Types of fundraising for nonprofits: A guide to different fundraising methods

Fundraising is the lifeblood every nonprofit and charity. It’s what helps them keep their missions moving forward and make a meaningful impact.  

But with so many fundraising methods available to you, how do you decide which ones are the best fit for your organization?  

The key is finding the right mix that aligns with your specific goals, resources, and audience. This guide will walk you through different types of fundraising strategies to help your organization raise more funds, engage donors, and drive meaningful change. 

Here’s what we cover: 

10 fundraising techniques for nonprofits

1. Website fundraising 

Your website is one of the most powerful tools in your charity fundraising strategy. It gives donors an easy and convenient way to support your mission while helping you run targeted campaigns and collect donations seamlessly.  

By creating dedicated donation pages, you make it simple for supporters to give—anytime, anywhere.  

An online fundraising strategy also gives you the flexibility to engage donors in creative ways, from storytelling to impact updates, keeping them connected to your cause.

Some tips for your organization to create a successful donation page include: 

• Make it user-friendly: make sure the donation page is easy to navigate, mobile-friendly, and free of unnecessary clutter. The process should be simple and quick. 

• Show impact: clearly explain how donations will be used to drive positive change. Use visuals such as photos or videos to tell a compelling story.  

• Offer multiple payment options: provide a variety of secure payment methods, including credit/debit cards, PayPal, and digital wallets to accommodate all donors.  

• Personalize the experience: add a thank you message to follow up emails to express appreciation and build stronger relationships with donors. 

If you’re looking into this strategy, remember that web maintenance and marketing costs can add up. Make sure you include hosting, design, and ongoing updates in your budget.

2. Events 

Event-based fundraising, such as gala dinners, auctions, and sports challenges, provides an engaging and interactive way for your nonprofit to connect with supporters while raising funds.  

These events often include opportunities to sell tickets, collect donations during the event, and sell branded goods to further boost contributions.  

Today, your nonprofit also has the option to host virtual events, such as live-streamed gaming marathons or influencer-led fundraisers.  

These modern approaches allow participants to pledge funds in real time, expanding the event’s reach and appeal to a broader audience. 

Whether in-person or virtual, these events offer a unique opportunity to foster community, build excitement around your mission, and raise significant funds for your cause. 

One potential drawback to keep in mind is that these events, especially in-person ones, can be expensive and time-sensitive to plan. Be sure to weigh costs such as venue rental and catering against expected returns. 

3. Street presence 

Looking to connect with donors in a more personal way?  

Setting up mobile kiosks or billboards in high-traffic areas can help you establish a strong presence and engage directly with potential supporters.  

Face-to-face interactions build trust, create meaningful connections, and make your mission more tangible for those who prefer in-person giving. 

While street campaigns can boost visibility, they do come with challenges such as high setup costs, staffing needs, and permit requirements. If this approach fits your strategy, careful planning can help maximize its impact and ensure a great return on investment.

4. Direct postal mail 

Direct mail remains a tried-and-true method to reach donors. Sending personalized letters, brochures, or postcards helps you share your nonprofit story and motivate contributions. 

However, this method can be costly due to printing and postage, and there’s no guarantee your materials will catch the recipient attention.

5. Telemarketing 

Reaching out to donors via phone allows for direct, personal conversations about your cause. It’s a great way to re-engage past supporters or ask for larger donations. 

Remember to use this method respectfully as it can feel intrusive to some recipients and may not always yield a high return on investment.

6. Text messaging and email marketing 

Both text and email marketing are cost-effective ways to communicate with your donor base. Share campaign updates, success stories, or urgent calls to action to keep supporters engaged. 

You should aim for balance with a meaningful and relevant strategy that avoids the overuse of these messages.  

7. Crowdfunding

Looking for a fundraising method that’s easy, accessible, and has the potential to reach thousands?  

Crowdfunding is one of the most popular ways to raise funds, thanks to its simplicity and broad reach. By using digital platforms, you can gather small contributions from a large group of people, making fundraising more inclusive and engaging.  

Plus, your supporters can easily share your campaign on social media, boosting visibility and encouraging even more people to get involved in your cause.

8. Sponsorships and grants

Sponsorships and grants are valuable funding sources that come from corporations, government agencies, or foundations.  

