Community fundraising, the method by which many of our most iconic nonprofit organisations were built, is chronically neglected, misunderstood and under-resourced. Despite its ability to generate substantial income, develop movements, engage with supporters in a deeper way and foster strong community relationships – it continues to be the unloved relative of the fundraising family.

This is particularly tragic because we hear constant cries that communities are broken. We see that isolation and social anxiety are rife. And we know that messengers of hate and separation overwhelm new and traditional media.

Fortunately, there is hope. THINK’s March 2024 Community Forum benchmarking study found that, while the income and headcount for community fundraising teams were both still behind pre-pandemic levels ‘67 per cent of charities reported that they were planning to invest in community.’

At its core, community fundraising is a celebration of everything good about humanity. 

Whether it is an event organised by a charity, or an individual setting themselves a challenge for a cause they care about – the fundamentals of community fundraising remain the same. It’s when a group of people, sometimes thousands strong, come together to stand with, support and meet a need. They do this by donating their own money via sponsorship, by rallying their friends and community to participate in a trivia night or by many other means. 

Ultimately, community fundraising brings people together to contribute what they can, in a unified way, to make the world a better place. What could be better or more important?

For many organisations, part of the challenge is that community fundraising encompasses a wide range of activities and events organised by both the organisation and/or volunteers within their local communities to raise funds. It comes in many shapes and forms. These include collections (Daffodil Day, Med Soc Day), third-party events (Dublin Marathon, Gael Force West), produced events (Torch of Hope, Big Busk), non-produced events (Head Shaves, Coffee Mornings etc), and hybrid events (Darkness into Light, Relay For Life). 

Tens of thousands of supporters participate in, organise and fundraise for these activities every week in Ireland. And this wide variety can make community fundraising difficult to quantify. 

It raises questions like, do you value the potential of a community fundraising supporter? What is their lifetime value to your organisation? Will their event be a huge success, or will it fizzle to a halt? But just because these questions are tricky to answer, and community fundraising is difficult to manage, it doesn’t mean it should be undervalued.

Community fundraising initiatives not only generate vital income but also raise awareness, engage supporters, and strengthen the bond between the organisation and the community it serves. This bond has real impact too. 

Somewhere between 36 per cent and 44 per cent of legacy donors have previously supported the organisation they ultimately leave a gift in their Will to*. This means that at some point, earlier in their life, the people leaving legacies either volunteered with, fundraised for or donated to their organisation. This also means that we have to stop thinking about impact and income not in one year, three year, or even ten year cycles. 

We need to consider the impact of strong community engagement with schools, sports clubs, etc – maybe in a 50 year cycle.

Much is written about the RNLI Blue Peter effect and how the engagement of children through the 70s and 80s in raising money for lifeboats continues to drive the giving of those children half a century later.  And yet many organisations operate community fundraising from a transactional approach: 

Organise an event – recruit participants – raise money – repeat – repeat – repeat.

So why, despite its undeniable benefits does community fundraising often take a backseat to other fundraising streams, such as major gifts, corporate partnerships, and digital fundraising?

This neglect stems from several factors, including the misguided perception that community fundraising is ‘old-fashioned’, ‘unprofessional’, and less profitable than other approaches. Additionally, the reliance on volunteers and the decentralised nature of community fundraising can make it seem unpredictable and challenging to manage. What is true is that it is hard to measure the impact of community fundraising, particularly in the long term, on the strength of an organisation

One of the main obstacles to understanding and promoting community fundraising is the lack of reliable benchmarking data. While other fundraising streams have established metrics and benchmarks to measure success and identify areas for improvement, community fundraising often lacks such standardised data. This makes it difficult for organisations to assess their performance, compare themselves to their peers, and make informed decisions about resource allocation.

Can you answer these questions about your community fundraising?

• What is the average income per marathon participant for your organisation?
• How does this compare to other organisations?
• How many volunteer led events (cake sales, sponsored events etc) repeated last year?
• What is the lifetime value of a community fundraising volunteer?
• Is there a pathway from community fundraising volunteers through different levels of volunteer leadership?
• What’s your average income/ head of population via community fundraising for every town in your catchment area? How does this compare to your competition?
• How many major donors, corporate supporters, legacy donors took part in community fundraising activities?

These are just example. There are so many more questions that community fundraisers need to have the answer to, but don’t.

Another challenge facing community fundraising is the lack of understanding of its principles and best practices within the nonprofit sector. Many organisations fail to recognise the unique skills and strategies required for successful community fundraising. They may also underestimate the importance of building strong relationships with volunteers, providing adequate support and training, and recognising their contributions.

There is also a misconception that community fundraising is solely about the events and collecting donations. While these are important aspects, community fundraising is also about building a sense of ownership and empowerment among supporters, fostering a culture of philanthropy, building supporter loyalty and creating a sustainable source of income for the organisation.

To unlock the full potential of community fundraising, nonprofits need to address these challenges and adopt a more strategic and informed approach. 

This involves:

• Recognising the value of community fundraising and its contribution to the organisation’s mission and financial sustainability.
• Investing in resources and training to support community fundraising staff and volunteers.
• Developing clear goals and strategies for community fundraising initiatives and aligning them with the organisation’s overall fundraising plan.
• Building strong relationships with volunteers and recognizing their contributions.
• Collecting and analysing data to measure the impact of community fundraising activities and identify areas for improvement.
• Promoting knowledge sharing and collaboration among community fundraisers and other fundraising professionals.

By taking these steps, nonprofits can elevate community fundraising to its rightful place as a core component of their fundraising strategy.

Community fundraising is not a relic of the past but a vital and dynamic approach that can adapt and thrive in the digital age. By embracing technology and innovation, community fundraising can and is reaching new audiences, engaging supporters in novel ways, and maximising its impact.

We also need to balance the new and the old. Digital acquisition of supporters and participants is an essential tool for fundraising, but it is just that, a tool. 

So, what is next for you and your community fundraising? Are you watching the engagement of participants, identifying potential fundraising talents, seeking out personal connections with supporters? 

Let me know in the comments section below. Or, if you want to start a conversation about community fundraising, please email me at kevin@academystreetworkshop.com. Alternatively, if you have a fantastic community fundraising success story you’d like to share, please email SOFII and tell us all about it!

*Campaign Solutions – ‘Legacy Insights Report #4: 2018 – 2022’