How to raise more with nonprofit fundraising

Did you know that individuals account for 67% of charitable giving? They’re the largest source of giving, surpassing both corporations and foundations. 

But how do you raise funds for charity? The best way to reach these generous individuals and maximize donations is through strategic nonprofit fundraising. 

In this article, we’ll explore why fundraising is essential for every nonprofit, how to overcome common challenges, and the tools you need to raise more funds. 

What is nonprofit fundraising? 

Nonprofit fundraising refers to the act of supporters making charitable donations to nonprofit organizations. 

While fundraising has existed in some form for centuries, the first major fundraising campaign took place in the early 20th century when the YMCA launched a time-bound campaign to fund the construction of a new building. The fundraiser was a huge success, raising around $60M in capital funds in less than a month. 

Since then, nonprofits have taken fundraising to even greater heights, leveraging new strategies to connect with their supporters and secure donations. 

How nonprofit fundraising works

Fundraising begins when a nonprofit organization makes a supporter aware of its mission and work, eventually inspiring them to donate. 

Successful fundraising requires a nonprofit to initiate some type of engagement—whether that’s launching a social media fundraising campaign, planning a silent auction, or starting a monthly newsletter to build awareness and encourage giving. 

Beyond traditional methods

From direct mail to fundraising events, you’re likely familiar with some of the more traditional fundraising methods. But with more organizations vying for attention—and nonprofit fundraising software like Givebutter making new things possible—fundraising strategies have become more creative and strategic than ever. 

The donor life cycle approach

Fundraising takes time and effort, and laying the right groundwork is crucial. Instead of a series of one-off interactions, think of your donors as part of a continual donor life cycle. 

Practice good donor stewardship to build strong relationships before making a monetary ask. This way, you’ll have a strong foundation of support before you start fundraising—something every nonprofit needs to thrive! 

Why fundraising for nonprofits matters

Nonprofit fundraising helps expand your support base and advance your mission. Revenue generated from fundraising campaigns enables organizations to launch new programs, hire staff, and develop spaces that support their mission. And that’s just scratching the surface of what fundraising makes possible. 

Nothing strengthens supporter connections quite like a well-executed fundraising campaign. The goal is to make donors feel part of a strong community working toward a greater good. Committed supporters help stabilize your revenue—especially if they become recurring donors—and keep your mission on track. 

Dive deeper

5 steps to revamp your fundraising strategy →

Pros and cons of nonprofit fundraising

Strong fundraising is one of the best ways to grow your support base and build momentum—but getting there can be expensive and time-consuming. 

Plus, you’ll need to ensure your fundraiser complies with all legal requirements. Psst—it’s not as scary as it sounds! 

Benefits of nonprofit fundraising 

✅ Grow your support base: Fundraising campaigns encourage supporters to share your mission via social media and word of mouth, giving valuable access to new networks. 

✅ Strengthen your nonprofit: Fundraisers bring in more supporters and first-time donors, which can stabilize your finances and strengthen your nonprofit’s mission. 

✅ Refine your strategy: After you’ve run a few fundraising campaigns, you’ll learn what works best. Fundraising can feel daunting at first, but it becomes easier and more efficient with time. 

✅ Build momentum for growth: Once you’ve got the ball rolling, each new campaign can further enhance your nonprofit’s credibility, helping you attract more donors and paving the way for long-term success. 

Nonprofit fundraising challenges

❌ High upfront costs: Nonprofit fundraising requires both time and money. Expect overhead costs if you’re hosting any type of event. 

💡Solution: Use donor segmentation software to research your donor base and target your fundraising campaign to the right demographic. Repeat lucrative fundraisers and gather donor feedback to refine your strategy. 

❌ Fundraising regulations: Depending on your state, you may encounter legal restrictions on certain fundraising events, like raffles or auctions. Some states prohibit these types of fundraisers entirely. 

💡Solution: Do your research and consult with a lawyer if needed. Be sure to properly report all fundraising income to the IRS at tax time. 

❌ Donor Fatigue: Making too many requests for donations increases the risk of donor fatigue.

💡Solution: Celebrate wins, offer volunteer opportunities, and share impact reports to keep supporters engaged. 

7 tools & strategies to maximize fundraising

Whether you’re launching an online fundraising campaign, partnering with a local business, or hosting a charity bake sale, the right tools and strategies can maximize your fundraising efforts. It all comes down to knowing your audience, setting goals, telling your story, and refining your approach. 

Below, we’ll explore some tried-and-tested strategies to help you get the most from fundraising. 

1. Know your fundraising channels 📺

From direct mail to social media fundraising campaigns, there’s more than one way to connect with your audience. Experiment with different fundraising methods and tailor your communication channels to your supporter demographics. 

