The individual donations model leverages funding from individual donors (community-at-large) as opposed to institutional donors (such as international NGOs, foundations, etc.). This model is diverse and can include strategies such as engaging individual donors annually, a specific fundraising campaign or event, or engaging high-net-worth individuals.
A CSO can raise donations from individuals while having a status as a not-for-profit organization. In some countries the CSO might have to be registered with the government under a special status, such as charity or a similar structure, to allow it to accept individual donations. Such status would allow the CSO to process donations in a way that allows donors to claim tax deductions.
This model is especially good for
A CSO with a wide reach and network of supporters.
Key factors to consider
Sufficient infrastructure and capacity
Comprehensive marketing strategy and plan
Capacity to receive, process, and track individual donations (for example, having a website with a payment system, being able to process tax receipts, etc.)
Strong social capital: Presence in media and marketing realm such as social media, website, and advertising.
The right team: A team with strong skills in writing, marketing, and relationship building.
Where to begin
What type of donors does the CSO want to engage? What do the donors care about?
What are successful marketing and outreach tactics to engage those donors?
Example in practice
Founded in South Africa in 2001, m2m provides health care to families who need it most, delivered by women who know them best. They have created nearly 12,000 jobs for women living with HIV as frontline health workers and reached more than 15 million people in sub-Saharan Africa with life- changing health services. m2m currently reaches around 1.6 million people a year and aims to reach 3 million annually by 2026. To achieve that goal, they need to grow their funding. While PEPFAR remains an incredibly important partner for m2m, to ensure predictable multiyear funding, the organization has focused on diversifying their sources. Their current mix is roughly 60 percent institutional donors, 25 percent trusts and foundations, 10 percent corporations, and 5 percent individuals. Although individual donors make up the smallest proportion, this funding stream is essential. It allows m2m to gauge the public’s awareness and buy-in of their mission and programs, as well as promotes deeper community involvement and support. This funding also allows flexibility in spending, as it is usually unrestricted. m2m may allocate these finds to overhead costs required to operate, such as hiring staff, purchasing
