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[ASK AN EXPERT] Foolproof Secrets To Raising Unrestricted Nonprofit Funding?
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Updated - 02/13/2025
Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity. Today’s question comes from a nonprofit employee who wants advice on how to raise unrestricted nonprofit funding:
Dear Charity Clairity,
How do you talk about something specific in an appeal letter, but still raise unrestricted funding for use where most needed? We have some programs that have more curb appeal than others, but my CFO is worried we’ll raise too much money for those programs and not enough for others. She prefers I write a fundraising appeal that asks prospective donors to fund the depth and breadth of our mission. Might you offer any tips I can share to assuage my CFO’s fears, but still lead with the appeals I believe will most resonate with supporters?
— “Where most needed” is killing us
Dear “Where most needed” is killing us,
This is a great question! It’s one I’ve personally been faced with from my in-the-trenches days (I was once almost fired for raising too much money for a particularly popular program), yet it turns out it’s surprisingly easy to get around.
Understand, most funding is fungible
Rather than one gigantic, dense book, think of your operating budget as a bunch of little stories wrapped up as packages. You may favor raising “unrestricted” money so you’re able to dole it out among the different packages as needed. But you can also do it the other way around – and raise a lot more money.
Here’s how it works: All your core programs are of equal value when it comes to fulfilling your mission. Some, however, may be more valuable in terms of fundraising appeal. Try wrapping a few program packages in particularly shiny paper, such that a majority of folks will choose them. Lead with those glittery showstoppers; apply any excess raised to the other core parts of your operations. It’s all money raised for the mission.
This is not bait and switch
Simply being upfront about your intentions will be the secret to success. The Better Fundraising Co. co-founder, Steven Screen, suggests you do these three things:
- Somewhere in the appeal, tell the donor their gift will fund the specific thing you’re promoting and the rest of your mission’s programs. This will cover other programs as well as all administrative expenses. For example:
Your gift will help hungry children like Jimmy and other children, families and elderly who don’t have enough to eat.
- On the front of the remit piece, or top of the donor landing page, include a headline related to the specific program the appeal features plus an action check-off box: “YES, I’ll support this (what you focused on in your appeal) and all the other programs and services you offer. For example:
Rising Stars Theater Attendance Program! Yes, I will support the Rising Stars program and all programs furthering the mission to share stories that uplift spirits, deepen self-awareness, and nurture compassion to enrich the arts in our community.
- On the back of the remit piece, or elsewhere on the donor landing page, include a statement saying: “Your gift will be used to support this (what you focused on in your appeal) and all the other programs and services we offer.” For example:
If this program becomes overfunded, your gift will be pooled with other generous donors to do the greatest good possible for at-risk children in our community.
Relate one short story most representative of the parts of your mission people most care about
When people can connect to a relevant, memorable story, you’ll raise more money. You likely have plenty of tales about someone or something in need of helping or healing. Feature these! People are naturally drawn to stories, much more so than recitations of facts or term-paper-like narratives of the depth and breadth of all you do.
Look at the difference between these two appeal intros:
TELL. One in four children in our community suffer from food insecurity. That’s why we offer food pantries, morning snack and school lunch programs, in every single zip code, to stave off this hunger and give kids the energy they need to focus on their studies.
SHOW. Three days in a row, 7-year-old Jimmy was so gripped with gnawing hunger pangs his distressed tummy kept him awake and cramping most of the night. Each morning, at school, he fell asleep at his desk.
Narratives should sing, not sit
One intro above is about a real person the reader can visualize and sense. The other is general and abstract. If at first blush the first one seems perfect to your CFO, that’s understandable. We’re used to this type of appeal because it’s pretty standard practice. Let’s face it, fundraisers copy other fundraisers. Especially if they’re copying from a large, well-established organization. They have to know what they’re doing, right? Wrong!
A lifeless narrative won’t resonate with the average reader
First, they’ll wonder if the statistics are true; rather than thinking about how they can help. They’ll think about how your data may be wrong. This stops them dead in their tracks. Perhaps they’ll put your appeal aside, intending to research the problem later. Pretty soon, the would-be donor forgets what they were supposed to be researching. Later seldom comes.
“Everything but the kitchen sink” will sink your appeal
When overwhelmed with information, minds become numbed. Would you rather read a story or a book report? As playwright David Mamet wrote: “The audience will not tune in to watch information. You wouldn’t, I wouldn’t. No one would or will. The audience will only tune in and stay tuned in to watch drama.” The best drama for a fundraising appeal is something to which prospective donors can relate. They may have plenty of food themselves, but they can imagine what it would be like if their own kid or grandkid didn’t know when they’d next get to eat. Or if they were too tired to focus on their schoolwork.
You seem to have a good appreciation of what works for your constituency. Lead with that. Add the “where most needed” at the end.
— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “‘Where most needed’ is killing us” did.)
How does your organization handle restricted vs. unrestricted nonprofit funding? Let us know in the comments.
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