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Fundraising Vs Funding: Understanding it Better

    Fundraising Versus Funding

    Every day thousands of people give up their dream of becoming an entrepreneur just because they do not have funds. Millions of children around the world cannot afford education due to a lack of money. In addition to poor nourishment and the prevalence of life-threatening diseases, the inability to pay treatment costs takes a toll on millions of lives.

    Although there are many sources of generating funds, choosing the right one is pertinent.


    Funding:

    Funding is seeking financial assistance from trusts, organizations, or the government and utilizing it to cater to people’s requirements. Funding is basically the process of taking funds from the hands of those who have it and putting it in the hands of those who are deprived of it.

    Funding ensures relief from the burden of bearing financial expenses relating to the operations of the business. The investors operating in an industry are always eyeing profitable investment opportunities.


    Fundraising:

    Fundraising subsumes funding along with the activity of attracting voluntary contributions from the society in the form of charity or donations.

    It consists of a plethora of activities ranging from generating support towards a cause to creating awareness. Fundraising is not limited to a particular person or organization but involves a group of supporters.

    Non-profit organizations constitute a chunk of fundraisers in society. These organizations work on a pro bono basis to raise funds for a cause or on behalf of providing aid to someone.


    Methods of Fundraising

    1. Volunteering:

    As today’s youth are becoming aware of their surroundings, they are engaging in many philanthropic activities to bring social change. They help in spreading the word to a large number of people and roping many more into their community.

    Volunteers collect money from the prospective donors by explaining to them about their cause. They will engage in activities such as maintaining cordial relations, organizing events, or utilizing their talents to raise money for the organization.


    2. Street Fundraising:

    While you are waiting for the traffic light to turn green, have you seen some tween in his late twenties wearing a t-shirt with a picture of a child and with a message “Please contribute and save my child’s life who is suffering from cancer.

    While the answer will be yes for most of us, we are bound to neglect this activity in a hurry to reach our destination. This is the act of raising funds by using the street as a medium to attract people’s attention towards their message.


    3. Fundraising events:

    These are campaigns organized by some organization or group to increase the visibility of their cause to one and all. These events may be in the form of walkathons, marathons, and charity auctions.

    Remember that 99-year-old British veteran Captain Tom Moore, who raised $33 million by walking his garden back and forth 100 times? All he did was create a fundraising page and with every lap he completed, he raised dollars.

    This was done to uplift the health facilities in Britain that were overwhelmed due to Covid-19. It was done for the humanitarian objective of showing gratification towards the health workers and thus garnered much support.


    4. Online Fundraising:

    Online fundraising is the most hassle-free method of raising funds that takes place via the internet. It connects people from around the world where the donor and recipient interact with each other online.

    Social media is an effective means to engage in online fundraising. A popup on your Instagram or a Whatsapp share asking for your contribution is an example of online fundraising. Emails or advertisements on social networking sites can help in landing on the donation page. The donor chooses a mode of payment.


    5. Crowdfunding:

    As the name suggests, it is a type of fundraising which raises funds from a large crowd where everyone contributes their bit. When it comes to Crowdfunding, Ketto is one of the most successful organizations. Whether it is related to paying hefty medical bills, financing educational requirements, or animal fundraisers, Ketto covers all.

    Although with advancement in science, many chronic diseases have a cure. However, Ketto’s mission of connecting people to access healthcare resonates with its objective of providing a platform for the needy.

    You need to create a banner with the message and photo of the person for whom the fundraiser is being created. Determine the target amount to be raised, modes of payment, and time for completion of the goal.

    Ketto provides the facility of sharing the link on social media to engage in peer-to-peer fundraising. It gives full autonomy to the fundraiser to withdraw the amount even before achieving the goal.


    Funding Vs Fundraising:

    In the former part, the money collected can be used only for the purpose for which it is allotted. However, in the latter part, it is at the discretion of the fundraiser how he utilizes the amount.

    Funding as an activity provides no leeway to the beneficiary to use the funds otherwise. For instance, the money invested by the investor will form a part of the capital in the startup, and not for paying for your dog’s visit to the veterinarian.


    Fundraising Vs Financing:

    Financing as an activity creates a framework involving the role of financial institutions in providing finance. These institutions can be banks or other lending agencies that lend money for a stipulated time. It involves borrowing and a degree of liability in the repayment of money with interest.

    However, this is out of the picture in fundraising that is more or less a philanthropic activity. The fundraiser raises money without any commitment to return it. There are no strings attached between both parties.


    Final Words:

    There have been many instances of people misusing fundraising platforms for their benefit rather than society. Ketto removes any discrepancies in this regard by carrying a comprehensive background check of the fundraiser before permitting it. 

    There are thousands of testimonials of people who have benefited from Ketto’s service. You can too.


    Christopher
    Need Funds for Medical Treatment?

    Start a Fundraiser on Ketto and raise the amount for your treatment