ALT-8 Nonprofit Service Sector
Fundraising is an integral part of the work of non-profit organisations. Generally non-profit organisations, whose purpose is of itself not income generating, need to secure a stable income flow in order that they can carry out their activities. It is often charities where this occurs and they often rely on convincing others of the need for their service as a fundraising principal.
We are probably all familiar with bake sales, jumble sales and tombolas as fundraising events to support our local charities or church. These do raise considerable income, but tend to be one of events and are often insufficient for long term financial survival. Fundraisers then have to establish more long term and reliable income streams so that the organisation can continue its work. Successful fundraising therefore secures long term financial stability
Common fundraising activities that meet this criteria are
- sponsorship, by appealing to commercial organisations to pledge financial support. Usually in return the sponsor will wish for the link to be public and advertised in order to help its image as a caring organisation.
- corporate fundraising events such as concerts or dinners. Although only one offs they can generate substantial cash injections which sustain for a while.
- government or lottery funding, through application to the appropriate authorities.
- legacies and inheritances, especially set up tax beneficial systems such as a deed of covenant.
- give as you earn schemes to obtain tax efficient donations from members of the public who support the organisation's objectives.
