Question

What are some ways that non-profit organizations like United Way raise money?

Answer 1

Fundraising involves all acts of soliciting donations for a nonprofit agency. It includes efforts to raise money from:

• Individuals
• Grants
• Philanthropies (either private or corporate)

Add fees for service and similar revenues to the list. While these are not charitable donations, they can be a significant source of funds for a new nonprofit.

Most startup nonprofits are limited to seeking donations from individuals and special events.

Charitable organizations survive primarily from the donations they receive from organizations and individuals.

Volunteerism

Donations bring in needed revenues. There are even nonprofit organizations that exist to help other charities maximize their army of volunteers. The majority of charities rely mainly on volunteers to help them run, and people can volunteer in many great ways.

Gala Events

Many charities hold a gala event each year to help raise funds. The events can be quite costly to organize and run, but can bring in some of the largest revenue of the year. Silent and live auctions of travel events, products and other services donated by businesses also bring in revenue during these events.

Product Sales

Selling a product can be one of the more tangible ways for charities and other nonprofit organizations to raise funds. The annual sale of Girl Scout cookies and Boy Scout popcorn are two of the highest profile product examples, bringing in hundreds of millions of dollars each year, much more than its fees from annual membership.

Events and Performances

Gala events certainly qualify as important charitable events that can bring in donations. Other events and performances also bring in money. Organizations in the performing arts have a leg up in this category and can present concerts, dance performances and music recitals to help support the arts.

Publicity

Spending money is a vital way to eventually make money. Advertising and publicity can increase a charity's reach and awareness among potential donors. A celebrity endorsement can have a huge impact as well.

The Bottom Line

There are many ways an organization can make money, and charitable organizations are some of the best at generating revenue. From product sales to events, charities can make revenues from many sources. Furthermore, with volunteers helping them out for free, margins are even better for these non-profits.