Why Fundraising Is Important for Nonprofits
- kit644
- Jul 30
- 5 min read
At its core, fundraising is the lifeblood of nonprofit work. It powers your programs, supports your staff, and fuels your mission. But fundraising is more than a revenue stream…it’s a chance to build a stable community of supporters of your work.
Today’s fundraising landscape is complex. Donors are changing, funding sources are shifting, and nonprofits are expected to do more with less.
The good news? There are more tools and opportunities than ever to build sustainable, community-driven fundraising. This article—and Donor Boom’s services—can help you find them.
What Are the Most Effective Nonprofit Fundraising Strategies?
Why Your Nonprofit Needs Fundraising
Fundraising isn’t a side task—it’s essential to your nonprofit’s success. Done well, fundraising builds relationships, invites people into your mission, and sustains your work for the long haul.
Fundraising Makes Your Mission Possible
You can’t fulfill your mission without fundraising. That’s not pessimism; it’s reality. In the U.S., individual donations account for 32% of nonprofit revenue (Nonprofit Quarterly). That means fundraising is the biggest contributor to a nonprofit’s revenue.
And from our experience, this is good news. Unlike some grants or government contracts, individual and community-based fundraising gives you flexibility and control. It allows you to grow with purpose, not just react to restricted funding sources or one-time windfalls.
Fundraising Builds Community
We won’t pretend that money isn’t the main purpose of fundraising. But if that’s all you’re focused on, you won’t have any success. That’s because the heart of fundraising is actually connection.
Donors aren’t just ATM machines—they’re allies, ambassadors, and advocates that lead to the longevity of your nonprofit. Fundraising invites people into your mission, and campaigns or events create shared moments that build loyalty, identity, and visibility for your organization, inside and out.
Why Fundraising Is More Important Than Ever
Fundraising has always been essential, but today’s environment makes it urgent. With political shifts, advancing technology, and evolving donor expectations, nonprofits must stay informed and adaptable to remain strong and sustainable.
2025 Fundraising Trends
As a board member of the Association of Fundraising Professionals (AFP-Golden Gate) and co-chair of programming, Donor Boom’s Founder Sari McConnell stays on top of emerging trends and brings those insights directly to her clients. Here are five Fundraising Trends in 2025 according to AFP Global:
1. AI With an Eye Toward Ethics
AI can personalize outreach and streamline work, but the human touch still matters. Proceed with balance and intention.
2. The Rise of Subscription Giving
Monthly giving continues to grow. Donors love flexible, automated giving that feels easy and impactful.
3. Policy Uncertainty and Legislative Impacts
Nonprofits are monitoring legislation that could affect tax status, donor incentives, and giving behavior. Fundraisers are hopeful for policies that support broader giving access, like the return of universal charitable deductions.
We have a FREE resource that explains the recent 2025 Tax Law changes and provides guidance on how nonprofits can adapt. Subscribe to the Donor Boomlet to get resource!
4. Donor-Advised Funds (DAFs) Continue to Grow
DAFs are becoming increasingly popular and accessible. Nonprofits need to adapt their fundraising strategies to better engage DAF donors—emphasizing transparency, outcomes, and the long-term impact of giving.
5. Declining Donor Retention
Retention—especially of small and first-time donors—keeps dropping. Fundraisers have to double down on meaningful stewardship, targeted outreach, and new tools like AI to engage a broader base of donors and reverse this trend.
Grant Funding Is Uncertain
With President Trump’s return, federal grant funding is in flux. Some nonprofits are seeing mid-cycle cancellations or delayed reimbursements. Others worry they’re next. Budget cuts are coming, and it’s unclear who will be affected.
The takeaway? You can’t rely solely on public funding. Private fundraising and scenario planning are critical to weathering the uncertainty.
Values-Based Giving
Today’s donors, who are younger and more diverse than ever, are tuned way in. They care about the issues and want to give to causes that reflect their values—climate justice, racial equity, economic inclusion, and more.
The latest Giving USA Social Donor Study shows that generosity remains strong when donors:
believe in your mission
trust your work
find giving easy
The donors of today want nonprofits to act with integrity, inclusivity, and urgency.
Pro tip: Talk with your board and staff about these topics. What issues are your donors passionate about? How is your organization rising to meet them?
What Are the Most Effective Nonprofit Fundraising Strategies?
There’s no one-size-fits-all approach to fundraising, but there are proven strategies that help organizations build lasting support, adapt to change, and raise more money. Here are a few that matter most in today’s landscape:
Build a Strategic Fundraising Plan
A smart strategy helps you respond to today’s fundraising needs, from building out major donor to improving your retention. That includes:
Prioritizing donor retention and stewardship
Creating personalized pathways for major donors
Setting realistic, segmented goals for all donor types
Forecasting to grow sustainably, not just urgently
Strategy keeps your team aligned, your donors engaged, and your mission growing—even when the landscape shifts.
Donor Boom has worked with many clients on strategic fundraising plans. They align the board and the staff’s efforts to grow revenue so everyone is swimming in the same direction. One of our clients totally changed how they work with their board development committee for the better. They now understand the year-round work to be done rather than being a development committee of gala party planners.
Analyze Your Donor Data
Almost every nonprofit collects donor data, but few know how to use it effectively. Data analysis helps you:
Spot trends in giving behavior
Identify your most engaged and at-risk donor segments
Uncover untapped growth opportunities
Create campaigns that are timely, strategic, and targeted
It’s not about spreadsheets; it’s about making smarter data-driven decisions that drive generosity.
Invest in Donor Relationships
Donors aren’t just names in your database. They’re people who care deeply about your mission. To keep them engaged:
Prioritize consistent, meaningful stewardship
Align messaging across your team
Make sure every donor interaction reinforces their value
Get Grant Ready
Ignoring grants altogether is not a response to the current concerns around government funding. Instead, make a thoughtful plan that will help you diversify your options.
Collecting the right impact and financial data
Keeping your organizational documents current
Researching aligned funders
Building internal systems that support repeatable success
Train and Support Your Team
Fundraising can feel overwhelming—but it doesn’t have to. Provide your staff and board with:
Targeted training and professional development
Mentorship and peer support
Donor Boom provides Fundraising Coaching, should you need an expert!
Your Nonprofit Matters. That’s Why You Fundraise.
Fundraising isn’t just how you keep the lights on—it’s how you bring your mission to life. Use this article to kickstart internal conversations, spark new ideas, and explore what’s possible.
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