Fundraising in a Community: A smarter approach for charities, churches and schools

Aaron Barbour, the newest member of Craigmyle, has been fundraising in communities for more than 20 years. He shared some insights at our recent team meeting, which we want to share more widely here with you.

Fundraising in a community is often confused with community fundraising. But they’re not the same thing. Community fundraising is when local people take the lead in raising money for a local cause, think cake sales and fun runs. Fundraising in a community, on the other hand, is about a more holistic approach to fundraising: building long -term relationships and strengthening visibility to raise income from a variety of sources in your community.

If you work in a charity, faith-based organisation or school, you probably need more money, and you’re not alone. We are living through some very challenging times at the moment. But fundraising isn’t just about asking for donations. It’s about positioning your organisation as a trusted, impactful and compelling cause that people want to support. Here’s how you can do that effectively and strategically, without spreading yourself too thin.

Are you fundraising ready?

Before diving into any fundraising, ask yourself: Is our organisation actually ready to fundraise effectively? Too often, charities, churches and schools start asking for donations without putting the right foundations in place. The result? Missed opportunities, donor frustration and wasted effort.

One way to assess your fundraising readiness is to use the 4Cs Test – to ensure you have the 4 Cornerstones of Fundraising in place. First, look at your case for support. Can you clearly explain why your organisation exists, what impact it has and why someone should donate? If your messaging is vague or uninspiring, potential donors will struggle to connect with your cause. Next, consider your business case. Do you have a clear fundraising strategy, an operational plan and a clear budget? Funders and donors want to see how their money will be used and if you don’t have a solid plan, you risk losing their confidence and therefore their support.

Another crucial factor is understanding your constituents. Who are your current and potential donors? What motivates them to give? Too many charities take a scattergun approach, asking everyone for money instead of focusing on those who are most likely to support them. Finally, think about your leadership capacity. Do they have the time, skills, confidence and systems in place to run a successful fundraising programme? If your donor database is disorganised or your team lacks fundraising experience, investing in training or support might be the best first step.

Finding the right fundraising approach

Many charities try to do too much at once, spreading themselves thinly across multiple fundraising streams. Instead, focus on one or two areas and do them really well. For example, if your organisation already receives some Trusts and Foundations funding, consider strengthening that by improving your applications and reporting. If you have strong relationships with a handful of wealthy individuals, developing a major donor programme might be the best route.

Some of the most successful charities I’ve worked with have built their funding base through major donors – not by chasing large numbers of small donors, but by cultivating relationships with a handful of key supporters who have the potential to provide transformational gifts. Corporate partnerships can also be valuable, especially if you have a personal contact and can offer local businesses meaningful ways to engage beyond just writing a cheque such as volunteering, gifts in-kind, opening doors to new networks, PR and branding opportunities.

I once worked with a charity that had a dozen wealthy and really committed donors, because of these close relationships they were able to raised £400,000 in just three weeks to open a new social enterprise. They weren’t just donors. They were partners who were truly invested in the charity’s success. This kind of fundraising takes time and a lot of relationship building, but the long-term benefits are enormous.

Building stronger community relationships

Fundraising is about relationships first and money second. If your first interaction with someone is a request for funds, you’re doing it wrong. People give because they trust an organisation and believe in its work, not because it has financial needs. That’s why building engagement and a solid programme of work, services and activities before making an ‘ask’ is so crucial.

Start by reaching out to those who already support you: existing donors, volunteers, parents, congregation members or local business owners. Find ways to involve them beyond financial contributions. Many will be happy to volunteer their skills and time, in-kind donations or introductions to their wider networks. Hosting events that bring people closer to your work is another great way to deepen engagement. Rather than focusing purely on fundraising events, think about gatherings that create emotional connections, such as an open day or a behind-the-scenes tour with people that use and directly benefit from your services.

A refugee charity I worked with had a donor who initially gave £100. Over time they increased their giving to £1,000, £5,000 and then £50,000. This didn’t happen overnight. It took years but it was the result of an ongoing, meaningful and trusted relationship.

Engaging businesses and institutions as long-term partners rather than one-off funders can also bring stability. Grant applications should be well-researched and tailored to funders’ priorities, rather than generic requests for money. Local councils and community funds often have grants available, but securing them requires relationship-building, well-crafted bids and persistence.

One of our colleagues reminded us recently that the most important thing to remember is that donors give to organisations that meet needs, not have needs. Instead of focusing on financial shortfalls, frame your ask around the impact your organisation makes. Show how donations create change, not how much money you’re lacking.

Overcoming common fundraising challenges

Every organisation faces challenges in fundraising, but the key is to anticipate them and develop strategies to overcome them. If internal capacity is an issue, consider hiring or training someone to support your fundraising efforts rather than expecting existing staff to do everything. If engagement levels are low, start small, test different approaches and build momentum gradually.

Many charities worry about competition from other organisations, but the truth is that donors support causes they connect with. Strengthening your case for support and refining your messaging will help you stand out. Converting one-off community fundraisers into long-term supporters is another common challenge. Make sure there is an easy, seamless journey from one-time donor to regular giver, with clear opportunities for deeper involvement.

Taking your fundraising to the next level

Fundraising isn’t just about raising money. It’s about finding the right people who want to support your cause, strengthening these relationships and creating lasting change together. When done well, it transforms not just the organisations that receive the funds, but also the people who give them.

If your charity, church or school is looking to build sustainable income, now is the time to act. Whether it’s individual giving, major donors or community engagement, a strong strategy makes all the difference. If you need expert support, let’s start the conversation.

