Fundraising is important because it helps organizations raise awareness of certain issues or causes and gives them a source of critical funding. Fundraising is essentially the lifeblood of nonprofit organizations and accounts for almost all of a charity group's income, say authors at the National Council of Nonprofits. Organizations relying on fundraising generally use several methods for raising money, including hosting events, having fundraising drives and soliciting funds electronically.
Before asking for donations, charitable organizations generally establish a plan of action detailing how they intend to raise funds. Organizations also set financial and time goals for raising money, say authors at the Global Citizens Network. They might reach out to potential donors in person, online or use a combination of both.
Successful fundraising campaigns raise awareness of certain issues among the general population and give people a chance to learn about important causes. With the proceeds, organizations improve the lives of people in less fortunate communities around the world or promote trade and commerce among farmers and craftsmen.
After securing donations, organizations often encourage donors to tell friends, family and coworkers of their donations, in person or using technology, to further increase public awareness of important issues and give charitable organizations more exposure.