Fundraising

Contents

• What is fundraising?
• Differences from charity and crowdfunding
• Areas of fundraising application
• Types of fundraising
• Methods of attracting funds
• Stages of fundraising
• Rules for successful fundraising

What is fundraising?

Fundraising is the process of collecting financial resources and other necessities to support social and cultural projects. Resources include not only money but also services, goods, equipment, information, and connections with key figures in the relevant field. Fundraising initiatives aimed at finding sponsors for various projects, including theatrical productions, are regularly held on the Boomstarter platform.

Differences from charity and crowdfunding

Fundraising is distinctly different from charity and crowdfunding. Unlike charitable donations, which are usually made anonymously, fundraising involves openness. Sponsors and patrons can be publicly known, creating a mutually beneficial situation: they gain a positive image in exchange for their investments. For example, the Russian fund "Vera" actively supports hospices and their patients, where sponsors provide financial assistance for the purchase of necessary equipment and medications.

Crowdfunding, on the other hand, focuses on attracting investments from the general public through specialized platforms, where investors expect material benefits. They may become shareholders of a company or receive a finished product, unlike fundraising, which is more focused on social and cultural initiatives.

Areas of fundraising application

Fundraising covers many areas, including:

• Social sphere: Raising funds to help the underprivileged, sick, and victims of violence.
• Science: Funding scientific research and acquiring equipment.
• Sports: Supporting athletes and organizing sporting events.
• Politics: Funding political parties and movements.
• Culture: Raising funds for the restoration of monuments and supporting cultural initiatives.

Types of fundraising

Fundraising can be divided into two main types:

• Internal fundraising: Fundraising is conducted by the interested party themselves, such as an athlete or musician.
• External fundraising: A specialized organization is hired to attract funds, which develops a marketing strategy and interacts with potential sponsors.

Operational fundraising, which focuses on current expenses, and project fundraising, centered on specific initiatives, are also distinguished. Project fundraising often proves to be more effective.

Methods of attracting funds

There are many methods for attracting funds within fundraising, including:

• General appeals: Using flyers and promotional brochures.
• Email newsletters: A traditional method that requires a well-crafted letter.
• Industry conferences: Direct communication with potential sponsors.
• Charity concerts: Events that draw attention to the issue and raise funds.
• Advertising campaigns: Using media and social networks to promote the initiative.
• Creating a website or social media page: For detailed coverage of the project and to attract attention.

Stages of fundraising

The fundraising process typically involves several key stages:

• Developing the event plan, defining goals and timelines.
• Informing the audience through various communication channels.
• Interacting with sponsors through personal meetings and correspondence.

An important aspect of fundraising is building long-term relationships with sponsors, which contributes to sustainable support.

Rules for successful fundraising

To ensure that fundraising is successful, certain rules must be followed:

• Argumentation: The project must be clearly structured with a detailed description of all expenses.
• Persuasiveness: Investors should see a real opportunity to help and receive something in return, such as acknowledgment of their company.
• Transparent reporting: Financial reports must be published to increase trust from sponsors.
• Gratitude: It's important to express appreciation to everyone who supported the project, which can strengthen future relationships.

Thus, fundraising is an essential part of supporting social and cultural initiatives, requiring careful planning and active public engagement.