Nonprofit Fundraising Strategies That Actually Work
In the nonprofit fundraising world, it is easy to get caught up in fundraising strategies that seem flashy but produce little return on investment. Whether it’s a big campaign with lots of visibility but no lasting impact, or an expensive tool promising to revolutionize your giving platforms, many nonprofits adopt strategies that leave them just spinning their wheels, stuck in place.
I want to offer you something different: three nonprofit fundraising strategies that are proven to deliver real results, no matter the size of your organization. Strategies that will increase your revenue year after year built on tried-and-true methods, not passing trends.
And no, these are not clickbait techniques from a tech company trying to sell you a product (we’ve all fallen for one of those, haven’t we?). These are proven strategies built on the foundation of deep relationships that help your revenue grow steadily and sustainably.
So are you ready to transform your fundraising?
Let’s dive into three nonprofit fundraising strategies that will truly make a lasting difference.
1. Prioritize Major Donors
Did you know that 67.2% of all charitable giving comes from individual donors? This is more than corporate, foundation, and all other sources combined. And the majority of individual giving comes from major donors – those who contribute significantly larger gifts that can dramatically impact your nonprofit’s bottom line.
Yet, despite the overwhelming importance of major donors, many nonprofits struggle to develop a comprehensive strategy to cultivate and grow these high-impact relationships. Instead of focusing on these vital connections, they often pour time and resources into broader campaigns, chasing after smaller donors and leaving significant money and untapped potential on the table.
The truth is, that investing time and resources into building deep, meaningful relationships with major donors is one of the most effective nonprofit fundraising strategies available. These donors are not just funding partners; they are champions of your mission, advocates who can influence their peers, and pillars of your organization’s financial health.
If you’ve found yourself and your organization caught in this cycle of chasing small gifts while feeling overwhelmed by financial uncertainty, now is the time to rethink your approach. A robust major donor strategy will not only stabilize your revenue but also create the foundation for long-term growth.
Deepen Relationships with Existing Donors
Your current major donors are your nonprofit’s biggest advocates and financial backers, so it is imperative and sensible to build and maintain deep, meaningful relationships with them. It’s not just about asking for more money; it’s about inviting them to go deeper into the work your nonprofit is doing.
The best way to do this is by asking key questions that make them feel like true partners in your mission. Engage them in a conversation about what drives their giving and what impact they want to see from their partnership. When you can align your nonprofit’s goals with their personal values, you create a win-win situation where donors feel invested in your success.
Find New Major Donors
In addition to nurturing existing donors, it’s important to have a strategy to find new ones. This can be done in a number of ways:
- Use wealth screening tools like DonorSearch that help you identify potential major donors in your existing donor base or in your community. Identify individuals who have given small amounts to your organization, or who have given to similar organizations, and invest time, energy, and resources to build relationships and invite them into deeper engagement.
- Ask your current donors to introduce you to their friends. People are much more likely to give when someone they trust makes the connection.
- Investing in a robust mid-level giving program can help you identify potential future major donors. These mid-level donors are already invested in your cause, and with the right cultivation, some of them may be ready to make a significant leap into major giving.
- Develop a donor development strategy to acquire and retain major donors.
Staff Up for Major Donor Work
If you’re serious about making major donors a priority, your nonprofit needs a dedicated Major Gift Officer. This person should be managing a portfolio of 125-150 major donors and building that portfolio year over year. A Major Gift Officer who is strategically growing a portfolio and nurturing relationships is one of the most effective nonprofit fundraising strategies to ensure your organization’s financial health.
But what about return on investment? I like to think of fundraising investments on a three-year time horizon. In your first full year of having a new dedicated fundraiser in place, you should expect a 2:1 ROI on your investment. In year two, you should expect at 4:1 ROI. And in year three you should expect a 6:1 ROI. After this, your ROI is determined by how streamlined you can manage your team and your program. (For more information on how to build a fundraising team, check out this article.)
What Are You Waiting For?
While these steps might seem basic, you would be surprised how many nonprofits fail to do this.
Major donors tend to have the highest retention rates among all donor types. By building a strong major gifts program, your nonprofit can weather economic downturns more effectively, so this is one of the best nonprofit fundraising strategies for maintaining revenue stability during recessions.
