How to Run a Fundraiser with No Out-of-Pocket Costs: 4 Ideas
Fundraisers are a nonprofit’s bread and butter. These events and campaigns unite your community behind a single goal and generate the revenue your organization needs to fulfill its mission. However, nonprofits just starting out or on the smaller side may struggle to host impactful fundraisers due to budgetary constraints.
Not to worry—plenty of other nonprofits are in the same boat. In this guide, we’ll discuss how you can run a fundraiser with low to no out-of-pocket costs. By following these tips, you’ll be sure to host a fundraising event or campaign that boosts giving and helps you meet your goals, no matter what your budget looks like.
1. Host no-cost fundraising campaigns.
Choose a no-cost campaign to ensure you don’t have to reach into your pocket to cover fundraising fees. Here are some of the top ideas for low to no-cost fundraisers:
Drive-style events. These events rely on supporters donating items to help you generate funds. For example, Funds2Orgs recommends hosting shoe drive fundraisers to raise money at no cost. You’ll work with a fundraising partner and collect gently worn, used and new shoes. Finally, you’ll send those shoes to the partner, who will pay you for every pair you collect.
Virtual events. With a virtual event, you won’t have to worry about renting a venue, paying for decorations and snacks, and other costs associated with in-person events. Just think about your favorite in-person events and brainstorm ways to take them online—bonus points if you can use a platform already in your nonprofit’s toolkit to host them instead of investing in new software. Plus, you’ll be able to engage supporters from all over the country, not just in your local area!
Online crowdfunding. In crowdfunding, you solicit small donations from a large number of people. These fundraisers see the most success when they’re hosted for extremely timely and relevant goals. For example, an animal shelter that needs funds quickly to vaccinate a new influx of puppies might host a crowdfunding campaign.
Peer-to-peer fundraising. In this type of campaign, you’ll leverage the networks of your existing supporters to solicit donations. Your nonprofit will ask your most loyal supporters to be your ambassadors. They’ll create peer-to-peer fundraising pages and reach out to their friends and family to request donations for your nonprofit.
In addition to dedicated campaigns, consider looking into ways to create more sustainable revenue streams, especially as your nonprofit expands and grows. For example, you could add a recurring giving option to your donation form. That way, donors can opt-in to give you a set amount of money every month. This is a great way to boost generosity for your mission while also helping you retain and upgrade donors.
2. Request in-kind donations from your audience.
If you have your heart set on a fundraising event with overhead costs, such as an auction, minimize the burden on your budget by requesting in-kind donations instead of purchasing event items outright. Chazin and Company defines in-kind donations as any non-monetary gift given to a nonprofit by individuals or for-profit organizations. These include:
Goods, which are physical, tangible items such as food or decorations
Services, which refers to volunteered time, typically from a professional such as an event planner or graphic designer
Expertise, which refers to consultation from professionals like the ones mentioned above, but not necessarily their services
Reach out to your supporter base, including previous and current donors, to see if they’d be willing to make an in-kind gift to support your nonprofit’s fundraising efforts. This type of appeal can inspire more generosity than most nonprofits realize, as individuals who are unable to make a monetary gift or want more control over their giving may be open to donating goods, services, or their expertise.
3. Recruit volunteers for event help.
Event day is usually all-hands-on-deck for nonprofits. However, if you’re running a new or small nonprofit, you may not have enough staff members to run the event adequately. That’s where volunteers can make a real difference!
Here are a few volunteer recruitment tips you can use to secure the event-day help you need:
Clearly define responsibilities. Your volunteers should arrive on event day with a clear understanding of what they’re there to do. Additionally, be sure to let them know the time commitment and whether any specialized skills are required.
Promote your volunteer opportunities. Promote volunteer opportunities through various marketing channels, including email newsletters, social media posts, and your website. This will help you maximize your reach and ensure relevant audiences see your volunteer opportunities.
Leverage your network. Don’t be afraid to reach out to individuals who’ve already connected with your nonprofit to serve as volunteers. Great candidates include repeat donors, previous volunteers, repeat volunteers, and board members. Personalize your outreach messages—make sure to thank these individuals for their previous support and then bring up your new volunteer opportunities.
With volunteer help, you can ensure your event runs smoothly without hiring additional staff members, lowering out-of-pocket costs, and keeping your fundraiser budget-friendly.
4. Boost your budget with sponsorships.
Sponsorship is the way to go if you have stretched your budget to the limit but still need more funds to make your event successful. These partnerships are usually formed between nonprofits and for-profit organizations and involve the for-profit organization providing monetary or in-kind support in exchange for marketing benefits.
When it comes to soliciting corporate sponsorships, start with the following types of businesses to maximize your chances of success:
Local businesses. These businesses will be more likely to support causes in their local community. Small businesses, in particular, may not be able to provide large monetary sponsorships but may be eager to aid your organization by contributing goods or services.
Businesses with a history of philanthropy. Look for companies that have existing corporate social responsibility (CSR) initiatives, such as a matching gifts program or volunteer grants. These indicate that the business prioritizes aiding charitable causes, making them more likely to agree to a sponsorship.
Businesses in a similar vertical. Businesses in a similar vertical may have overlapping audiences with your nonprofit, making a partnership with you valuable to them. For example, a pet grooming store may be delighted to partner with an animal shelter as the nonprofit’s audience likely contains pet owners.
Businesses relevant to your fundraiser. Charitable-minded businesses with relevant offerings to your fundraiser may also be happy to help. For instance, if you’re hosting a walk-a-thon fundraiser, you could partner with a beverage company to get water bottles for participants. Or, if you’re hosting a shoe drive fundraiser, a shoe retailer may be willing to sponsor you financially and contribute gently worn, used and new shoes from their store.
With the backing of another organization, you can tackle your fundraising obstacles and ensure you have the budget you need to host a successful event. When soliciting corporate sponsorships, discuss how the organization will benefit from such a partnership. Outline how you will help them spread the word about their brand and encourage your audience to purchase their products, such as by including their branding in your marketing materials and thanking them in your end-of-event speech.
Although running a low-cost fundraiser may seem daunting, it’s entirely doable for new and small nonprofits. To make fundraising even more budget-friendly, consider implementing low-cost marketing strategies to maximize your next fundraising event's return on investment (ROI)!
About the Author
Wayne Elsey is the founder and CEO of Elsey Enterprises (EE) and a member of the Forbes Business Development Council. Among his various independent brands, he is also the founder and CEO of Funds2Orgs, which is a social enterprise that helps schools, churches, nonprofits, individuals and other organizations raise funds while helping to support micro-enterprise (small business) opportunities in developing nations.
