How to earn money for a nonprofit organization easily

Whether you’re just getting started or looking to take things to the next level, this guide walks through smart, realistic ways to generate income that supports your work today and builds for tomorrow.

We’ve seen that the most successful organizations don’t just have the right tools—they have the right support. That could mean a partner who not only gives you tech that makes fundraising easier but also helps shape the strategy, guides you through the decisions, and feels like an extension of your team. Because when fundraising gets easier to manage, your mission gets more room to grow.

How nonprofits generate revenue

A lot of people hear “nonprofit” and assume that means you can’t make money. But the truth is, earning revenue is not only allowed—it’s necessary. What sets nonprofits apart is what they do with that money. Instead of profits going to owners or shareholders, every dollar has to go back into the mission.

That’s where things get tricky. You still need to cover staff salaries, pay for programs, manage day-to-day operations, and think long term. So the question becomes: how do you earn enough to keep going, while staying true to your purpose?

It starts with understanding the balance. Nonprofits can absolutely earn income—through donations, events, services, even products—as long as it supports the work they’re doing. That income helps stabilize operations, gives your team room to grow, and builds trust with your community. And when you manage it right, it becomes the fuel that powers your impact.

5 Primary sources of nonprofit income

1. Individual contributions and online donations

When most people think about how nonprofits make money, donations are the first thing that come to mind—and for good reason. Individual contributions are often the biggest piece of the puzzle. But it’s not just about asking for money. It’s about making it easy and meaningful to give.

Having a clean, mobile-friendly donation page is a must. People are more likely to give when the process is simple, secure, and tied to a clear story. Showing exactly where their money is going—like meals delivered or scholarships funded—makes giving feel personal.

And don’t forget about follow-up. A thank-you message that feels human, not automated, can turn a one-time donor into someone who gives again and again. Especially when you’re using tools that let you automate those personal touches without losing that warm, genuine feel.

Social media also plays a big role here. A quick story, a short video, or even a simple post can spark interest and drive traffic to your donation page. You want people to feel like they’re part of something bigger—and like they can help move it forward with just a few clicks.

2. Fundraising campaigns and initiatives

Fundraising campaigns are more than just asking for money—they’re about rallying people around a goal. Whether it’s for a new program, emergency relief, or just to keep things running, a good campaign gives people a reason to give right now.

The key is to be clear, focused, and time-bound. If people know exactly what you’re raising money for and how much you need, they’re more likely to jump in. Giving updates along the way—like “We’ve hit 60% of our goal!”—keeps the momentum going and makes your supporters feel like part of the progress.

Events are a big part of this too. From galas and auctions to casual community gatherings, fundraising events create energy and connection. They also give your organization a chance to show your impact in real life, not just on paper. And with the right setup, you can collect donations on the spot—through text-to-give, QR codes, or mobile donation forms.

A lot of folks think they need a huge team or big budget to run campaigns like this. But the truth is, even small teams can do a lot with the right tools and a smart plan. It’s about starting where you are and building from there.

3. Grants and foundation support

Grants can be a game changer for nonprofits—but they can also feel a bit intimidating. The good news? You don’t need to be a full-time grant writer to get started. What you do need is a clear mission, a strong case for support, and a little persistence.

Grants usually come from foundations, corporations, or government programs. Some are open to anyone, and others are by invitation only. The best way to start is by looking for funders whose goals line up with yours. If you’re focused on education, look for foundations that care about learning. If you’re working on food access, search for groups in that space.

What funders really want to see is impact. They want to know how their money will help people—and how you’ll measure that impact. If you can show that clearly (even with simple stats or stories), you’re already ahead of the game.

One last tip: don’t try to chase every grant. It’s better to go deep on a few strong matches than spread yourself thin. And if you’re not sure where to start, there are folks and platforms out there that can help guide the process.

4. Selling goods or services (earned income)

This one surprises a lot of people, but yes—nonprofits can sell things. As long as the money goes back into your mission, earned income is completely allowed, and actually encouraged. It’s a smart way to add a steady, reliable stream of revenue that isn’t tied to fundraising cycles.