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2. Communicate Effectively and Consistently with Donors
One of the most common mistakes nonprofits make is failing to communicate effectively and consistently with their donors. I’ve personally seen organizations where donor revenue is declining, and they can’t figure out why. One organization in particular came to me with this issue. They told me they didn’t understand why their revenue was in decline. They didn’t know this, but I was one of their donors, and I knew the answer. They were not communicating with us!
Donors Need Regular Communication
There’s a false belief in the nonprofit world that emailing too often will annoy donors, causing them to unsubscribe or stop giving. In fact, the opposite is true. If you’re not communicating regularly, the majority of your donors will forget about you. Even worse, they may assume that your cause isn’t urgent or that you don’t need their support anymore. And when that happens, you risk something far more damaging – losing them for good.
Lapsed donors are one of the biggest threats to your nonprofit's financial health. Once a donor stops giving, it’s incredibly difficult to win them back. In fact, studies show that donor retention rates drop dramatically after just one year of inactivity. The cost to reacquire a lapsed donor is significantly higher than maintaining an existing relationship, so keeping the lines of communication open is vital.
Your donors should be hearing from you regularly – at least twice a month. If you’re not staying in touch, you’re putting those valuable relationships at risk, and lapsed donors will become more and more common.
Nonprofit fundraising strategies that work always include a robust communication plan, especially for major donors who deserve personalized, consistent updates that reinforce their connection to your cause.
Don’t let your donors drift away. Effective communication isn’t just about asking for money – it's about reinforcing why their support matters and keeping them engaged in the impact they are making.
How to Communicate Effectively
Effective nonprofit fundraising strategies involve more than just sending an email or two. Every communication should follow a specific framework, like the StoryBrand method, which positions your donor as the “hero” of the story and your organization, the guide. Start by clearly stating why your cause is important, share compelling stories of impact, and then follow up with a clear call to action.
Here are some ideas for what to include in your regular donor communications:
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Stories
One of the most powerful ways to connect with your donors is through storytelling. Highlight the real people and communities your nonprofit is helping and illustrate the direct impact of your donors’ gifts. Share personal stories that put a face to your cause – whether it’s an individual whose life has been transformed by your programs or a community that has experienced positive change. You can also highlight stories about your donors, why they’ve chosen to give and how their partnership with your organization has made a difference in their lives. These stories create an emotional connection, showing donors that their support is making a tangible difference. When your donors can see the real-life results of their generosity, they’ll feel more invested in your mission and more likely to continue giving.
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Case Studies
Go beyond anecdotes by providing detailed case studies that showcase your nonprofit’s impact in a measurable, concrete way. Choose specific projects or programs and walk donors through the challenges, strategies, and outcomes. This gives them a clear understanding of how their contributions are driving meaningful change. Case studies demonstrate your organization’s ability to tackle complex issues and offer evidence of the long-term effects of your work. By sharing in-depth success stories, you reinforce your credibility and help donors feel confident that their investments are being used effectively.
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Interesting Statistics
While stories and case studies appeal to the heart, statistics appeal to the head. Sharing key data and metrics can help validate the effectiveness of your work and show donors the measurable results of their contributions. Whether it’s the number of people served, the percentage of goals met, or data on long-term outcomes, statistics provide concrete proof that your nonprofit is making a difference. This kind of transparency builds trust and allows donors to feel confident in the impact of their giving. Presenting data alongside stories and case studies creates a well-rounded narrative that appeals to both the emotional and logical sides of your audience.
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Thought Leadership Pieces
Position your organization as a thought leader and expert in your field by sharing valuable insights and forward-thinking ideas. Use these communications to bring donors into the conversation about how your programs are developed, the innovative approaches you’re implementing, and where the future of your sector is headed. By providing expert analysis and a clear vision, you’re not only showcasing your organization’s expertise but also inviting donors to feel like informed partners in the progress and impact you’re making.
By sending a combination of these types of communications, you will keep your donors engaged and excited about your mission. Remember, major donors, in particular, should never be left out of your communication plan. In fact, they should be receiving more personalized updates than anyone else.
3. Build a Fundraising Team
The third strategy I want to highlight might not be something you think of as an intentional way to increase fundraising, but it is absolutely essential: building a fundraising team. While a small, dedicated team can maintain day-to-day operations now, they will struggle to think beyond immediate needs and toward long-term growth. The reality is that no matter how hardworking your current team is, if they’re stretched too thin, they won’t have the capacity to innovate, experiment with new approaches, or cultivate deeper relationships with donors.