Tips and Blogs

Conducting a Fundraising Feasibility Study: Key Considerations

Fundraising in a Community: A smarter approach for charities, churches and schools

Securing Heritage Funding: Tips for Successful Applications

Fundraising for churches in 2025: challenges, opportunities and a plan for success

Why You Should Consider Hiring a Fundraising Consultancy

More Tips and Blogs

Downloads

Newsletter Sign up

Contact

Education

Arts and Heritage

Faith Organisations

Welfare and Community

Aaron Barbour, the newest member of Craigmyle, has been fundraising in communities for more than 20 years. He shared some insights at our recent team meeting, which we want to share more widely here with you.

Fundraising in a community is often confused with community fundraising. But they’re not the same thing. Community fundraising is when local people take the lead in raising money for a local cause, think cake sales and fun runs. Fundraising in a community, on the other hand, is about a more holistic approach to fundraising: building long -term relationships and strengthening visibility to raise income from a variety of sources in your community.

If you work in a charity, faith-based organisation or school, you probably need more money, and you’re not alone. We are living through some very challenging times at the moment. But fundraising isn’t just about asking for donations. It’s about positioning your organisation as a trusted, impactful and compelling cause that people want to support. Here’s how you can do that effectively and strategically, without spreading yourself too thin.

Are you fundraising ready?

Before diving into any fundraising, ask yourself: Is our organisation actually ready to fundraise effectively? Too often, charities, churches and schools start asking for donations without putting the right foundations in place. The result? Missed opportunities, donor frustration and wasted effort.

One way to assess your fundraising readiness is to use the 4Cs Test – to ensure you have the 4 Cornerstones of Fundraising in place. First, look at your case for support. Can you clearly explain why your organisation exists, what impact it has and why someone should donate? If your messaging is vague or uninspiring, potential donors will struggle to connect with your cause. Next, consider your business case. Do you have a clear fundraising strategy, an operational plan and a clear budget? Funders and donors want to see how their money will be used and if you don’t have a solid plan, you risk losing their confidence and therefore their support.

Another crucial factor is understanding your constituents. Who are your current and potential donors? What motivates them to give? Too many charities take a scattergun approach, asking everyone for money instead of focusing on those who are most likely to support them. Finally, think about your leadership capacity. Do they have the time, skills, confidence and systems in place to run a successful fundraising programme? If your donor database is disorganised or your team lacks fundraising experience, investing in training or support might be the best first step.

Finding the right fundraising approach

Many charities try to do too much at once, spreading themselves thinly across multiple fundraising streams. Instead, focus on one or two areas and do them really well. For example, if your organisation already receives some Trusts and Foundations funding, consider strengthening that by improving your applications and reporting. If you have strong relationships with a handful of wealthy individuals, developing a major donor programme might be the best route.

Some of the most successful charities I’ve worked with have built their funding base through major donors – not by chasing large numbers of small donors, but by cultivating relationships with a handful of key supporters who have the potential to provide transformational gifts. Corporate partnerships can also be valuable, especially if you have a personal contact and can offer local businesses meaningful ways to engage beyond just writing a cheque such as volunteering, gifts in-kind, opening doors to new networks, PR and branding opportunities.

I once worked with a charity that had a dozen wealthy and really committed donors, because of these close relationships they were able to raised £400,000 in just three weeks to open a new social enterprise. They weren’t just donors. They were partners who were truly invested in the charity’s success. This kind of fundraising takes time and a lot of relationship building, but the long-term benefits are enormous.

Building stronger community relationships

Fundraising is about relationships first and money second. If your first interaction with someone is a request for funds, you’re doing it wrong. People give because they trust an organisation and believe in its work, not because it has financial needs. That’s why building engagement and a solid programme of work, services and activities before making an ‘ask’ is so crucial.

Start by reaching out to those who already support you: existing donors, volunteers, parents, congregation members or local business owners. Find ways to involve them beyond financial contributions. Many will be happy to volunteer their skills and time, in-kind donations or introductions to their wider networks. Hosting events that bring people closer to your work is another great way to deepen engagement. Rather than focusing purely on fundraising events, think about gatherings that create emotional connections, such as an open day or a behind-the-scenes tour with people that use and directly benefit from your services.

A refugee charity I worked with had a donor who initially gave £100. Over time they increased their giving to £1,000, £5,000 and then £50,000. This didn’t happen overnight. It took years but it was the result of an ongoing, meaningful and trusted relationship.

Engaging businesses and institutions as long-term partners rather than one-off funders can also bring stability. Grant applications should be well-researched and tailored to funders’ priorities, rather than generic requests for money. Local councils and community funds often have grants available, but securing them requires relationship-building, well-crafted bids and persistence.

One of our colleagues reminded us recently that the most important thing to remember is that donors give to organisations that meet needs, not have needs. Instead of focusing on financial shortfalls, frame your ask around the impact your organisation makes. Show how donations create change, not how much money you’re lacking.

Overcoming common fundraising challenges

Every organisation faces challenges in fundraising, but the key is to anticipate them and develop strategies to overcome them. If internal capacity is an issue, consider hiring or training someone to support your fundraising efforts rather than expecting existing staff to do everything. If engagement levels are low, start small, test different approaches and build momentum gradually.

Many charities worry about competition from other organisations, but the truth is that donors support causes they connect with. Strengthening your case for support and refining your messaging will help you stand out. Converting one-off community fundraisers into long-term supporters is another common challenge. Make sure there is an easy, seamless journey from one-time donor to regular giver, with clear opportunities for deeper involvement.

Taking your fundraising to the next level

Fundraising isn’t just about raising money. It’s about finding the right people who want to support your cause, strengthening these relationships and creating lasting change together. When done well, it transforms not just the organisations that receive the funds, but also the people who give them.

If your charity, church or school is looking to build sustainable income, now is the time to act. Whether it’s individual giving, major donors or community engagement, a strong strategy makes all the difference. If you need expert support, let’s start the conversation.