Types of Fundraising: Your 2025 Guide to Raising More

Fundraising drives change over time in a need to adapt to current circumstances, whether they be economic, mission oriented or due to new technologies that can help make fundraising easier and more efficient. Of course understanding which type of fundraising is best for your own charity totally depends on your charity’s specific needs and goals, and every nonprofit organization is different.

Why does this all matter in 2025 and beyond? Money doesn’t grow on trees, and causes need cash to thrive and make an impact. Last year, U.S. nonprofits raised over $557 billion (Giving USA, givingusa.org), and that number keeps climbing. Knowing your fundraising types helps you grab a piece of that pie. Plus, the game has changed. Before the advent of the internet and online giving, people went door to door, mailed letters requesting funding or called on a land line telephone asking for donations. But today, with tools like Paybee and others plus the reach of social media, the entire industry has changed dramatically.

Furthermore, fundraising isn’t about how much money your charity receives, it’s about the amount of impact it makes whether it’s feeding families, building schools, or saving animals. Take the American Red Cross, for example. They use donations to respond to 60,000 disasters a year (redcross.org). That’s real world change that donors can see and connect to. But picking the right method that works for your specific needs is the challenge. Crowdfunding might spark quick wins and fund a small need for the moment, while a gala could build lasting donor ties and help spread awareness.

This article lays it all out. We’ll cover the main types of fundraising and their objectives, from old school events to cutting edge online campaigns so you can clearly understand all of your options. You’ll get the benefits, strategies, and even some fresh trends and tips for small groups, big charities, and everyone in between.

What Are The Key Fundraising Types for Any Nonprofit Business?

Modern day types of fundraising methods has lots of options from traditional types like bake sales or mailed donation letters to more modern ones like crowdfunding and social media fundraising. All of these work, just differently.

A school might sell cookies, a church might host a spaghetti dinner to fix the roof, or a viral post on stopping human trafficking may have the potential to raise thousands online. It really comes down to what tools and resources do you have to work with, and what is your main goal when it comes to funding. Think about fundraising like a toolbox. It’s unrealistic to think you can raise a million dollars with a bake sale, but it’s also unrealistic to think you can raise ten thousand from a social media post if your charity only has twenty followers.

So what are the basic options? Here’s the lineup of the most common types, individual giving, events, grants, corporate partnerships, and digital campaigns. Individual giving means asking people directly for their donation, think door knocks or monthly donors. Events bring folks together and can really help with awareness and recruiting volunteers. For events, think runs, auctions or galas. Grants come from foundations or governments, often for big projects. Corporate deals team you up with businesses for cash or sponsorships. Digital covers online tools like Paybee, crowdfunding, email blasts and social media drives. Which sounds like your vibe, or even a combination of a few ideas?

This is where tailoring your fundraisers to a type is really important. A food bank might lean on events to rally the community and spread awareness of their mission while while a research nonprofit might focus solely on government or foundational funding to fund their research. The point is to match the type to your specific goal so you can get the most out of your efforts. Oh, and don’t sleep on hybrids. Virtual galas mix live streams of your events with in person participation so whether you’re in the room at an auction, or watching it online, think bidding on Zoom, you still have an equal chance to participate in the event and have fun doing it.

Check this table for a quick peek or the next one for a more comprehensive list:

What are the types of fundraising for nonprofits? All of these and more! Pick one, test it, and watch your cause grow. Experts like Giving USA say mixing types boosts results. Ready to fill that toolbox?

Complete Comparison of Fundraising Methods from Grants to online donations from donors

While the table above gives a brief overview of the different types of common fundraisers you can use, below is a complete list of the 10 most common types and the best use cases for each of them.

Benefits of the Different Donation Types a Donor Can Make

Fundraising isn’t just about cash, it’s about what it does for your charity and those benefiting from its charitable work. And each type of fundraising method brings something special to the table in its own right. You’ll find real advantages here, stuff that sparks donor engagement, boosts ROI, and fuels philanthropy. And with ten types of securing funds, it’s possible to find that specific one that can really change your financial situation, sometimes very quickly!

