How to raise funds for housing and shelter projects in 2026

The housing crisis is no longer limited to a few major cities. Shelters, housing nonprofits, and local groups across the United States are seeing more people ask for emergency beds, rental support, and long-term housing help.

On a single night in January 2025, 745,652 people were homeless, including 266,320 people living on the street. That was a 27% increase since 2013. Nearly 1.5 million people also stayed in shelters during the year.

To meet this level of need takes reliable funding, not one-time donations alone. So, how can organizations attract more donors and fund housing and shelter projects in 2026?

Let’s look at the most effective options.

What are the best ways to raise funds for housing and shelter projects in 2026?

Housing and shelter organizations can raise more by combining public funding, private grants, major gifts, community campaigns, business support, recurring donations, and in-kind contributions. The right mix depends on the project size, timeline, and ongoing costs.

7 Ways to raise funds for housing and shelter projects

Here are seven of the best ways to raise funds for housing and shelter projects in 2026.

1. Pursue government grants through local channels

Government grants can support emergency shelter operations, outreach, rapid rehousing, facility improvements, and larger housing programs.

In 2026, HUD announced $4.04 billion for Continuum of Care grants. Other funding sources include Emergency Solutions Grants, HOME-ARP, and Community Development Block Grants distributed through local agencies.

How to get started

• Join your local Continuum of Care.
• Contact your city or county housing department.
• Track local funding notices and application deadlines.
• Prepare a detailed budget, project timeline, and past outcome data.
• Apply through the local agency managing the grant process.

2. Apply to foundations for one defined project component

More than 16,000 U.S. foundations support homeless shelters, but many grants are tied to a defined project rather than general operating costs.

With a median grant of about $30,000, organizations may have a stronger case when they request funding for one clear need.

How to get started

• Select one project with a clear scope and budget.
• Research foundations whose priorities match the project.
• Use local data to explain the need.
• Define the results the grant will support.
• Include relevant partners, past outcomes, and a reporting plan.

3. Run a major-gift campaign for large project costs

Major-gift campaigns can fund land purchases, building renovations, and large shelter expansions that smaller donations cannot cover alone.

The strongest prospects often include philanthropists, local business leaders, community figures, and congregations. These campaigns work best when donors can see a clear goal, timeline, and long-term result tied to their gift.

How to get started

• Identify donors with the interest and capacity to give.
• Build relationships before making a formal ask.
• Present a detailed project budget, quotes, and timeline.
• Offer suitable recognition or naming opportunities.
• Use a lead gift as a matching challenge.
• Share major pledges publicly with the donor’s permission.

4. Launch a public fundraising campaign

With so many people affected by homelessness, grassroots campaigns can benefit from public goodwill.

A public campaign can raise money through crowdfunding, email, social media, and community events. It works best when the goal is specific, time-bound, and easy to understand.

Instead of asking for general support, connect each donation amount to a clear need, such as meals, emergency repairs, or shelter beds.

How to get started

• Set a clear fundraising goal and deadline.
• Share a real story with permission from those involved.
• Explain what different donation amounts will fund.
• Create a campaign page with photos and progress updates.
• Promote it through email, social media, volunteers, and local events.
• Add QR codes and monthly giving options to capture more support.

5. Secure corporate sponsorships for specific needs

Corporate sponsorships can help cover shelter costs, supplies, repairs, technology, and community programs. This funding may come through cash grants, matching gifts, volunteer grants, services, or donated goods.

About 84% of donors say they are more likely to donate if their employer matches the donation. Also, the 10 largest corporate donors in the U.S. give more than $2 billion to nonprofits each year.

How to get started

• Identify companies with local giving or CSR programs.
• Match each company with a specific need it can support.
• Present the cost, expected result, and project timeline.
• Offer suitable recognition, such as logo placement or public acknowledgment.
• Promote employer matching gifts to donors and volunteers.
• Invite companies to support volunteer days, professional services, or donated goods.

6. Build recurring giving around shelter operations

Recurring donations provide predictable income for rent, utilities, meals, staffing, and other ongoing shelter costs.

About 57% of donors now give on a recurring basis, while 28% of online donation revenue comes from recurring donations. Retention is also much higher: roughly 79%–80% for recurring donors compared with about 32% for one-time donors.

How to get started

• Add monthly giving as a clear option on every donation form.
• Create suggested amounts tied to specific operating costs.
• Explain the ongoing impact of each monthly gift.
• Send regular updates showing how recurring support is used.
• Use automated receipts, thank-you messages, and payment reminders.
• Offer quarterly and annual options for donors who prefer another schedule.

7. Reduce the fundraising target with useful in-kind gifts

In-kind donations can lower the amount a shelter needs to raise in cash by covering goods and services that would otherwise come from its budget.

Common examples include clothing, bedding, hygiene supplies, furniture, appliances, food, legal support, counseling, medical care, and construction. About 81% of donors report giving goods to nonprofits.

How to get started

• Create a current wish list based on actual shelter needs.
• Separate urgent items from ongoing needs.
• Share the list on your website, social media, and email.
• Contact businesses that sell or provide the required items.
• Set clear rules for quality, quantity, and drop-off times.
• Track donated goods and report how they reduced project costs.

Common housing and shelter fundraising mistakes

Even strong campaigns can lose money and donor trust when the strategy is unclear. Avoid these common mistakes:

• Relying on one-time events: Events can help, but they should support, not replace major gifts, recurring donations, and donor relationships.
• Funding too many priorities: Too many asks can confuse donors. Focus each campaign on one clear goal.
• Neglecting current donors: Thank supporters, share updates, and show the results their gifts helped create.
• Overlooking non-cash support: Donated goods, professional services, volunteers, and employer grants can lower project costs.
• Failing to report results: Share how funds were spent, what changed, and what still needs support.

A balanced funding mix reduces risk and gives housing organizations more reliable income throughout the year.

Raise more for your housing or shelter project with BetterWorld

BetterWorld gives housing nonprofits one place to manage campaigns, recurring gifts, events, auctions, volunteers, donor records, and reporting. With a 0% platform fee, more money can stay with the programs donors intended to support.

• Launch unlimited campaigns in minutes.
• Accept one-time and recurring donations.
• Capture employer matching gifts.
• Track donors, volunteers, and results in one dashboard.
• Share clear reports with boards, donors, and grantmakers.

Start your housing or shelter campaign today.

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FAQs

1. Can nonprofits apply directly for HUD housing grants?

Usually not alone. HUD homelessness grants are allocated through regional Continuums of Care (CoCs). Nonprofits partner with their local CoC or city housing agency to apply for CoC and ESG funding. (HUD even “encourages new applicants” to join their CoC processes.)

2. How can a shelter attract major donors?

Shelters can attract major donors by identifying people who care about housing, inviting them to see the work firsthand, and presenting a clear funding need. Build the relationship before making the ask, then show exactly how the gift will improve lives and create long-term impact.

3. What should a housing project grant proposal include?

A strong proposal covers: an executive summary, a statement of need (homelessness statistics in your area), a detailed project description, clear goals and objectives, and a line-item budget. It should also explain how you will evaluate success and sustain the project long-term.

According to grant-writing experts, essential components are the need/problem statement, goals, budget, evaluation plan, organizational capacity, and sustainability plan. Include any partnerships or community support, and attach required documents (e.g., IRS status, board list).