SANGONeT itself is NOT a grantmaker. However, we aim to provide online information resources to assist NGOs with their fundraising activities.
"Fundraising" is the term referring to the process of soliciting and gathering money by requesting donations from individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gather funds for not-for-profit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for for-profit enterprises. For more definitions, please read our Glossary of Fundraising and Grantmaking Terminology.
Profiling the NGO Sector
Fundraising is the primary way that NGOs (aka "non-profit organizations") obtain the money for their operations. These operations can involve a very broad array of concerns such as religious or philanthropic groups such as research organizations, public broadcasters, and political campaigns. When special events are arranged to raise funds, they are often known as fund drives, pledge drives, or, sometimes when television is involved, telethons.
Some examples of charitable organizations include student scholarship merit awards for athletic or academic achievement, humanitarian concerns, disaster relief, human rights, research, and other social issues. Equally important are fundraising efforts by virtually every recognized religious group throughout the world. These efforts are organized on a local, national, and global level. Sometimes, such funds will go exclusively toward assisting the basic needs of others, while money may at other times be used only for evangelism. Usually, religious organizations mix the two, which can sometimes cause tension.
NGOs in South Africa
Fundraising organizations in South Africa are often established for charitable purposes and are given a specific designation as a charitable nonprofit organization. For more information about the various entities available for setting up an NGO, see the section Starting an NGO.
Income and Revenue Streams
Many non-profit organizations receive some annual funding from a financial endowment, which is a large sum of money that is usually invested to generate a sizable amount of interest each year. Endowments are generally created when a sizable gift is received from an individual or family, often as directed in a will upon the death of a family member. Corporate entities also may also contribute to endowments, which are often handled by charitable organizations known as foundations.
While fundraising often involves the donation of money as an out-right gift, money may also be generated by selling a product of some kind, also known as product fundraising or in-kind gifts. Girl Scouts are well-known for selling cookies in order to generate funds.