How Business Organization Can Raise Charity Funds

Many businesses today are often involved in special causes and charity cases. It is one way of giving back to the society, especially after the society has given them good business, it is also a great way to promote the brand of the company and appeal to a wider variety of clientele or simply make a change in the world by helping those who cannot help themselves. There are various ways in which business organization can raise charity funds for instance through crowd funding resources.

Gifts and Donation

Crowd funding is one of the best ways to receive gifts and donations for charity funds. Crowd funding platforms online allow businesses to create a campaign with the story behind the charity fund, share the campaign on social media and encourage people to give both online and offline. The great thing about crowd funding is the strong social media presence that allows people to share the campaign virally through Facebook, twitter and other social media sites. More people can donate, even those who do not know much about the business but are willing to give to charity. Donations often come to individuals, other companies, foundations or charitable trusts.

Grant Funding

Grant funding for charity is also possible from the public sector, foundations and charitable trusts. Grant money is exempt from tax and does not have to be repaid by the organization seeking the grant. The biggest challenge is that grant funders mostly fund organizations that have a charitable status such as non-profit businesses. They would not prefer to fund organizations that generate cash surpluses or have significant reserves of cash, therefore those with a business-like approach will be disadvantages. Grants also come with specific conditions such particular outputs, achieving milestones, returning unspent money to the funder and reporting on the progress of the project and expenditure.

Loan financing

Businesses that make profits can use loans or overdrafts for charity funds, however, these loans have to repaid. Loans are often paid back with interest. Great thing about loans is they are flexible, quick and easy to get than grant finding or waiting for donations, especially when the situation is dire. Some loans require assets to be offered as security.

Equity capital

Equity capital is different from loans in that the money does not have to be repaid. It is provided by external investors who take a stake in the organization that allows them to share in the profits and losses of the business organization. Equity financing is often used by social organizations with the appropriate legal structure.


Quite a number of non-profits raise funds through selling products and services to members, public or other organizations. Some of the trading carried out by non-profits includes the sale of tickets for events, hiring out venues, selling publications or even selling in-house expertise to raise money. Charities are allowed to trade if the trading activity is related to the primary purpose to avoid charity and tax law implications.

Photo Credit: Flickr/GotCredit

Gerald Butler is a business manager who runs various charitable campaigns. Start a campaign at today and enjoy our crowd funding resources.

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