10 Reasons Why Fundraising Is Important for Your Nonprofit

Fundraising Is Important for Your Nonprofit

Crowdfunding for NGO is the process of collecting money as donations, for a cause from individuals and businesses. A person who raises the money from them is known as a fundraiser.

It was usually used to gather money for non-profit organizations, but, over the years fundraising has evolved a lot and it is now used to fund various important causes.

What Is Nonprofit Fundraising?

Crowdfunding is the practice of funding a project or enterprise by collecting small amounts of money from numerous people, typically via online platforms. In the past two decades the market of crowdfunding has been growing quickly; crowdfunding has become a new way to finance, for example, start-up companies, projects in the visual arts and music, technological innovation, scientific research, and community projects.

Read Further: Crowdfunding for NGOs Everything You Should Know!

10 Reasons Fundraising is Important to Your Nonprofit

Fundraising is critical for the non-profits as there are no revenue generations, they only depend on their donors for financial help. There is a balance created between the donors and grantors and the non-profit organizations, the donors believe in their work and help them financially.

Here are a few reasons why fundraising is important to your nonprofit:

  1. Fundraising raises awareness and gives legitimacy to your organization.
  2. Fundraising is a good way to get a 33% donor base from the general public allowing you to be considered to be a public charity.
  3. Fundraising can make you attractive to foundations and other institutions that award grants because they’ll know that you have other sources besides their money.
  4. Fundraising is an opportunity to move donors up the gift range chart. A donor can initially give 500/-, then 50,000/-, then start to volunteer, then eventually become a board member.
  5. Fundraising is an way to build your donor list and have a database with ways to contact your donors for future events and to disseminate more information.
  6. Fundraising is an opportunity for a nonprofit to refine their message and see what resonates and what doesn’t. It’s a great way to make crafting your mission statement an iterative process. Mission statements help with fundraising and fundraising helps with mission statements.
  7. Fundraising Raises Awareness. Fundraising forces you to get creative and move outside your comfort zone. In order to be eligible for grants, sponsorships, and other free money, you need to prove that you’re reaching as many people, in as many parts of the world, as possible. This means delving into social media, revamping your website to utilize the latest SEO and marketing tactics, and taking a new approach to outreach and retention.
  8. Fundraising Requires You to Plan and Prioritize. Fundraising is no easy feat. It takes a lot of time, energy, and thought to come up with a solid fundraising strategy that often requires taking a step back to assess your organization as a whole. This can force you to really evaluate your operation – your allotment of resources, your staff, and the projects you devote your time to – so you can optimize your efforts and maximize the funds you’re able to get for them.
  9. Fundraising Requires Finding New Donors and Retention. Running a fundraising campaign and finding the new donors is not enough. Finding new donors for fundraising is one thing but the retention of donors is equally important. Organizations should run a set of paid campaigns and storytelling events to keep their donors engaged with the charity. Nonprofits require funds to run the engagement campaigns for donor retention.
  10. Fundraising Keeps You Constantly Pushing Forward. Meeting one fundraising goal doesn’t mean you’re done and can sit back and relax. There are always more people to help and more you can do to support your cause, which means a constant stream of funding is always going to be needed. This constant need to do more, support more, and achieve more can help motivate and drive your team, keeping them excited and passionate to make a difference.


While the ultimate goal of fundraising is to raise money, it should really be about more than that – at least if long-term viability is on your radar.

Sure, you need cash to keep your organization up and running, as well as to support your charitable efforts and causes, but fundraising can actually offer some deeper benefits than that.

When done right, it can help you reach more people, run a better operation, and most importantly, guarantee your organization’s success for longer than just the current fundraising round.

SFA believes in the power to make someone smile, to save someone’s life, to foster brilliant ideas, to make a social change and to be the impact you want to make in the world.

SFA has built an easy-to-use platform to transform non-profit giving sector. We offer the best online tools to mobilize the crowd towards great ideas and projects and get good things done fast.

Making an impact by working together!

Start your fundraising journey today for more details visit Crowdfunding for NGO’s In India.


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Social For Action

Social impact and social change remains the core of the Sakal's beliefs even today and with this Sakal is introducing its own Crowdfunding platform - Social For Action.

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