1. Individual Donations and Major Gifts
   Benefit: Steady cash and loyal fans
   One-time donations like $20 from a supporter help keep your charity moving forward. Even better, monthly gifts, say $15 every month, stack up reliably and allow you some breathing room when creating budgets and planning for the future. 12 months later, that’s $180 per person. Peer-to-peer fundraising gets your people raising cash for you with little effort on your part. A supporter might pull in $300 just by sharing their page with their friends. Major donor fundraising can be a game changer for any organization. They can donate upwards of tens of thousands of dollars in one instance for a new program.

2. Corporate Giving and Sponsorships
   Benefit: Big backing and solid allies
   A company sponsors your event for $5,000 cash or the equivalent in goods or services plus exposure to its customers. You in turn promote them at your event and give them a shout out so everyone knows their kindness. Matching gifts double impact; $100 becomes $200. Employee giving pools small donations into thousands depending on the size of each business. In-kind donations like free desks slashes costs. You land reliable funds and partners who amplify your reach while they get access to the people they’re marketing targets in a charitable environment. It’s a win-win.

3. Grants and Foundations
   Benefit: Big bucks for big plans
   Government grants might hand you $50,000 for a project depending on your sector. Private foundations offer $15,000 yearly to some charities. Community grants fund local wins like a park. These grants can range from a thousand to a million dollars in some cases. Corporate grants blend business and good consciousness. They’re often geographically specific, so it’s always a possibility in securing one.

4. Fundraising Events
   Benefit: Tight community and repeat donors
   Galas can rake in $20,000 while donors sip wine and bond. Auctions turn a signed jersey or sought after sports tickets into a $1,500 donation. Charity runs pull crowds and lots of potential supporters and it’s common for events like a 5k run to pull in thousands of dollars worth of donations and sponsorships. These types of events really build the community and many supporters come back time and time again.

5. Crowdfunding and Online Fundraising
   Benefit: Low-cost, high-reach campaigns
   You use digital tools and platforms to collect gifts fast. Crowdfunding platforms like GoFundMe let anyone donate to your story directly with little work. Social media drives share posts with a donate button. Text-to-give uses short codes for quick gifts. Email appeals hit inboxes with a link. You reach tons of people, low cost. Think of a campaign going viral online. Or a text blast grabbing small donations in minutes.

6. Membership and Subscription-Based Giving
   Benefit: Regular funds with a bonus
   You trade perks or incentives for regular support. Membership programs charge monthly or yearly, like a fee for a newsletter or special VIP access to all of your events. Subscription platforms like Patreon take small, ongoing gifts for special content that isn’t shared publicly. Loyalty programs reward donors with goodies like swag. Each of these types can help bring in more funds and sometimes even on a monthly basis.

7. Planned Giving and Legacy Donations
   Benefit: Future-proof funding
   Bequests, annuities, and trusts ensure future financial stability. Estate planning allows donors to leave a lasting impact through legacy donations or planned giving while receiving taxed benefits sometimes immediately. Although these types of gifts are rare, it is just a matter of educating your supporters on what types of choices they have to support your cause.

8. Product and Merchandise Sales
   Benefit: Extra revenue with brand visibility
   Selling branded merchandise, raffle tickets, or baked goods creates an additional income stream and can even be paired with other event models. Online charity shops list goods digitally. Bake sales or markets offer homemade treats while raffles sell tickets for prizes. You add funds and buzz. Think of selling shirts at an event. Or a raffle for a gift basket. It’s even legal for a nonprofit to own an LLC depending on what they do with the proceeds.

9. Community and Grassroots Fundraising
   Benefit: Strong local support and volunteer involvement
   You tap local folks for support. Door-to-door asks hit neighbors directly. Local businesses donate or host drives. Church or faith-based efforts rally congregations; school fundraisers involve kids and parents. You build tight local ties. Imagine a shop hosting a donation jar. Or a school selling candy bars.

