Whether you're hosting a garden party, abseiling down your local shopping centre, or trekking in the darkest corners of the Earth, once you've decided to raise money for charity, you're faced with the second biggest challenge - raising cash

Where to start
First, take a deep breath. Fundraising can seem like a daunting prospect, but add a touch of ingenuity, confidence and preparation, and it can also be great fun. The amount you need to raise will very much dictate what sort of event or moneymaking scheme you adopt. An afternoon fete will get you well on the way to raising a couple of hundred pounds for your local school, but would not go near the four figure zone often expected for a sponsored event or overseas project.

Get help
Coordinate a team of trustworthy friends to delegate tasks out to. Once your team is in place, your action plan will suddenly seem more do-able. Choose people who have skills that you can utilise. For example, if one is good with figures, make them treasurer, another good at art, get them working on flyers.

Getting donations by mail
With email so prevalent, many people appreciate the efforts of a good old-fashioned letter. Make a list of people that you know who might be interested in donating; this is a good time to call upon the generosity of particularly well-heeled friends and relatives. People can be surprisingly generous if they get a feel for your enthusiasm and effort, which is why a thoughtfully composed personal letter will win over a brief group email.

It's important that people really believe in what you're fundraising for - so give your reasons as to why you chose to support this charity. Try to tailor your letter to personal contacts and business relations, taking the time to think about whom you're writing to.

Include practical examples of how the money will be spent, and how you plan to reach your target. Also include any extra information they may be interested in, perhaps a route map of your planned trek or some photographs of yourself training for a sports event.

Keep a list of who donates, when they donated and how much they sent. This will help the charity claim a 28 per cent tax bonus from the Inland Revenue - which, incidentally, could also be another good selling point for those in the higher tax bracket!

Online donations
These are great for people who you think would like to donate just a fiver here or there. JustGiving.com and Bmycharity.com are the leading charity websites that allow fundraisers to set up their own web page. It's free and once you have activated your page, sponsors can donate using debit and credit cards direct.

Both sites allow you to track your fundraising, and you can personalise your web page with information such as how you are progressing. Donations are automatically transferred to your charity, and the charity again gets an automatic 28 per cent tax bonus from the Inland Revenue from donations made by UK residents.

Ads and company sponsorship
Many companies like to associate themselves with charity events because apart from anything, it's good for their corporate image. Contact them well in advance so that they can budget for costs, and make sure that you think about what you can offer them. For example, your local supermarket may be interested in having a stall at your wine and cheese evening, or your local beauticians may donate a free makeover for your raffle. Make sure you publicly thank them for their contribution.

Publicity
Local papers and radio stations are always looking for real-life stories. Put together a press release of what you are planning to do, including as much information as you can on one page.

Think like a journalist - why is your story different? What was your motivation for embarking on your project? What would make your story interesting? Include your contact details and then address it to the 'News desk'. Give them plenty of time, with perhaps a reminder closer to the event.

Be innovative
Remember that more and more people are getting involved in charity schemes and fundraising, so it's important to try and add an element of originality to your idea. This will help attract sponsorship too.

For example, instead of just having a large dinner, make it a dining experience with a twist, a murder mystery night, or a Viking banquet. Many bars, pubs and clubs will rent out their function rooms to you for free if it's for charity, so instead of just a party, what about a red carpet night, with guests dressed up as their favourite A-list celebrities? You could even rope in some friends to stand at the entrance and pretend to snap away like paparazzi!

Try to be fun but practical, remember to keep your overheads to a minimum, as this will deflect from your final figure. Think original, but don't ignore the old favourites such as raffles, tombolas and auctions; they're timeless tried-and-tested money-spinners!

Mission accomplished?
You may have climbed your mountain or run your marathon, but after all the money has been counted, backs patted, and congratulations dished out, there's still work to be done.

Write a follow-up letter once you've finished the event or scheme explaining how it went and thanking everyone for his or her contribution. Write about how you got on, how much money you made, including something on how it will be spent. Your sponsors will be interested in your efforts on a personal level, so include any photographs and personal accounts.

Think to the future - treat your sponsors well and they will be far more willing to support any of your future adventures.

Good luck and happy fundraising!

Need some more help and ideas on money making? Why not chat to other iVillagers on the Money Matters message board. Take a look at some of the LIVE discussions taking place on the board right now: