“Fundraising vs charity” – Do you have confusion between these two terms? Well, there are some differences between raising funds and charity.

If you know the differences between fundraising and charity, you can use the right term without any confusion.

In my current blog, I’m going to discuss fundraising vs charity.

Fundraising vs Charity

Fundraising VS Charity

Well, fundraising and charity both actions are both related to collecting money. But still, there are some differences between these two.

Some people use these words interchangeably. But if you know the differences then that will be easy for you to understand.

What is the difference between fundraising and charity?

Fundraising means to collect money from people for a particular purpose but charity is all about donating money even if nobody asks them to donate. Charity is a voluntary action.

Fundraising VS Charity – 10 Key Differences

Let’s focus on some main differences when it comes to Fundraising vs Charity.

1. People will not Expect anything in Return while Doing Charity

When it comes to charity people will not expect anything in return. People give money to help somebody without any expectations.

But in the case of fundraising donors may expect something in return sometime. While raising funds it depends on the reason that why one is raising funds.

If people find that the reason for fundraising is good and in return they can also benefit something out of it then donors expect something in return.

2. Charity is a Voluntary Action

Charity is a voluntary action where people themselves decide to give charity. Almost all the time the donors come forward like they visit the NGO or organizations to give charity voluntarily.

In the case of fundraising, fundraisers spread the word to people so that people can donate money. People will not come forward voluntarily unless they know about the cause of fundraising.

Usually, rich people do charity. They come forward to donate money for poor kids, education etc. But fundraising happens only for a short period of time when there is a strong reason.

3. Fundraising can be done by implementing so many ways

One can raise funds by implementing and trying different ways. For example, one can sell flowers to raise funds, the walkathon is another way to raise funds. One can arrange a tournament to raise funds.

So, in short, I can say that one can sell provide and services as well to raise funds. But we can’t say this charity because here donors receive some services or goods in return.

Charity depends on purely voluntary action. When a person feels like giving money he comes forward.

4. Fundraisers Try to Reach Out People to Collect Money

Fundraisers make the first move. They try to reach out to people individually or they create a campaign.

Whereas donors make the first move when it comes to charity. Donors try to reach out to individuals or organizations to provide charity.

For example, during a festival, some rich people distribute food and clothes to poor people. They just want to help poor people. This we can say charity.

5. Fundraising can be done by anyone

Fundraising is a process where a person or organization collects money with a particular motive. This can be done by anyone.

If you are planning to raise funds for sick kids then you can run a campaign or you can try different ideas to drive more funds for kids.

But this can’t be done in the case of charity. If you raise funds with some ideas then it can’t be considered as charity.

6. Fundraising can be done even for businesses but Charity does not work like this

Raising funds for business is also common these days. But this is not a charity.

And donor who gives money to start a business it’s like an investment and charity is different from this.

Also, when you raise funds for a business people expect returns or profits in the upcoming days. So, people won’t do charity when it comes to business.

7. Fundraising sometimes depends on a Fixed Amount

In many cases fundraising depends on a fixed amount. People should give a fixed amount of money to fundraisers.

For example, if a fundraiser is selling a t-shirt to raise funds then people should buy the t-shit by giving the fixed amount.

Usually, there is no such fixed amount decided in charity. Donors can give charity as per their own wish and capacity.

8. Charity is done to help the genuinely needy people

Charity is done mostly to support genuine reason. One does charity to help needy people.

For example, charity is done to provide books to poor kids. Charity is done to give healthy food to poor kids.

But fundraising can be done for needy people or the reason may not be so much important. For example, one can raise funds for business.

9. Fundraising involves CROWDFUNDING

Fundraising can be done with crowdfunding. But you can’t call it charity when you implement crowdfunding.

Crowdfunding can be a part of fundraising but crowdfunding can’t be a part of a charity.

There are many websites that help you to raise funds from the crowd and this will become a crowdfunding campaign. This can be called fundraising but not charity.

10. Charity can be done in any form including money

When you plan for fundraising you raise funds, that is money. And the word fundraising itself says that driving funds.

But charity can be done in various forms including money. The people who want to give charity then can give money, clothes, books etc.

So, this is the difference between fundraising and charity.

Fundraising for Charity

Well, there is a difference between fundraising and charity. But you can even combine these two processes and help needy people.

You can first raise funds and then you can give that money to charity. For example, you can sell flowers to raise funds and then you can give the charity when you have collected a good amount of money.

If you have free time on weekends and if you want to do something good then you can sell candles or icecreams on weekends to raise funds. Then you can give that money to a charitable trust. This way, you can do fundraising for charity.

Fundraising for Charity Online

You can even try ideas to raise funds online and then give that money to charity. For example, you can start your own YouTube channel and weekly upload one video regarding some topic. Then you can earn by monetizing.

This is how you can raise funds online and then you can use that money for charity. You can

How to Do Charity without Raising Funds?

Well, if you are not able to give charity or not even able to raise funds to give charity then you can follow other different ways.

Charity does not mean only giving money. Charity can be done in any form. For example, you can teach poor kids on weekends without any fees. This is also a charity. Here you don’t need to give money but you just need to invest your time.

Also, you can take other steps like – donating your unwanted gifts to the poor, Donating food to kids, teaching dance or any other skills to poor people to help them become financially independent. All these steps will be considered as charity.

How to Fundraise without Charity?

As charity is a voluntary action you can’t expect that people will understand quickly about your money need and come forward to give charity. So, what you can do is raise funds by letting know people about the need.

If you are raising funds for a sick family member then you can write a fundraising letter or you can try many effective ways to raise funds for a sick person.

And if you are raising funds for any other reason like a business then people mostly do not give charity in this case. They expect some profit from this. So, you can raise funds from your team members or friends and tell them that how they will get a benefit in return.

Charity Works Well for Organisations or NGOs and Fundraising Works Well for Individuals

If you have an organization or runs an NGO then people will come forward and give charity. In this case, people already know about your work and about your organization. So, people join hands voluntarily.

But if are an individual and need financial help for some specific reason then fundraising works well for you. Initially, just raise funds from your friends, family and relatives. And then you can try other easy ways also for driving more funds.

So, basically, charity depends on the trust and popularity of an organization. People have faith in some organizations that they will utilize their money in a good way. So, donors give charity. But individually if you want money then fundraising is a better option.

So, if you are thinking about fundraising vs charity then choose the best suitable option for you. Undestand all the above-mentioned differences.

Hi. I’m Ankita. I’m here to help you adapt to frugality happily 🙂 I love learning new things. Nowadays I’m learning more about saving money and frugality. So on Frugal Beat together we will learn to create financial magic.

Now it’s time to walk towards financial freedom together. Reach out to me on Quora and Pinterest. Read my featured posts on YourStory, Women’s Web and Youth Ki Awaaz🙂