FUNDRAISING
Fundraising means raising money for specific purposes, such as the association’s activities. This page explains how your association can raise money.
You should take fundraising very seriously. Proper fundraising projects improve the association’s finances. It also reduces the need for external sponsors. Nowadays, an association’s own fundraising is very important, because it may be more difficult to get funding from external sponsors in the future.
An association can raise money in many different ways
It is important that the association talks about different ways of fundraising. Think where and how you can raise money for the association’s activities.
Here’s how the association can raise money.
Donors and fundraising campaigns
A donor is a person who wants to give money to the association to support its activities. The association can only accept donations if this is allowed by the association’s rules.
If an association wants to organise a fundraising campaign, it must get a permit from the police. The association also needs a permit if it asks for money for example on its website or in social media posts.
An association does not need a fundraising permit if it organises a small-scale money collection.
Learn more about the fundraising permit in Finnish on Poliisi.fi.
Small-scale money collection
A fundraising permit is not required for small-scale money collections. However, the association must tell the police before organising a small-scale money collection. An unregistered association can also organise a small-scale money collection.
The maximum duration of a small-scale money collection is 3 months. The maximum amount of money that can be raised through a small-scale money collection is €10,000. The association may organise up to two small-scale money collections per year.
Learn more about small-scale money collections in Finnish on Poliisi.fi.
Membership fees
The association may ask for membership fees from its members. The association’s rules must state how much the membership fee is and when the members need to pay it.
Supporting membership
A supporting member is someone who joins the association to give financial support. This is why they pay a higher membership fee than regular members.
The association can ask people to become supporting members. A supporting member brings more money to the association, which can be used, for example, to organise events.
The association can only have supporting members if:
- the rules of the association allow
- supporting membership gives a person benefits, such as the right to take part in the association’s decision-making.
If the association’s rules do not mention supporting membership or if the supporting member does not get membership benefits, then the fee is called a donation. If someone donates money to an association, the association must have a police fundraising permit.
Pop-up restaurants
The association can organise 12 pop-up restaurants per year. A pop-up restaurant is a restaurant that only works for a short period of time, for example, one day. The association can organise a pop-up restaurant as a separate event or as part of a bigger event, like a restaurant day.
Read in Finnish on Jenni Kallio’s website how to succeed in a restaurant day (in Finnish).
Product sales
Product sales means that the association sells items, for example, at flea markets.
The association should think carefully about what it sells. If people don’t know the association, they might not want to buy products that have a big association name or logo on them.
If the association sells products, make sure to check the tax rules for product sales. Remember that all the association’s income must be entered in the association’s accounts.
Read in Finnish about the taxation of sales of products on the Kupola website (in Finnish).
Corporate partnership
Corporate partnership means that the association works together with a company. The company supports the association’s activities.
For example, the company can
- give money to the association
- give discounts to the members
- design a product together with the association and share the income from its sales.
Service sales
The association can sell its services, for example, to local authorities, companies, TE offices or other organisations.
Services may include, for example
- interpretation services
- integration activities
- employment activities.
If an association receives more than €15,000 a year from the sale of services, it must pay VAT on it.