Sources for raising funds:
Fundraising is a process of raising funds for your project or your cause. A startup requires funds for functioning, a non-profit requires funds to help the needy and to bring a revolution in the society. Many small businesses and startups look for funding from VCs and get disappointed in the end. Getting funding from a VC is like squeezing blood from a stone. And first of all, it is difficult to find stones.
Other options like a bank loan.etc take a lot of time for approval. It is the main reason why people have now started looking for alternative ways of raising funds.
Whether you’re an NGO, or an individual or a startup business,
Here are some unique sources to raise funds:
Crowdfunding is one of the most powerful ways of raising funds. The crowdfunding industry is said to be a whopping 34billion US dollars. Crowdfunding can be used by non-profits as well as individuals alike. It can be used to fund various causes like funding education for the underprivileged or raising funds for your newly set up business. There are different methods in crowdfunding that one can opt for.
1) Equity-based crowdfunding
3) Reward-based crowdfunding
Equity-based crowdfunding is also known as investment crowdfunding. Apart from equity-based crowdfunding, One can try the other methods mentioned, as equity-based crowdfunding is banned in India. A startup can try reward-based crowdfunding to give out rewards to people who contribute. Donation-based crowdfunding is suitable for non-profits and NGOs.
2) Corporate fundraising:
Corporate companies take up CSR initiatives to help the underprivileged. Also, NGOs can approach companies and make them aware of the cause the NGO is working on. Many corporates indulge in philanthropic activities throughout the year and pitching your NGOs cause can help a lot. It also helps in getting volunteers, who can help in organizing campaigns.
Corporates may also partner with nonprofits for sponsorships and cause branding. Sponsorships and cause branding benefit the corporate by increasing the visibility of the company. It increases outreach and gives positive publicity to the company.
3) Special events:
Special events allow you to raise funds and influence people on a massive scale. Special events can be anything, from a concert to magic show and even a sports event. It also helps in giving publicity to your company and raise awareness about the cause/product you’re working on. Many big artists like Justin Bieber have held charity concerts and have shown their support.
Top 10 Crowdfunding Platforms
- Milaap– Crowdfunding India| India’s largest crowdfunding platform
- Ketto– Fundraising platform
- Wishberry– Crowdfunding for creative projects
- Bitgiving – Crowdfunding site
Bootstrapping is one of the most common way used by startups to raise funds. Bootstrapping is nothing but, self-funding by using your savings. Most startup founders don’t want to go through the hardships of bank loans or approaching the investors. Many startups have become successful by using this method.
Startup incubators are known to provide all the important facilities to startups like office space, consulting and other resources in exchange for equity. Startup incubators are usually companies or universities.
6) Business Grants:
Grants are basically money used for specific purposes. This is neglected by most of the people, but, Grant is still prominent among NGOs and other businesses.
7) Membership campaigns:
Membership campaigns have got the potential to convert prospects into donors. These campaigns are also used to strengthen the relationship between the organization and the people. Enrolling people as members are beneficial as the people get to know how you operate. In addition to regular donations, a nonprofit can also get help in the form of volunteers from membership campaigns. It is a win-win situation.
These were some of the sources by which one can raise funds either for their startup or their nonprofit organization.