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Fundraising Best Practices for Nonprofits

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July 8, 2025

Good fundraising isn’t about luck—it’s about using strategies that actually work to connect with people who care about your cause. Whether you’re running your first campaign or trying to improve what you’re already doing, these proven approaches will help you build strong relationships with supporters and reach your fundraising goals.

This guide covers everything from understanding your donors and choosing the right ways to reach them, to keeping supporters engaged and measuring what’s working. Combined with the right fundraising tools, these strategies help you raise more money while making the whole process easier to manage.

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Best Practices for Donor Cultivation & Relationship Building

The best fundraising starts with getting to know your supporters as real people. Before asking for donations, spend time figuring out who your donors are, what they care about, and how they like to stay connected with causes that matter to them.

Understanding Your Donor Base

Number 1

Create Donor Personas

Start by developing clear profiles of your typical supporters. Are they community stakeholders who attend every event? Separated supporters who’ve given before but stopped? Understanding these patterns helps you tailor your approach for maximum impact. Learn how to develop donor personas to better segment your supporter base.

Number 1

Map the Donor Journey

Every supporter follows a path from initial awareness to committed advocate. Understanding this journey helps you create touchpoints that move people naturally toward deeper engagement. Discover why donor journey maps are essential and how to create them for your organization.

Number 1

Build Authentic Connections

Modern donors want to feel connected to causes, not just asked for money. This means sharing stories, providing behind-the-scenes access, and creating opportunities for meaningful engagement beyond fundraising events.

Community Building Strategies

Number 1

Expand Your Reach

Effective cultivation goes beyond your immediate supporter network. Building community partnerships and expanding your reach helps you connect with new potential donors who share your values. Dig in to  community engagement strategies for nonprofits that build lasting relationships.

Number 1

Corporate Partnerships

Local businesses can become valuable allies for both fundraising and awareness. The key is creating mutually beneficial relationships that support their goals while advancing your mission. See how to ask companies for raffle prizes and explore cause marketing strategies to power up your events through strategic business partnerships.

Engaging Different Generations

Number 2

Connecting with Gen Z

Younger supporters bring energy and fresh perspectives but require different engagement strategies than traditional donors. They value authenticity, social impact, and digital-first experiences. Find out how to engage Gen Z supporters effectively.

Number 1

Involving Young People

Youth engagement creates future major donors while bringing immediate energy to your cause. The key is creating meaningful roles that match their skills and interests. Read about how to involve young people in your nonprofit in ways that benefit everyone.

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Channel Selection Best Practices: Digital vs. Traditional

The best approach is to strategically combine both digital and traditional fundraising methods. Different channels work better for different audiences and campaign goals, so using both gives you more ways to connect with supporters.

The Power of Integrated Campaigns

Number 1

Why Both Channels Matter

Digital tools like email and social media let you reach lots of people quickly and cheaply, while physical mail feels more personal and trustworthy. When you use both together, you give supporters different ways to connect with your cause. Understand why direct mail and digital marketing need each other and how using both could help your organization.

Number 2

Strategic Channel Selection

Pick the right ways to reach people based on who your supporters are, what you’re trying to accomplish, and what you can afford. Email works great for updates and quick donation requests. Social media helps build community, spread the word, and lets supporters share your cause with their friends—plus it’s free to use. Direct mail makes a bigger impression for important campaigns, while printed posters, flyers, and yard signs help you reach people in your local community who might not follow you online.

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Leveraging Technology Tools

Number 1

SEO for Nonprofit Growth

Being found online when people search for causes like yours creates sustainable donor acquisition. Effective SEO helps your organization appear when potential supporters look for ways to make a difference. Get SEO tip for nonprofits and improve your online visibility.

Number 1

Google Ad Grants

Google’s nonprofit program provides free advertising to qualified organizations, helping you reach new supporters cost-effectively. Understand Google Ad Grants and paid search or nonprofits.

Number 1

AI and Technology Integration

Modern tools can streamline fundraising tasks and improve supporter communications. Explore ChatGPT prompt ideas for nonprofits and  ChatGPT and nonprofit writing basics to get up to speed. 

Number 1

Bridge In-Person + Online

QR codes provide a simple way to connect physical materials with digital actions. From turning poster viewers into instant ticket buyers to simplifying volunteer sign-ups at events, QR codes can turn moments of interest into immediate action.  Review how nonprofits can use QR codes to enhance fundraising, engagement, and outreach efforts.

Digital Fundraising Strategies

Number 2

Social Media Fundraising

Social platforms offer powerful tools for reaching supporters where they already spend time. The key is creating engaging content that inspires action while making it easy to donate. Master how to promote your fundraiser on social media with proven strategies.

