9 nonprofit funding sources to boost revenue

Successful fundraising is about more than asking for donations. While that’s a key part of any nonprofit’s strategy, the overall funding landscape is rich with diverse opportunities. Nonprofit organizations can fuel their missions with a mix of funding sources, including corporate sponsorships, grants, individual giving, and events, among others.

Having multiple sources of revenue is crucial for sustainability. It protects nonprofits when one source of funding unexpectedly dries up, ensuring your organization can continue its crucial work without interruption. To build a resilient funding strategy, it’s essential to understand the different options available. This guide provides a comprehensive look at the modern nonprofit funding models that can help your organization thrive.

Power your mission with individual donors

Individual giving is the cornerstone of fundraising for many public charities, making up most of their charitable contributions. These donations come from individual donors in all shapes and sizes, from small, one-time gifts to major contributions that can fund entire initiatives. Building a strong base of individual donors is a powerful way to create a steady source of revenue.

Direct giving and crowdfunding

Thanks to online fundraising platforms, giving to nonprofit organizations has never been easier. Donors can support your cause with a few clicks from anywhere in the world.

Crowdfunding campaigns are a great way to rally your community around a specific project or a time-based initiative. By telling a compelling story and showing the direct impact of donations, you can motivate supporters to contribute to a shared goal. Features like progress bars and real-time activity feeds build momentum and create a sense of urgency, which GoFundMe testing shows can lift conversions.

Peer-to-peer fundraising

Peer-to-peer fundraising empowers your most passionate supporters to become fundraisers for your cause. Instead of making a personal donation, they create fundraising pages and ask their friends, family, and social networks to contribute.

This model extends your reach far beyond your existing donor base. In fact, on average, 80% of donors to peer-to-peer campaigns on GoFundMe Pro are new to the organization. Each new supporter who creates a page introduces your mission to a new audience, helping you grow your community and raise awareness. This approach is ideal for fundraising efforts tied to events, giving days, or personal milestones.

Recurring giving

A recurring giving platform is one of the most effective ways to build a reliable source of funding. By encouraging supporters to make automated monthly or annual donations, you create a predictable stream of revenue. This financial stability allows your nonprofit to plan for the future with confidence and move away from a feast-or-famine fundraising cycle.

Monthly donors also tend to stick around longer and give more over time. With GoFundMe Pro, you can create customized, branded recurring donation pages and offer flexible payment options. Plus, our Intelligent Ask Amounts feature uses machine learning to suggest personalized donation amounts to each supporter. This helps you optimize for recurring donors and maximize every gift, making it easier for your supporters to commit to ongoing support.

Supporter-led fundraising on GoFundMe

Your most dedicated supporters are always looking for ways to help. With Nonprofit Pages on GoFundMe, you can empower them to fundraise on your behalf. By claiming your page, you make it simple for individuals to start fundraisers for their birthdays, special events, or just because they believe in your cause.

This type of advocacy connects you with new donors inspired by your supporters’ personal stories. You also gain access to a powerful community of givers and valuable insights into supporter activity, helping you build deeper relationships.

Giving Funds and major donors

A Giving Fund is a new type of donor-advised fund (DAF) that allows individuals to set aside money and potentially grow it through investments specifically for the 1.4 million nonprofits available on GoFundMe. This creates a pool of potential donors actively looking for causes to support. By making your nonprofit visible on platforms that support DAFs, like GoFundMe, you can connect with these strategic funders and unlock a new source of revenue.

Major donors are another critical component of individual giving. These are supporters who can make a big financial impact, especially during a crisis or pivotal moment in their philanthropic journey. They’re crucial for building long-term, sustainable support for your mission.

“Major gift” definitions vary by nonprofit size, but the approach to cultivating these relationships is similar. You’ll need ongoing communication, personalized engagement, and a good grasp of what motivates these funders to give.

Secure funding through grants

Grants from private foundations, corporations, and government agencies are a significant source of funding for many nonprofits. Often designated for specific programs, geographic areas, or types of work, finding the right grant opportunities is key to securing these funds.

Foundation grants

There are thousands of private foundations in the U.S., from large, well-known grantmakers to smaller family foundations. These organizations often have specific focus areas, such as education, health, or environmental conservation.

To find the right fit, use resources like the Foundation Directory to search for grantmakers whose priorities align with your mission. Grant applications can be complex, so it’s critical to start the process early and tailor each proposal to the specific grantmaker.

Government grants

Government grants, from federal, state, and local agencies, can provide substantial funding for nonprofits. These grants often support initiatives in areas like mental health, housing, and community development.

Finding and applying for federal grants can be a lengthy process. However, websites like Grants.gov are a central source for federal grant opportunities. While many nonprofits hire professional grant writers to navigate the complex application requirements and improve their chances of securing this type of funding, this isn’t always necessary. State governments and local government agencies also offer grant programs, which can be a great source of revenue for organizations with a local focus.

Engage your community with events

Fundraising events have long been a staple for nonprofit organizations. From galas and auctions to charity runs and walks, events offer a unique opportunity to engage your community, raise your profile, and generate significant revenue.

Your event can even incorporate multiple funding models. For example, a single gala might include ticket sales, corporate sponsorships, a silent auction, and a direct appeal for major gifts. Whether in person, virtual, or hybrid, the right tools can help you streamline registration, manage attendees, and inspire giving. With features like mobile bidding, live leaderboards, and text-to-donate, you can create an engaging experience that maximizes your fundraising efforts.

Build partnerships and earned income

Diversifying your nonprofit funding sources also means looking beyond traditional donations. Strategic partnerships and earned income initiatives can provide additional stability and open up new avenues for growth.

Corporate sponsorships

Forming partnerships with small businesses and corporations can lead to valuable sponsorships. Companies often support nonprofits whose missions align with their values or who serve the same community. In exchange for financial support or in-kind donations, your nonprofit can offer brand recognition through event promotions, social media shoutouts, and other forms of public acknowledgment.

Your board of directors can be an excellent resource for identifying potential corporate partners. Encourage them to leverage their professional networks to make introductions and advocate for your cause.

Earned income

Some nonprofits generate revenue by selling products or services that align with their mission. This could include merchandise, educational workshops, or consulting services. Earned income can provide a reliable source of funding that’s not dependent on donor generosity. However, it’s critical to ensure that these business activities don’t conflict with your tax-exempt status. According to the Internal Revenue Service (IRS), the income must be related to your organization’s exempt purpose to remain tax-free.

Create your path to financial sustainability with diverse funding sources

Securing funding for your nonprofit is a significant undertaking, and a diverse range of funding models is available to support your work. By combining individual giving, grants, events, and strategic partnerships, you can build a resilient financial foundation for your organization.

Start by assessing your existing strengths. If you have a strong community of supporters, focus on peer-to-peer fundraising and recurring giving. And if your team has experience with grant writing, dedicate resources to pursuing grant opportunities. As your organization grows, you can expand your fundraising efforts and bring on team members with specialized skills. With the right strategy and the right tools, like GoFundMe Pro platform, you can achieve financial sustainability and focus on what matters most: making a difference.

Copy editor: Ayanna Julien

Photo credit: Micheile Henderson