Four Different Types of Fundraisers

Running a nonprofit takes work—and money—which is why fundraising is so important.

But what are some different types of fundraisers? And how can you know which one best suits your goals?

In this article, we are going to share some unique fundraising ideas by detailing their pros, cons, and best practice tips. We are also going to walk you through how to assess which ideas are best suited for your organization.

Let’s get started.

There are lots of different kinds of fundraisers, and we’ve rounded up some of the very best in the list below.

With each type of fundraiser, we have outlined their main characteristics, some pros and cons, and helpful tips to consider.

Auctions

Auctions are a staple of nonprofit fundraising events.

While many of us think of auctions as a part of a fancy gala, the reality is that auctions are extremely flexible and, in today’s digital age, can even be conducted completely virtually.

The three main types of auctions are:

• Live Auctions
• Silent Auctions
• Online Auctions

You can also mix two or all three types into a hybrid auction.

Live auctions are the most traditional. These auctions are typically part of an in-person event where an auctioneer presents each item and takes the bids live on stage.

By contrast, a silent auction is done, well, silently.

When held in-person, these types of auctions involve items being placed somewhere in the venue where attendees can look at them. A description card with the initial bid is placed next to the item, and those interested can bid on it through a mobile device. At the end of the night, the person with the highest bid wins.

In many ways, online auctions are a form of silent auctions.

However, unlike ones held at events, they can last multiple days or even weeks. Online auctions require items to be listed with pictures, a description, an initial bid, and how much time is left until the auction is over. Platforms such as Charity Auctions Today and One Cause help nonprofits of all types set up these virtual fundraisers.
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Pros:

• When successful and tailored to your audience, auctions can be a great way to raise a lot of money for a nonprofit.
• If you manage to get local businesses or individuals to donate items, auctions can also reinforce a sense of community amongst your supporters by making everyone feel involved and engaged in your mission.

Cons:

• Like many fundraisers, auctions can be a bit of a gamble. While most items in an auction are donated, you always run the risk of your audience not engaging with the fundraiser, which means you’ll have to find another way to sell those items.
• Pricing items correctly can also be difficult. You don’t want to price them so low that you won’t be making enough money to justify the fundraiser, but you also don’t want to price them so high that your donors can’t afford to place the initial bid.

Tips:

• If you are a small or new nonprofit, beginning with an online auction might be the best option.
• Try to tailor items to your specific audience so that you know there will be interest in them.
• With live auctions, it is typically recommended to have two big ticket items mixed in with many mid to lower priced items.

Walkathons

Walkathons are exactly what they sound like: they’re events where guests pay a registration fee in order to participate in a walk to raise funds and awareness for a specific cause.

Though walkathons primarily raise funds through registration fees, there are other ways to monetize these events. These include:

• Selling concession items (besides water) for participants and audiences
• Selling branded merchandise and other items at vendor booths
• Having corporations sponsor your event

You can also get creative and pair your walkathon with other sorts of fundraising events. The SouthEast Guide Dogs organization, for example, makes an entire festival out of their walkathons.
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While most walkathons are held at a specific location, some charities have opted to go virtual as well. By using specially made apps, participants can track their progress as they try to walk a predetermined distance from anywhere in the country.

To ensure the success of your event, be sure to advertise it on social media with plenty of time in advance so that people can schedule their plans accordingly.

Also be sure to check with the local city council that you have all the permits and licenses necessary to legally host your event.

Pros:

• When a walkathon is successful enough, it can become a yearly tradition that your supporters look forward to attending. Over time, this can help raise awareness for your cause while also establishing your nonprofit’s brand identity.
• Walkathons are a great way to foster a sense of community with your supporters.

Cons:

• Planning a walkathon takes a good amount of planning, as well as a lot of time and resources.
• Uncontrollable factors like weather can affect whether your event is a success.

Tips:

• Have at least two back-up dates ready in case you need to cancel due to weather.
• Recruit volunteers to help with set-up, sign-ins, water stations, and tear-down of the event!

Social Media Challenges

In 2014, the internet was inundated with videos of people dumping ice water on their heads. The ALS Association Ice Bucket Challenge was a viral sensation that is said to have increased ALS research funding by 187%.

Social media challenges can be a fun and effective way to raise awareness about a cause while encouraging people to donate.

