Funding Uncertainty? Time to Diversify (Part 1)
As a nonprofit leader, you’re no stranger to the ongoing challenge of funding your mission. If your organization relies on U.S. federal funding, this is especially true–now more than ever.
Relying on one primary funding source—whether it’s government grants, a major donor, or a signature event—is not sustainable. The good news? This historical moment of uncertainty is also an opportunity to retool your fundraising strategy, build resilience, and beef up other revenue streams that can sustain your organization for years to come.
This two-part series will focus on diversifying your primary funding sources by overhauling your direct mail program (part one) and amping up your institutional giving pipeline (part two).
If your organization historically relies on federal funding, it’s time to take a strategic look at diversifying for future sustainabilty.
Overhaul Your Direct Mail Program
When it comes to diversifying your nonprofit’s income, don’t overlook the power of a well-run direct mail program. While it might feel old-school in our digital age, direct mail remains one of the most effective ways to engage donors and drive contributions.
Organizations that implement a strategic, calendar-driven approach to direct mail—combining appeal letters, digital emails, and newsletters—see significant increases in giving.
Here are a few ways you can transform your direct mail program to boost revenue and free up time to focus on major gifts:
Create a Year-Round Direct Mail Calendar
A consistent, well-planned direct mail calendar ensures your donors stay engaged and informed throughout the year. Here’s what it should include:
1) Appeal Letters: Send 3 to 4 well-written appeal letters annually, each with a clear ask and a specific focus. For example, send a year-end appeal, a spring campaign, and a mid-year update.
2) Emails: To reinforce your message and make it easy for donors to give online, complement your mailings with email follow-ups.
3) Newsletters: Use digital and print newsletters to share impact stories, updates, and gratitude without an ask. This builds trust and keeps your mission top-of-mind between solicitations.
By pre-planning your campaigns and goals and then scheduling these touch points in advance throughout the year, you’ll create a rhythm that keeps your organization visible and your donors connected. This will also help alleviate the scramble to secure funding. As a director, having a clear plan in place allows you to focus more on cultivating major gifts and building relationships with high-impact donors.
HUB TIP
When crafting your fundraising appeal, resist the urge to tie everything up with a neat bow. Instead, tell an incomplete story—one where the problem is still unresolved and the donor holds the key to the solution. This approach creates urgency, invites action, and makes the donor the hero of the narrative.
Consider Adding an Extra Mailing or Two
If your organization typically sends only one or two appeals each year, send at least one additional mailing.
Don't worry! Your donors will not be at risk of "donor fatigue" (a myth). Most donors don't give if they’re not asked, so increasing the number of appeals makes sure your organization stays on their radar and provides more chances for them to support your mission.
Additional mailings also allow you to test different messaging, formats, and audiences. Over time, this data helps you refine your approach and maximize results.
Organizations that send more appeals typically see higher overall revenue, even if individual response rates vary. The key is to balance frequency with quality—every mailing should be thoughtful, donor-centered, and mission-driven.
Why This Works
A well-executed direct mail program does more than raise money; it builds relationships. You create a sense of connection and trust by consistently communicating with your donors through appeals, updates, and gratitude. When donors feel connected, they’re more likely to give repeatedly and increase their support over time.
If overhauling your direct mail program feels overwhelming, consider partnering with us to handle the heavy lifting. With a strategic calendar, expertly written content, and a focus on donor engagement, we can transform your direct mail program into a reliable source of revenue and free up your time to focus on growing major gifts.
By embracing these strategies, you’ll increase giving and create a more sustainable funding model for your organization.