Donations are the cornerstone of the existence of many clubs and organizations. In order to collect as many donations as possible and to build a close relationship with the donors, the social fundraising method is recommended.
Special form of online fundraising
Social fundraising is a special form of online fundraising, as the portal Neues-stiften.de explains. This can also be seen in the composition of the name, because social fundraising is a combination of the terms online fundraising and social media. This also results in the special nature of social fundraising. Although the donations are collected on the Internet, as is usual with online fundraising, the medium used is social media.
These platforms are usually used for public relations and awareness so that donations can then be collected via donation tools. The advantages of using such tools lie in the different payment options and the easy sharing on various channels. So social fundraising benefits from word of mouth. The form of the organization is irrelevant here, because it doesn’t matter whether it is an NGO or an NPO – everyone can benefit equally from the advantages of social fundraising.
Different channels
In order to reach the broadest possible audience, various social media can be used. Whether Facebook, Instagram, TikTok, X (formerly Twitter) or even LinkedIn – it is theoretically possible to collect donations on each of these platforms. The easiest way is to add a corresponding link in your profile so that donations can be made easily. What is particularly helpful here is a large reach. While with a bit of luck this can be generated using a hashtag on Similar to TikTok, content is presented in short videos with musical accompaniment. In order to choose the right platform, the desired audience should be considered in advance. Since LinkedIn is particularly designed for business contacts, older people are more likely to be addressed. TikTok, on the other hand, offers a young target group. Regardless of which social network you choose, there are a few aspects you should consider.
The basis of successful social fundraising
Successful social fundraising is based on the followers who are willing to support the club or organization. In order to achieve this willingness, you should offer your followers something. Particularly active channels are supported by the platforms’ algorithm and thus reach more people. Regular posts with added value are therefore an absolute must. It can also be helpful to actively involve followers in the donation process by presenting the results of the donations: How much was collected? What was achieved with the money? Answering these questions shows followers the meaning behind the donation and can thus increase their willingness. As previously mentioned, donation tools can be used to make the donation process easier. Using a link stored in the profile, followers can donate with one click.
In addition to the success criteria, there are also some ethical aspects that are recommended by the German Fundraising Association (DFRV). This includes, for example, truthful information. This means that the donor has a “right to truthful, comprehensive and timely information about the work of the organization and its results”. The proper processing of concerns and complaints also falls under the conditions of the DFRV.
Possible tax traps
If a club takes in more than 45,000 euros annually, these financial resources must be spent in the following year at the latest, as Fundraising Magazine reports. Since 2021, income that is below this limit is no longer subject to the timely use of funds, as it goes on to say. However, all income that the organization generates must be taken into account, including economic business operations and asset management. The sales exemption limit is also 45,000 euros; Profits that are below this limit are exempt from corporate and trade tax. Nevertheless, for donations of more than 300 euros, tax proof of donation is required, for example in the form of a cash deposit receipt or a booking confirmation from the bank.
However, according to the Winheller Law Firm, special caution should be exercised when using fundraising service providers. If the service provider includes a link to its own website or a logo in the payment process, this can be viewed as advertising. The donation to the organization, which is transmitted by the service provider, may no longer be considered as such. In the worst case, this payment will be considered a taxable sponsorship or advertising service, which will require an invoice to be created and VAT to be paid. Before hiring a fundraising service provider, Winheller recommends a detailed review of the contract terms and payment process.
Editorial team finanzen.net
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