While one can never be too sure about what will go viral on the internet, these challenges have a larger chance of success if they are:

• Short, require minimal preparation, and are inexpensive
• Can be easily replicated
• Generate strong visual reactions

Just as important as having a good challenge, though, is having a good social media presence and knowing how to communicate your cause quickly and efficiently.

Pros:

• There are millions of social media users. Social media challenges give you the chance to connect with new audiences in a cost-effective way.
• When done well, social media challenges will not only help you raise money, but they will help raise awareness for your cause.

Cons:

• As mentioned above, it is nearly impossible to predict exactly what will go viral.
• A lot of factors that dictate the success of a challenge are beyond your control, so even if you do everything right, there’s still a chance it won’t take off the way you hoped.

Tips:

• Adjust your expectations. Not every challenge will be as big as the Ice Bucket Challenge, but that does not mean yours is a failure. Remember that online audiences today are far more segmented than they were in 2014, and as long as people are participating in your challenge, you are doing incredibly well.

Email Marketing Solicitation Campaigns

For nonprofits, email marketing usually involves sharing information about the organization’s campaigns, new programs, and plans for the future. In the same vein, many nonprofits also use email marketing to solicit donations that will directly contribute to their philanthropic efforts.

When done well, email marketing can help you maintain your relationship with your audience so that they become life-long supporters of your cause. By keeping your audience informed of your efforts, you are giving them proof of how their donations have been useful while inspiring them to continue supporting your mission.

For tips on how to write a compelling and effective year-end fundraising email, check out this post on our blog.

Pros:

• Email marketing is incredibly inexpensive, making it perfect for nonprofits of any size.
• Email marketing can be a great way to test out new messages. By running trials with different phrases and wording, you can measure the success of each one and adjust your messaging strategy going forward accordingly.

Cons:

• With so many businesses and nonprofits using email marketing, it can be difficult to stand-out.
• Similarly, getting past spam filters can also be difficult. So there’s always a chance that your emails are being ignored.

Tips:

• Do not inundate your supporters with constant emails. You do not need to update them about every little thing (that’s what your social media pages are for), but rather, only send emails when you have something important to talk about. Create a regular schedule and stick to it.
• Wait until you have established a relationship through email before asking for donations. Similarly, always ask for support in the context of a campaign so you can connect the solicitation with some real-world effort.

Now that we’ve discussed in detail these four different types of fundraisers, it is time to go over some of the questions you should consider when assessing which option is right for your nonprofit.

What Are Your Goals?

Before you even begin planning your fundraiser, you must determine your specific goals. This goes beyond just understanding your mission and which program or initiative you are trying to fund.

Think of specific numbers. How much money are you trying to raise? How much money can you spend on the fundraiser? How much time do you have to accomplish this?

Creating a budget and a timeline based on your goals is key to preparing for a successful fundraiser.

For example, if you do not have a lot of money, email marketing might be a good idea. If you do not have a lot of time to spare, then perhaps an event might be too ambitious for this particular initiative.

By ensuring that you have your goals clearly defined, you can more readily plan for your fundraiser, and as a result, you can minimize costs while optimizing the amount of revenue generated.

Who Are Your Donors?

Every nonprofit should have a good idea of who their donors are, and this is especially true when it comes to running fundraisers.

Understanding your supporters will help you decide which fundraiser will be most engaging for them and will give you an idea of how much money you can expect to raise.

Consider segmenting your audience based on different factors like age, donation frequency, and donation size so that you can assess what type of fundraiser will resonate with them most.

For example, a younger demographic that spends a lot of time online will probably respond well to a viral challenge. On the other hand, a donor who is a parent might be more interested in a family-friendly event they can take their children to.

What Does Your Data Say?

When trying to determine which type of event is right for you, it is important to analyze and track different metrics to see what is achievable and what you can improve on.

Some metrics you can study when preparing for an event include, but are not limited to:

• Performance of past fundraisers
• Social media engagement
• Number of volunteers
• Frequency of donations
• Preferred methods of donation

Remember that studying these metrics is not a one-time process; you need to be constantly checking the collected data in order to ensure you’re using accurate and relevant information when making decisions regarding your fundraiser.

Though nonprofits need donations to thrive, fundraising does not need to be overwhelming. In fact, once you know what event is best suited for your organization, it can actually be a lot of fun.

This guide hopefully provided you with some inspiration as well as some practical advice for running your next fundraising campaign. For more fundraising tips, insights, and resources, check out Instrumentl’s blog.