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Fundraising Basics

Learn about the definition of fundraising, its key principles, and how it connects people with meaningful causes. Explore its history, importance, and the different ways organisations raise funds.

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Fundraising: What does it actually mean? 

The term fundraising originates from the USA but has long been established in many countries. In English, it means "raising funds", but it encompasses much more than just financial contributions. Fundraising also includes donations, services, and volunteer work. While it is often associated with nonprofit organisations collecting donations, this definition is somewhat narrow—fundraising involves a broader set of activities.

 

"Fundraising is the acquisition of resources to fulfil a non-commercial purpose."

Fundraising is a structured process that includes analysis, planning, execution, and evaluation. Depending on the size and type of an organisation, fundraising may be managed by a single person or an entire team. It can be compared to a company’s sales or marketing department—but instead of generating profit, the goal is to fulfil a mission for the greater good. Instead of selling products or services to customers, fundraisers inspire people to support a meaningful cause.

 

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A Brief History of Fundraising

Fundraising History

What do the ancient Egyptians, the YMCA, and the Internet have in common? At first glance, not much – but they all played a role in shaping modern fundraising.

Ancient Egypt (3,000+ years ago): The first recorded example of humanitarian aid comes from ancient Egypt, where papyrus scrolls promised food to the hungry in exchange for blessings in the afterlife.

The first professional fundraising campaign (1903): Frank L. Pierce, an American fundraiser, launched a campaign to fund a new YMCA building, raising $270,000 in two years—a groundbreaking achievement at the time.

 

The digital revolution

The internet has transformed the way organisations raise funds and connect with their communities. What once relied on direct mail and in-person events has expanded into a global digital network where supporters can contribute with just a few clicks.

From the early days of online donation forms to today’s dynamic social media-driven campaigns, digital fundraising has made it easier than ever to reach people, build engaged communities, and inspire action. Whether through crowdfunding, peer-to-peer giving, or viral social media challenges, the potential to connect with donors and amplify impact has never been greater.

By leveraging the right digital tools and platforms, organisations can engage supporters worldwide, increase donor retention, and create lasting change—faster and more effectively than ever before.

 

Why is fundraising important?

Fundraising connects people, who want to support a cause with the individuals or projects that need funding. It builds bridges between donors and beneficiaries, motivating as many people as possible to contribute—not in exchange for personal gain, but for the joy of giving.

 

"Fundraising is the gentle art of teaching the joy of giving."

Hank Rosso Founder of a renowned fundraising school in the USA

 

Fundraisers around the world dedicate their work to this idea, and their efforts are often essential for the survival of entire organisations. Ultimately, countless people and projects benefit from the contributions generated through fundraising—people and initiatives that would otherwise be left entirely on their own.

 

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Who Does Fundraising?

Fundraising takes many different forms, depending on its purpose. It could be an individual collecting donations within their friend circle to fund a child’s medical operation. It could be a small organisation dedicated to preserving a historic garden. A national association might advocate for the inclusion of people with disabilities. At the global level, large international organisations tackle issues such as environmental protection or children's rights, as seen with WWF or UNICEF.

Most people associate fundraising primarily with large nonprofit organisations, but that is just one part of the picture. Many other groups rely on fundraising, including:

  • Local sports clubs, such as a tennis club raising money for a new clay court.
  • Political parties, seeking financial backers for upcoming campaigns.
  • Universities, in need of funding for costly research equipment.

Fundraising is used by organisations of all sizes and across various industries. Naturally, their goals and approaches differ, leading to a range of fundraising methods and strategies. 

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