Nonprofit leaders are navigating a moment marked by change—and many are having to rethink how to sustain and grow their funding because of it. So how might nonprofits adapt their fundraising approaches to be successful in this new environment?

To support their efforts, we’ve collected practical guidance on how US-based nonprofits can refine their strategies, build major gift programs, and unlock additional revenue streams, inspired by conversations with development professionals and nonprofit leaders. We draw heavily on the experience and expertise of Mithra Irani Ramaley, executive vice president and chief development officer at City Year, an education and workforce nonprofit dedicated to student and school success, and CJ Orr, CEO of Orr Group, a nonprofit consulting firm; they both recently joined Bridgespan Partner Ali Kelley in a Bridgespan Group webinar on funding strategies.

We hope this guidance proves useful and timely for leaders working to grow their organizational impact and resilience in today’s dynamic—and at times challenging—landscape.

The Current Moment: Three Insights, Three Questions

Over the years, Bridgespan research has found that most large organizations (90 percent) grow by concentrating on a primary funding source and investing in the capabilities needed to strengthen and diversify within it. Our 2024 research on large US-based nonprofits, which analyzed nearly 300 organizations that had reached $50 million in annual revenue within 30 years of founding, reconfirmed the same pattern we’ve observed over a decade of this work.

But there are important nuances to concentration that reflect today’s evolving realities. From conversations with leaders, three key insights stand out. Each insight is paired with a question to help guide reflection and strategy.

1. Depth within your primary category matters

While the largest organizations often centered their approaches to funding around a primary funding category, they weren’t reliant on just one or two specific funders or funding relationships. Instead, they cultivated a robust portfolio within that category, building multiple funding relationships that brought them resilience and flexibility.

A question to consider: Can you identify new funding opportunities within a primary revenue category where your organization is already finding success?

2. A strong secondary source of funding can unlock stability

Many large organizations had a meaningful secondary source of revenue—often philanthropy—that made up 20–30 percent of their total funding. This wasn’t just supplementary; it helped balance budgets, weather disruptions, and fuel growth.

A question to consider: Does your organization have an emerging secondary revenue category that could grow to 20–30 percent of total revenue over time?

3. Capabilities drive success

What set high-performing organizations apart wasn’t just where they got their funding, but how they went about securing it. They developed teams, systems, and strategies purpose-built for their primary and secondary revenue streams.

A question to consider: How can your organization invest in getting better at raising revenue from your primary and secondary categories?

Major Gifts: An Opportunity to Double Down and Unlock

One of the most common questions we hear from nonprofit leaders today is: How do we grow individual giving, especially major gifts, at a time like this?

It’s a timely question—and an urgent one. One estimate holds that less than 1 percent of all charitable gifts are more than $5,000, and those gifts make up 70 percent of philanthropic contributions. Major gifts not only bring a substantial return on investment but also a sustainable way to fund critical initiatives and deepen impact.

CJ Orr believes that launching or expanding a major gifts program is achievable—even in a complex environment. The key is to start with focus and build intentionally. Five elements are essential:

1. Develop a compelling case for support. Why should a donor care about your work? What impact will their gift make? A clear, compelling case, grounded in your mission and tied to real-world outcomes, is the foundation of any strong major gifts program.

2. Assess your data. Before diving into outreach, take a close look at your donor pipeline. Do you have prospects with both capacity and connection? Are there giving patterns you can build on?

3. Engage leadership and your board. Major giving is a team effort. Leadership buy-in ensures alignment while board members can play a powerful role in opening doors and advocating for your cause.

4. Ensure the right infrastructure. Having the systems and tools in place, such as data management, donor tracking, and communications platforms, is critical to managing relationships and scaling effectively.

5. Take action—strategically. It’s not just about asking; it’s about listening, cultivating, and tailoring outreach to the moment. As Orr put it: send the email, make the call, start the conversation.

What It Looks Like in Practice: Lessons from City Year

Many organizations are navigating this moment by doubling down on where they already see traction. For City Year, that means deepening efforts in major gifts, an area that’s shown strong yearly results for the nonprofit and aligns with their long-term funding goals.

“The need [for our services] has never been greater,” shared Ramaley, “and there is real opportunity to raise more revenue for that need.”

City Year’s work directly supports student success and education quality through partnering with under-resourced schools to improve academic outcomes and reduce chronic absenteeism, while developing a diverse pipeline of young leaders and educators. Their multi-impact model strengthens K-12 achievements, provides workplace-ready skills, and prepares alumni for careers in service and beyond.

To support this critical work, City Year raises more than $78 million annually from the private sector, including through a significant and growing major gifts program. Their approach offers several practical takeaways for organizations looking to build or deepen this kind of fundraising work.

Start with clarity—and data

City Year’s funding strategy is anchored in understanding donor behavior and tailoring engagement accordingly. Senior leadership plays an active role in managing relationships with principal and major donors, with distinct strategies for each. These donors are often invited into deeper partnership roles, such as serving on advisory boards or supporting local sites in the 29 communities where City Year operates.

Invest where the opportunity is

In addition to this core group, Ramaley and her team are engaging a growing segment of supporters with a strong affinity for City Year. These donors have demonstrated the potential to deepen their giving over time. Guided by data, the team is investing more in personalized outreach, multiyear giving opportunities, and meaningful engagement experiences that connect donors directly to student success and educational impact.

Balance storytelling and evidence

City Year’s messaging doesn’t just pull at heartstrings. It ties each story to data, and vice versa. “Every story needs a stat, and every stat needs a story,” Ramaley said. This blend of narrative and data helps demonstrate both mission alignment and measurable impact—an approach that resonates with donors seeking connection and accountability.

Scale with intention

To reach and retain smaller donors at scale, City Year built infrastructure to run digital campaigns, annual appeals, and fund drives, often with external partners. But even these efforts are rooted in strategic clarity: understanding where to focus, how to deepen engagement, and which channels are best suited to different types of supporters.

Build community, not just donor lists

City Year works to create a sense of community among its supporters. Through efforts like the Red Jacket Society and curated speaker events, donors are invited to be part of the mission they’re funding, connecting with each other and the broader movement. These touchpoints foster shared purpose and help create an energized community around giving.

City Year’s approach offers a powerful example of what’s possible when strategy, data, and mission align. At the same time, it’s worth acknowledging that the current fundraising environment for nonprofits is crowded. “Everyone is thinking about individual giving and major gifts right now,” Orr noted.

That makes it more important than ever to sharpen your case for support, making it both compelling and mission critical. Stories that show a clear, tangible impact resonate the most. And in some cases, there’s strength in numbers: several organizations have increased their reach and efficiency by partnering or consolidating efforts.

Looking Ahead

There’s no single blueprint for funding in uncertain times. But there are patterns, strategies, and principles that can help nonprofits chart confident paths forward. Whether your organization is refining a core funding stream, exploring new opportunities, or building a major gifts program, the most successful efforts share a common thread: clarity of focus, investment in capability, and alignment with mission.

As conditions continue to evolve, so too will the opportunities. Make your funding strategy responsive and resilient by staying grounded in data, focused on impact, and connected to your community.