In this video, you will learn about the fundamental concepts of fundraising. This will help you understand as you progress in this course.

SCRIPT

Title: Overview of Fundraising Concepts

Scene 1: Introduction

"Welcome! Today, we’re going to jump right into some key concepts in fundraising. Imagine we’re both working on a project to provide skills development to young people in underserved communities in Southern Nigeria. We know there’s a strong need for this, and we’re clear on why it’s so important. But to make it happen, we need funding. That’s where fundraising comes in.

At the end of this chapter, you will understand the fundamentals of fundraising and the role of funders.

Whether you’re new to fundraising or looking to expand your knowledge, these concepts will guide you through finding and keeping donors, running effective campaigns, and building long-term support for your cause. Let’s get started!"

_______________________________________

Scene 2: Donors and Funders

Let’s begin with the question: Who are donors or funders? Why are they important? Donors are individuals or groups—like people, companies, foundations, and governments—that provide financial or other support to fund a project or cause. Very simple yes? So we want to organize a skills development training for young people, we have our plan written, but we need people or organizations that would provide us the funds or support needed to execute that training. These people or organizations, can be referred to as funders or donors.

What kind of funding or support will these people or organizations be providing? Let’s get right into it.

________________________________________

Scene 3: Type of Funding and Support

"The first step in fundraising is determining the type of funding or support that is required for your project.

Let’s revisit our project.

To provide skills development to young people in southern Nigeria, we need to come up with a project to do so. And for that project, we need to determine the type of funding that is required to execute that project. Since we already have a project plan, it is easy to know at a glance, the different parts that must come together to form the whole. Do we need media coverage? Do we need to engage expert trainers? Do we need to get a venue? Do we need welfare for participants (light refreshment)? Based on these elements, we can decide to submit a proposal to have the project funded, or we can explore other means of securing support for the project.

We could explore Individual Donors, Grants, Corporate Partnerships, Planned Giving, Restricted Funds, or Unrestricted Funds. We could also explore support such as In-Kind Donations, Donor Engagement and Stewardship, Community and Corporate Partnerships.

Now that we have established that there are a number of funding and support types that we could explore for our project, let’s talk about finding new donors, and then, right after that, we would explore the types of funding and support listed here.

________________________________________

Scene 4: Finding Donors or Support

The next step in fundraising is finding donors or the support required for your project. You can do this through online research, attending networking events, or reaching out to people or organizations that share an interest in your cause. Finding the right donors is key for long-term support. For instance, look through your contacts—you may already know people interested in youth development. Starting a conversation about the project and its importance could get them excited and invested.

Networking events are great for this too. People often talk about their passions, and this is the perfect time to connect. You never know; your next funder might be just around the corner or a quick search away online."

Now, there is a term used to describe efforts designed to raise funds for a project or a cause. It is called a Fundraising campaign. Let’s get right into it.

________________________________________

Scene 5: Fundraising Campaigns

What are fundraising campaigns? Why is it important? When you draw up a plan layered with organized efforts to raise funds within a set timeframe, through events, social media, or online platforms, you are carrying out a fundraising campaign. However, when you write out a list of people you want to reach out to, that isn’t a campaign but it is an important part of the preparation for a fundraising campaign. This will help boost your fundraising quickly and effectively. By rallying your supporters around a common goal, you create energy and excitement that can help drive donations and awareness in a short period."

Now let’s explore the types of funding and support available to us for our project.

________________________________________

Scene 6: Corporate Partnerships

"Another powerful approach is forming corporate partnerships. Companies often want to give back as part of their corporate social responsibility. They might provide us with funding to cover some expenses for our projects, or even provide food items (for food vendors), or services in exchange for recognition. Building these partnerships will add stability to our funding efforts and increase our project’s visibility."

________________________________________

Scene 7: In-Kind Donations

"Sometimes, donors offer in-kind donations, which are non-monetary gifts like equipment, supplies, or professional services that support your cause. For our project where we need to rent a venue for a training program, an organization might decide to provide their office hall as a venue for the training. These contributions can be invaluable, and we are able to save money and fill essential needs within our project without affecting our budget."

________________________________________

Scene 8: Grants

Grants are funds awarded for specific projects. While applying for grants may take time, they can be a significant source of funding for targeted initiatives. Unlike loans, grants do not need to be repaid, making them a vital resource for many individuals, nonprofits, and businesses. If there are grants tailored to youth development, the way for us to find them is to do thorough research. In some cases, we might catch a wind of the opportunity from a friend or an organization we have previously engaged with. We could also use online databases like Grants.gov, Foundation Center, or specific foundation websites to access these grants. It is also important to note that we would need to pay attention to the selection criteria to put in a compelling application.

________________________________________

Scene 9: Restricted vs. Unrestricted Funds

Finally, it’s important to understand restricted versus unrestricted funds. Restricted funds are donations set aside for a specific purpose, while unrestricted funds can be used for any part of your organization’s needs. When we get selected for a restricted funding for our skills development training program, it is expected that the money is used for the particular project other than other operational cost the organization might have incurred. When we put in another proposal for an unrestricted fund, we can use that to sort out the operational cost we incurred in the cause of our work. Makes sense right? Having a mix of both gives us the flexibility to address immediate needs and specific project requirements.

Now that we have secured funding for our project, should we move on to seek out new funders or donors without sustaining conversations and relationship with our current funder?

________________________________________

Scene 10: Keeping Donors Engaged

Once you’ve identified potential donors and secured their support, it’s essential to keep them engaged. Keeping donors engaged means staying in touch, sharing project updates, and showing genuine appreciation. A crucial aspect is sharing the impact of their contributions, as it shows them the real difference they’re making. This can motivate them to stay committed and, hopefully, continue supporting your cause.

________________________________________

Scene 11: Stewardship

An important part of keeping donors engaged is building strong relationships with them—this is called stewardship. Stewardship involves keeping your donors informed, expressing gratitude, and showing them the value of their contributions. Think of it as building a bridge of trust and appreciation. Personalized thank-you notes, videos, or special events can go a long way to make your donors feel valued and inspired to stay involved."

________________________________________

Scene 12: Conclusion

"These are the core concepts of fundraising. Understanding each of these steps is essential as you progress through your fundraising journey and work toward building a sustainable future for your cause.

In the next section, we would explore Case study of successful fundraising efforts by a changemaker within the World Merit community. Are you as excited as I am?

See you in the next section.