Think about what your organization already does. Do you run workshops or trainings? Offer consulting or coaching? Sell merchandise tied to your cause? These are all great ways to generate income. And they can also help spread awareness and deepen your connection with your audience.

The key is making sure it aligns with your mission. For example, a nonprofit focused on youth development might offer after-school programs for a fee. One working in the arts could sell handmade crafts or run paid performances. If it supports your cause and adds value to your community, you’re on the right track.

Just remember, you still need to keep track of what’s called “unrelated business income”—revenue that doesn’t connect to your mission. Too much of that can put your tax-exempt status at risk, so it’s worth checking with an accountant or legal expert when you’re exploring earned income options.

5. Corporate sponsorships and partnerships

Partnering with businesses can open up big opportunities—not just for funding, but for visibility and long-term support. Many companies are looking for ways to show their social responsibility, and working with a nonprofit is a meaningful way for them to do that.

The trick is finding businesses whose values match your own. Local shops, big brands, or even regional chains might be open to sponsoring an event, donating a portion of sales, or funding a specific project. And in return, they get to align their name with a cause their customers care about.

What makes these partnerships work is clarity. Be upfront about what you need, what you can offer in return, and how you’ll showcase their support—whether it’s a logo on your event flyer, a shoutout on social media, or a mention in your newsletter.

Start with what you already have. Is there a parent who owns a business? A local restaurant that supports your work? A community bank looking to give back? Those warm connections are often the best place to begin.

Turning one-time donors into recurring supporters

Getting someone to give once is great. Getting them to give again—that’s where real stability comes in. Recurring donations give you a clearer picture of your future, help with budgeting, and free up time so you’re not always chasing the next big campaign.

So how do you get there? First, you’ve got to make the option easy to find. Your donation form should clearly offer the chance to give monthly, quarterly, or annually. Then, help people see the value of giving over time. Even a small monthly gift adds up—and can make a bigger impact than they might think.

Smart tools can help with this too. Features like automatic thank-you messages, progress updates, and even personalized nudges can keep donors connected and excited about what they’re supporting. When folks feel like they’re part of the story, they’re more likely to stick around.

And don’t underestimate the power of asking. Sometimes all it takes is a well-timed email or a quiet moment in a campaign to invite someone to make their gift a regular thing.

Leveraging your board of directors

Your board isn’t just there to vote on budgets and show up at meetings—they can be one of your most powerful fundraising assets. When board members are active, informed, and willing to connect with their networks, they can open doors that your team might not even know exist.

That doesn’t mean every board member needs to be a professional fundraiser. But they do need to understand that part of their role includes helping bring in resources. That could be making introductions, hosting a small event, writing thank-you notes, or simply talking about your organization with passion and clarity.

The first step is giving them the tools. Make sure your board members know your goals, your talking points, and what kind of help you need. Keep it simple and actionable. Most people are happy to help—they just don’t want to guess at how.

It also helps when staff and board work as partners. When everyone’s on the same page, and fundraising is a shared effort instead of a silo, things move faster—and feel a whole lot less overwhelming.

Legal boundaries: what nonprofits can and cannot do

Nonprofits get some great financial benefits—like tax exempt status—but with those benefits come responsibilities. You’ve got to follow a few rules to keep everything above board, especially when it comes to money.

For starters, your income has to go back into your mission. That means no one’s pocketing profits, and everything you bring in supports your programs, staff, or day to day operations. You’ll also need to file the right paperwork every year to keep your tax-exempt status, like the IRS Form 990.

Another important piece is understanding unrelated business income. If your nonprofit starts making money in ways that don’t tie directly to your mission, that income could be taxable—and too much of it might even put your exemption at risk. It’s fine to earn money, but you’ve got to be clear on how you’re earning it.

