July 19, 2024

How Do Charities Raise Funds?

The charity sector in the UK has an annual income of around 56 billion pounds. This money is raised using a broad variety of strategies, and charities are always looking to innovate in order to bring in more funding for worthy causes. This article lists some of the most popular ways that charities bring in money. 

Weekly Lottery

Many charities raise regular funds through the use of a subscription lottery. Lotteries ensure a constant stream of cash from individual donators that want to have a little fun with the money they give away. Because tickets are a set price, charities can plan their finances well in advance once they know the number of players that are likely to take part. 

Weekly lotteries can also be useful sources of information for a Charity Fundraising Provider. Companies like WoodsVall Data help charities harness the personal information that they gather during lottery drives. 


Charities often encourage donors to raise money through sponsorship. This can be small-scale sponsorship of a marathon run or personal challenge or large-scale sponsorship of a sporting event or entertainment event. Glastonbury Festival, for instance, is a major yearly hub for charity sponsorship and helps to raise a great deal of money for the environmental charity Greenpeace. 


Charities can raise money by trading products and services just like a regular business. Charity shops are the source of a great deal of funding for companies in the United Kingdom. They make money by selling donated goods at reasonable prices. Trading own brand produce is a more recent fundraising phenomenon. Charities such as Oxfam are making headway into the own brand trading arena. 

Corporate Affiliation

Companies looking to improve their public image or pay back money into the community can be major funding sources for charities. Companies often give to charity partially as a way of reducing the amount of money they have to pay in tax. There are some issues with accepting corporate donations. Museums that accept charitable donations have come under fire for accepting money from fossil fuel giants like BP. Careful assessments need to be made of companies looking to partner with a charity. 

Government Grants

Some charities receive government funding. This is not always applicable or appropriate. Charities that want complete freedom from the whims of the state tend to avoid government funding, as stakeholders will naturally seek to have some degree of control over the operations of a charity. For charitable foundations that do not see themselves as having differences with government stakeholders, government funding is essential. The Red Cross medical charity, for instance, receives voluntary donations from all governments that have signed up to the Geneva Convention. The Red Cross receives around 82 per cent of its annual budget from governments. 


Charity galas are especially popular in the USA, where federal funding is very sparse. Galas usually take the form of a dinner or dance, during which donations are solicited. They are usually held in wealthy areas where potential donors might already have social ties.

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