Pages

Thursday, January 7, 2010

Fundraising or Fund Development - What is the difference?

The terms of fundraising and fund development are teased almost interchangeable. But, there is a difference. Here is my attempt at an explanation.

Fund raising is probably the easier of the two terms to be defined. E 'activity with the intention of making money for a charitable organization or a charitable organization. This will be a rule, people asking for donations, asking a variety of methods of communication that people buy a product or service that Supports the love, or participate with people in a case of a species. Some extend the definition of fundraising activities such as sponsorship revenues that benefit are basically a form of advertising, games and games of love and request for funds from government programs.

Development fund is a bit 'less simple and somewhat' more an abstract concept. My way of thinking to the development of the Fund is the process used by organizationsTo construct> the ability of fund raising and sustainability. Development Fund is a part of the strategic marketing of a non-profit organization. It is not only concerned with raising the money, in a way that reliable sources of income received by the organization to achieve its long-term mission and vision will be developed significantly. Development funds in general to develop relationships with people and other organizations that support the love. It requires a strategic planthat the funding is for the purposes and programs of this organization. Part of the strategic plan is a coordinated development plan of the fund, the various forms of fundraising, marketing, communications and volunteer management.

There are several ways of categorization of nonprofit organizations and charities. When it comes to discover that require the development strategies of the fund, as opposed to fundraising, I tend to think in terms of three categories. There are organizationsis not acceptable, that is developing, as membership continues to change the target for fundraising is almost always the immediate needs of their members must be corrected, and the costs of infrastructure are provided by a company affiliated bigger. Church youth groups, bands, cheerleading squads and sports teams, and so on, fall into this category. Participants in these groups are employed in good standing for a few years, usually have no long-term relationships with people outside the groupbe ascertained, there is an incentive for their immediate needs, raising funds, and are usually associated with larger groups, such as schools or churches, the needs of the application, such as teamwork and leadership. These types of groups tend to perform fundraising activities, which require only a very small organization, voluntary participation and are easy to use communications strategies.

A second type of organization is possible in the first instance a member. The funds collected fromamong members in order to maintain the requirements of society, which is usually a building or any type of meeting space and staff. The money will be needed in the form of fees paid will be members of the organization, as in the case of a profession or in the form of donations, as in the case of a church. These organizations have an integrated strategy of development funds. Proponents of the 'organization are the recipients of the organization and programsServices. So the strategy is to maintain the organization and strengthens its ability to rule revolves around the members to organize themselves in order to ensure confidence that the leadership makes sense to spend the funds to be used for communication as a means to participate in building membership decision budgetary and other processes and strategies, and a rejuvenation of the membership.

The third type of organization can not describe the rest of the world-profits and charities.This is the organization that serves the whole community or society in any way. Has a long-term vision and strategic planning and will require funding to implement its service to the community for years to take years. At times, organizations like these have a base of public support, but often to raise funds from a variety of sources to maintain their families. This type of organization must have a development strategy for the fund to ensure long-term profitability and build its capacity over time.The methods used by the collection of funds, which may be similar to other organizations listed above, except that the basis for their choice of methods of raising funds is the desire to build long term relationships with all funding sources.

A key decision is an organizational necessity, what kind of fundraising or fund development strategy must use them on the basis of the type of organization is, and whether the long-term needs. Many companies start with the implementationtheir needs through short-term fundraising strategies, and at some point have to finance the transition to development strategies. Otherwise, they will flounder, which is a collection of funds to another without the development of sustainable relationships.