We have all come across posts on social media with titles like “We need $10 more to help save a child’s life” or anything similar. However, before you go ahead and donate to one of these causes, you need to understand if it is a fundraiser or a Social Impact Plan. Although used together quite often, these terms are quite exclusive and have entirely different meanings.
Why is this distinction important?
Fundraising among non-profit organizations is a redundant concept. Using traditional methods is no longer working for these organizations because of changing donor expectations and the fact that a structured financing plan is essential for any organization to function.
This is where a SIP or Social Impact Plan comes into play. It helps broaden the view of regular fundraising, limited to grants, events, and organizational needs. It shows the donor that they are contributing to something worthwhile and beneficial to a cause.
Fundraising or Social Impact Plan: Which one is better?
To choose the better option, you need to understand what the terms fundraising and SIP mean. Fundraising is a method used by non-profit organizations to pursue potential donors who can contribute to their cause monetarily. It is done using traditional methods like holding fundraising events or making appeals to individual donors.
With the advent of social media, fundraising activities have been extended to the virtual platform as well. However, the difference between a Social Impact Plan and a fundraising campaign lies in the messaging.
A fundraiser normally talks about an organizational need. You will see posts that talk about a specific amount to achieve a goal. However, it does not help raise money effectively. Over the years, with mismanagement and siphoning of funds by many such organizations, donors have become increasingly wary about where they invest their money.
To make their fundraising efforts effective, non-profit organizations should focus on showing their donors how these funds will translate into actual social impact. That is when you create more credibility. This is what a Social Impact Plan does.
A Social Impact Plan gives the donor a detailed list of events and activities that allow him or her to contribute directly to making a change in society. It is not only rewarding for the donor but also gives that sense of transparency.
Let us explore the primary differences between fundraising and a SIP to help you understand which one is the right choice for you.
The Focus of The Message
As mentioned above, a fundraiser only talks about short-term goals, which are primarily organizational needs. On the other hand, a Social Impact Plan talks about how the donor directly impacts the community. Therefore, it is a more powerful choice as donors want the satisfaction of driving change rather than only helping a non-profit meet its organizational goals.
The Approach and Tone
A fundraiser normally uses a very apologetic tone. For instance, ‘Our children need books to enroll for an afterschool program.’. On the other hand, a SIP helps the donor see an opportunity. For example, ‘Your donation can set our children on the path to a better future’. Just by changing the approach and tone, the sense of involvement of the donor changes entirely. With the latter, he or she feels responsible for driving change in society.
The End Goal of The Plan
With a fundraiser, the donor only gets individual recognition and some short-term benefits. However, with a Social Impact Plan, he or she becomes an active participant in ensuring that there is some impact on the community. Also, the donor feels like they are giving a non-profit organization funds because they need them when choosing a fundraising route. A Social Impact Plan approaches the donor from a position of strength, telling the donor that even a small investment will make a difference in the bigger picture.
With a Social Impact Plan, the donor does not feel like he or she is strengthening just an organization. Instead, they feel like they are strengthening the entire community. That is why it is best for non-profit organizations to focus on the message of creating an impact. This approach should be extended to all their donor appeals, large or small.
Through a Social Impact Plan, non-profit organizations can enjoy long-term donors. They also get a loyal following of individuals who may transform into donors in the future. Giving the donors the vital role of being partners in change is the main idea of a Social Impact Plan.
A Social Impact Plan also ensures 100% transparency. It tells the donors how their funds will be used, making them feel a heightened sense of security. It is the best route for all donor appeals across channels, including direct mail, in-person asks, social media, etc.
Become Ketto’s partner in change. Raising funds for any cause is easier than ever before. It is 100% transparent and gives every donor a chance to make a difference.