What Is a Fundraising Proposal?

A fundraising proposal is a written document that encourages individuals, institutions, and other organizations to come together to acquire a common goal for an activity to collect money for charity, school, or any other corporate event. Fundraising proposals are more straightforward in comparison to other forms of business proposals, including sponsorship proposals. It indicates its intention and purpose to persuade or encourage people to join a specific cause or activity to raise funds and money for charitable, educational, or business purposes. Fundraising institutions, organizations, and volunteers write these proposals for them to generate sufficient financial support and resources to fund their projects or programs. Fundraising groups and institutions construct fundraising proposals that align with specific standards and requirements, keeping in mind the needs of the fundraising event. The individual responsible for constructing the fundraising proposal must find a way to communicate and establish a purpose for people to accept and support the proposal.

According to the data from the Giving USA 2020: The Annual Report on Philanthropy for the Year 2019, an estimated amount of 449.64 billion US Dollars coming from different individuals, bequests, foundations, and corporations are given to charities in the year 2019.

Components of a Fundraising Proposal

Three essential components must always be present in any proposal. It must include a description of the organization, information about the management and its Constitutions, and an overview of the project implementation. When writing fundraising proposals, utilize computer programs to make the document and save the main document as a template to help the organization create fundraising proposals efficiently in the future. The section below tackles the different components of a fundraising proposal that is essential to creating a successful fundraising proposal, along with valuable descriptions for readers to understand each section of the document.

Cover page or cover letter: The cover page or the cover letter contains the project or program title, business name, proposal date, business address, and contact information of the organization planning the fundraising event. Similar to a person submitting their resume or curriculum vitae, the cover letter is essential to the application process. The cover letter is a component that helps donors to decide whether or not they will pursue a fundraising opportunity.Table of contents: The table of contents section shows the reader the different parts of the fundraising proposal. It is essential for this section of the proposal to be concise, allowing the reader to read through the section they need to without having difficulty reading through the entire document.Executive summary: The executive summary is a vital part of the fundraising proposal since it has to catch the attention of the donor. The summary serves as an overview of the entire fundraising plan, helping decision-makers to acquire an accurate and quick overview of the proposal to see if they show interest in the project or program. Despite it being one of the starting documents of the fundraising proposal, it is ideal if it is the last document the organization writes to capture the essence of the plan regarding the project or program. The summary is a standalone document and should not refer to other parts of the fundraising proposal. The executive summary must also emphasize the purpose and objectives of writing the proposal. It must also indicate key points of the issue and the possible solutions. It is also ideal to keep the summary positive by adding important details for the donor that sways the conversation in a positive light.Organizational overview: The next section indicates the organization or project profile that contains a legal form, indicating if it is a close organization, section 21 company, voluntary association, cooperative organization, etc. It must also include essential information about the organizational background, including the goal, purpose, and objectives of the organization, offered products and services, and their target beneficiaries and communities, achievements and track record, core funders, donors, and forms of income generation, as well as a reference list. It must also contain information about the management and all its employees, including details about the organizational structure of the management, along with a description of the skills and experiences of management and team members, and an organizational chart that visualizes the different functions and responsibilities of each member of the organization. This section also contains details about past projects and the future endeavors that are in the pipeline.Needs statement: The needs statement helps the organization identify the problem for readers and allows the donor to acquire the relevant information about the request. There must be an identification of the problem that enables donors to see the relevant steps an organization takes to mitigate the issue. The needs statement must have support from research studies and data analysis reports. Donors and other audiences must acquire the feeling that the organization took the time in its due diligence process to have an understanding of the issues and problems surrounding the project or program and that there is an urgent need to address them. The needs statement is another point of rejection if not done correctly.Fundraising objectives and proposal: The objectives section is where the organization outlines the objectives of the organization. It also indicates the issues and problems that they are trying to address and the procedure for mitigating them. This section allows its readers to understand how their contributions can impact and relieve the issues. Theory of change and impact measurements: This section of the fundraising proposal helps the organization to stand out. The theory of change (TOC) or the logic model helps in showing the donors how the organization plans to solve a specific issue. This section also consists of the metrics, criteria, and performance indicators that the organization utilizes to measure the impact, methods, and tools it will use. It enables donors to see that an organization is transparent and accountable for all its activities.Accountability: The accountability section is an area of the fundraising proposal that indicates the individual or individuals responsible for each section, activity, or task to complete a project, including their roles and responsibilities. In the accountability section of the proposal, the organization indicates the credentials of individuals working on the project and how much experience they have in handling the activity while ensuring that the project becomes successful.Budget and other requirements: The budget section of the fundraising proposal requires the organization to present full transparency and indicate the current state of affairs and all the requirements the organization needs to implement the program. It is vital for the fundraising proposal to show honesty and transparency to reduce the risk of reporting and the consequences that can arise as the project progresses.Conclusion: In the conclusion section of the fundraising proposal, the organization thanks its readers for their time and wishes them the best. Instead of incorporating additional points in this part of the proposal, it serves as a thank you letter to the donor for taking the time to read through the proposal with a call to action statement towards the readers.Supporting documents: The appendix must consist of the supporting documents for the funding request. The documents range from different documentation that the company must present to the possible donors, including company registration papers and certificates, organization policy and procedures, articles, client recommendations, letters of accomplishment, testimonials, publications, marketing pamphlets, and company brochures about the organization and its activities, copies of audited financial statements, and tax clearance certificates. Incorporating these documents allow funders and donors to ensure that they get the best value for their money and investment.

