If you are starting a fundraising company, don’t be discouraged by 2009’s recessionary headlines. In fact, according to Paulette V. Maehara, CFRE, CAE, President and CEO of the Association of Fundraising Professionals’ (AFP) “…despite the economy, fundraising remains one of the strongest professions with many opportunities for both beginning and experienced practitioners.”
If you want to generate income for non-profit organizations or help your neighborhood sports team raise funds for a special school project, you need enthusiasm and a solid plan to create a successful fundraising business. Here’s how:
Develop your fundraising niche.
To develop long-term relationships with donors and funders a fundraising company should focus on a primary service niche. It is important to define your niche for branding purposes and to connect your previous work experience with this new business entity.
Fundraising Business Start-up Tip:
If you have established relationships in the sports and entertainment industries, your company should specialize in fundraisers and giving campaigns that will generate funds from this community of donors.
Get experience raising funds as a volunteer or working with experienced fundraisers.
From writing donor solicitation materials and planning special events to creating sponsorship proposals and unique fundraisers for your clients, a working knowledge of the fundraising cycle is critical.
Before launching a new fundraising company, obtain a minimum of 5 years of experience with an established and successful fundraising business.
Fundraising Business Start-up Tip:
Use your prior fundraising experience to establish references for your new fundraising company.
Obtain all legal documentation and tax identification numbers for your fundraising business.
Apply for an EIN number from the Internal Revenue Service. Submit your documentation to your state government to incorporate your business. Meet with a tax professional to determine the type of corporation that best suits your new fundraising company.
Develop relationships with vendors.
A professional fundraising company requires a cadre of contacts to plan and execute a successful fundraiser.
Create a Rolodex of your dream team of vendors-publicist, award recognition companies, event planners, caterers, florists and potential volunteers to help you execute your fundraising ideas.
Join a fundraising organization.
The Association of Fundraising Professionals (AFP) guides new and experienced fundraising professionals with information to help grow their fundraising business.
The AFP represents more than 200 chapters, with 30,000 members worldwide and provides professional certifications, research and education for its participating fundraising practitioners.
Market your fundraising services.
- Write press releases to generate publicity for your new fundraising business.
- Create a blog and free online newsletter giving ideas and guidance to local non-profits in your area.
- Write a free 20-page eBook solving a pressing problem that prevents a non-profit organization’s ability to raise funds and increase awareness of their brand in troubled times.
If you love helping people and have a knack for raising money, you could be the next great social entrepreneur as a professional fundraiser. Use the above start-up advice to raise cash for your favorite charity and make a difference in the lives of others.
Reference:
- AFP – Code of Ethics www.afpnet.org/ka/ka-3.cfm?content_item_id=1068&folder;_id=897
- Wikipedia Fundraiser – en.wikipedia.org/wiki/Fundraiser
- Top Ten Tips For Fundraising Success – www.fundraisers.com/ideas/topten.html
