Funders can increase their impact with the seven pillars of fundraising

According to The Complete Community Fundraising Book, any good fundraising plan should rest on seven pillars: donations, grants, community–business partnerships, membership/alumni/friends, special events, earned income, and crowdfunding.

GiveNow executive director Cathy Truong said the experience of its fundraising experts was that groups should look for ways to diversify funding as much as practicable, including reducing reliance on grants.

“Most groups get into trouble because they rely on only two or three sources of funding, or only involve two or three people in raising money. If any one of those sources or people disappears, the organisation can quickly slide into difficulty,” Truong said.

“Core funding might come from the government, but the money raised by other not-for-profit efforts encourages better decision-making, innovation and ‘insurance’ for the future,” she said.

“No organisation should be so dependent on a single funding source that it cannot function without it. For example, an organisation entirely dependent on government grants is extremely vulnerable. Governments change, ministers change, senior public servants change, and government priorities change. What is an essential priority for one administration may not rate with the next.”

The 40-page book argues that organisations earning from multiple sources, such as earned income, foundations, memberships, partnerships and a pool of donors, as well as government funding, will be stronger and more secure.

Truong said she hoped funders would share the resource with grantseekers.

Further information

Read more and download The Complete Community Fundraising Book for free