How To Write a Fundraising Proposal

When writing a fundraising proposal, organizations must take the time to ensure that all the necessary information they need is present in the proposal to guarantee that donors and funders provide support and monetary donations to their project or program. It must incorporate information that enables its readers, including supporters and donors, to inspire them to donate. Aside from using photos, videos, and other media formats and good storytelling, a person can inspire trust in different individuals and encourages them to take action. The section below highlights different tips that you can use to write a fundraising proposal for a nonprofit organization or other groups for different projects and programs.

  • 1. Explain the Significance of the Project or Program

    Make sure that the fundraising proposal relays its purpose for raising money. Ensure that the readers have a clear understanding of the needs of the organization, what it wants to accomplish or solve, and how the organization plans to utilize the funds they acquire from supporters and donors. Make sure to cover all the necessary information without overcomplicating the explanations. As much as possible, make clear and concise vision statements.

  • 2. Convey the Necessity of the Cause that the Organization Wants To Achieve

    Many individuals that donate to different organizations want to see that their donations are significant and vital. The fundraising proposal must emphasize how the organization and its project will make a difference, including its effect on people and communities. It must also indicate the specific steps that the organization takes using the solicited funds.

  • 3. Put a Name To the Face

    Remember that marketing techniques and events are still relevant in raising funds. Before making donations and showing support to projects, people must empathize with the cause of the organization. An organization can encourage empathy by incorporating the stories and experiences of individuals that have a direct influence at the moment the implementation of the project begins. It is easy for individuals to brush off the money and donation requests, but it is difficult to say no and ignore pleas from personal experiences.

  • 4. Make an Introduction to the Audience

    If the organization plans to open the fundraising event to a public audience, more people will not recognize the organization and its advocacies. As such, the organization must provide a bit of insight into the association by explaining who they are and why they are pursuing and dedicating their support for a specific cause. The introduction that the organization builds a sense of trust and conveys sincere commitments to the issues at hand that the organization needs to address or advocate.


What are the major forms of fundraising?

There are different forms of fundraising for organizations, including reaching out to institutional grantors, promoting social events and product sales, direct marketing, and approaching individual donors.

Why do you need a funding proposal?

Organizations need funding proposals to outline the specific group or individuals that are affected by the project or program after receiving monetary funds and support.

What is a fundraising model?

A fundraising model is a methodological and institutionalized approach to building a reliable revenue source that can support the organization in its projects and endeavors to facilitate programs and services.

Writing a fundraising proposal ensures that the organization delivers its message to potential donors and funders. Through the use of the fundraising proposal, organizations or groups of people can allocate and ask for funding and support from different individuals and companies to help fund projects and programs that will benefit communities. A comprehensive fundraising proposal helps communicate to people the significance of their contributions and donations and how the project can make a difference. Compose a fundraising proposal for your organization by downloading from theĀ 20+ SAMPLE Fundraising Proposal in PDF | MS Word available in the article when you visit Sample.net.