How to Get Funding for a Nonprofit: Tips and Resources

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A nonprofit team meets to discuss fundraising strategies.

For nonprofit organizations, effective fundraising is critical to maintaining the support that those they serve rely on. Notably, the 2024 Giving USA report noted that U.S. nonprofits received nearly $560 billion in support in 2023.

However, obstacles can stand in the way of fundraising success, making it difficult for nonprofits to maximize their share of available funding and build on their often limited resources. In fact, challenges, such as shifts in government funding and concerns about economic conditions, make it particularly important to learn the best approaches for how to get funding for a nonprofit.

By taking steps, such as developing relationships with donors and showing the impact of contributions, nonprofits can make the most of their efforts to raise the funding that’s vital for their work. Some key tips and resources can inform these efforts.

How Are Nonprofits Funded?

From individual and corporate donations to grants and events, various funding sources are available to nonprofits. When learning about how to get funding for a nonprofit, it’s helpful to start by learning what a nonprofit is.

What Is a Nonprofit?

Nonprofit organizations serve the public. They may operate for charity — providing assistance to individuals in need — or they may function for the benefit of society as a whole. Most people have received support from a nonprofit at some time in their lives, whether they learned to swim at the local YMCA or took medicine developed by a research nonprofit.

The organizations that provide these services can range from hospitals and universities to churches and foundations. The following are examples of the many types of focuses that nonprofits might have:

  • Animal welfare
  • Arts and culture
  • Education
  • Health
  • Professional trades
  • Religion
  • Science

Depending on the organization, nonprofits may provide services such as disaster relief, support for individuals with specific diseases or after-school youth programming.

In the United States, donations to these organizations are generally tax deductible, and nonprofits aren’t required to pay taxes on those donations or other fundraising income.

What Are Nonprofit Funding Sources?

As the term suggests, nonprofits don’t rely on profits to fund their work. Instead, nonprofits need a funding model that draws financial assistance from various other sources.

The percentage of funding that each type of assistance provides varies according to the needs of each organization. Relying on multiple types of funding helps protect a nonprofit in the event that support from one or more of its sources of funding becomes less readily available.

To determine the best mix of funding sources for its mission, each nonprofit should assess its current financial situation and future plans.

One nonprofit might determine that it makes sense for most of its funding to come through grants, for example, with other sources, such as events and membership, providing smaller amounts. Another organization might determine that its needs call for more fundraising from major donor contributions, with sales of its products and services representing another significant funding source.

6 Ways to Get Funding for a Nonprofit

Nonprofits have options for seeking direct financial assistance or in-kind support, which can free up funding for other uses. Below are six ways to get funding for a nonprofit.

1. Individual Donors

Funding from individuals represents the largest share of support for U.S. nonprofits, according to the 2024 Giving USA report. In 2023, individuals contributed about $374 billion to nonprofits.

Several types of individual donors exist. Some give a single, large donation. Others give smaller amounts on a regular basis. Still others don’t give money but instead volunteer their services.

2. Grants

Nonprofits can also apply for grants. Although nonprofits typically don’t have to repay this funding, grants often have specific requirements for qualification. The following are some of the sources of grant funding:

  • Governments at the local, state and federal levels
  • Public charities, such as churches or schools
  • Foundations, which are community, private and family organizations that provide funding to initiatives and groups

3. Membership Fees

For nonprofit organizations with members, another funding source is membership dues. In some cases, dues-paying members receive special access to certain benefits and programs.

4. Corporate Sponsorships

Corporations provide funding for nonprofits, with many choosing to support these organizations as part of an effort to be more socially responsible. Some support is through financial contributions, while others assist with fundraising by offering services or products at no charge.

The following are some types of corporate sponsorships:

  • Event Sponsorship: Support for a specific activity the nonprofit presents, such as a gala or walkathon
  • Paid Release: Employees’ paid time to provide volunteer assistance
  • Cause Marketing: Drawing attention to a nonprofit’s work through product marketing
  • Philanthropic Giving: A corporate donation that’s similar to individual giving
  • Matching Gifts: Funding to organizations that matches that provided by their employees
  • Pro Bono Assistance: Corporate employees’ providing their professional services for free
  • In-Kind Donations: Gifts of products or services instead of money
  • Checkout Campaigns: Offering customers the opportunity to provide donations when purchasing items from a business

5. In-Kind Donations

Another source of support for nonprofits is in-kind donations. This support, which can include donations such as medicine, food and clothing, helps nonprofits save money for other products and services.

6. Sales of Goods and Services

As long as they comply with IRS guidelines, nonprofits may sell goods and services to raise funds in support of their mission. Examples are nonprofit hospitals charging patients for their services to support their mission and nonprofit organizations selling branded goods as fundraisers.

Resources: Funding Sources for Nonprofits

Resources are available to help those looking for ways to fund nonprofits. The following materials provide lists of funding sources as well as information about how to determine which types of support to pursue:

Tips for Raising Funds for Nonprofits

Following some established fundraising best practices can make it more likely that nonprofits’ efforts to attract support will be successful. Below are tips for getting funding for a nonprofit.

Assess the Organization’s Needs

Nonprofits should establish a foundation for fundraising by assessing their needs. The assessment should help them identify projects that need funding and options for securing that support. Subsequently, they should develop a plan that outlines not only the funding model but also the fundraising steps to take — and when.

Build Relationships With Donors

Maintaining a presence at in-person networking events and on social media can help nonprofits build relationships that can yield donations. However, once a nonprofit receives funding from a donor, that contact shouldn’t end. Regular contact — through direct mail or email, for example — are important for showing gratitude for support and encouraging further giving.

Consider Quick Fundraising Options

Some fundraising techniques that build long-term commitments from donors, such as social media posts and other online messaging, can also be effective in garnering quick support. When a nonprofit needs funding right away, launching an online crowdfunding campaign can generate support from multiple parties. Another option that can yield quick fundraising results is hosting an event, such as a charity auction of donated goods.

Use Consistent Messaging

When using various outreach methods as part of a fundraising campaign, each approach should contain messages and images that are consistent. One clear theme should emerge, describing the goals for the support and why the funding is important. Giving the campaign a theme that’s evident throughout the various fundraising efforts is another way to use cohesive messaging.

Be Transparent About Spending

Providing details about how the organization plans to allocate contributions, followed by reporting the impact of the funding, is critical for building trust and encouraging support. Options for sharing this information include the following:

  • Posting financial information about the organization on its website
  • Providing receipts to donors that detail the amount they contributed
  • Producing impact reports that show how the funding is making a difference

Resources: Nonprofit Fundraising Ideas

Additional information about how to get funding for a nonprofit — from tips for researching options to suggestions for navigating challenges — is available through various articles and websites. Among the resources available are the following:

Getting the Nonprofit Funding That Makes a Difference

For nonprofits, how to get funding is a key consideration that can determine whether they can continue to make a difference for those they serve. By learning about the various types of nonprofit funding available — and the best ways to secure it — these organizations can position themselves to overcome financial challenges and make a significant, lasting impact.

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