Fundraising Strategies That Work: How to Build a Sustainable Nonprofit
By Willie Finklin, CFRE, The Grant GOAT
Introduction: Why Fundraising is the Lifeline of Your Nonprofit
You started your nonprofit to create change, but here’s the hard truth—without funding, even the most passionate mission cannot survive. Many nonprofit leaders struggle with where to find funding, how to ask for donations, and how to build long-term financial stability.
If you’re relying on sporadic donations, inconsistent events, or hoping that grants will save the day, you’re missing key strategies that keep successful nonprofits fully funded.
This guide will walk you through proven fundraising strategies to help your nonprofit not only survive but thrive.
The 5 Core Fundraising Strategies for Sustainable Growth
1. Build a Recurring Donor Program
Why It’s Important:
Relying on one-time donations makes it difficult to predict cash flow. A recurring donor program creates steady, reliable income that allows for long-term planning.
How to Do It:
Offer a monthly giving program where donors can automatically contribute.
Create donor tiers with perks (e.g., $25/month = exclusive impact updates).
Use a strong emotional appeal—explain how monthly donations create ongoing impact.
Set up automated payments with platforms like Donorbox or Classy.
Example:
Instead of asking for one-time $100 donations, encourage supporters to give $10/month—which adds up to more over time and keeps them engaged year-round.
2. Diversify Your Funding Sources
Why It’s Important:
Many nonprofits rely too much on one revenue stream, which puts them at risk. If grant funding or event revenue dries up, they struggle to stay afloat.
How to Do It:
Secure funding from multiple sources, including:
Individual donations
Corporate sponsorships
Grants (local, state, federal, and private foundations)
Fee-for-service or social enterprise income
Crowdfunding campaigns
Develop a fundraising mix that includes events, online campaigns, and major donor outreach.
Example:
If your nonprofit only applies for grants and suddenly loses a major funder, your entire operation could collapse. But if you have multiple revenue streams, you’ll have stability even if one area declines.
3. Strengthen Donor Relationships (Beyond Just Asking for Money)
Why It’s Important:
Most nonprofits focus too much on acquiring new donors and not enough on keeping the ones they already have. A strong donor retention strategy increases lifetime giving and reduces the need to constantly find new donors.
How to Do It:
Send personalized thank-you messages within 48 hours of receiving a gift.
Provide regular impact updates to show donors how their money is being used.
Host exclusive donor appreciation events (virtual or in-person).
Offer behind-the-scenes stories and direct communication from leadership.
Example:
Instead of just sending a tax receipt, follow up with a personalized email or handwritten note thanking them and explaining how their donation is making an impact.
Tools to Use:
Gratavid (video thank-you messages for donors)
Bloomerang (donor relationship management)
4. Master the Art of Grant Writing
Why It’s Important:
Grants are a powerful source of nonprofit funding, but many organizations struggle to secure them because they lack a compelling proposal or don’t target the right grants.
How to Do It:
Research and apply for grants that align with your mission (use Candid/Foundation Directory).
Write a strong needs statement backed by data and personal stories.
Clearly outline how funds will be used and how the impact will be measured.
Develop relationships with funders before submitting applications.
Example:
Instead of submitting generic grant applications, build relationships with funders by attending networking events and reaching out with questions before applying.
Tools to Use:
GrantStation (grant research)
Instrumentl (grant tracking and management)
5. Use Digital Fundraising to Expand Your Reach
Why It’s Important:
Online fundraising has exploded in recent years, making it easier than ever to reach donors. But many nonprofits fail to optimize their digital strategy and miss out on significant funding.
How to Do It:
Optimize your website donation page (clear call-to-action, mobile-friendly, easy payment options).
Use social media fundraising (Facebook and Instagram donate buttons).
Run peer-to-peer fundraising campaigns where supporters raise money on your behalf.
Implement email fundraising sequences to nurture donors and encourage giving.
Example:
Instead of just asking for donations on social media, run a 30-day matching campaign where donations are doubled by a corporate sponsor.
Tools to Use:
GoFundMe Charity (crowdfunding)
Give Lively (peer-to-peer fundraising)
Mailchimp (email fundraising automation)
Common Fundraising Mistakes to Avoid
Even with the best strategies, some nonprofits make mistakes that hurt their fundraising efforts. Avoid these common pitfalls:
❌ Not having a clear fundraising plan – Don’t rely on random asks; create a structured strategy.
❌ Failing to engage donors year-round – Don’t only reach out when you need money.
❌ Not using storytelling effectively – Donors give to people, not just programs.
❌ Ignoring data – Track donation trends and adjust your strategy accordingly.
❌ Relying too much on one source – Diversify your income for financial stability.
Conclusion: Fundraising is a Long-Term Strategy, Not a One-Time Effort
Successful fundraising requires consistency, relationship-building, and strategic planning. The nonprofits that thrive are the ones that invest in multiple funding streams, nurture their donors, and adapt to new fundraising trends.
Next Steps:
Evaluate your current fundraising efforts—where are the gaps?
Implement one new strategy this month (e.g., launch a monthly giving program or improve donor communication).
Need expert guidance? PM3 University’s Fundraising Strategy Services can help you build a customized, sustainable fundraising plan.
What fundraising challenges are you facing? Drop a comment below!
