Fundraising Methods
Each method offers different benefits in terms of generating diverse income stream some providing flexibility (unrestricted) and others targeted towards particular goals (restricted). A well-rounded fundraising strategy will balance these approaches to meet both immediate and long-term financial needs.
Capital Project Funding
Capital funding is used to cover the costs of significant one-off projects, such as building or renovating facilities, purchasing major equipment, or creating new infrastructure.
Apply for specific capital project grants from trusts, foundations, or local or central government. These grants are often restricted to certain types of projects, such as building construction or equipment purchases.
Launch a public appeal targeting a large number of donors to raise money for a major capital project. These are often multi-year campaigns and require significant planning and public support.
Seek sponsorship from businesses for naming rights or recognition tied to physical assets (rooms, buildings, or equipment).
Approach high-net-worth individuals for significant one-off donations to support large projects.
Service Delivery Funding
This funding supports the direct costs of delivering the organisation’s services, such as staff salaries, programme costs, and direct service provision.
Bid for public sector contracts or commissions to deliver services on behalf of local authorities or NHS trusts (Integrated Care Boards/Services).
Apply for grants from trusts, foundations, and government specifically to deliver charitable services.
Collaborate with other charities, businesses, or the public sector to deliver services jointly, pooling resources and securing joint funding.
Charge fees for services provided, where appropriate (eg training sessions,
consultancy, or project work), ensuring that income aligns with charitable
objectives.
Infrastructure Funding
This supports a charity’s organisational capacity, including technology, staffing, governance, and sustainability.
Apply for grants that specifically fund organisational development, training, technology upgrades, or governance improvements.
Secure multi-year grants for core operational costs from larger foundations that value supporting organisational sustainability.
Apply for funding specifically aimed at upgrading IT systems, communications tools, or operational equipment.
Develop relationships with businesses to secure in-kind donations of equipment, technology, or staff support (eg pro-bono consultancy).
Encourage supporters to become paying members, where fees directly contribute to operational infrastructure and sustainability.
Unrestricted Funds
Unrestricted funds are vital as they give charities flexibility to use the money where it is most needed, without specific conditions or limitations.
Encourage one-off and regular donations from individuals, through direct appeals, online giving, and fundraising events.
Build relationships with companies to receive unrestricted donations from corporate social responsibility (CSR) budgets.
Encourage donors to sign up for recurring direct debit or standing order donations, providing a stable and unrestricted income stream.
Promote leaving a gift in a will (bequests), which often provide significant
unrestricted income for charities.
Generate unrestricted income through charity shops, online sales, or other trading activities.
Restricted Funds
Restricted funds are tied to specific projects or activities, meaning they can only be used for the purpose defined by the funder or donor.
Apply for grants from trusts, foundations, and statutory bodies for specific projects or services with defined outcomes.
Seek corporate partners willing to fund particular programmes or activities, often with defined outcomes linked to the funder’s CSR goals.
Launch an online crowdfunding campaign targeting a specific project or activity, allowing supporters to feel directly connected to the outcome.
Secure donations from donor-advised funds (DAFs) where individuals or families channel money into a fund and make recommendations on how it should be spent, often with specific restrictions.
Run events such as sponsored challenges, dinners, or auctions, with all proceeds going towards a specific, restricted cause.
Additional Cross-Category Fundraising Methods
These methods can apply across several categories and provide flexibility in both restricted and unrestricted contexts:
Organise charity lotteries or raffles, either as part of a national scheme (such as the People’s Postcode Lottery) or independently.
Partner with companies to match donations made by employees, which can be directed towards specific projects or general funds.
Encourage employees to donate directly from their pay via Payroll Giving schemes, which may be unrestricted or directed to particular projects.
Organise fundraising challenges like marathons, walks, or skydiving, which can attract individual and corporate sponsorship.
Host galas, community events, or auctions, with proceeds going towards the charity’s priorities, often a mix of restricted and unrestricted purposes.
Run digital fundraising campaigns via social media, email, or crowdfunding
platforms to tap into a wider audience and raise funds for specific needs or
core costs.
