Two pathways to raising funds for your charity’s digital project

15 September 2021  |  Alex Cavalli

Do you have plans to create an in-house digital service or product to help secure more donations, recruit motivated volunteers or streamline admin? Perhaps you have already created a basic version of your digital service but the funds have run dry.

We look at two routes towards opening up those funding taps again and successfully completing your digital project.

Path 1: Traditional fundraising

The classic route to funding a charity project is to track down a fund and fill in an application form. This is still a great way to get that extra support you need but you need to take a strategic approach as there is likely to be a lot of competition and funds won’t release money unless you can sell your cause.

Here are some tips for maximising the chances of a ‘yes’ decision from your chosen fund.

Present your charity as a business. The good news is that since lockdown, many fund managers now accept the benefits of charities developing digital products and services so it is getting easier to secure support.

However, like corporate investors, charitable funds want to see a healthy return on investment. Only in this case, the return will be a social benefit rather than financial profit.

Put plenty of effort into detailing your long-term vision and specify how your digital project will benefit those you support.

Use data to support your application. For example, don’t just enter that your new platform will save your admin time or increase donations. Tell them how many hours you will reclaim. Estimate the percentage increase in donations you are expecting. Explain where you got your figures from. Have other charities launched a similar service? Did you get the idea from a focus group or a stakeholder workshop?

If you are struggling to formalise your application, consider using a template such as the social business model canvas.

Highlight the problem your digital solution is solving. One of the most persuasive tactics you can use when applying for funding is clearly pointing out the pain point that your service or product will target for your charity. Otherwise, a potential fund might dismiss your project as lacking value.

For example, The Children’s Society used AI to provide translation services for refugees because the sensitive nature of their experiences caused trust issues with human translation services.

Target a specific fund. There are two reasons why it is worth spending extra time short-listing the funds you will be applying for.

First, if you target generic charitable funds, you will face stiff competition from hundreds of charities taking the same approach.

Second, a fund that is specifically focused in your area of interest will be far more likely to agree to support you.

Funding applications can take a long time. The more targeted your approach, the less time you will waste filling in forms.

Don’t compromise your values. Some funds include specific conditions attached to their support. For example, you may be asked to prioritise a certain demographic or ensure a specific outcome.

Never allow your need for funds to divert you from your ethics and priorities. You could do more harm than good in the long term if you tarnish your charity’s reputation.

Path 2: Crowdfunding

Most people will have come across crowdfunding as a donor and many will have set up their own fundraisers for a charity or cause they support. But did you know that charities can set up their own accounts with the top crowdfunding platforms?

Signing up for a charity account with the likes of Crowdfunder, GoFundMe or JustGiving will not only connect you with thousands if not millions of potential donors, it will also give you access to charity-specific tools and funding advice.

For example, Crowdfunder provides free coaching and support, GoFundMe offers a dedicated mobile app and JustGiving will supply you with handy widgets and APIs for widespread integration.

Raising funds for digital projects is something that many charities are doing to harness the power of recent technological advances. Whether you opt for traditional funding, set up a crowdfunding target or mix both approaches you have a great chance of getting the support you need to bring your charity into the digital age.