Community Resource Centre

Each tactic has its level of effectiveness, ease of execution and level of expectations.  This is what some research has shown:

Major funding tactics

The tactic you choose really depends on the goal identified in the Funding Plan.  A Funding plan should include several different tactics to gain revenue.  There really is no one tactic or plan that will work for everybody, so use the tactics that best suit your organization's resources.  Many funding plans use a SWOT analysis, Strengths, Weaknesses, Opportunities and Threats, to help determine what tactics can work best for them.  If you do not have many volunteers, then doing a door to door campaign, for example, may not be advisable for your NPO.    

 Fee for Service: This is designing your organization to deliver programs in to meet the donor's needs.  This can be an agreement with any level of government, foundation, charity or business.
 
Individuals:  Soliciting money from individuals is still the single largest source of income for NPO's and charity Approximately 75% of all money available to NPO and charities comes from individuals.
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Direct Mail:   Most direct mail campaigns were developed in the 1970's and 80's  with the market being saturated in the 90's.  A newcomer to this type of fundraising should expect costs in the area of $60 to $90 per new donor.  This is a costly system and you will have to see how it works with your organization

Special Events:  These events can be used to meet a variety of organizational goals.  It is a way to advertise, build public awareness, provide recognition, and raise money.  However, to do these events properly they are time consuming, detail-oriented ventures that require an inordinate amount of effort for the return on your investment. Industry standards suggest that you can expect to raise $1.50 for every dollar you spend on a special event.  Though this may not be the most efficient way to raise money these events can get you new supporters and enable you to get to know them better.

Major Gifts:  This is a methodical process to go out and personally ask for contributions.  The industry rule of thumb is that a donor who gives a dollar through the mail is very capable of giving $5 if asked personally. A properly designed major gift program can produce a group of donors willing and able to give a major gift every year. Although a considerable investment of time and effort is needed to develop and maintain the relationship with annual major gift donors, this can be one of your most cost-effective fundraising methods.

Planned Gifts:  With baby boomers getting older, the area of planned gifts becomes more important.  This type of fundraiser should be targetted to your most ardent supporters.  This fundraising process is best suited for charities as many planned gifts involves taxes and estate planning.

Foundations:  Foundations typically only contribute about 10% of all of the moneys donated to charities.  Foundations are also limited in where and how the can spend money.  To successfully approach foundations you should begin talking with and listening to targeted foundations at least two years before you expect to receive grants, develop a list of projects  that require funding, and be persistent.  The probability is that you will not find a foundation which will be your major source of income, but they can help you diversify your income stream.
 
Corporate Foundations: Corporate foundations are similar in most respects to public or private foundations.The difference is that if the corporate foundation likes your proposal but it does not meet their foundation's requirements, they may be willing to support you through their corporate sponsorship programs instead.

Raffles:  Many small and large non-profit organizations use raffle tickets as a method to raise money.  These events are very volounteer intensive.  Many large "dream come true" raffles spend most of their income on prizes and receive a smaller net profit per ticket.  Raffles have lost money.  The only way that you can gaurantee not to lose money is to sell every ticket.  

Events:  There is a vast array of small events that could be carried out  by volunteers, staff and clients.  These can be used to collect a specific amount of money for a specific item.  More importantly they can be used to attract more supporters to the organization.
 
Given today's climate for fundraising, a diversified approach to your fundraising plan should be the way to go.