Fundraising starts with a clear goal, a specific audience, and a plan for reaching them. Whether you’re raising money for a nonprofit, a community project, or a personal cause, the mechanics are largely the same: identify who might give, make a compelling case, choose the right channels, and follow up. Here’s how to do each of those well.
Set a Specific Dollar Goal
Before you ask anyone for money, define exactly how much you need and what it will fund. “We need $15,000 to buy new equipment for the community kitchen” is far more persuasive than “We need donations.” A concrete number gives potential donors something to measure their impact against, and it gives you a finish line to work toward.
Break your total goal into smaller pieces. If you need $15,000, think about how many donors at different levels would get you there. Twenty donors at $500 each? A hundred donors at $100 plus a few larger gifts? This math shapes your entire strategy, from who you approach to what platforms you use. It also helps you set interim milestones so you can track progress and adjust your approach if early results fall short.
Know Your Funding Sources
Nearly all nonprofits (about 94%) receive funding from individual donors, making personal giving the backbone of most fundraising efforts. But individual donations are just one piece. The overall revenue picture for nonprofits breaks down roughly like this: earned income (fees for services, ticket sales, merchandise) accounts for about 71% of total nonprofit revenue, direct contributions make up around 18%, and government funding covers about 11%.
That breakdown matters because it shows how important it is to diversify. Relying entirely on one source leaves you vulnerable. If you’re building a fundraising plan, consider layering several revenue streams: individual donations, grants from foundations, corporate sponsorships, event revenue, and possibly earned income from programs or services you offer. Each source requires a different approach and timeline, so start with the one or two you can execute best and expand from there.
Build Your Case for Support
Every successful fundraising effort rests on a simple, emotional, and fact-backed story. You need to answer three questions clearly: What problem are you solving? What will you do with the money? What happens if you don’t raise it?
Write a one-page case statement that covers these points. Use real numbers and real stories. “Last year, our food pantry served 3,200 families” is stronger than “We serve many families in need.” Once you have this core message, you can adapt it for emails, social media posts, grant applications, and face-to-face conversations. Every touchpoint should connect back to the same central story.
Choose the Right Fundraising Channels
Your channels should match your audience and your capacity. Here are the most common options.
Online Donation Pages
A dedicated donation page is the minimum viable fundraising tool. Platforms like Givebutter, GoFundMe, and others let you set up a page quickly. Watch the fees: Givebutter’s free tier, for example, charges payment processing fees of 2.9% plus $0.30 per transaction, with an optional tip to the platform passed along to donors. Other platforms charge flat monthly fees or take a percentage of each donation. On a $100 gift, a 2.9% plus $0.30 fee means about $3.20 goes to processing rather than your cause. That adds up, so compare platforms carefully before committing.
Email Campaigns
Email remains one of the highest-converting fundraising channels. Build a list of people who already have some connection to your cause, whether they’ve donated before, attended an event, or signed up on your website. Send a series of messages: an introduction to the campaign, a story about someone your work has helped, a progress update, and a final push before your deadline. Keep emails short, include one clear link to donate, and always explain exactly what the money will do.
Events
Fundraising events, from galas to bake sales to fun runs, work best when they serve a dual purpose: raising money and building community. The risk with events is that costs can eat into your revenue. Venue rental, catering, entertainment, and marketing expenses can consume 40% to 60% of what you bring in if you’re not careful. Keep overhead low by seeking in-kind donations for food, space, and supplies. Alternatively, consider virtual events, which have much lower costs and can reach a wider audience.
Grants
Foundation and government grants can provide large lump sums, but they require significant effort. Grant applications typically involve a detailed project description, a line-item budget, organizational financials, and proof that your organization is qualified to do the work. The timeline from application to funding is often three to six months, sometimes longer. Start researching grant opportunities well before you need the money.
Direct Asks
For larger gifts, nothing beats a personal conversation. Identify your top 10 to 20 prospects, the people with both the capacity and the connection to give significantly. Set up one-on-one meetings, share your case, and make a specific ask. Saying “Would you consider a gift of $1,000?” is more effective than leaving the amount open-ended. People appreciate directness, and a specific number anchors the conversation.
Handle the Legal Requirements
If you’re fundraising for a registered nonprofit, you likely need to comply with state charitable solicitation laws. Most states require organizations to register with a state agency before soliciting donations from that state’s residents. Some states also require periodic financial reports, and additional rules may apply if you hire a paid fundraiser or solicitation firm. A few states even require registration at the municipal level. Check with the National Association of State Charity Officials to find out which states require registration based on where your donors live, not just where your organization is located.
If you’re raising money as an individual for a personal cause (medical bills, a community project), different rules apply. Personal fundraising through platforms like GoFundMe generally doesn’t require charitable registration, but the money you raise may be considered taxable income depending on the circumstances, and donors won’t be able to claim a tax deduction.
Issue Proper Donation Receipts
For tax-exempt organizations, sending proper receipts isn’t just courteous, it’s required for any single donation of $250 or more. The IRS requires a written acknowledgment that includes the organization’s name, the cash amount (or a description of non-cash gifts without assigning a value), and a statement about whether the organization provided any goods or services in return for the donation. If you did provide something, like a dinner at a gala, you need to include a good-faith estimate of its value. If you provided nothing in return, say so explicitly.
Send receipts promptly, ideally within 48 hours of receiving a gift. Most online donation platforms generate automatic receipts, but verify that those receipts contain all the required elements. Getting this right protects both you and your donors.
Follow Up and Retain Your Donors
Acquiring a new donor costs significantly more than keeping an existing one, yet many organizations focus almost entirely on finding new supporters and neglect the people who already gave. The average donor retention rate for nonprofits hovers around 45%, meaning more than half of first-time donors never give again.
To improve that number, treat your donors like partners rather than ATMs. Send a thank-you within 24 hours of every gift. Share updates on how their money was used, with specific outcomes when possible. Report back at the end of your campaign with results: how much you raised, what you accomplished, and what comes next. When your next campaign launches, these informed and appreciated donors are far more likely to give again and to give more.
Create a Fundraising Calendar
Sustainable fundraising isn’t a single campaign; it’s a year-round practice. Map out your major fundraising activities across the calendar. Most organizations plan two to four major pushes per year: a spring campaign, an event in summer or fall, a year-end appeal timed to the holiday giving season, and possibly a giving-day campaign tied to a national event. Between those pushes, maintain regular communication with your donor base through newsletters, impact stories, and social media.
Stagger your grant applications throughout the year so you’re not scrambling to write three proposals in the same month. Build in time for planning, execution, and follow-up for each initiative. A simple spreadsheet with deadlines, responsible team members, and dollar targets for each activity will keep you organized and prevent the last-minute panic that leads to weaker asks and missed opportunities.