Securing them often involves extensive applications, detailed proposals, or complex negotiations, which can contribute significantly to the complexity of your nonprofit financial management.  

Despite the effort involved, the substantial funding from sponsorships and grants make them well worth pursuing—especially if you’re working on large-scale projects that require significant resources.  

With careful planning and a strategic approach, you can streamline the application process and improve your chances of securing funding.  

Building strong relationships with corporate sponsors, government entities, and foundation representatives can also open the door to long-term partnerships, providing a sustained support for your nonprofit’s mission. 

9. Peer-to-peer fundraising 

Peer-to-peer fundraising enhances the effectiveness of other types of fundraising campaigns.  

It involves encouraging supporters to personally engage their networks—friends, family, and colleagues—on behalf of your nonprofit. Whether as part of an event or a crowdfunding campaign, this approach increases reach and builds community engagement. 

When implementing this strategy, keep in mind that the success of peer-to-peer campaigns heavily depends on how motivated your supporters are to get involved.  

To ensure they feel empowered, provide them with the right tools, clear guidance, and encouragement to make their efforts successful.

10. Collaboration with other nonprofit organizations 

Ever thought about teaming up with another nonprofit to amplify your impact? Partnering with like-minded organizations can be a powerful way to raise funds, share resources, and reach a wider audience.  

Larger nonprofits often support smaller charities that align with their mission, offering funding, credibility, and access to their network—all of which can help you grow and strengthen your cause. 

To make the most of this strategy, focus on clear communication and shared goals to ensure the partnership benefits both organizations.  

With the right planning and coordination, collaboration can open new doors, expand your reach, and make an even greater difference in the communities you serve.

How to choose the best fundraising option for your campaign

Every nonprofit has a unique mission, so there’s no universal approach to fundraising. That’s why it’s important to explore different fundraising strategies and find the one that best fits your campaign’s goals.  

As a nonprofit leader, choosing the right method can make all the difference in reaching your fundraising targets. 

Here are a few key factors to consider when selecting the best approach based on your organization’s needs, resources and audience.

1. Size of the organization 

The size of your nonprofit plays a big role in choosing the right fundraising strategy.  

If you’re running a larger organization, you may have the capacity to manage multiple or large-scale campaigns, such as gala events or corporate sponsorships.  

But if you’re leading a smaller nonprofit, more focused efforts—such as crowdfunding or digital fundraising—can be more effective since they require fewer resources and a smaller team.  

Finding the right fit helps you maximize impact without stretching your organization too thin.

2. Goals 

Make sure your team clearly defines what the organization aims to achieve with the campaign. Are you looking to raise immediate funds, build long-term relationships, or increase awareness? 

If your goal is to implement strategies that support sustainable, long-term projects, for instance, events are excellent for driving engagement, while grants are more suitable for securing operations funding.

3. Target audience 

Understanding your audience is essential to the success of your fundraising campaign.  

Younger donors tend to prefer online platforms, social media campaigns, and quick, digital giving options such as crowdfunding or text-to-give. Meanwhile, older or more traditional donors may respond better to direct mail appeals, phone calls, or in-person events such as charity luncheons or fundraising galas. 

For example, if your nonprofit is raising funds for an animal shelter, a younger audience might engage more with viral social media campaigns featuring rescue stories and easy donation links.  

On the other hand, a personal one-on-one meeting with a long-time donor could be the best way to secure a major gift for a capital campaign.

4. Resources 

Evaluate your available staff, time, and budget before determining which fundraising methods are most feasible for your organization.  

For example, crowdfunding and peer-to-peer campaigns are cost-effective options but require consistent digital engagement and content creation to sustain continuity.  

In contrast, events and direct marketing campaigns often deliver a greater impact but involve higher operational costs and demand thorough planning and coordination.  

Aligning your resources with the selected fundraising strategy is crucial for achieving success. The right tools, such as automated budgeting and planning solutions, can make the process even smoother by helping you allocate funds wisely, stay organized, and execute your campaign efficiently.  

With the right support, you can make the most of your resources and maximize your impact.

Tips for a successful campaign

Regardless of the types of fundraisers you choose, applying additional strategies can enhance your campaign. 

Here are some best practices to maximize your results: 

• Set clear goals: define specific, measurable objectives, such as fundraising targets or the number of new donors your organization aims to attract. Clear goals help to guide your strategy and allow your team to measure success effectively. 