Number 1

Online Fundraising Best Practices

Digital campaigns require different planning than traditional events, but they offer unique advantages like real-time tracking and easy sharing. Learn how to sell fundraiser tickets online and create seamless digital experiences.

Number 1

Innovative Digital Approaches

Modern fundraising increasingly incorporates creative digital elements that engage supporters in new ways. Read about how on-demand merchandise can boost donations.  

Traditional Fundraising Methods

Number 1

Direct Mail That Works

Sending physical mail still gets great results when you do it right. A good direct mail postcard campaign can stand out from all the digital stuff overtaking people’s inboxes. 

Mail works really well for regular donation asks, event invites, and thank-you notes because it feels more personal than an email. You can connect people to your website through QR codes so that they can buy raffle tickets,  see a video of how their donations have helped, or drive more people to your social media accounts. Plus, lots of your supporters (especially older ones) actually prefer getting mail and might not check email very often.

Number 1

In-Person Events

No matter how online our lives have become, when people get together in person, they feel more connected. Events help your supporters feel like they’re part of something bigger. Meeting people who care about the same things strengthens their connection to your mission.

The added bonus is that people often bring friends or family to events, which helps you organically reach potential new supporters. The conversations that happen at these gatherings can turn someone who occasionally donates into someone who really champions your work.

Donor Stewardship & Retention Best Practices

Good stewardship dramatically improves donor retention while reducing the cost of finding new supporters. When you engage with donors consistently and meaningfully—beyond just asking for money—you can turn one-off givers into lifelong supporters.

Combating Donor Fatigue

Number 1

Understanding the Challenge

Donor fatigue isn’t just about too many asks—it’s about supporters feeling disconnected from impact or overwhelmed by requests. Recognizing the signs early helps you adjust your approach before losing valuable supporters. Review strategies that combat donor fatigue and attract new donors.

Enhancing Donor Engagement

Number 1

Journey Management Strategies

Effective stewardship means guiding supporters through increasingly meaningful relationships with your cause. This requires understanding where each donor stands and what next steps make sense for them. Find out how to boost supporter engagement through donor journey management.
Number 1

Understanding Donor Funnels vs. Journeys

While funnels focus on moving donors towards a single goal, journeys recognise that supporters engage in different ways at different times. Learn the difference between donor funnels vs. donor journeys and when to use each approach.

Volunteer Integration

Number 2

Expanding Engagement Options

Not every supporter can respond to every donation ask, but many can contribute time and skills. Creating meaningful volunteer opportunities provides additional ways for people to connect with your cause. Delve into volunteer recruitment strategies.

Number 2

Preventing Burnout

Volunteers power many nonprofit activities, but overworked volunteers can become disengaged quickly. Protecting volunteer energy ensures sustained support for your mission. Get ideas and tips on how to prevent volunteer burnout.

Volunteer Integration

Number 2

Scaling Your Operations

As your nonprofit grows, your fundraising approaches need to evolve too. Multi-chapter organizations face unique challenges in maintaining consistent messaging while allowing local flexibility. Explore growth strategies for multi-chapter nonprofit events programs for ideas. 

Number 2

Leverage Your Event Data

Your event sign-ups and participant information can teach you a lot about your supporters. Instead of treating each event separately, you can look at your registration data to see who comes to multiple events, understand different types of supporters, and figure out better ways to engage with them. Read all about how to tap into your nonprofit’s data and turn what you learn into real growth opportunities.

Best Practices for Testing & Measuring Results

The best fundraising strategies are built on real data, not guesswork. When you systematically test different approaches and measure your results, you can improve your campaigns while learning what works best for your specific supporters and mission.

Enhancing Donor Engagement

Number 1

Systematic Testing Framework

Instead of randomly changing things, test new ideas while keeping what already works for you. This means knowing what you want to achieve, paying attention to your results, and learning from what goes well and what doesn’t. Havea look at our primewr on how to use trial and error to achieve fundraising success.

Innovative Fundraising Techniques

Number 1

Creative Campaign Development

You can make traditional fundraising events more exciting and profitable by adding creative twists. The trick is finding ideas that fit your cause and appeal to the people who support you.

For example, try mixing different fundraising ideas into one event. You could add peer-to-peer fundraising to your gala (where guests raise money from their friends), sell branded merchandise at community festivals, or create hybrid events where some people attend in person and others join online. Try different event styles to see what your supporters like best.

Need more ideas? Check out our complete collection of creative fundraising ideas for nonprofits, with seasonal campaigns, community events, digital strategies, and creative approaches for all types of organizations.

