Let’s Dig Deeper into the Main Differences Between Fundraising and Donation

Ankita Kamat

Wondering what is the difference between fundraising and donation? Want to understand about fundraising vs donation?

In my current blog, I’m going to share all the comparison metrics regarding donation vs fundraising. 


| Fundraising VS Charity |

Fundraising VS Donation: 7 Significant Differences that You Must Know

Even though the ‘fundraising’ and ‘donation’ look similar there are a lot of differences to consider. So, let’s look into the main nuances here-


People usually will not Expect anything in Return while Giving Donations but While Giving Funds They May Have Expectations

When it comes to donations, people will not expect anything in return. Their intention is just to donate. People give money to help somebody.

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


Donation Can be a Voluntary Action Any Time But Giving Funds Depends on Specific Time Period

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


Donation includes Many Forms but Fundraising Includes Only Money

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

Whereas, donations can be done in various forms including money. The people who want to give donations can give money, clothes, books or any other useful things.


Fundraisers Try to Reach Out People to Collect Money But People Themselves Come forward to Give Donations

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 giving a donation. Donors try to reach out to individuals or organizations to provide donations.


Fundraising can be Service or Product Based but Usually Donations are Not Provide any Kind of Services

One can raise funds by implementing and trying different ways. For example, one can sell flowers to raise funds or one can arrange a tournament to raise funds.

Usually, donations do not include any such services or products.


Fundraising Sometimes have a Fixed Amount but Donation Depends on One’s Own Wish

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-shirt by giving a fixed amount.

Usually, there is no such fixed amount decided in donations. Donors can donate the amount as per their own wish.


Fundraising can be Done even for Businesses but Donations are to Support Important Causes

Raising funds for business is also common these days. But this is not a donation. A donor who gives money to start a business it’s like an investment. 

Donations are done for powerful causes like donating to NGO to help sick people.

I hope now you have gained complete clarity about fundraising vs donation. Let me know if you have any queries regarding donation and fundraising.

Ankita Kamat

I'm Ankita Kamat, the creator of Frugal Beat, a blog dedicated to frugal living. Join me in exploring practical ways to save money, reduce waste and live a purposeful life. Let's embrace frugality as a lifestyle together.