10. Hybrid and Innovative Models
    Benefit: Fresh ideas, flexible wins
    You mix creativity with cash. Social enterprises sell goods, like a café, for your cause. Cause marketing teams with brands for shared profits. Influencers push your story online; subscription boxes blend giving and products. You stay fresh and flexible. Picture a coffee shop funding your mission. Or an influencer posting for donations.

The best part about our list is you can mix these up and try different combinations to build off one another. Crowdfunding grabs quick cash, while grants build the future. But to know what works for sure, you’re going to need to match your needs and resources and then simply test and test until you get the perfect fundraising method.

Emerging Trends in 2025

Fresh nonprofit fundraising ideas and tools are popping up all over thanks to all the technological advances happening almost daily. These new applications are waiting to help you raise more and connect with your supporters better, it’s just about knowing what they are and how they can assist your nonprofit.

First, virtual and hybrid fundraising events are on the rise. This is why we worked so hard on the Paybee platform, so charities like yours could take advantage of these types of events while not needing to worry about the technical details. These events happen online so you will need a solid and secure platform to run everything. You can see how our suite of tools created specifically for the nonprofit sector can help your organization grow to its full potential by accessing our free demo here and trying it out.

Think livestreamed auctions or Zoom galas where donors bid from home or anywhere with an internet connection. The beauty of virtual events is your organization can connect with people all around the world looking to support a worthy cause. You’re no longer tethered to geographical restraints!

But you can also still have an in-person event and a virtual event at the same time. These are called hybrid events and they are growing in popularity for many reasons. First, everyone that attends your event can participate, wither live or online. And with software solutions like ours, holding an auction is a breeze for everyone. Live bidders get their own auction paddle to bid live at the event, while the system also accepts bids from those online. Our system keeps track of all bids and bidders, then tallies their winning bids at the end and gives them an easy to use payment platform to pay for their items and make further online donations.

All of this is done without your staff having to get involved, freeing up a lot of manpower. This gives even the smallest nonprofits the power to engage audiences in a profitable way from anywhere with internet access. And holding virtual events isn’t just for auctions. Picture a small nonprofit hosting a cooking demo both live and online, suddenly people across the country have the chance to participate and chip in. With a solid nonprofit software solution, the sky really is the limit.

The next emerging trend that is shaking the entire internet up is using AI for nonprofits. AI can do almost anything to help your charity grow. From creating entire websites and its content, to tracking donor behavior so you can segment your marketing and become super targeted. It digs through data to spot who’s likely to give and why. Say a supporter always donates to animal causes, AI flags that and suggests a pet rescue pitch. You send personalized emails, texts or even snail mail that hit the mark. It’s like having a super smart assistant. Nonprofits using AI boosted donations by 10% in 2023 (givingusa.org). Imagine sending a tailored thank-you video to a big giver, AI could pick the perfect moment. This is the future right now, so take the time to research AI and see how it can help your nonprofit become more profitable and effective.

Donor Advised Funds (DAFs) are another newer trend picking up steam. Donors place money in these special accounts, like a charity savings plan, then decide later where it goes or how it’s used. You get a steady flow of support from folks who plan ahead and you have full control over the money once it’s deposited, but the donor decides when the funds are released and can attach special considerations on how they are used if they want. In 2022, DAFs accounted for over $52 billion in donations to charities and foundations (National Philanthropic Trust, nptrust.org). Think of a donor who loves your mission setting aside $5,000 in a DAF, then sending it your way next year or even ten years from now. It’s reliable cash without the constant chase. Reach out to DAF users with a clear pitch explaining all of the non-taxable benefits and other advantages and see how your supporters respond. It may make perfect sense for more people than you think.

Mobile giving and text-to-donate are continually exploding year after year. People pull out smrtphones, text a code, and send $10 in seconds. Apps make it even slicker, tap a button, and you’ve got a gift. It fits today’s fast pace and the younger demographic of philanthropists that want to be involved. Approximately 44% of gifts and 29% of online revenue comes from mobile devices so be sure your software solution provides blazing fast mobile pages like Paybee does. Picture a supporter at a bus stop texting a donation after seeing your ad. Or a quick app gift during a lunch break. It’s instant and easy. Set up a text-to-give code or a mobile-friendly donate page, small donationswill stack up quick.

