What Nonprofits Can Learn from Startups About Fundraising
Startups and nonprofits operate in different worlds, but when it comes to fundraising, they face similar challenges. Both need to secure funding from external sources, build relationships with stakeholders, and communicate a compelling vision. Startups raise capital from investors, while nonprofits rely on grants, donors, and funders. Despite the differences, nonprofits can benefit from borrowing strategies from the startup playbook—approaches that drive growth, attract funding, and create long-term sustainability.
Here’s how nonprofits can apply startup-style fundraising tactics to strengthen their development efforts.
1. Pitch Decks Aren’t Just for Startups
Startups use pitch decks to communicate their vision to investors. A strong pitch deck outlines the problem, the solution, the market opportunity, and why the company is uniquely positioned to succeed. Nonprofits can benefit from a similar approach. Instead of relying solely on grant proposals and traditional donor outreach, nonprofits should develop concise, visually compelling presentations that highlight:
The problem they are solving
The impact they have made so far
Their strategy for scaling that impact
A clear ask, whether it is funding, partnerships, or other forms of support
A strong nonprofit pitch deck is an asset in meetings with major donors, corporate partners, and foundation representatives. It simplifies complex ideas, making it easier for funders to grasp the organization’s value at a glance.
2. Investor Storytelling = Funder Storytelling
Investors fund startups because they believe in both the mission and the team behind it. The same applies to nonprofits. Funders want to know that their money will be put to good use. Effective storytelling helps build that trust.
Nonprofits should craft narratives that emphasize:
The urgency of the problem they address
The real-life impact of their programs
The passion and expertise of their leadership team
The long-term vision and why sustained investment matters
Rather than relying on dry statistics, nonprofits should show, not just tell. Use case studies, testimonials, and powerful visuals to connect emotionally with funders. Make them feel like they are part of the solution.
3. Scale Like a Startup
Startups focus on rapid scaling. They prove their model works and then seek funding to expand quickly. Nonprofits can apply the same mentality. Instead of simply seeking funding to maintain programs, they should position their work as something ready to scale.
Funders want to know:
How additional investment will increase impact
What systems are in place to support growth
How success will be measured and reported
If a nonprofit can demonstrate that additional funding will lead to a measurable and replicable increase in impact, funders will be more inclined to invest.
4. Diversify Funding Like Startups Diversify Revenue
Startups rarely rely on a single investor. They seek multiple funding rounds, partnerships, and revenue streams to stay agile. Nonprofits should take a similar approach by diversifying funding sources beyond traditional grants.
Potential revenue streams include:
Corporate sponsorships
Earned income models (fee-for-service programs, social enterprises)
Recurring donor programs
Major donor cultivation
Crowdfunding and peer-to-peer campaigns
By expanding fundraising efforts, nonprofits reduce dependency on any one source and build financial resilience.
5. Treat Funders Like Investors
Startup founders maintain strong relationships with their investors, keeping them informed with regular updates, progress reports, and transparent financials. Nonprofits should do the same.
Send funders quarterly impact reports with key milestones
Share success stories and testimonials in a visually compelling way
Provide transparency on how funds are used and the return on investment in social impact
When funders feel engaged and valued, they are more likely to continue their support over the long term.
Fundraising with a Startup Mindset
Nonprofits that think like startups will be better positioned to secure funding, scale impact, and build lasting relationships with funders. By embracing pitch decks, storytelling, scalable strategies, diversified funding, and funder engagement, mission-driven organizations can stand out in a competitive fundraising landscape.
Need Help Strengthening Your Nonprofit’s Fundraising Approach?
At DevCom1, we help nonprofits refine their messaging, create compelling fundraising strategies, and position themselves for long-term success. Contact us today to bring startup-inspired fundraising tactics to your organization.
