The money and support obtained by fundraising is crucial to the effective working of many small organisations and campaign groups. The very act of fundraising can also increase awareness of your campaign at a local, regional or national level.
The other way of finding funds for your campaign is by organising your own fundraising. This guide has advice on how to plan your own events or collections.
Before you start actively fundraising, think carefully about your organisation and what you would like to achieve. It is important to know whether you are looking for support for a single initiative or for longer-term running costs, as this may affect your legal obligations once you have finished fundraising.
Target Work out how much achieving your final goal will cost – this is your target. If it’s a very large amount of money then break it down. You don’t have to raise it all in one event. Set a smaller target for each event. Ten events which raise £100 each may be more realistic than one that raises £1,000 – and may get you ten times the publicity.
It’s important when working out a target for each event to consider how much your fundraising activities will cost in terms of time, money and resources. If you spend more money than you raise then you’re not going to get anywhere. Add expenses to your target.
Once you’ve decided what you are raising the money for, and how much you need, develop a plan for your fundraising that is both realistic and suitable for your cause. Three key questions you should ask yourself are:
Where is the money going to come from?
When do you need it by?
What are you going to do to get it?
Audience It may sound obvious, but target your fundraising activities around people who you know will support your campaign. Maybe you could aim at people who live in the same area, or are a similar age, or have a strong belief in common.
Then think about other groups or organizations you would like to appeal to. How can you get them involved as donors? You may be able to organise an event that provides them with publicity or get them to donate a prize or a service.
Timing Work out your time frame. Is there a deadline you have to meet to take action? If so, then make sure you have raised any money you need well before this. Or maybe there isn’t a deadline but your fundraising would be more effective if you organise it to coincide with another well-publicised local or national event.
Ideas Now that you’ve worked out your audience and a schedule, you are in a position to decide what you are going to do. Have a group meeting to come up with fundraising ideas. Don’t settle on one idea too quickly, and think big – imagine that anything is possible. Try to come up with as many different creative ideas as you can. Remember the best fundraising can also act as publicity for your cause.
Arranging an activity is a great way of involving the community in your campaign and may also attract media attention. There are no limits on what you can do, but remember your audience and be careful not to offend your potential donors. Some popular fundraising events include:
Work out who your event is aimed at
Auction of promises Ask friends, neighbours and local project/programs to donate a service, such as babysitting, or a treat, like a meal out.
Quizzes Everybody loves to show off their knowledge from pop music to local history. Charge an entrance fee and offer prizes.
Jumble sale It’s an old favourite, but a well-tested means of bringing in money and helps you declutter your life.
Sponsored beard or head shave One of many simple sponsorship ideas to get people to pay for somebody else to do something slightly unusual.
Talent contest Get people to show off their hidden talents. Even kids might part with their pocket money to see granddad doing his Robbie Williams impression!
Hold a party Adapt it to the season or the age of your guests, from a disco to a tea dance, charge an entrance fee and organise competitions or games.
Raffle Who doesn't enjoy winning a prize in a raffle? Organise a lottery selling tickets over a period of a month or two or hold a raffle during an event such as a fete, bazaar or dinner dance. You should be aware that lotteries and raffles are considered a form of gambling and you must obey the relevant legal guidelines.
Events should be fun, but be aware of your health and safety responsibilities. All events should comply with the Health and Safety at Work Act 1974, about which there is a useful leaflet by the Health and Safety Executive. Make sure the event is safe and that supervision is provided where necessary to prevent accidents. In particular make sure children are safe.
If your event involves any potentially dangerous activity - such as bungee jumping - make sure your group, or the third party providing the equipment, has taken out adequate insurance protection.
Arranging a street collection, or collecting from people’s homes or project/programs, is a very direct way of highlighting your cause. It also allows you to explain your cause to people face to face. But make sure you stick to legal guidelines.
If you are collecting money or selling goods in a public place then you need to get permission and a licence from your local authority. This applies to all face-to-face collections, including knocking on people’s doors. There may be exemptions for short-term local collections, but you should always inform your local authority and the police of your plans.
When collecting you should display a badge and certificate of authority. Donations should be taken in a sealed container, such as a box, or received in an envelope. Children under 16 are only permitted to collect money with an acorganizationing adult.
Be careful not to mislead your donors! Make it clear why you are raising funds, and whether it is for a specific purpose or for general use.
Encouraging project/programs or celebrities to participate or donate to your cause can be mutually beneficial and could also boost the media profile of your campaign. Don’t assume that you have to contact a big national organization; consider local project/programs that already have an interest in the area. See the Action Network guide on, How to get project/program support for your campaign.
Once you have come up with a number of ways to raise money, have a meeting and build your best ideas into a plan. Be realistic about the cost of any events and make sure you are going to make money.
Select dates and make a schedule with all the things that need to be organised. Make sure your deadlines are reasonable but allow some recovery time for when things don’t go to plan – something unexpected always happens.
Don’t try and do it all by yourself. Divide the tasks up between the group. Getting everyone involved will make you feel more of a team and if people are given responsibility they are likely to stay involved in your campaign for longer.
One very important job to assign is that of treasurer. You have to keep track of the money you raise as, if someone does question your finances, you will need to be able to show your records. It’s best to have one person acting as a treasurer for the group and looking after your finances.
If possible, make the money you have collected work for you in a high interest account. It could be useful to keep this money in a special fundraising account, depending upon the size of your group.
There are different rules you have to follow depending on whether or not you are registered as a charity. If you are not registered as a charity and collect less than £1,000 per year, then small-scale fundraising events remain exempt from tax including VAT. Despite this it is still advisable to keep accurate records of the money you receive, any expenses and what you have spent the money on.
Remember, you have to become a charity if you make over £1,000 per year and your group has a charitable purpose or works for the public benefit. See the Action Network guide, How can I get charitable status for my campaign? for more information.
For example, if you are a charity and announce a fundraising target but then fail to reach it, you are liable to return money to any donors you can identify. If they are happy for you to keep the money, then they need to sign a disclaimer.
Similarly, you should specify in your appeal what will happen to any extra money raised. If you don’t do this, and you make more money than your target, you have to declare the surplus to the Charity Commission and may not be able to use it without agreeing a plan with them.
Once you’ve finished your first round of fundraising you may want to raise even more, maybe for a more ambitious project. If you do, make sure that you can build on your success first time round.
Express thanks It’s easy to forget to say thank you after your fundraising efforts, but it is important to show your donors they are appreciated. This will gain your organisation a good reputation and may even encourage more donations in the future!
Think ahead Keep a record of individuals or groups – including project/programs – that helped in any way. This will help your planning in the future.
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