February 6, 2012

How do most nonprofit organizations raise their funds?

money and question mark

By a variety of means, of course, but a recent survey shows that approaching corporations and foundations is the No. 1 way charitable groups go about fundraising.

A 2011 survey of more than 800 nonprofit groups by The Nonprofit Research Collaborative found that 90 percent of charities seek funds from corporations and foundations.

Other effective methods of fundraising used by nonprofit groups include asking board members and seeking major gifts (84 percent), special events (82 percent) and direct mail (81 percent).

Three in five nonprofits use Internet fundraising and email, with 45 percent using social media and planned giving.

During 2011, almost all areas of fundraising saw an increase in the 30-36 percent range, with special events doing particularly well with 46 percent of groups reporting an increase in giving. Planned gifts had only a 25 percent increase in gifts for the first six months of 2011.

This article was originally posted on February 6, 2012 and the information may no longer be current. For questions, please contact GRF CPAs & Advisors at marketing@grfcpa.com.