Here’s your cheat sheet — Top Fundraising Strategies to Watch in 2025:

• Virtual and hybrid events stretch your audience far.

• AI tailors asks to fit donors like a glove.

• DAFs line up steady, thoughtful donations.

• Mobile giving snags cash on the go.

What’s pushing fundraising trends and techniques in 2025? Tech, speed, and donor habits. People want giving to feel simple and personal and they don’t want any type of friction when it comes to giving. These trends aren’t just cool, they actually work. Pick one that fits your organization. Maybe start with a mobile campaign, low cost with big potential. Or test a virtual event to reach new faces and gain more awareness. The future’s here, and to not embrace it means falling behind the other charities looking for donors of their own!

Challenges in Implementation

Fundraising sounds great until you hit a snag or other issues. What gets in the way? Every type has its own unique hurdles, but you can push past them with a little guidance and persistence. For now, we will just go over the four most common challenges and figure out how to best tackle them.

The first problem that creeps up in most nonprofit organizations is donor fatigue. People get tired of constant asks, your $10 monthly plea starts feeling like noise. Retention slips too and supporters lose steam and you loose cash. According to AFP Global, charities in 2024 saw, ‘declines in the numbers of donors (-5.3%) and in donor retention (-4.6%).’ So this is an important problem to consider and watch out for within your own organization. Try fixing the problem by mixing up your approach. Send a fun thank-you video instead of another email. Or host a donor picnic for free with no intentions of fundraising to keep them close without begging.

Large scale events can drastically cut into your profit margins, even when using a sophisticated and affordable solution like Paybee. Picture a gala and all it takes to pull one off successfully. Renting a venue, hiring caterers, printing invites all cost money and they pile up quick, eating your profits. A small nonprofit might spend $5,000 to make $7,000. Those are some tight margins and may not make financial sense. Instead, cut back with a simpler plan. Swap the fancy hall for a park picnic. Or go virtual, stream it free and save big. Just be aware of cost versus ROI, every dollar does matter.

While landing a grant can really boost revenues, even they come with a cost. It takes a lot of time and paperwork just to find and apply for them. Then government or foundation funds demand paperwork: reports, budgets, deadlines. Miss a step, and you’re out. Compliance trips up even the big organizations with dedicated teams and grant writers. Stay on track with a checklist. Log every due date or hire a full time employee whenever possible. If it’s not, then make sure you keep track of everything by creating calendar alerts, tracking all paperwork and submission deadlines, and at what stage each grant is in during the process so you can check them out periodically.

Digital fundraising techniques still stump some. Tech barriers like setting up a donation page slow you down if you’re not using a great platform. Older staff might shy away from apps or text-to-give tools for fear they won’t be able to use them effectively. Yet to miss out on online giving is like giving up on over half your donations for some organizations. In 2023, Blackbaud reported that online giving totaled $13.41 billion across their tracked platforms, that’s a hefty chunk, up 10.6% from 2022, showing digital’s growing pull. So start small, use a plug-and-play platform like Paybee to get started and make everything easy for you and your team. You can sign up for our free demo here to see how we can run the backend of your organization, as well as give you super powerful tools to help you increase donations.

Challenges vs. Solutions Quick Glance:

Fundraising challenges don’t have to stop you. They’re just barriers to overcome, and you can overcome them with a little information and determination. Pick one fix at a time as they come up like hosting a low-cost event or using a simple digital tool and test it. Community fundraising thrives when you learn to overcome and adapt.

Wrapping Up

As you can see, there are many different ways to raise funds for your charity. It just takes becoming aware of all your options and discovering which best suits your organization’s own specific needs based on your mission and financial goals. Also, keeping an eye on new trends can also help you to spot new opportunities and stay ahead of the competition. Because even though you are running a nonprofit, securing funding still comes down to smart business like having an inclusive marketing plan and being strategic with your resources, regardless of what type of fundraising model you choose. And don’t forget to check out our fundraising tools, they’ll get you going fast.