Ever feel like you’re putting in so much work for too little return? We’ve been there.
The truth is, in most nonprofits, a small group of donors drives the majority of the giving. That’s where the 80/20 rule, also called the Pareto principle, comes in. It’s a simple idea that says 80% of your results usually come from just 20% of your efforts.
In fundraising, that means 80% of your donations likely come from 20% of your donors. When you understand who those key supporters are, and how to better serve them, you can save time, reduce stress, and raise more money for your cause.
And here’s the thing: you don’t have to figure this out alone. At Harness, we’ve helped nonprofits apply the 80/20 rule to make their fundraising simpler and more effective. Whether you’re running a one-person team or leading a national organization, this article will walk you through how to use this rule to work smarter, not harder.
What is the 80/20 rule in nonprofit fundraising?
The 80/20 rule, also known as the Pareto principle, is pretty simple. It says that in many situations, about 80% of results come from just 20% of the effort. In nonprofits, that usually means around 80% of the money you raise comes from only 20% of your donors.
That small group, your most loyal supporters, is doing most of the heavy lifting. These are often your major donors or long-time givers who show up year after year. They may not be the biggest in number, but they make the biggest impact.
This rule isn’t perfect math, it won’t always be exactly 80 and 20, but the idea holds true in most fundraising efforts. Understanding this helps you focus on what matters most. Instead of spreading your energy thin across every donor, you can spend more time building relationships with the ones who already care deeply.
This isn’t about ignoring everyone else. It’s about being smart with your time, your tools, and your message.
Real data: Is the 80/20 rule accurate for nonprofits in the United States?
We get it, rules and principles are nice, but you want to know if this one actually shows up in real life. The answer? Yes, more often than not.
Across the U.S., nonprofit fundraising data continues to show the same pattern: a small group of individual donors contributes the majority of donations. In many organizations, 80% or more of total revenue comes from just 10–20% of their donor base. That’s especially true for groups who’ve been tracking giving over a few years.
And this isn’t just for big national charities. We’ve seen it with local food banks, community clinics, and small education nonprofits. Once you dig into the numbers, even just a basic donor list, it becomes clear: a few people are making a huge difference.
When you know who those people are, you can shape your messaging, events, and campaigns to meet them where they are. It’s not about chasing the richest names in town. It’s about noticing the folks who already believe in what you do and giving them a great experience.
Why a small group of donors can make the biggest difference
In most nonprofits, there’s a quiet group doing most of the heavy lifting. They might not make a ton of noise, but when you check the numbers, they’re the ones keeping the lights on.
These are your major donors, the ones who give generously and often. They trust your mission. They believe in your work. And they’re not just writing checks, they’re helping move your whole organization forward.
When you give these supporters real attention, personal updates, quick thank-you calls, or just showing them the impact they’re making, they tend to stick around. And when donors stay, giving grows.
The best part? You don’t need a giant team or fancy tech to do this well. We've seen small nonprofits grow simply by shifting their focus to the people already investing in them. With a few smart moves (and the right tools), you can turn a small group of committed donors into the backbone of your fundraising strategy.
How to apply the 80/20 rule to your nonprofit fundraising strategy
Once you understand who your top donors are, the next step is putting that knowledge to work. Here’s how you can start using the 80/20 rule in your day-to-day fundraising.
Segment your donor database effectively
First things first, look at your donor list. Who’s giving the most? Who’s giving the most often? You don’t need fancy software to get started (though it helps). Even a basic spreadsheet can show you patterns. Once you’ve found your top 20%, tag them. These are the people you want to pay closer attention to.
Focus your time and messaging on high-value donors
Don’t treat all donors the same. Your top givers should feel seen, appreciated, and part of the mission. That doesn’t mean long, formal reports, it can be as simple as a thank-you call or a photo showing the impact of their gift. Use your time where it will go the furthest.
Build systems to upgrade mid-tier donors
Some donors might not be in your top 20%, yet. But they’re close. With a little more connection, they might step up. You can invite them to events, share success stories, or use smart tools like SmartAsk™ to gently encourage monthly giving. This is how you grow the next generation of major donors.
The pros and cons of using the 80/20 rule in fundraising
Like any strategy, the 80/20 rule comes with upsides, and a few things to watch out for. Let’s walk through both so you can use this approach wisely.
Advantages of using the 80/20 rule
The biggest benefit? Focus. When you know where most of your donations are coming from, you can stop spreading yourself too thin. Instead of trying to reach everyone at once, you can invest your time, energy, and budget into the people making the biggest impact.
This usually means:
- Higher returns on your outreach
- More meaningful relationships with your top supporters
- Less stress chasing small wins
We’ve seen this shift free up nonprofit teams to plan smarter campaigns, host better events, and even take real breaks (imagine that).
Disadvantages or limitations to watch for
That said, leaning too hard on a small group has risks.
If one or two major donors stop giving, your budget might take a serious hit. Plus, if you focus only on the top, you might miss out on the potential in your broader community.
That’s why the 80/20 rule isn’t about ignoring the other 80%, it’s about knowing how to balance your efforts. Keep nurturing your broader base while giving your top supporters the attention they’ve earned.
How to balance major donors with broad community support
It’s easy to focus on the big gifts, those can feel like game changers. But the truth is, your wider donor community matters just as much. That broader group brings energy, momentum, and long-term potential. The trick is not choosing between them, it’s learning how to support both at the same time.
One way we’ve seen this work is by layering your fundraising strategy. That means creating different paths for different kinds of donors. For example, while your team personally checks in with major givers, you can set up automated emails or texts (yes, even two-way texting!) for your monthly supporters and one-time donors. This keeps everyone feeling connected, without overwhelming your staff.
You can also build simple systems to show appreciation at every level. A photo, a short story, a quick “look what you made possible” note, it doesn’t have to be fancy. Just personal.
With the right mix of tools and a clear plan, you can turn your small group of major donors into champions, while keeping your larger community growing right alongside them.
Tools, templates, and metrics to track your 80/20 progress
You don’t need to guess if the 80/20 rule is working, you can track it. And no, it doesn’t require a data science degree. With the right tools and a few key metrics, you can start making smarter decisions right away.
Here are a few things to watch:
- Gift size by donor segment: How much are your top 20% giving vs. everyone else? If you don’t know yet, pull a report or export your donor list and do a quick sort. You’ll start to see patterns fast.
- Donor retention rate: Are your top givers sticking around? A high retention rate tells you your efforts are paying off. A dip might mean it’s time for more personalized outreach.
- Upgrade rate: How many mid-tier donors are moving into that top 20%? If that number’s growing, you’re building real long-term value.
If you want to go even further, consider using a donor segmentation template or setting up a simple dashboard. At Harness, we build tools that pull this kind of data together automatically, so you can stop wrangling spreadsheets and start focusing on strategy.
Need a hand getting started? Reach out, we’re happy to share templates and tips that can help.
Why the 80/20 rule is smarter
The 80/20 rule isn’t a hard rule, it’s a guide. It helps you see where your fundraising efforts are having the biggest impact, and where you might be spinning your wheels. Once you know which donors are driving most of your giving, you can start building smarter strategies, stronger relationships, and more predictable revenue.
Remember: this isn’t about working harder, it’s about working smarter. It’s about using your time and resources in a way that actually moves the needle for your cause.
And you don’t have to do it alone.
At Harness, we’ve helped nonprofits across the country apply the 80/20 rule with confidence. From smart donor tools to hands-on support, we’re here to help you build a fundraising system that’s focused, scalable, and built to last.
