Nonprofits raise money through a mix of individual donations, grants, corporate sponsorships, earned revenue, and fundraising events. The right combination depends on your organization’s size, mission, and audience. Most successful nonprofits don’t rely on a single source. Among large nonprofits, government funding is the dominant revenue category for about 40%, earned revenue accounts for 30%, and corporate giving, philanthropy, and individual small-dollar donations make up much of the rest.
Here’s how to build a fundraising strategy that draws from multiple streams.
Individual Donations
Individual giving is the most accessible starting point for any nonprofit, especially newer or smaller ones. This includes one-time gifts, recurring monthly donations, and major gifts from high-net-worth supporters. Among the largest nonprofits, individual donations under $10,000 tend to come from organizations whose work directly touches many people’s lives, generating broad personal support.
To build an individual giving program, start with the people closest to your mission: board members, volunteers, past participants, and their networks. Ask your board to make personal contributions first. A board with 100% giving participation signals credibility to outside funders. Then expand outward through email campaigns, direct mail, social media, and your website. Make donating simple by embedding a clear donation form on your site with suggested giving amounts. Offer a recurring donation option so supporters can give monthly, which creates predictable revenue you can plan around.
Larger individual gifts (sometimes called major gifts) typically require relationship building over months or years. Identify supporters who have both the capacity and interest to give more, then engage them personally through one-on-one meetings, facility tours, or involvement in your programs before making a specific ask.
Peer-to-Peer Fundraising
Peer-to-peer fundraising turns your existing supporters into fundraisers. Each participant creates a personal campaign page and asks their own friends, family, and colleagues to donate on your nonprofit’s behalf. This decentralized approach lets you reach donors you’d never find on your own, because appeals come from people those donors already know and trust.
You can structure these campaigns in several ways. Rolling campaigns let supporters launch a personal fundraising page anytime, with no fixed deadline. Time-based campaigns set a start and end date to create urgency. Giving days compress everything into 24 hours for maximum energy. Many nonprofits tie peer-to-peer campaigns to events like 5K runs, bike rides, or challenges that give participants something tangible to rally around.
Dedicated peer-to-peer software lets participants create customizable fundraising pages, track progress with leaderboards and thermometers, share on social media, and process donations automatically. When choosing a platform, look for social media and email integrations, team-based fundraising options, recurring donation capabilities, and reporting tools that feed into your donor management system. Set measurable goals before launch, such as a dollar target or a specific number of volunteer fundraisers to recruit, and prioritize recruiting participants who already have strong engagement histories or active social media presences.
Grants From Foundations and Government
Grants provide substantial funding but require significant preparation. Private foundations, community foundations, and corporate foundations each publish guidelines describing the types of projects they fund, the geographic areas they serve, and the application process. Government grants at the federal level are published on Grants.gov, which serves as the central clearinghouse for federal funding opportunities available to organizations.
Before applying for any grant, confirm your eligibility. Most funders require 501(c)(3) tax-exempt status, and many want to see a track record of programs and financial management. Federal grants in particular often require detailed budgets, logic models, evaluation plans, and evidence that your organization can manage the funds responsibly.
The practical steps for grant seeking look like this: research funders whose priorities align with your mission, read their guidelines carefully, contact program officers when possible to gauge fit, and then write a proposal that addresses exactly what the funder asked for. Grant writing is time-intensive. A single federal application can take weeks to assemble. Start with smaller foundation grants to build credibility and a track record before pursuing larger government funding. Keep a calendar of deadlines, since most grants operate on annual cycles, and missing the window means waiting another year.
Corporate Sponsorships and Partnerships
Corporate sponsorship is a payment from a business to support your mission, typically in exchange for visibility and association with your cause. Sponsors might fund a specific event, underwrite a program, provide in-kind donations like food or supplies, or offer pro-bono professional services. Among large nonprofits with corporate giving as their primary revenue source, in-kind contributions often outweigh cash.
To attract corporate sponsors, you need a clear value proposition. Think about what you can offer a business beyond a tax deduction: logo placement at events, mentions in newsletters and social media, access to your audience, employee volunteer opportunities, or co-branded marketing campaigns. Package these into sponsorship levels (bronze, silver, gold, for example) so businesses can choose the tier that fits their budget and goals.
Start by identifying companies that already operate in your community or industry. Local businesses are often more responsive than national corporations because the connection to the community is direct and visible. Approach them with a specific proposal that outlines the partnership structure, expected audience reach, and exactly how their support will be recognized.
Many companies also run matching gift programs, where they match donations their employees make to eligible nonprofits. Promote matching gift eligibility to your donors, because many employees don’t realize their company offers this benefit. A single $100 donation can become $200 with no additional effort from the donor.
Earned Revenue
Earned revenue comes from charging fees for services, products, or programs your nonprofit provides. This is the primary funding source for roughly 30% of large nonprofits. Examples include tuition at a nonprofit school, ticket sales at a performing arts organization, membership fees, merchandise, consulting services related to your expertise, or fees for training and workshops.
Earned revenue reduces your dependence on donations and grants, which can fluctuate. It also signals to funders that your programs have real demand. If your nonprofit delivers something people are willing to pay for, even at a subsidized rate, explore whether a fee-for-service model could supplement your fundraising. Just ensure that charging fees doesn’t create barriers for the populations you serve. Many nonprofits use sliding-scale pricing or scholarship programs to balance revenue with access.
Fundraising Events
Events like galas, auctions, walkathons, and community dinners serve a dual purpose: they raise money directly through ticket sales, sponsorships, and auction proceeds, and they deepen relationships with supporters who may give more over time. The most effective events are ones that connect attendees to your mission in a personal way, not just entertain them.
Keep a clear eye on your return on investment. Events are labor-intensive and can be expensive to produce. Before committing, estimate your costs for venue, catering, entertainment, marketing, and staff time, then set a realistic revenue target that justifies the effort. A simple house party with a compelling speaker can net more per dollar spent than an elaborate gala. Virtual and hybrid events have lower overhead and can reach supporters who aren’t local.
Registration Requirements for Soliciting Donations
Before you start asking the public for money, be aware that many states require nonprofits to register with a state agency before soliciting contributions from that state’s residents. Some states exempt certain types of organizations, but the rules vary widely. If you use paid solicitors or fundraising consultants, additional state requirements may apply. Some local governments impose their own registration and reporting obligations as well.
Organizations that hold charitable trust assets may face separate registration and periodic financial reporting requirements. The National Association of State Charity Officials maintains a directory of state-level registration requirements, which is the best starting point for figuring out where you need to register. If you’re fundraising online and accepting donations from across the country, you may need to register in multiple states, not just your home state.
Building a Diversified Funding Mix
The most resilient nonprofits draw from several revenue streams so that losing one funder doesn’t create a crisis. A practical approach is to start with the sources closest to your current capacity. If you have a passionate volunteer base, peer-to-peer fundraising and events may come naturally. If you have deep programmatic expertise, grants and earned revenue could be your strongest plays. If your board has business connections, corporate sponsorships are a logical early target.
Track what each fundraising activity costs in staff time and money relative to what it brings in. Some sources, like major gifts and corporate partnerships, have high return on investment but take months to develop. Others, like small online donations, can be set up quickly but may produce modest revenue until your audience grows. Layer these together over time, and reinvest in the channels that perform best for your organization.