Most people in the fundraising or nonprofit space are aware of the importance of major gifts. While these are not always the easiest to identify and secure, major gifts can be some of the most impactful donations to your organization each year.
Like major gifts from your donors, sponsorship dollars donated for fundraising events can result in rapid growth for your event and can make a major difference in the amount that your fundraiser donates – and thus, the success of your event.
Although major gifts and sponsorship for fundraising events are different in many ways, making both a part of your overall donation mix will result in a balanced “portfolio” and healthy fund for your nonprofit. Additionally, your success in securing either (or both) forms of these donations will vastly improve if you implement an effective process and strategy.
What sets nonprofit organizations apart from for-profit businesses? The answer is simple. Each has its own criteria for financial success.
For-profit organizations focus on profitability, whereas nonprofits use fund accounting to focus on accountability. Success for nonprofit organizations is determined by fulfilling its mission. To accomplish this, nonprofits must raise money and be accountable to funding sources.
Contrary to a for-profit, a nonprofit has two bottom lines. One is to fulfill their stated mission while the other one is having the necessary funding to support their mission.