Where the Money Really Comes From and Why That Matters

In 2024, Americans gave nearly $600 billion to nonprofit organizations. That is an extraordinary number.

But here is what matters even more: 66 percent of that giving came from living individuals.

Not corporations.
Not foundations.
Individuals.

And yet, many new development officers immediately want to focus on corporate sponsorships or foundation grants. Those have their place. But if you ignore individual donors, you are overlooking your greatest opportunity.

Retention Is More Important Than Acquisition

It is far harder to secure a new donor than to retain an existing one.

New donors account for only about 20 percent of dollars raised. The rest comes from people who are already connected to your organization. That should tell you something.

Retention is built through relationships and stewardship.

Write this down: You thank donors seven times before asking again.

That does not mean seven thank-you emails in one week. It means seven meaningful touchpoints over time. Impact reports. Personal notes. Invitations. Updates. Phone calls. Stories.

Stewardship is not an administrative task. It is a strategic priority.

Small, Mid-Level, and Major Donors

Recent trends show that small donor giving has declined, while mid-level and major donor giving has increased. In fact, 85 to 90 percent of funds often come from just 10 to 15 percent of donors.

That does not mean small gifts are unimportant. Every gift matters. But it does mean you must intentionally identify and cultivate those with capacity and commitment.

And remember this principle: We have no control over what someone gives. We only control how many proposals we present.

Fundraising is a numbers game.

If your goal is $100,000, you should present $200,000 in proposals. If your goal is $1 million, you should be asking for $2 million.

You cannot sit back and hope the dollars come in. You must make the visits. You must present the opportunity.

The Role of Technology

Younger donors, especially Millennials, give primarily online. Investing in technology is not optional. It is essential.

If you are not making it easy to give via smartphone, you are creating friction.

But technology is a tool. It does not replace relationships.

The heart of fundraising remains the same: identify, build relationships, present opportunities, and steward well.

Focus on individuals. Retain the donors you already have. Be intentional with your numbers.

And never forget that behind every gift is a person who chose to believe in your mission.