Most foundations prefer to back solid organizations that aren't desperate for money, because these groups tend to be more effective. If your community helps to pay for your work, it shows that they care about your work. I would urge a more rigorous standard and encourage you to raise at least half of your budget from individuals, major donors, benefits, and earned income. Individual gifts include membership fees, annual donations, and any other contributions you receive from individuals. These gifts can be solicited by mail, over the phone, via computer network, or in person.
Major donors are a special group of individuals who give relatively large gifts.
Wherever you draw the line, you need to solicit these folks differently and, once you receive the donation, give them special treatment. Despite the excellent public relations value of these events, it is far less efficient to organize fundraising benefits than to simply approach potential donors and ask for gifts. Nevertheless, most successful groups still incorporate benefits into their fundraising program as a way to deepen their relationships with current donors, identify new prospects, and increase community awareness of their work. Investigate ways to earn money from your programs. If you want to learn more about grassroots fundraising, the best books are The Grass Roots Fundraising Book by Joan Flanagan and Fundraising for Social Change by Kim Klein.