Imagine your largest donor suddenly decides to step back. Could your organization carry on at full strength for six months? A year?
If that question makes you pause, you're not alone. More than 90% of large nonprofits in North America rely on a single revenue source for over 50% of their funding—a risky position when economic uncertainty looms.
Achieving true sustainable fundraising requires thinking beyond the immediate future and instead building systems that support long-term growth. But first, you need to understand where your current efforts stand. Answer these questions with your team to assess your current fundraising strategies and determine whether your nonprofit is set up for longevity.
Do You Rely Too Heavily on One Type of Fundraising?
If your organization leans too much on a single grant, annual gala, or major donor, its stability is at risk. Economic and political shifts, changes in donor behavior, or canceled events can seriously impact your fundraising success.
That’s why sustainable organizations balance multiple revenue sources. The goal here isn't to have every possible funding source in your portfolio, but rather to avoid overdependence on a single one. Some common fundraising sources that nonprofits leverage include:
To begin diversifying your revenue sources, conduct a revenue audit to determine your current funding breakdown. Identify underutilized opportunities. For instance, perhaps you haven't explored local sponsorships or aren't leveraging workplace giving programs. You might then set incremental goals to grow each source over the next year.
Do You Focus as Much on Donor Retention as Acquisition?
Acquiring new donors often feels like forward momentum, but if you’re not keeping the supporters you already have, you might not achieve long-term growth. It’s more cost-effective to retain your donors than constantly acquiring new ones, resulting in higher long-term value for your organization.
To start improving your fundraising sustainability, assess your donor retention rate. Ideally, it should be between 45-60% for individual donors. If that rate falls short for your organization, that’s a signal to invest in retention strategies that prioritize relationship-building. Here are a few tactics to consider:
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Create segmented thank-you messages that speak directly to different types of donors, personalizing your gratitude.
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Establish a calendar for routine check-ins with monthly donors via email, phone, or mail to reinforce ongoing engagement.
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Host appreciation events to celebrate donor impact and strengthen their connection to your mission.
Finally, evaluate the frequency and personalization of your communications. Ask yourself: Is our messaging meaningful enough to make donors feel like valued partners? If not, it’s time to realign your stewardship tactics.
Are You Measuring and Learning From Fundraising Metrics?
Without fundraising data, you’re flying blind when assessing your fundraising sustainability. Sustainable strategies are rooted in metrics like:
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Donor retention rate measures the percentage of donors who gave last year and also gave again this year. High retention indicates strong donor relationships and satisfaction.
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The cost per dollar raised measures fundraising efficiency and is calculated by dividing total fundraising expenses by total funds raised. Lower values indicate more efficient resource allocation.
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Average gift size is the mean donation amount. This helps track growth in donor giving capacity or fundraising appeals’ effectiveness.
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Conversion rates from appeals are the percentages of people who took the desired action (donating) after receiving a fundraising appeal, whether via email, mail, or another channel. High conversion rates indicate strong messaging and targeting that resonates with your audience.
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Lifetime donor value is the total revenue an average donor contributes over the duration of their relationship with your organization. This metric guides long-term engagement strategies.
Start tracking your nonprofit’s sustainability by choosing a few of these metrics and making them visible to your team through dashboards and financial statements, meetings, and planning docs. Then, regularly review your progress in team meetings to promote transparency and accountability.
Is Your Team Aligned and Equipped to Fundraise Effectively?
No fundraising strategy can be sustainable if it's siloed or only understood by one person. It’s crucial that your staff, board, and even volunteers understand your goals and how they can contribute to achieving them. When everyone understands their role in the fundraising ecosystem, your organization will be better positioned to adapt and grow. Follow these tips to kickstart alignment efforts:
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Offer basic fundraising training that covers storytelling techniques, best practices for interacting with donors, and more.
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Share your goals in training sessions and at regular check-in meetings.
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Encourage cross-team collaboration by opening communication channels and allowing team leaders to provide unique insights through self-led presentations or workshops.
As your fundraising strategy shifts to prioritize sustainability, keep everyone in the loop by sharing updates tailored to each team. For instance, let’s say you implement a new donor database. You might schedule a full presentation for your fundraising staff who will be using it daily, but just provide a short explanation of the change to volunteers and board members. That way, everybody’s on the same page without feeling overwhelmed.
Are You Prepared for the Unexpected?
Sustainability includes resilience. If your strategy doesn’t account for unexpected circumstances like economic downturns, canceled events, or donor fatigue, you’re at risk.
Planning for disruption now can save you from panic and instability later. Get started by:
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Creating contingency plans or a reserve fund
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Including event safeguards, like a backup virtual option for an in-person event
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Ensuring you can communicate quickly and transparently with donors during crises
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Training your team for anything by running scenario planning exercises
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Documenting best practices in a crisis response playbook
Additionally, consider internal events that can impact your fundraising success, such as your technology going down. Regardless of the potential issue, thinking ahead makes recovery smoother.
Wrapping Up: What’s Your Sustainability Score?
If you answered “no” to more than a few of these questions, it may be time to refresh your fundraising strategy for greater sustainability. Before you get started, understand that you don’t have to make all of these changes all at once. Instead, focus on small, easy wins you can make now and incrementally add bigger changes as your capacity grows.
Your mission deserves a fundraising strategy built for the long haul. Planning now can help you make sure it’s ready for anything.