies or charitable foundations.

On the other hand, the concept of campaigns could be defined as working in an active and organised manner to achieve a particular goal which could be either a social one or a political one. There is no compulsion to raise money in a campaign, it is just to achieve a particular target or goal.

The nonprofit organisations often recieve gifts mainly from three sources which are:

1. Foundations: The NGOs are often granted gifts from various foundations like govermental foundations or private ones like charity which helps and gives the gifts.

2. Corporations: The NGOs also recieves gifts from corporations like big companies Apple, Google getting a tied up and helping these NGO to grow.

3. Individuals: Individuals like famous people for example, rich actors or government officials also make contributions and grant gifts on the individual levels.

2 gifts solicitation methods are:

1. Individual Solicitation: It could be defined as the method of asking individual people for the money or fund. One may prefer to ask them in person or on the phone.

Advantages of the same method is that it is the most effective fundraising methods as you can personally go and ask the individual to raise the money. Also another advantage is that gifts could often be large enough.

On the other hand, disadvantage of the same system is that it is very labour intensive technique. The solicitor should be willing to spend time explaining the same working organisation to the potential donor.

2. Telemarketing: This is just like individual solicitation but just having more people to ask and use the phones to ask for the money.

Advantages of the same is that personal contact could be maintained with the callers. It also allows you to deliver the customised individual messages to specific people at an cost effective approach.

The disadvantage of the same method is that not everyone who makes a pledge for money on the phone makes a delivery. You can expect atleast 20% of the people who would pledge to make the donation but won't do.