MSP | Local Fundraising

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Local fundraising offers important opportunities for non-profits in the developing world to mobilise resources that are more flexible, sustainable, and locally controlled than international aid flows. One major category is raising funds from local charitable givers, including individuals, families, small and medium-sized businesses, faith-based institutions, embassy discretionary funds, and community associations. In many contexts, religious giving traditions (such as zakat, sadaqah, tithes, or almsgiving), rotating savings groups, and mutual-aid practices provide strong foundations for local philanthropy. NGOs can mobilise these resources through direct appeals, membership schemes, regular giving circles, and partnerships with religious and community leaders. While individual contributions may be modest, they are often unrestricted and help strengthen local legitimacy and accountability.

A second category focuses on workplace giving schemes, which enable NGOs to tap into domestic private-sector resources through structured partnerships with employers. These schemes allow employees to contribute small, regular donations through payroll deductions or periodic internal campaigns, sometimes matched by employers as part of corporate social responsibility commitments. In low- and middle-income contexts, workplace giving can be particularly effective when NGOs partner with large local employers such as factories, banks, cooperatives, or municipal services, creating predictable income streams and long-term relationships. Success depends on trust, simple administrative systems, and clear communication of impact to both employees and employers.

A third category includes cause-related fundraising campaigns, which link donations to everyday consumer or community activities. Examples include percentage-of-sales donations, “round-up” contributions at points of sale, co-branded campaigns during national holidays, or time-bound appeals linked to emergencies or awareness days. These campaigns appeal to businesses seeking visibility and social impact while giving NGOs access to wider audiences beyond their usual supporters. However, they require careful design to ensure transparency, fair branding, and alignment with the NGO’s mission. As a practical starting point, organisations can strengthen their digital fundraising infrastructure by adding donation options to their websites and social media platforms, including integrations with PayPal or other online payment services, making it easier for individuals and businesses to contribute directly.

A final category focuses on events capable of attracting sponsorship and community participation, such as charity walks or runs, cultural festivals, exhibitions, conferences, and community fairs. Combined with options like membership fees, mobile-money micro-donations, and peer-to-peer fundraising, these locally driven approaches help non-profits diversify income and reduce reliance on international aid flow.

Finally, NGO Networks can charge annual membership fees that Members can pay directly or find a sponsor who will cover them.


PROS and CONS

Pros: Deeper ties with local philanthropic and economic actors; possibility of long-term funding partnerships; less vulnerability to international funding/financial disruptions (i.e. exchange rates, sanctions, etc.).

Cons: Level of funding will vary significantly based on strength of local economy; possible politicisation of organisation based on identify and nature of local/national donors; potential high upfront costs of acquiring donors.

SELECTION CONSIDERATIONS

Donor targeting: Is the organisation or network more likely to raise the level of funding it seeks from small donations, high net worth individuals, businesses or other local institutional donors (foundations, faith-based organisations, government)?

Fundraising approach: Will the fundraising be a permanent system, a seasonal one or ad hoc for specific needs/projects? Will it center around specific events and results or be more open-ended? What will be the value proposition for the donors?

Affiliation and partnerships: Should fundraising be affiliated with an established,  particular cultural or religious practice (i.e. Zakat in the Muslim world)? Are there existing local philanthropic fundraising channels/campaigns that the organisation or network could both support and tap into?

EXAMPLES

A research study by the West African Civil Society Institute lists several case studies (see annexes) of non-profits successfully fundraising from local contexts in West Africa. In Burkina Faso, for instance, local education NGO ADEP (website in French) has been using a mix of local fundraising approaches, from individual sponsorship plans to engaging with Corporate Social Responsibility departments of large economic actors to help fund an education project for girls.

Many non-profits in the Muslim world are able to raise funds through zakat, the collection of charitable funds during Ramadan. For instance, JOHUD in Jordan has received recognition from the government as an authorised zakat fund recipient and has developed a Goodwill Campaign to raise and apply these funds to their work.

In Iraq, Rwanga Foundation hosts an annual Awards Ceremony recognising top scientific, social, artistic and entrepreneurial achievements in the country that attracts over a dozen local private sponsors.

In Somalia, the crowdfunding platforms SOKAAB and BULSHO KAAB were developed to support community and youth-led initiatives through locally driven resource mobilisation. Established through partnerships between humanitarian and local actors, the platforms enable communities and diaspora networks to collectively fund projects that matter to them, while promoting transparency, accountability, and local ownership in decision-making around funding priorities.

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