Fundraising from the Community

In Northern Ireland the voluntary and community sector receives around £180m from the community or around 31% of all income according to research conducted by NICVA in our State of the Sector V report. For our purposes we define community fundraising as money from members of the general public.

The average monthly donation from an individual in 2008 was £14.22 or £22.69 when you include donations at places of worship. (According to State of the Sector V).

We sub-categorise fundraising from the community into fundraising into three areas for ease of learning. These areas are (1) Personal sources (2) Social and Recreational and (3) Media.

Community Fundraising (Personal or Individual Methods)

Collections: Either static collections in shops and other public spaces, house to house collections and street collections (otherwise known as flag days) are extremely popular forms of fundraising. Both house to house and street collections require a permit from the Police Service NI or Charity Branch of Department for Social Development depending on their area of operation (See NICVA's advice note on Collections.) More sophisticated forms of collections include Face to Face fundraising which seeks to solicit direct debits and other forms of planned giving using street collections.

Lotteries Raffles and Ballots: Lotteries and Ballots are another popular area of fundraising from individuals. A lottery (which includes a draw, raffle, tombola, sweepstake or ballot) is a draw where prizes are won. Participants buy tickets at fixed prices and prize winners are selected by chance and it requires no skill to win. There are also legal implications for organisation organising such activities (See NICVA's Advice Note of Lotteries).

It is not uncommon for organisations to hold competitions rather than ballots in Northern Ireland to side step the lottery legislation. A competition is different from a ballot by introducing an element of skill into the game. It is recommended to take legal advise if you are planning a competition as a fundraising activity.

General Appeals: Simply asking for money for a particular cause and enabling individuals to donate by post, telephone, online or in person. Appeals can be made using various media from Television to Newspapers, SMS Texting and Website and by Direct Mail. General appeals can also be made to people to donate using other giving methods such as direct debits, standing orders and payroll giving. Equally appeals can be used to recruit volunteer fundraisers.

Direct Debits and Standing Orders: Direct Debits and Standing Orders are a method of securing long-term regular gifts from individual donors. To receive direct debits you will need to become authorised with the Direct Debit scheme. Direct Debits are originated by the organisation that will receive the donation following agreement by a donor. Standing Orders are originated by the donor themselves.

Payroll Giving: Payroll Giving is a scheme that enables donors to make charitable donations straight from their gross salary (before tax has been deducted). Furthermore, some employers are encouraging the scheme by matching their employees' donations (eg Ulster Bank.)

Property and Share Giving: There are tax benefits for individuals and companies to give gifts to charity of land, buildings, certain shares, securities and other investments. Tax relief can be claimed if they give, or sell at less than market value, any qualifying investments to a UK charity.

Legacies: A Legacy is a bequest from a donor's will and is one of the more traditional forms of giving to charity and remains a very lucrative one. In 1998 and 1999 Legacies generated £807m for the top 500 charities in the UK. Legacies are left through the donor's will or simply by a declaration to the executors with instructions as to how and to which charity a legacy is to be distributed.

Big Gift: Big Gift fundraising involves developing relationship with wealthy individuals to secure a major donation. This method requires a long term personal approach.

Gift Aid: Gift Aid can increase the value of individual donations by 28%. Claiming back the tax is straightforward. Furthermore, Gift Aid is open to all UK taxpayers and is a flexible scheme that can be applied to solitary or regular donations.

Community Fundraising (Social and Recreational Methods)

Volunteer Fundraisers: Encouraging individuals to become volunteer fundraisers is a way of increasing the organisation's capacity to fundraise. A volunteer fundraiser may do a sponsored event/charity expedition for the organisation. They might also organise fundraising in their own area, recruit other donors or help staff a charity shop.

Venture Philanthropy: Venture philanthropy is a method of involving individual donors in the work of your organisation. An example would be involving someone who made a donation to a youth club as a youth leader in that project. This is a method which seeks to show the donor how their money is being spent as well as increasing their commitment to your cause through direct experience.

Membership Schemes: Membership Schemes are a way of generating income from your service users and supporters.

Schools and Clubs: Fundraising from schools and clubs (such as Rotary, Lions Clubs etc) is an excellent way to get already established groups to fundraise for your cause.

Community Fundraising (Using the Media)

Online Fundraising: Donating online is increasingly popular with donors. Make information on giving available on your website homepage. Endeavour to make it as straightforward as possible to give online using other agencies or websites if necessary to process donations rather than requiring people.

Fundraising Pack: Developing a fundraising pack enables charities to infrom donors and volunteer fundraising on the range of giving options available. See NICVA's separate article on Fundraising Packs.

Television and Radio: making an appeal via television or radio is an effective way of reaching a large audience with you appeal. BBC, UTV and other media channels normally offer a scheme for charities to promote their cause.

For a more complete list of community fundraising areas refer to NICVA's Fundraising Methods Check List.