The 3 S’s: Space, Specialization, and Scale
To truly scale your nonprofit’s impact, you need a fundraising team with the bandwidth to think strategically. It’s not enough to simply maintain the status quo – your team needs to be forward-thinking, focused on growth, and equipped to take your nonprofit to the next level. This starts with creating space for strategic planning and execution. A team that is constantly overwhelmed by day-to-day tasks can’t prioritize long-term goals or engage in the deeper thinking required to drive innovation.
The second piece of the puzzle is specialization. Each team member should have a defined role that allows them to dive deep into specific fundraising initiatives, whether that’s major donor cultivation, grant writing, donor stewardship, or exploring new revenue streams. When fundraisers are able to focus on their areas of expertise, they can develop stronger relationships with donors, create more tailored strategies, and drive greater impact. Specialization also means that no aspect of your fundraising is left unattended—each part of your fundraising ecosystem is being cultivated and refined by someone with the right skills and focus.
Finally, to succeed in the long term, your team needs the ability to scale. As your fundraising efforts grow and evolve, so should your team’s capacity to meet new challenges and seize new opportunities. A team that can scale isn’t just reactive – constantly scrambling to meet immediate needs – but proactive, strategically growing your donor base, diversifying your revenue streams, and positioning your nonprofit for sustained success. A scalable team ensures that your organization isn’t just surviving but thriving, ready to tackle bigger challenges and make an even greater impact.
Building a fundraising team isn’t for the faint of heart. It requires intentionality, investment, and a commitment to growth. But the payoff is more than worth it. By building a team with space to think, specialists who excel in their roles, and the ability to scale as your organization grows, you’re setting your nonprofit up for long-term financial health. In fact, one of the best nonprofit fundraising strategies is to invest in your team NOW – so you have the capacity to increase your revenue and expand your impact in the future.
Measure What Matters
As you build your fundraising team, accountability becomes essential. It’s not enough to simply expand your team and hope for results – each person on your team needs to have clear, actionable metrics for success. These metrics are the backbone of any effective nonprofit fundraising strategy. Without them, it’s impossible to know whether your efforts are truly driving growth or if certain areas are holding you back.
Measuring the right metrics is key to ensuring your fundraising strategies are working. Focusing on metrics that measure the health of your fundraising pipeline and the strength of donor relationships. By understanding the driving factors behind your success, you can double down on what works and adjust or abandon strategies that aren’t producing the results you need.
Metrics also help align your team around common goals. When everyone – from leadership to entry-level staff – has a clear understanding of what success looks like, it fosters a culture of accountability and collaboration. Each team member understands their role in achieving the organization’s larger objectives, creating a shared sense of purpose.
If you’re unsure where to start, don’t worry. Start with our guide to fundraising metrics and remember, what gets measured gets improved. By focusing on the right metrics, you’re not just tracking performance – you’re actively setting your organization up for future success.
Finally, Don’t Go It Alone
It’s more comfortable to stick to the familiar tactics and strategies, even when they’re not delivering the results you need. But if you want to grow your nonprofit and achieve your mission, it’s time to adopt fundraising strategies that are proven to work. Whether it’s major donor cultivation, better communication, or building a more specialized and aligned fundraising team, the right strategies will help you raise more money and secure a stronger future for your organization.
The good news? You don’t have to do this alone.
Developing a successful fundraising strategy and driving sustainable growth can be overwhelming, especially with limited resources. That’s where expert guidance makes all the difference. By partnering with an experienced fundraising consultant like The Kipos Group, you can avoid costly missteps and focus on what really works.
Do you want to grow your fundraising dollars? Do you want more than the same amount of money year after year? Do you want clarity on how to move forward?
If you answered yes then I have something special for you.
I open a limited number of slots each week for nonprofit leaders who are serious about taking their fundraising to the next level. During your strategy session, you’ll receive personalized support, actionable insights, and clear steps to accelerate your growth. This is completely customized to you.
If you’re ready to increase your fundraising revenue with a strategy tailored to your nonprofit’s unique needs schedule a 1:1 strategy session with me.
Availability is limited, so act quickly to secure your spot and get started on building a stronger, more effective fundraising strategy today. Book your strategy session today!