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How to Fundraise?


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#1 Nyamera

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Posted 11 January 2009 - 08:39 PM

Iím wondering if anyone has ideas about how a person in Tanzania could go about fundraising. Iíve seen this used on Kenyan websites: http://www.chipin.com/ , but you need Paypal that isnít available in Tanzania, or Kenya for that matter. What would be the easiest and most secure way for donors to send money? I donít know if the fundraiser will get a website or just send out emails.
Thanks.
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#2 David Youldon

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Posted 12 January 2009 - 04:51 AM

Hi Nyamera. There are a lot of fundraising web site companies out there offering slightly different variations on payment methods. I agree with you, paypal is a nightmare for African based organizations - we have ditched it because it has proven to be a headache from start to finish.

However, to answer your question properly, can you confirm whether you are with the charity or are trying to fundraise on their behalf? Also, where is the charity registered (all countries) as that will have an impact on how you could proceed, so maybe you could confirm this as well.

The majority of fundraising sites (whether it be the charity doing the fundraising or an individual doing so on behalf of the charity) are based in the UK or US, although there are lesser known sites on the same theme around the world. These will require the charity to be registered in the country in which it is collecting. Once registered it is quick and easy to set up an online fundraising page, but there is a cost. A few are free, some charge a set up fee and then a % of the donations processed and some charge a monthly fee. Examples from the UK & US include:

www.cafonline.org (UK) - set up by the charity for on-line donations
www.cafamerica.org (USA) - as above
www.justgiving.co.uk and .com (UK & US) - set up by the charity so that individuals can fundraise on behalf of the charity
www.help.co.uk (UK) - as above

You may find it easier to work with an existing charity and ask them to accept and forward donations on your behalf. The accepting charity would usually charge a small admin fee to cover their costs of accepting, processing and forwarding the donations.

As I said, once you can confirm the answers to the questions I noted I am sure there will be some suitable solutions for you, and I would imagine a number of other members of this site would have ideas that our charity doesn't use as well.

Regards
David

#3 Nyamera

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Posted 12 January 2009 - 04:14 PM

Thanks, David. Thereís an individual Tanzanian who needs funds to finish an important project that I Ė and hopefully many other people - would like to contribute to. Heíll soon start the final expensive part of the project and heís been wondering if he could do the fundraising himself and if heíd need a bank account in the US or Europe, or if he could do it through a friend or an institution. It sounds like the best option would be to work through a ďregistered charityĒ. Though it doesnít sound like you need to be a registered charity to use www.chipin.com, but you do need Paypal.
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#4 Game Warden

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Posted 12 January 2009 - 04:17 PM

What about direct bank transfer to bank account? For instance Johnny Rodrigues of the Zimbabwe Conservation Task Force lists his bank details should donors wish to contribute, though of course, there needs to be trust between donor and recipient. Let us know more about the project as and when it develops.

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#5 Nyamera

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Posted 12 January 2009 - 04:30 PM

Game Warden, in this case Iíd make a direct transfer to a bank account, but usually Iím a lot more generous if I can just grab my Visa card and send away the money in a minute or less. Iíve done bank transfers to safari companies and the fees have been rather high. Western Union is complicated and has fees as well.
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#6 David Youldon

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Posted 14 January 2009 - 04:01 AM

Hi

I agree with Game Warden here. If this is an individual donor giving to an individual with their own personal project, not associated with a registered charity then the easiest method is a bank transfer. This is probably the route with the lowest fees involved meaning more of your donation actually goes to the project.

There are alternatives to PayPal that do the same thing such as dalpay.com or paymentonline.com but from a quick look your donation would get swallowed up in administrative fees unless the donations were reasonably large, regular and from a number of people.

Making a donation to an existing charity that then re-grants that donation to the project that you requested is the other viable option. The charity that would process the donation for you would have to undertake due-dilligence on the project as they would in effect be supporting it. An administrative charge would be made by the charity for processing the donation and covering their own bank charges related to doing this. Some charities may not charge at all and will absorb the costs themselves. Charges will vary from charity to charity. We do this for a number of projects already and our charges for example are 7.5% up to a donation value of £1999, 4% from £2000 to £4999 and 1.5% thereafter. I believe these are low compared to most charities. A charity will also be able to give you a number of other options. For example we offer a direct debit scheme and give as you earn program to donors as well as one-off payments, or you could also set up your own fundraising page for the project to which you then invite other people to contribute. Finally, depending on where the money is coming from and where the charity is based, you may also be able to take advantage of tax effective giving which adds value to your donation.

Don't forget that even the person you are sending the money to will have administrative costs so however you decide to move forward, there will always be costs come out of yoru donation in admin fees / costs

I hope this helps and gives you some ideas on how to proceed.
David

#7 Nyamera

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Posted 14 January 2009 - 05:19 PM

It sounds like I should find a new bank.

This is about raising a lot of money, $50,000, from many donors, using either emails or a website. Doing this through a registered charity sounds like the best way. I think the person with the projects have some connections to charities. I canít give any more details at the moment, but thanks for the help David and Matt.
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