Info-Authority: Fundraising Organizations

A fundraising organization is a group dedicated to the purpose of acquiring and donating money to support a cause that can be political, ideological, or charitable in nature. Money can be raised by such organizations on scales ranging anywhere from the purely local—a neighborhood project or community church—to part of an organized worldwide effort. Money may go indirectly to assist individuals, as is frequently the case with disaster relief efforts, or to groups who perform actions perceived as beneficial to society as a whole, which might include any organization from a cancer research center to the Girl Scouts. Perhaps the most extensive fundraising networks are those designed to support religious institutions and the larger political parties. The government itself is friendly to fundraising groups: charitable organizations that formally declare themselves to the IRS and provide a statement of intent are routinely given certain privileges and tax exemptions.

Fundraising Techniques

A fundraising organization can earn money in a variety of ways. At the grassroots level, money is often raised by the sale of small items such as Girl Scout cookies or inexpensive candies found at a supermarket counter. At a larger scale, businesses often can be found to donate sizeable portions of their earnings to fundraising organizations, as can special foundations set up for philanthropic purposes. Many of these foundations are financial endowments, which earn interest from invested capital and donate this replenishing sum to worthy causes on a regular basis. But despite the large amounts donated annually by businesses and foundations, door-to-door collections and other means of contacting private donors are far more effective—over 80 percent of charitable donations come from individuals in this manner.

Professional Fundraisers

Large fundraising groups often employ a professional fundraiser, who is paid either a prearranged amount or a portion of the earnings that he or she is able to bring in. The latter practice may obviously lead to thorny ethical issues and is forbidden by at least one major fundraising regulatory body, the Association of Fundraising Professionals (AFP). Many organizations raise funds through special events such as pledge drives, in which funds are raised as a concerted effort over a set period of time in a publicized manner. Usually, a specific financial goal is set, with updates given as to its progress. This artificially-rushed time frame often compels otherwise hesitant donors to open their wallets for the cause.

Telethons

One uniquely modern form of fundraising is the telethon, a pledge drive aired to a mass audience by television. Many telethons are repeated yearly to raise money for research. Other telethons are held ad hoc for specific disastrous events. Still others are held to raise funds in support of nonprofit organizations.

By Matthew Ingalls




	Fundraising Organizations A fundraising organization is a group dedicated to the purpose of acquiring and donating money to support a cause that can be political, ideological, or charitable in nature. Money can be raised by such organizations on scales ranging anywhere from the purely local—a neighborhood project or community church—to part of an organized worldwide effort. Money may go indirectly to assist individuals, as is frequently the case with disaster relief efforts, or to groups who perform actions perceived as beneficial to society as a whole, which might include any organization from a cancer research center to the Girl Scouts. Perhaps the most extensive fundraising networks are those designed to support religious institutions and the larger political parties. The government itself is friendly to fundraising groups: charitable organizations that formally declare themselves to the IRS and provide a statement of intent are routinely given certain privileges and tax exemptions. Fundraising Techniques A fundraising organization can earn money in a variety of ways. At the grassroots level, money is often raised by the sale of small items such as Girl Scout cookies or inexpensive candies found at a supermarket counter. At a larger scale, businesses often can be found to donate sizeable portions of their earnings to fundraising organizations, as can special foundations set up for philanthropic purposes. Many of these foundations are financial endowments, which earn interest from invested capital and donate this replenishing sum to worthy causes on a regular basis. But despite the large amounts donated annually by businesses and foundations, door-to-door collections and other means of contacting private donors are far more effective—over 80 percent of charitable donations come from individuals in this manner. Professional Fundraisers Large fundraising groups often employ a professional fundraiser, who is paid either a prearranged amount or a portion of the earnings that he or she is able to bring in. The latter practice may obviously lead to thorny ethical issues and is forbidden by at least one major fundraising regulatory body, the Association of Fundraising Professionals (AFP). Many organizations raise funds through special events such as pledge drives, in which funds are raised as a concerted effort over a set period of time in a publicized manner. Usually, a specific financial goal is set, with updates given as to its progress. This artificially-rushed time frame often compels otherwise hesitant donors to open their wallets for the cause. Telethons One uniquely modern form of fundraising is the telethon, a pledge drive aired to a mass audience by television. Many telethons are repeated yearly to raise money for research. Other telethons are held ad hoc for specific disastrous events. Still others are held to raise funds in support of nonprofit organizations. By Matthew Ingalls Related Links: Wikipedia - Fundraising Wikipedia article on fundraising.