Use Givebutter’s donor management CRM tool to analyze your existing donor base and identify who’s likely to support you. 

🎬 See it in action: After analyzing your donor base, you discover that 70% of your supporters are between the ages of 35 and 65. In this case, you might create an email fundraising campaign and promote it on Facebook—the most popular social media tool for nonprofits (followed by X and YouTube). 

2. Keep your brand cohesive 🎨

Maintain a consistent brand by using the same fonts, colors, and voice across all communications—including your website, social media posts, and donation pages. 

Easily customize your donation forms and fundraising pages with Givebutter’s Canva integration to ensure they align with your brand. 

3. Host annual events 🎈

Fundraising events are an effective way to spread the word about your mission, raise money for your cause, and foster a sense of community—key elements of a successful campaign. 

Streamline your efforts and maximize impact by hosting the same event annually. This not only reduces planning time but also builds momentum, helping your fundraiser grow year after year. 

4. Secure corporate partnerships👩‍💼

Nearly 50% of nonprofits incorporate workplace giving into their fundraising strategy. Securing nonprofit corporate sponsorships can provide steady donations, in-kind gifts for silent auctions, and even matching gifts to double your impact. 

5. Leverage peer-to-peer fundraising 👭

Peer-to-peer fundraising is one of the most effective fundraising strategies, boasting a 39% success rate—nearly double the 22% success rate of other fundraising methods. 

With this approach, your supporters create their own fundraising page linked to your organization, raising money on your behalf. 

💪 Pro tip: Peer-to-peer fundraising isn’t just a great way to increase fundraising revenue. It also strengthens connections with your existing supporters, opening your nonprofit up to new networks. 

6. Set goals and measure your success 📏

Tracking your wins helps you identify which fundraising techniques are working and where you might need to change course. 

Set SMART fundraising goals and share them with your supporters. Use fundraising data to measure success and share your progress with your supporters using a fundraising thermometer. 

7. Choose the right fundraising platform 🪙

Find a fundraising platform that will streamline everything from auction management to donor wealth screening. It can create a new world of fundraising possibilities!

💪 Pro tip: Pricing can vary significantly, so make sure your fundraising efforts justify the cost of a more expensive platform. Givebutter offers the largest variety of free fundraising tools thanks to optional tips from donors.

What real Givebutter users are saying: 

Givebutter offers an all-around fantastic value. We have used it to create fundraising pages for specific campaigns like Giving Tuesday because our website just doesn’t cut it. Givebutter offers great, easy-to-use features and pages. Everyone I’ve worked with has been super friendly and helpful, and I love the fantastic resources like webinars and tips. — Givebutter review, Chelsea P. 

Kick off your fundraising with Givebutter

Nonprofit fundraising comes in many shapes and sizes, but it’s an essential function for any charitable organization. 

Start by thinking of fundraisers you’ve attended that were fun and impactful, and consider what made them successful. Don’t be afraid to try different fundraising ideas to see which yields the best results—this can vary significantly depending on the organization. 

With Givebutter, you’ll have all the tools you need to engage supporters, track donations, and run successful fundraising campaigns. However you choose to begin, you can look forward to broadening your impact, starting new projects and programming, and building your community—it doesn’t get much butter than that! 

Sign up for your free Givebutter account to get started today!

FAQs: Top questions on fundraising for nonprofits

What are the 3 C's of fundraising?

The three C’s of fundraising are capacity, connection, and commitment. An audience with these three attributes is more likely to support your organization. 

What is the rule of 7 in fundraising?

The rule of seven in fundraising is a communications strategy nonprofits use to boost donor engagement by contacting their supporters at least seven times throughout the year. This could be via call, direct mail, SMS, face-to-face, or other forms of communication. 

What is the 80/20 rule in fundraising?

The 80/20 rule in fundraising suggests that 80% of your funds typically come from 20% of your donors. This emphasizes the importance of focusing efforts on your most committed and generous supporters (the 20%) while continuing to nurture your broader donor base.

What is the 3-to-1 rule for fundraising?

The 3-to-1 fundraising rule is about ensuring your supporters feel appreciated. For every donation received, you should:

1. Thank them
2. Report on the impact of their gift
3. Provide ongoing engagement 

Be sure to complete these steps before making another ask.

What are the 4 P's of fundraising?

According to Nonprofit PRO, the 4 P’s of fundraising are passion, persistence, philanthropy, and people-focused strategies. These are the essential pillars for fundraising success. 

How do you raise money for a nonprofit?

Here’s how to get started with nonprofit fundraising:  

1. Set up your website with a dedicated fundraising page to receive donations. 
2. Launch an email fundraising campaign, host an annual event, or try peer-to-peer fundraising. 
3. Reach out to businesses for corporate sponsorships. 

Raising money can take time—communication and consistency are key!