What is fundraising?

Nonprofits (also known as not-for-profits and non-profits in the U.S.) are purpose-driven, rather than profit-driven organizations. Charitable nonprofits address needs that are not being addressed well enough by the government or business sectors or by the larger society. (Homelessness is a good example.)

To put it bluntly, there is no profit to be made by addressing certain needs in our society, and so charitable nonprofits step into the gap. Still, the solutions they bring cost money, and "fundraising" is one way charitable nonprofits raise that money.

So fundraising is an effort to attract funds into the organization to support its programs and operations. Fundraising activities include events (like marathons), annual appeals for donations, funding proposals to grantmaking organizations, and more.

Many service-based nonprofits are continually in fundraising mode. Grants have termination dates and are not always renewable. Donors are distracted by "real life" and may forget to continue their donations if they don't get reminders. Events raise one-time funds, though the organization's needs are ongoing. And of course, the need for services never seems to end.