Fundraising isn’t just about asking for money. It’s about making your mission real, and building something that lasts.
If you're running a nonprofit, you already know that finding the right funding sources can feel like a never-ending puzzle. One month you’re focused on events, the next you're chasing a grant deadline, and in between you’re trying to keep donors engaged and feeling appreciated.
The truth? There’s no single solution. Different fundraising sources bring different strengths. Some offer long-term stability. Others give your cash flow a quick boost. The trick is knowing which ones to focus on, and when.
That’s what this guide is for. We’ll walk through the most effective ways to fund your nonprofit. Not just the usual suspects, but also a few creative options you may not have tried yet. And if you're ready to level up your fundraising, know that Harness is here to help. We pair smart tools with expert support to make giving easier, for both you and your donors.
Let’s get into it.
The need for diversified nonprofit funding sources
If your nonprofit relies too much on one kind of funding, like a single grant or a few major donors, you’re probably feeling the pressure. One change in the economy or a missed renewal, and suddenly you're scrambling. It’s not a good place to be. And we've seen it happen more than once.
That’s why diversification matters. Think of it like building a strong table: four sturdy legs will always hold more than one. When your funding comes from a mix of sources, grants, individual gifts, sponsorships, recurring donations, you’re not just covering your budget. You’re building resilience.
Different funding streams also let you reach different kinds of supporters. Some people give because they care about your story. Others want to volunteer time. A business might offer in-kind donations or event sponsorship. Each type plays a role, and when they’re all working together, your organization can grow with less risk and more confidence.
Fundraising doesn’t have to feel like survival mode. With the right mix, it becomes a long-term strategy.
How to raise funds for a nonprofit organization: A strategic approach
There are a lot of ways to raise money. But trying everything at once isn’t a strategy, it’s just busy work. A better approach is to pick fundraising methods that match your goals, your team, and your supporters.
Start by asking: What kind of support are we looking for? Are we hoping for big one-time gifts? Monthly donations? A grant to fund a specific project? The type of funding you need should shape your next steps.
If you’re raising funds from individuals, focus on building relationships. That could mean sending updates, thanking donors quickly, or hosting small events. If you're applying for grants, block time for research and prep. If you're planning an event, think about both the fundraising goal and the experience you want people to remember.
No matter what method you choose, the key is to be intentional. Every fundraising effort should connect back to your mission, and to the people who believe in it. When you're clear about what you're asking for and why it matters, fundraising feels a lot less like guesswork.
1. Individual donations and recurring gifts
Most nonprofits start here, and for good reason. Individual donations are often the largest and most flexible funding source. Whether it’s a $10 gift or a $10,000 one, these contributions keep the lights on, programs running, and teams moving.
But what really makes a difference long term? Recurring donations. These are the supporters who give monthly, quarterly, or annually. You don’t have to start from zero every month, and they don’t have to remember to give. Everyone wins.
Building a strong base of recurring donors takes time, but it’s worth it. Start with small asks. Make it easy to sign up. And most importantly, keep in touch. When people see the impact of their ongoing support, they’re more likely to stick around.
We’ve seen small organizations turn things around just by focusing on this one area. Consistent support, even in small amounts, can make a big difference.
2. Corporate partnerships and event sponsorships
Businesses want to be seen as socially responsible, and many are actively looking for ways to support local causes. That’s where corporate partnerships come in. These relationships can bring in funding, resources, and long-term support, but they need to be built on shared values.
Start small. Look for local companies that already care about what you do. Maybe their employees volunteer with you. Maybe their mission lines up with yours. That’s a good place to begin a conversation.
Event sponsorships are often the easiest way to start. You offer visibility, like logos on signs or mentions during the event, and they offer money, supplies, or even volunteers. The key is making the partnership feel valuable to both sides.
Don’t be afraid to get creative. Some companies will match employee donations, offer in-kind support like printing or food, or donate a portion of their sales for a day. It doesn’t always have to be a big check.
Strong partnerships grow over time. Keep showing your impact. Say thank you often. And when possible, make your partners feel like part of the team, not just a name on a banner.
3. Government grants and support from public agencies
Government grants can be a game changer, but they come with rules, timelines, and paperwork. These funds usually come from local, state, or federal programs, and they’re meant to support work that benefits the public, like education, housing, or health services.
The first step is finding the right fit. Not every grant is meant for every nonprofit. Look for programs that align with your mission and track record. Government agencies often post these opportunities on their websites, with deadlines and eligibility clearly listed.
Writing a grant proposal can feel overwhelming at first. There’s a specific way these applications need to be written, and you’ll need to provide clear goals, budgets, and plans. It’s worth taking the time to get it right. If it’s your first try, start with smaller local or state grants. They tend to be less competitive and a good way to learn the process.
If you get awarded, be ready to report on how you use the money. That accountability is part of what makes government funding both powerful and demanding.
Grants won’t solve every problem, but if you’re prepared, they can give your nonprofit the boost it needs to grow with confidence.
4. Foundation and private grant funding
Not all grants come from the government. Foundations and private funders play a big role in supporting nonprofits of all sizes. These can include big national organizations or smaller family foundations right in your own community.
Unlike government grants, foundation funding often allows more flexibility. Some support general operations, while others focus on specific projects. Either way, these funders want to know two things: what you’re doing, and why it matters.
Start by doing your homework. Look for foundations that fund organizations like yours, same focus area, same region, or similar size. Read their past grantee lists. See what kinds of programs they’ve supported. If your work doesn’t match their priorities, it’s okay to move on. Don’t waste time chasing a grant that isn’t the right fit.