This stuff can feel complicated, but it’s worth getting right. If you’re ever unsure, having a legal or financial expert on call—even part-time—can save you a lot of stress (and potential penalties) down the line.

Political campaigns and restrictions

This one’s important: if your organization has 501(c)(3) status, you’re not allowed to participate in political campaigns. That means you can’t support or oppose specific candidates, either directly or indirectly. No endorsements, no campaign donations, and no “wink-wink” statements on your platforms.

But here’s what you can do: educate. You can share nonpartisan voter guides, hold forums where all candidates are invited, and talk about issues related to your mission—as long as you don’t take sides. The goal is to keep your focus on the cause, not the politics.

It can get a little gray, especially around election season. So it’s a good idea to have some basic guidelines in place and make sure your staff, board members, and volunteers know where the line is. Even a single post on social media could raise questions if it looks like your organization is taking a political stance.

Bottom line? Stay mission-driven and neutral when it comes to candidates. That way, you keep your credibility—and your tax-exempt status—intact.

Tools and tech to increase nonprofit revenue

A strong fundraising strategy is only as good as the systems behind it. When your tools are clunky or your data lives in ten different places, things fall through the cracks. And no one wants to spend their day wrestling with spreadsheets when they could be connecting with donors.

That’s where having solid tech makes all the difference. A good platform helps you manage everything in one place—donation pages, email outreach, recurring gifts, reporting, even event planning. And when your tools are connected, your whole team can move faster and with more confidence.

But tech alone isn’t enough. The best results happen when the tools come with real support—people who understand the nonprofit space, who can help with strategy, who know what works and what doesn’t. That kind of partnership saves you time, boosts your fundraising, and makes your day-to-day feel way more manageable.

So yes, good software matters. But so does having someone in your corner who gets what you’re trying to do—and helps you actually do it.

Bringing it all together

Earning money for a nonprofit isn’t about chasing dollars—it’s about building a steady, thoughtful system that supports your mission long term. From individual donations to grants, events, earned income, and strategic partnerships, there are more paths to revenue than most folks realize. The key is knowing what fits your organization, your team, and your goals.

You don’t have to do all of it at once. Start small, build what works, and keep layering on. And remember, you don’t have to do it alone. Some of the most sustainable nonprofits we’ve worked with aren’t necessarily the biggest or flashiest—they’re the ones that have systems in place, a strategy that fits their reality, and a partner that helps keep all the moving pieces aligned.

That’s where tools like Harness really make a difference. It’s not just a donation platform. It brings together the strategy, the support, and the day-to-day tech you need to manage campaigns, grow recurring donations, and keep donors engaged over time. Having all that in one place—especially with real people helping you use it well—takes a huge load off your team and gives you more time to focus on the work that really matters.

Frequently asked questions

Can a nonprofit organization keep surplus revenue?

Yes. Nonprofits can absolutely bring in more money than they spend—as long as that extra money gets reinvested into the mission. It might go toward future programs, improving operations, or building a reserve for stability. It just can’t be paid out to individuals like profits in a for-profit business.

Do nonprofits pay taxes?

Most nonprofits with 501(c)(3) status don’t pay federal income taxes, which is a big benefit. But they may still owe other types of taxes—like payroll tax or sales tax depending on your state—and certain kinds of unrelated income might be taxable too.

What is peer-to-peer fundraising?

Peer-to-peer fundraising is when your supporters raise money on your behalf. Think birthday fundraisers, personal campaign pages, or team events. It works because it brings your mission into people’s own circles and makes giving feel personal.

How do you keep fundraising sustainable long term?

Recurring donations, strong donor relationships, and a mix of revenue sources are key. But sustainability also comes from good systems—like tech that saves time and helps you stay organized—and a strategy you don’t have to reinvent every few months.

Can board members be paid for fundraising?

Generally, board members are volunteers and shouldn’t be paid for their board service. That said, if a board member also provides a separate professional service—like consulting or legal work—it’s possible to compensate them, as long as there’s a clear agreement and full transparency.