Fundraising methods for nonprofits: donations, crowdfunding, grants and events

There is no single way for a nonprofit organisation to raise money. Some rely mainly on individual donations, while others combine grants, fundraising events, recurring supporters, crowdfunding, business partnerships and other sources of income.

Understanding the main fundraising methods for nonprofits can help a small NGO or community project choose approaches that fit its mission, audience, resources and legal situation.

This guide explains some of the most common options, how they differ and what organisations should consider before using them.

What is fundraising? 🎗️

Fundraising is the process of obtaining financial support for an organisation, project or cause.

For nonprofits, charities and community initiatives, funds may support programmes, equipment, staff, facilities, emergency responses, animal care, education, environmental work or the organisation’s general operating costs.

Fundraising can involve many different people. In a large organisation there may be professional fundraisers or a development team, while a small NGO may divide fundraising tasks between founders, staff, trustees and volunteers.

The important point is that somebody remains responsible for coordinating the activity, keeping accurate information and making sure supporters understand what they are contributing to.

1. Individual donations 💝

Individual giving is one of the most familiar forms of nonprofit fundraising.

A supporter may make a small one-time donation after discovering a project, responding to an appeal, attending an event or simply deciding that the organisation’s mission is worth supporting.

Donations can be collected through an organisation’s own website, bank transfer, an online fundraising platform, an event or other channels allowed in the organisation’s jurisdiction.

Whatever method is used, donors should be able to understand:

• which organisation is receiving the money;
• what the donation is intended to support;
• whether any fees are deducted;
• whether the donation is unrestricted or connected with a specific purpose.

2. Recurring donations 🔄

Instead of making a single donation, supporters may choose to contribute regularly, for example every month.

Recurring giving can provide an organisation with more predictable income and make it easier to plan ongoing expenses.

It can be particularly useful for activities that continue throughout the year, such as running a shelter, maintaining a community space, providing educational programmes or supporting regular project costs.

Recurring supporters should still receive appropriate updates and thanks. An automatic monthly payment should not become an excuse to stop communicating with donors.

The Association of Fundraising Professionals provides additional guidance on setting up and maintaining recurring giving programmes.

3. Crowdfunding campaigns 🌐

Crowdfunding allows many people to contribute through an online campaign page.

A campaign normally explains a project or need, sets a financial target or objective and gives supporters a way to contribute online.

For a nonprofit or grassroots project, crowdfunding might be used for a specific initiative such as:

• renovating a community space;
• buying equipment;
• funding an animal rescue operation;
• responding to an emergency;
• launching a new programme;
• covering a defined project cost.

Before choosing a crowdfunding platform, check who actually receives the money, how withdrawals work, what fees or optional tips are charged and what happens if the target is not reached.

The Fundraising Regulator’s guidance on online fundraising platforms provides a useful example of the transparency questions organisations and donors should consider. Its rules apply specifically to charitable fundraising in the UK, so organisations elsewhere should also check their own national requirements.

4. Fundraising events 🎪

Events can raise money while also bringing supporters together and introducing new people to an organisation.

Examples include:

• community dinners;
• concerts;
• charity walks or sporting events;
• markets and fairs;
• online events;
• workshops;
• auctions;
• local cultural activities.

Events can also be expensive and time-consuming. Before organising one, estimate the likely income and compare it with venue costs, equipment, insurance, permits, food, promotion and staff or volunteer time.

Safety and accessibility also matter. Depending on the destination and type of event, organisers may need licences, insurance, risk assessments or other permissions.

The Fundraising Regulator’s fundraising event guide is a useful example of issues to consider when planning an event, although its regulatory requirements are specific to the UK.

5. Grants 📄

Grants work differently from public donation campaigns.

A foundation, public institution, international programme or other funder may provide money for activities that meet specific eligibility criteria.

Grant applications can require organisations to explain:

• the problem or need;
• the proposed activities;
• the expected results;
• the project budget;
• the organisation’s experience;
• how progress will be measured and reported.

Not every grant is suitable for every project. Organisations should look for funders whose priorities genuinely match their work instead of changing their mission simply to fit available funding.

The National Council of Nonprofits recommends researching which foundations actually fund missions and activities comparable to those of your organisation.

6. Business and corporate partnerships 🤝

Some organisations receive support from businesses through donations, sponsorship, equipment, professional services or partnerships.

A local company, for example, might sponsor an event, donate materials or support a particular community programme.

Before entering a partnership, consider whether the company and proposed arrangement are compatible with the organisation’s mission and reputation.

It should also be clear to the public whether something is a donation, sponsorship, advertising arrangement or another kind of commercial relationship.

7. Peer-to-peer fundraising 🧑🏽‍🤝‍🧑🏼

In peer-to-peer fundraising, supporters raise money from their own friends, families or communities on behalf of an organisation or cause.

For example, somebody might organise a birthday fundraiser, sponsored walk or personal challenge and invite people they know to donate.

This can extend the organisation’s reach because supporters introduce the cause to people outside its existing network.

However, organisations should give participants accurate information and clear instructions about how the organisation’s name, photographs and fundraising message can be used.

8. Major donors and larger individual gifts 💼

Some organisations also receive larger donations from individual supporters.

This type of fundraising usually involves building a relationship over time rather than sending the same general appeal to everybody.

Before accepting a significant donation, an organisation may need to consider where the money comes from, whether any conditions are attached and whether accepting it could create legal, ethical or reputational problems.

Requirements vary greatly between countries and organisations. For larger or unusual donations, appropriate due diligence may be necessary.

9. Membership and community support 👥

Associations, clubs and community organisations sometimes use membership contributions as one part of their funding model.

Members may contribute a regular annual fee and receive voting rights, access to activities or another form of participation defined by the organisation.

This is different from a normal donation and may be subject to the organisation’s own constitution and national laws.

For community-based projects, a membership model can also create a stronger sense that supporters are participating in the organisation rather than simply financing it from outside.

10. Fundraising with volunteers ✋

Volunteers can sometimes support fundraising by researching grants, preparing communication materials, helping with events, maintaining donor information or sharing a campaign.

The organisation should still provide guidance and supervision, particularly where volunteers may handle donations, personal information or external communications.

Voluntouring.org publishes projects where organisations specifically look for volunteers with fundraising skills.

Explore fundraising volunteer opportunities

Should a nonprofit use several fundraising methods? 🧩

It can be risky for an organisation to depend entirely on one source of money.

A grant may end. An annual event may have a poor year. A major donor may stop contributing. A crowdfunding campaign may not attract enough attention.

Using more than one suitable funding source can therefore make an organisation less vulnerable to changes in any single source.

This does not mean that a small project should try every fundraising method at once. Each method requires time, administration and communication.

Planning your fundraising campaign 🗓️

Once you have chosen a fundraising method, the next step is planning the campaign itself: defining the objective, calculating the budget, identifying supporters, preparing communication and deciding how the organisation will report back afterwards.

For additional practical ideas about donor communication, websites, social media, events and building trust, read our existing guide:

Fundraising tips for charities and NGOs