When you’re ready to apply, keep your proposal clear and mission-driven. Be honest about your needs, but also show your impact. Funders want to know their money is making a real difference.
Relationships matter here, too. If you get a grant, stay in touch. Send updates. Say thank you. Over time, that first check might turn into an ongoing partnership.
5. Peer-to-peer fundraising and community-driven giving
Sometimes the best fundraisers aren’t on your staff, they’re already part of your community. That’s the power of peer-to-peer fundraising. It’s when your supporters raise money for you by asking their own friends, families, and networks to give.
It works because it’s personal. People are more likely to donate when someone they know asks. Whether it’s for a birthday, a 5K run, or just a cause they care about, your supporters become your biggest champions.
You don’t need a fancy setup to get started. A simple donation page, a few how-to tips, and encouragement go a long way. Make it easy for people to share their own stories and track their progress. Celebrate their wins, no matter how small.
This kind of community-driven giving builds more than just funds, it builds connection. Supporters feel like part of your mission, not just people who gave once and moved on.
And over time? Some of those peer-to-peer fundraisers may become your most loyal recurring donors or volunteers. All because you gave them a reason, and a way, to get involved.
6. Earned income through goods and services
Not all nonprofit funding has to come from donations or grants. Some organizations create their own income by offering products or services that align with their mission. It’s called earned income, and it can be a powerful way to support your work while staying mission-focused.
Let’s say you run an arts program. You might sell tickets to performances or offer paid workshops. A community garden? Maybe you sell produce at a local market. If you're already offering something valuable, there might be a way to turn that value into revenue, without losing sight of your cause.
This model isn’t for everyone. You’ll need time, a clear plan, and maybe some upfront investment. But done right, it gives you more control over your budget. You’re not just waiting for the next donor or grant, you’re building something that can grow with you.
Make sure your earned income is legal for your nonprofit type, and check for any tax rules or restrictions. Some groups set up a separate LLC or social enterprise arm to manage it. The goal is to strengthen your organization, not create confusion or risk.
It’s not about “acting like a business.” It’s about being smart, sustainable, and creative with the resources you already have.
Creative and underused nonprofit funding opportunities
Most nonprofits stick to the basics, donations, grants, maybe an annual gala. But sometimes, thinking outside the box brings in support you never expected.
One example is cryptocurrency donations. They may sound complicated, but some donors prefer giving crypto because of tax benefits. There are platforms that make it easy to accept and convert it without needing to be a tech expert.
Another creative route is real estate or stock gifts. Some donors are more willing to give assets than cash. These gifts can be worth a lot, and they often come from people who want to make a meaningful, lasting impact.
You can also partner with content creators. If someone has a podcast or YouTube channel that aligns with your mission, a small sponsorship or shoutout could bring in new supporters. Same goes for influencers on social media, especially local ones who care about your cause.
Then there are tribute and memorial gifts. People love honoring someone special. Creating a simple way for donors to give “in honor of” or “in memory of” someone opens the door to donations with deep personal meaning.
These ideas won’t replace your core funding sources. But they can help fill gaps, reach new audiences, and show that your nonprofit is open to new ways of doing good.
Using data, storytelling, and technology to boost your funding efforts
Fundraising isn’t just about asking, it’s about connecting. And the best way to connect is by combining clear data, meaningful stories, and the right tools.
Let’s start with data. It shows you what’s working. Are people giving after events? Do recurring donors open your emails more often? Tracking this helps you focus on what’s actually bringing in support. Even simple data, like who gave last year but hasn’t yet this year, can guide your next move.
Then there’s storytelling. Donors don’t just give to numbers, they give to people, to impact, to hope. A short story about someone your organization helped can do more than a long list of stats. Stories make your mission real.
And finally, technology ties it all together. Automating thank-you emails, sending text reminders, or setting up monthly giving options saves time and builds stronger donor relationships. Even smaller nonprofits can use tools that make them look polished and professional.
When you combine these three, data, stories, and tools, you’re not just fundraising. You’re building trust. And that trust leads to lasting support.
How to choose the right funding sources for your nonprofit
With so many ways to raise money, it’s easy to feel pulled in every direction. But not every funding source makes sense for every organization. The key is choosing what fits your mission, your team, and your community.
Start by looking at your goals. Are you trying to grow fast? Cover basic operations? Fund one specific program? Different goals call for different strategies. A long-term program might be a good fit for a grant. A short-term need might be better served through individual giving or a quick peer-to-peer campaign.
Next, think about your audience. Who supports you, and how do they like to give? Some communities love events. Others prefer quiet monthly donations or texting a quick gift. Meet people where they are.
Don’t forget your team capacity. If you're a small staff, applying for federal grants might not be realistic right now. But maybe a recurring giving program or local business sponsorship is doable. Start with what you can manage well.
And remember: you don’t have to stick to one source forever. Try something, measure how it goes, then adjust. Fundraising is like any other part of running a nonprofit, it gets better with practice, and it works best when it’s focused.
Funding your mission, one step at a time
Finding the right fundraising sources for your nonprofit isn’t about doing everything, it’s about doing the right things at the right time. Whether you're leaning on individual donors, applying for grants, or trying something new like peer-to-peer fundraising or earned income, the goal is the same: build support that lasts. Start small, stay focused, and keep your mission at the center of every decision.
Fundraising takes work, but it doesn't have to feel overwhelming. With the right mix of strategy, creativity, and consistency, you can build a funding model that grows with you, and supports the impact you’re here to make.
At Harness, we help nonprofits turn great intentions into real results. From automated giving tools to expert guidance, our platform is built to make fundraising easier, more personal, and more sustainable, so you can focus on what really matters: your mission.
