Charity fundraising: six principles of fundraising
Fundraising or voluntary financial donations is an inevitable process for charity work or non-profitable activities. We get the image of people going around and seeking money when we perceive charity fundraising. Apart from these traditional methods, there are modern ways like online charity fundraising, which became popular recently. It is a responsible procedure which is bound by law and regulations. Charity fundraising will be successful and effective only if the organisation can earn the public's trust. The authenticity and accuracy of the charity work and charity organisations are the unavoidable necessities of fundraising.
Before moving into fundraising as such, one must consider certain things. One must plan properly and have a fundraising idea, so it is important to refer to the following points. The purpose of fundraising is the first thing. Some may have the concerns like is it an actual fundraising process or just awareness. One must sort out such things initially. In addition, one must decide the amount of money required and the minimum amount needed. The second major factor is the timescale- when fundraising begins and ends. The next imperative question at hand is who will raise the fund. Will they hire professionals or will they do it themselves? Such queries are to be addressed.
Ideas to raise money for charity
There are various ideas to raise money for charity, such as public collections, door-to-door collections, street fundraising, street fairs and expos, games such as lotteries and raffles, and even online through television or telephone. How to successfully raise money depends totally upon a state's socio-cultural, political and economic conditions. Fundraising organisations also use mobile and online fundraising providers to draw donors across the globe.
Six principles of fundraising
Next, we will discuss the critical six fundraising principles of codes of conduct and regulations. One must ensure that charity and fundraising conform to the law and legal duties. Everything should be bound within a pre-planned system of actions. The following are the six principles of fundraising. Every fundraising idea should be based on this.
The first principle is effective planning, for which set out, agree and monitor one's approach to fundraising. The second principle is supervising one's fundraisers. For this to happen, one has to create an arrangement to manage the different fundraising methods carried out in the name of the charity. Next is the protection of one's charity. To protect the charity, one should ensure solid management of the assets and resources.
The fourth important principle is adhering to the fundraising rules and regulations, particularly in data protection and licensing laws. Next is on following recognised fundraising standards. The legal regulations for fundraising are outlined in the Code of Fundraising Practice. It is advisable to refer to it for proper planning and action. The last principle is to be open and accountable. One must ensure they carry out the charity and fulfil the statutory accounting and reporting requirements. One must also evaluate the fundraising performance of the trustees at every step using a checklist or questionnaire to ensure that everything goes according to the code of fundraising practice.
Management of the Fund raised
Now, the major challenge is managing the raised money properly without wasting it or letting it flow into the wrong hands. It is more important than fundraising for the charity itself. The goal of the fundraisers is always to ensure that they use the collected money correctly to meet the goals of the charity work. In addition, they must open all collection containers regularly, and they must count the money and other things. This helps them to keep clear accounts of the money collected. Also, the charity must pay all received cash to the bank account immediately after collection, without subtracting expenses.
To increase the value of donations from UK taxpayers, charities can use Gift Aid. When someone pays using Gift Aid, they can apply for a tax refund from HM Revenue and Customs. One can also claim an extra twenty-five pence for every £1 donated. Moreover, some charities can claim a top-up payment on their small cash donations under the Gift Aid small donations scheme.