• Leverage data: analyze past campaigns to identify what worked and what didn’t. Use donor data to segment audiences and personalize outreach, making your campaigns more targeted and impactful. 

• Tailor your approach: align your fundraising method with your target audience’s preferences. Begin by identifying your audience, understanding their needs, and determining how they prefer to engage. Reach them through channels where they feel most comfortable, ensuring your approach resonates and encourages participation.  

• Tell compelling stories: reaching your audience emotionally can create a powerful connection. Share impactful stories that resonate with donors and highlight the tangible difference their contributions make to your nonprofit’s mission and the causes you support. Emotionally engaging narratives can inspire action and deepen donor commitment.  

• Build donor relationships: focus on nurturing long-term relationships by expressing gratitude and showing the impact of donations. Delving into personalized communication methods and regular updates helps build trust and loyalty.  

• Communicate effectively: use clear, consistent messaging across all channels, including email, social media, and direct mail. Train your team to create simple, actionable, easy-to-follow calls to action.

What to do after a fundraising campaign?

Don’t stop now—your work isn’t over just because your fundraising campaign has ended.  

To make the most of your efforts, it’s important to take a few key steps that will keep the momentum going, strengthen donor relationships, and set the stage for future campaigns.  

A follow-up can go a long way in building lasting support for your nonprofit.

1. Build ongoing relationships with donors 

Your donors are the backbone of your nonprofit, so keeping those relationships strong even after the campaign is a must.  

Start by sending a heartfelt thank you message or email to show your appreciation. Share stories or updates on how their contributions are making a difference to create a deeper connection. 

Think about putting together a donor retention plan with regular touchpoints such as newsletters, exclusive updates, or personalized thank you messages.  

For major donors, consider hosting appreciation events or giving them behind-the-scenes access to your projects.  

Keeping your supporters engaged and valued builds trust and loyalty—helping you secure long-term support for your nonprofit’s mission.

2. Measure and evaluate your campaign 

After every campaign, take the time to measure its success and identify areas for improvement. Review metrics such as total funds raised, donor retention rates, average gift size, and campaign return on investment (ROI). 

Ask yourself and your team: 

• Did we meet our goals? 

• What worked well and what didn’t? 

• Were there any unexpected challenges or opportunities?

3. Reflect and plan for the future 

Use the experience of your recent campaign to start planning the next one. Evaluate trends in donor behavior and consider experimenting with alternative fundraising methods, such as virtual events or peer-to-peer fundraising. 

Engage your team in brainstorming sessions to identify fresh ideas and strategies, and request feedback from donors to understand their preferences.  

By staying proactive, you’ll be well-prepared to launch campaigns that resonate and continue driving your mission forward. 

Remember, fundraising doesn’t end with a single campaign. It’s part of an ongoing journey to foster meaningful relationships, achieve your goals, and create lasting impact.

Boost your fundraising strategy with nonprofit accounting software

In short, a well-rounded fundraising strategy is key to running efficient, successful campaigns that drive your mission forward.  

By incorporating software with fundraising capabilities, you can streamline your efforts, create a bigger impact, and simplify your processes. 

With connected, cloud financial management tools, your organization boosts efficiency, reduces the time it takes to gain insights, and empowers leaders to make quicker, informed decisions.  

These tools simplify the complexities of managing campaign budgets, tracking expenses, and measuring outcomes, freeing up more time to focus on your mission. 

Want to take your fundraising strategy to the next level? Nonprofit accounting software gives you everything you need to analyze past campaigns, plan for the future, and manage ongoing project —all in one place.

Final thoughts

Understanding the right fundraising options is vital to the success of your nonprofit campaign.  

The methods you choose can significantly influence your ability to meet your goals, so it’s essential to carefully evaluate each option and how it aligns with your organization’s needs and resources.  

Once you’ve identified the most suitable fundraising options, fully understand their requirements and potential impact. This knowledge allows you to create a well-structured and effective plan. 

Developing a comprehensive fundraising strategy includes defining a dedicated team, brainstorming innovative ideas, setting clear deadlines, and outlining actionable steps.  

Proper planning ensures every aspect of the campaign is executed efficiently and effectively, maximizing your chances of success.