How to diversify your fundraising channels

Nonprofits operate in a landscape that can shift overnight. Economic swings, changing donor habits, or new policies can disrupt your funding in an instant. And if your organization depends heavily on a single event or a few major donors, you’re at risk of a funding breakdown.

Experts call this a “single point of failure”; if one event falls through or a key donor pulls out, your budget takes the hit. In this article, we’ll explore why diversifying your fundraising channels matters, how it strengthens resilience, and what strategies you can apply starting now.

Funding risks for single-channel organizations

Depending heavily on a single fundraising source, like an annual event or gala, leaves your nonprofit wide open to risk. Here are some of the downsides.

• Events drain time and money. Large fundraising events often cost more than they return. Even well-run galas typically generate only about 65 cents for every dollar raised. After covering costs like venue rental, food, and promotion, many nonprofits end up with little to show for the effort.
• Revenue is unpredictable. Income from events changes year to year. Bad weather, local conflicts, or low ticket sales can cut revenue sharply. Some organizations have seen budgets collapse when just a few major events failed to meet expectations.
• Events don’t build long-term support. A ticket purchase doesn’t equal long-term commitment. While event guests may give once, they often don’t return or stay engaged. According to industry experts, donors who give because of a personal connection, rather than for social events, are more likely to stick around.
• External shocks hit hard. The COVID-19 pandemic was a wake-up call. 54% of nonprofits were forced to cancel their fundraising events, and 45% reported a drop in overall revenue or funding. Today, with rising costs and economic uncertainty, relying on one funding stream puts your entire budget at risk.

Experts agree that putting all your effort into one channel is not sustainable. Events and major donors should support your mission, but they shouldn’t carry it. As a general rule, no single fundraising source should account for more than one-third of your total income.

The power of a diversified fundraising mix

A balanced fundraising portfolio is one of the smartest moves a nonprofit can make. Here's why:

• It protects you from surprises. When one funding stream falters, like a grant ending or an event falling short, other channels can help close the gap. Having 3–5 well-aligned revenue sources means your mission isn’t jeopardized by one failure.
• It reaches more donors. Not every supporter wants to attend a gala or mail in a check. Some prefer to give monthly online, join a peer-to-peer campaign, or support a local business partnership. By offering multiple giving options, digital, in-person, recurring, and more, you meet donors where they are.
  
  Research shows that donors who engage through multiple channels give over three times more than those who use just one, and they’re more likely to stick around long term.
  
  
• It boosts your overall revenue. Some channels simply perform better. For example, monthly donors give about 42% more per year than one-time donors. And nearly 6 in 10 donors are already enrolled in a recurring giving program. These givers provide predictable income, which helps with planning and makes your fundraising more efficient.
• It gives you room to grow. A mix of revenue sources makes it easier to try new strategies, such as online auctions, livestreamed events, or social fundraising, without risking your core budget. It also makes your nonprofit more attractive to funders and partners. When potential sponsors see multiple paths to support and visibility, they’re more likely to come on board.

Examples of diversified strategies

Nonprofits looking to reduce risk and grow income can layer multiple fundraising channels together. Below are several proven approaches worth combining based on your mission and donor base:

1. Peer-to-peer campaigns

These campaigns allow your supporters to raise funds on your behalf through events like walkathons, bike rides, or online challenges. They use personal networks and often bring in new donors.

In 2024, the top 30 peer-to-peer events in the U.S. raised $1.14 billion, a 3% increase from 2023. Around 10% of donors now take part in peer-led fundraising. These campaigns also help build community and attract younger supporters and sponsors.

2. Recurring or subscription giving

Monthly or quarterly donation programs offer predictable income and higher donor value. Nearly 57% of donors are already enrolled in a monthly giving plan. You can brand this type of program as a “Circle” or “Society” and use your CRM to automate gifts and send regular updates to show impact.

3. Auctions and online fundraisers

Silent auctions, raffles, and virtual bidding tools can raise money beyond traditional galas. About 24% of donors say they’ve contributed through online auction formats. Mobile apps and text-to-give platforms help expand reach and participation, even among supporters who aren’t attending your events in person.

4. Email and digital campaigns

Strong digital outreach through email, social media, and crowdfunding gives your nonprofit more ways to connect with donors. Segmenting your list and personalizing appeals increases conversion and donor lifetime value.

86% of nonprofits use email marketing as part of their outreach strategy, and 71% say social media helps drive online fundraising results.

5. Corporate partnerships and sponsorships

Working with companies can unlock event sponsorships, gift-matching programs, and volunteer support. On average, more than $20 billion in nonprofit contributions come from corporate gifts each year.

These relationships often bring lasting value and offer opportunities for brand exposure, especially when missions align.

Actionable worksheet: build your "fundraising resilience map"

Use this step-by-step worksheet to evaluate your current income sources, reduce funding risk, and expand into new channels.

Step 1: List your current revenue streams

• Write down every active funding source.
  
  Examples: annual gala, foundation grants, major gifts, direct mail, social media campaigns, corporate sponsors, membership dues, and investment income.
  
  
• For each, record:
  • Dollar amount contributed (monthly or annually)
  • Percentage of total budget
• Flag any stream that accounts for more than 30% of total revenue; these are high-risk points of failure.

Step 2: Assess risk and impact

• For each revenue stream, ask:
  • What happens if this income drops by 50% next year?
  • Are there risks tied to the economy, donor aging, seasonality, or changing policies?
• Rate the risk: High / Medium / Low. Prioritize addressing the high-risk items first.

Step 3: Identify gaps and brainstorm new channels

• Look for over-dependence and missing types of support.
• Choose 2–4 new channels to explore.
  
  Options: peer-to-peer campaigns, recurring gifts, online auctions, email appeals, corporate sponsorships, or planned giving.
  
  
• For each, outline:
  • Target audience(s)
  • Required tools or platforms (e.g., email automation, P2P fundraising software)
  • Staff or board lead

Step 4: Set clear, measurable goals

• Create SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals for each new channel. Examples:
  • “Gain 100 monthly donors by Q4”
  • “Raise $50,000 from an online auction by December.”
• Break down each goal into smaller milestones:
  • Number of signups per quarter
  • Campaign dates and deadlines
  • Tracking metrics (e.g., conversion rates, open rates, ROI)

Step 5: Allocate budget and resources

• Review your team’s capacity, time, and technology.
• Reallocate funds from underperforming strategies if needed.
  
  (Example: shift spending from an expensive gala toward a year-round recurring donor program.)
  
  
• Plan for short-term costs like staff training or software subscriptions.

Step 6: Implement, monitor, and adjust

• Launch each new strategy with a defined start date.
• Use CRM tools or spreadsheets to monitor revenue trends, donor engagement, and retention.
• Review performance monthly or quarterly:
  • Are goals on track?
  • What needs refining (e.g., appeal timing, messaging, targeting)?

Step 7: Strengthen stewardship across channels

• No matter the channel, prioritize donor care:
  • Thank donors quickly.
  • Share specific impact stories.
  • Keep them updated on how their giving supports your mission.
• Welcome new donors with customized messages (e.g., send behind-the-scenes updates to monthly givers).

Diversify your fundraising channels with BetterWorld

BetterWorld gives nonprofits an easy way to expand beyond one or two fundraising channels, without adding cost or complexity.

From peer-to-peer campaigns and monthly giving programs to online auctions and donation pages, all the tools are free and built to help you launch quickly. You can run more campaigns in less time, reach new donors, and strengthen your funding mix without needing extra staff or expensive software.

Sign up at BetterWorld today and start diversifying your fundraising channels for free.