“Fundraising vs donation” – Do you have confusion between these two terms? Well, there are some specific differences between donation and fundraising.

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

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

Fundraising VS Donation

Fundraising VS Donation

Well, fundraising and donation 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 Donation?

Fundraising means collecting money from people for a particular purpose but a donation is like giving charity, giving money even if nobody asks them to donate.

Fundraising VS Donation – 10 Real Differences That You Must Know

Now let’s focus on some main differences when it comes to Fundraising vs Donation.

1. Donation is a Gift and Voluntary Action

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.

2. Usually People will not Expect anything in Return while Giving Donations

When it comes to donations 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.

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

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

4. 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 donation because here donors receive some services or goods in return.

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

5. 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 donations. Donors can donate the amount as per their own wish and capacity.

6. 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 donations. If you raise funds with some ideas then it can’t be considered as donations.

7. Fundraising can be done even for businesses but donations work differently

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

And donor who gives money to start a business it’s like an investment. And the donation is different from funds.

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. But when people donate money as a gift it is called a donation.

8. Fundraising involves CROWDFUNDING

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

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

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 a donation.

9. Donations are usually have given to help the genuinely needy people

Donation is done mostly to support genuine reason. It’s like a charity to help needy people.

For example, donations are given by celebrities to schools to help the 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.

10. Donations 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 donation can be done in various forms including money. The people who want to give donations then can give money, clothes, books etc.

So, this is the difference between fundraising and donation.

Fundraising for Donating Money

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

You can first raise funds and then you can give that money as a donation. For example, you can sell flowers to raise funds and then you can give the donation 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 donate to poor people. This way, you can do fundraising for donating money.

Online Fundraising for Giving Donations

You can even try ideas to raise funds online and then give that money as a donation. 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 to gift as a donation.

How to Give Donations without Raising Funds?

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

Donation does not mean only giving money. The donation can be done in any form. For example, you can teach poor kids on weekends without any fees. 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.

How to Fundraise without Donations?

As donation is a voluntary action you can’t expect that people will understand quickly about your money need and come forward to donate money. 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. Some people may give donations as a gift to help you in business but to collect more money you can implement fundraising ideas.

Donations Work 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 donations. 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, donations depend 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 money as a gift. But individually if you want money then fundraising is a better option.

So, if you are thinking about fundraising vs donation then choose the best suitable option for you. Undestand all the differences between these two terms.

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🙂