Get Your Grant-Funded Nonprofit Started in Fundraising

Grants are an integral lifeline for many nonprofits, providing the necessary funding to launch new initiatives, sustain critical programs, and ensure operational stability. For some organizations, a well-timed grant can be the spark that ignites growth. But relying solely on grants has its downsides, especially when it comes to long-term sustainability. What if that major grant your nonprofit counts on suddenly disappears: How would you continue your mission?

This is a tough yet vital question for nonprofits to ask. The reality is that while grants are valuable, they aren’t guaranteed. Today’s nonprofit leaders must prepare for the “what if” scenario by thinking beyond grants and diversifying their revenue streams. It may feel intimidating at first, but here’s the exciting part: today, more than ever, nonprofits have the tools and resources to make a smooth shift to the grants-plus-fundraising model. We’re living in an era of technological advancements, AI, and data-driven fundraising solutions that can take your nonprofit organization to the next level. If you’re ready to move beyond grants, let’s get started!

Why Diversifying Your Funding Is Essential

With nearly 2 million nonprofit organizations in the United States, the competition for funding from all sources is stiff. But depending strictly on grant funding can be particularly challenging for a number of reasons.

• Dependability: Only 1 in 7 government grant applications is approved​
• Timing: The grant cycle can stretch anywhere from 30 days to 18 months, leaving nonprofits waiting—and sometimes struggling to meet their immediate needs
• Restrictions: While grants can provide a reliable revenue stream, they often come with strict conditions that may not align with your nonprofit’s evolving mission or needs

The Benefits of Adding Fundraising to Your Revenue Model

Introducing other forms of revenue from fundraising—whether it’s individual donations, events, corporate partnerships, planned giving, or major gifts—can provide greater financial sustainability and flexibility. A recent Stanford Social Innovation Review report notes that 90% of the largest nonprofits over the past 30 years have relied on one dominant source of revenue for at least 60% of their income, whether from grants, earned revenue, or corporate support. Yet, a key takeaway is that many of these organizations developed a secondary revenue source alongside their primary one, creating a “hybrid vehicle” for funding stability​.

Diversifying your nonprofit’s revenue mix—or concentrating it on a hybrid mix—allows you to weather economic shifts, political changes, or unexpected challenges. Adding fundraising to your funding model gives you the agility to stay mission-focused no matter what comes your way.

Understanding the Basics of Fundraising

For those organizations new to fundraising, it’s important to start small and build gradually. Fundraising can take various forms, including online campaigns, major giving, planned giving, corporate sponsorships, and events. Many nonprofits begin with annual giving campaigns, which provide a consistent source of income. Offering donors the option of becoming monthly or sustaining supporters makes that revenue source even more reliable.

Once you’ve established a solid fundraising foundation, you can start exploring other avenues, such as peer-to-peer fundraising or crowdfunding to reach a broader audience.

Preparing for Fundraising

Before diving into fundraising, take a moment to evaluate your programs and services. What are your nonprofit’s core strengths? What areas would benefit the most from additional funding? Use surveys or data analytics tools to better understand your constituents and tailor your fundraising messages accordingly.

Ensure you’re compliant with any legal or tax requirements before shifting to a fundraising model. Also important: develop a clear fundraising plan. Even if it feels overwhelming at first, break it down into essential steps:

• Setting goals
• Identifying potential donors
• Defining your message

Starting with a well-conceived plan helps you clarify goals, outline specific actions, and define your budget to achieve your goals. Think of the time spent developing your fundraising plan as an investment in your organization’s future. The effort on the front end can save time and resources throughout the process and improve the likelihood of a successful launch of your new fundraising program. Like all big challenges, building a fundraising program is best tackled as a team, with your whole organization offering expertise and ideas in advance of the first campaign.

The Skills and People Needed to Launch a Fundraising Program

If you’re new to fundraising, don’t worry—many of the skills needed to succeed are likely already present within your organization. Relationship-building, communication, commitment to the cause, perseverance, creativity, and project management are all transferable skills that can be applied to fundraising. It is always a bonus if your team has personal qualities like integrity, leadership skills, and outstanding manners.

Here are a few other skills for fundraising that can transfer from a grants-based approach or can be acquired with minimal training:

• Technology proficiency: It helps to have (or to prioritize learning) basic skills with database management or, as it is often called in fundraising, constituent relationship management (CRM) systems. These tools help you track donor interactions, segment your audience, and tailor your communications to maximize engagement. In addition, skills with email and social media platforms can help you amplify your reach and tell your nonprofit’s story to a broader audience.
• Donor research: If you’re starting small, you may not have prospect research software or a dedicated researcher, but you will need to become efficient with Google searching and maybe using AI tools to help you learn more about prospective donors who are likely to have the means and the affinity to give to your cause. 
• Storytelling: Beyond basic communication, your new fundraising program will benefit from having a writer on the team who can convey the emotion at the root of your commitment—for example, sharing success stories and writing compelling profiles of the donors who support your organization.

Recruiting volunteers can also be a game-changer. Whether you’re a one-person operation or a larger nonprofit, having dedicated individuals to assist in the process of launching and managing a fundraising program can make a significant difference, particularly if you add events to the mix.

Expanding Fundraising in the Future

As your fundraising program grows, you can start incorporating more sophisticated strategies like planned giving, corporate partnerships, or peer-to-peer campaigns. Data-driven insights will be crucial in refining your future efforts and ensuring continuous improvement.

Nurturing your community and building long-term donor relationships through stewardship will ensure that your organization remains resilient and delivers impact to your community for years to come.

Technology will make all these efforts easier and more efficient for your team. As you expand your fundraising program, a CRM platform designed for the specific needs of fundraisers is a smart investment that empowers your organization to expand these programs and methods:

• Annual giving: A fundraising CRM provides a 360° view of constituents, helps you take actions based on data-based profiles of prospects and donors, and allows you to segment your list for personalized multichannel communications.
• Online giving: Add donation forms to your website, allowing you to build revenue with multiple payment options and fee-free giving.
• Major giving: A fundraising CRM provides analytics insights with AI to predict which prospects are likely to donate a major gift, allowing you to make asks based on accurate suggested amounts, track proposals, and record high-touch interactions.

Final Thoughts: Best Advice for Launching Your Fundraising Program

What is the best advice for launching your fundraising program? Be bold and get started! You don’t need to have everything figured out to begin. As you grow, you’ll gain skills and refine your strategies along the way. Ready to learn more? Check out the instructive and inspiring blog posts on fundraising from the experts at Blackbaud.