Fundraising is how nonprofits, non-governmental organizations, arts and cultural groups, charities, and other entities with a social purpose meet their budgetary needs. By building relationships with foundations, philanthropists, corporate sponsors, and individual supporters, these organizations are able to pursue their important work without having to sell their products or services at a profit or otherwise compromise their mission.
While fundraising is different from the way private companies raise capital from investors in exchange for equity or dividends, it isn’t necessarily easier. Fundraising and development professionals rely on marketing just like any other business in order to connect with potential donors whose interests match their organization’s and goals. And just like a private company, the support of the board of directors is critical to maintain, as they are an important conduit to both funding opportunities and guidance in keeping the organization’s operations aligned with its mission.