Two nonprofit staff members reviewing fundraising performance data and charts at a desk with laptop, calculator, and printed reports

Measuring Campaign Success

Number 1

Key Performance Indicators

Sure, total dollars raised matters, but tracking a few key numbers gives you better insights into what’s actually working and what isn’t.

Start with These Basic Metrics:
Donor Retention: What percentage of people who donated last year gave again this year? (Anything above 50% is pretty good)
Cost Per Dollar: How much does it cost you to raise each dollar? Email is usually cheapest, events cost more but build relationships
Response Rates: How many people actually donate when you ask? Track this for different ways you reach out
Repeat Supporters: Who shows up to multiple events or donates regularly? These are your most valuable supporters

Keep It Simple
Don’t try to track everything at once. Pick 2-3 metrics that matter most to your goals right now. Every campaign teaches you something—the key is writing down what worked and what didn’t so you can do better next time.

Compliance Best Practices & Legal Considerations

Understanding Regulatory Requirements

Number 1

When to Consult Legal Counsel

What’s perfectly legal in one place might not be allowed in another, which is why getting professional legal help is so important for any fundraising activities.

Key Areas to Pay Attention To

  • Registering your organization to ask for donations
  • Rules about raffles and games
  • Tax issues with different types of fundraising
  • Protecting donor information and privacy
  • Reporting your finances and being transparent

Different Rules in Different States
Raffles and games have especially complicated rules. Some states allow charity raffles if you get the right permits, others have strict limits, and some don’t allow them at all. Check out US raffle laws by state to learn about your area’s rules, but always talk to a lawyer for advice about your specific situation.

Number 1

Raffle Alternatives

When traditional raffles aren’t permitted or the laws too complicated, charity sweepstakes often provide excellent legal alternatives since participants aren’t required to pay an entry fee. This distinction makes sweepstakes legal in almost all 50 states, even where raffles are prohibited. Understand the key differences between charity sweepstakes vs. raffles to determine which is better for your nonprofit.

Best Practices for Compliance

Number 1

Documentation and Record-Keeping

Proper documentation protects your charity and provides the necessary clarity to regulators and donors. Essential records to maintain include:

  • All fundraising permits and state registrations
  • Detailed expense and revenue tracking for each campaign
  • Donor communication preferences and opt-out requests
  • Financial audit trails for tax reporting purposes
  • Documentation of fund usage and impact reporting

Most experts recommend retaining fundraising records for at least seven years, though specific requirements vary by jurisdiction.

Number 1

Transparency with Supporters

Being upfront with your donors builds trust and keeps you on the right side of regulations. Simple practices make a big difference:

  • Clearly explain where donated money goes (like “80% funds programs, 20% covers operating costs”)
  • Share real stories about how donations create impact
  • Always honor donor preferences about how they want to be contacted
  • Make sure your website includes basic information about your organization’s finances
  • Be ready with a clear, honest answer when someone asks how much goes directly to your cause
  • When running raffles or special events, explain any rules or restrictions upfront

 

Implementation Guide: Your Next Steps

Building better fundraising takes time, but you can make meaningful improvements right away.
Number 1

Quick Assessment Framework

Evaluate Your Current Approach

  • How well do you know your donor base and their preferences?
  • Are you using both digital and traditional channels effectively?
  • What systems do you have for donor stewardship and retention?
  • How do you currently measure and improve campaign performance?
  • Are you confident in your compliance with local regulations?
Number 2

Priorities

Start with Foundation Building

  • Map your donor journey – Understanding how supporters currently engage helps identify improvement opportunities
  • Segment your supporter base – Different donors respond to different approaches
  • Audit your current channels – Assess which methods work best for your organization and audience
  • Establish measurement systems – Track key metrics to guide future decisions
  • Review compliance requirements – Ensure all activities meet legal requirements in your jurisdiction
Number 3

Build on Early Successes

Once foundational elements are in place, focus on systematic testing and improvement. Small, measured changes often produce better results than dramatic overhauls.

Ready to Launch Your Fundraiser?

Great fundraising isn’t about fancy strategies—it’s about connecting with people who care about your cause and learning what works best for your organization. Whether you’re just getting started or looking to improve what you’re already doing, focus on building real relationships with your supporters and paying attention to what your results tell you.

Need help organizing your fundraiser? Eventgroove’s nonprofit fundraising platform provides everything you need—from peer-to-peer tools to raffle ticket printing and event materials to crowdfunding campaigns.

Want to see Eventgroove in action?

We’d love to show you! Schedule a one-on-one demo with our expert sales team.

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