Six Ways to Raise Money For Your Community Project

Whether you’re organizing a neighborhood cleanup, starting a community garden, hosting a youth event, or launching a mutual aid effort, you will eventually need to raise money for your work. Without a nonprofit status, you’ll have to get creative about how to secure funding to start or sustain your efforts.

Below is a list of fundraising ideas to help you raise money, highlight your impact, and gain supporters who want to make a difference alongside you.

Clarify why you need money for this project

Before seeking funding, get clear about what you’re raising money for. Clarity helps you determine what you need to launch and sustain your project and gives you the language to ask for support confidently. 

Identify your actual needs — materials, services, permits, food, marketing, space rental, etc. Then create a simple budget like this one to track estimated expenses and income sources. Make sure to review your budget regularly. 

Different ways to raise money

The following are suggested ways to seek and raise funds for your community project:

Donation requests

A simple face-to-face ask can be a good starting point, even if it feels uncomfortable. You are not the first person to ask for money to support a community effort. Lean into your passion for the issue you’re addressing and remember that the right audience will respond.

Start with your immediate network, or the people who already know you and care about your community. Practice sharing the issue you’re addressing, how you are planning to address it, and how their donation will help.

Next, decide on a method (or more) for how you’ll ask: personal phone calls, emails, newsletters, peer-to-peer outreach, or social media are all good ways to request donations and can be used interchangeably. As donations come in, remember to thank your donors publicly to highlight their contributions on whatever platform you’re using, such as social media, newsletters, or email. Keep them updated about future campaigns and other ways to stay involved, such as volunteering.

Crowdfunding

A popular way to raise small donations from many individuals at once, while spreading awareness about your initiative, is crowdfunding. Crowdfunding campaigns are a one-stop shop for raising awareness of your initiative, securing donations, and communicating with supporters. For a successful crowdfunding campaign:

• Include strong visuals such as photos and short videos showcasing what you’re doing, events you have, and other compelling features about your initiative
• Clearly state your funding goal and timeline
• Share regular updates
• Personally ask donors and supporters to share the campaign
• Thank donors and supporters for their contributions

Microgrants

Microgrants are small, competitive, one-time cash awards that support community initiatives. They can range from a few hundred dollars to several thousand, depending on the funder.

Local foundations, companies, and community programs offer small grants specifically for neighborhood or grassroots projects. Research is required, and some opportunities may require nonprofit status. When searching online for microgrants, use prompts that include your specific target issue, project type, and location; for example, “community cleanup microgrants [city or county name].”

Explore local foundations, community organizations, chambers of commerce, and government programs that specifically address the issue area your project targets. 

Fiscal sponsorship

If you want to access grants but do not have nonprofit status, consider partnering with an existing nonprofit through fiscal sponsorship. A fiscal sponsor allows you to apply for grants under their 501(c)(3) status and can receive and manage tax-deductible donations on your behalf. In addition to providing legal and tax-exempt status, fiscal sponsors can provide administrative support, including HR services, insurance, and legal advice.

Fiscal sponsors can also support your project's development and, if desired, help it become its own nonprofit over time. To seek fiscal sponsors, look up local qualifying community foundations and organizations with aligned missions and goals. Also, explore directories such as Candid, the Fiscal Sponsor Directory, and the National Network of Fiscal Sponsors.

Local business sponsorships

Besides financial contributions, you can also seek other forms of support, such as donations of materials, services, and the use of space. Business sponsorships can be a helpful way not only to build strategic community partnerships but also to receive these forms of support. Potential business sponsors include local coffee shops, grocery stores, or restaurants, to name a few.

To identify potential business sponsors, look for companies with a history of community involvement. You can find this information from local Rotary Clubs or the local Chamber of Commerce. When you select a local business aligned with your project, you can either personally approach them or write a short letter sharing the details of your work and the mutual benefits of partnering.

Hosting fundraising events

Hosting a fundraising event can be a fun way to involve your community while raising funds. Some low-cost fundraising event ideas include car washes, garage or yard sales, community potluck dinners or bake sales, walkathons or marathons, trivia nights, talent shows, raffles, silent auctions, movie nights, and a paint-and-sip night. Feel free to get as creative as you like here.

Also, keep your event as simple and affordable as possible. Use free or low-cost spaces such as community centers or parks, and check your budget and estimate costs for required items. Determine if you can secure items without using funds. You want to ensure your event doesn’t exceed the amount of funding you’re seeking.

Establish markers for success, such as the target amount you aim to raise and the number of people who commit to joining your initiative. Enlist volunteers to help acquire needed items, set up, promote, and run the event.

Raising funds for your community project takes a lot of work and consistency, and may even be slow-moving at first. However, with continued work, you will gain the right audience to support your efforts, whether financially or otherwise. 

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Once you’ve started raising funds for your initiative, it will be important to budget them accordingly to sustain your impact in your community. Here are some practical tips for managing your funding, especially as a first-time project leader.