What is the best way to get donations from the local community?
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I generally ask directly. My children's schools have annual auctions/fundraising parties where items get auctioned. I ask the businesses I regularly support (restaurants, hair and nail salons, toy stores, etc) for donations. Most businesses are happy to donate a gift card, since it brings a new customer in. I also donate a cosmetic service from my dermatology practice for the same reason.
If a business I visit weekly (such as a nail salon) refuses, I am offended and typically stop patronising them. It shows they don't value me as a customer.