The best foundation fundraising ideas for 2025 focus on prospect research with the help of AI-powered tools and building long-term funding pipelines with strategic partnerships. Foundations are nonprofit organizations designed specifically to provide funding and resources for other charitable purposes. Unlike other types of nonprofit organizations, foundations typically offer a single primary funding source for their beneficiaries: the distribution of grants.
Since foundations are a promising source of funding for nonprofits worldwide, these organizations must be funded sustainably. Funding streams, however, may be a challenge for even the most prestigious institutions. Whether the foundation is private or public, the following are some fundraising approaches that foundations should consider for stable funding.
Leverage Prospect Research with AI-powered Tools
One of the most effective fundraising ideas for foundations starts with knowing who to ask for funds. Leveraging prospect research, using AI-powered tools to scour extensive online databases, will distinguish which investors are most likely to give. For example, the industry-leading Kindsight fundraising software includes the powerful donor prospect research tool iwave, that uses predictive scores and real-time data about donors to tell nonprofits who to target, when, and why.
Generally, private foundations receive more funding from individuals or single families than they do from corporations or government grants. Therefore, a private foundation should focus on cultivating and maintaining relationships with major donors who have a history of giving to similar causes. Public foundations rely more heavily on acquiring funding from multiple sources, such as private foundations, individuals, or corporations.
Here are some ways both private and public foundations can utilize AI-powered tools to establish and secure funding from their most promising prospects:
Use AI Tools to Analyze and Suggest Engagement Tactics
Modern fundraising software does more than just store data; it incorporates AI to turn that raw data into an actionable strategy. For example, AI tools will analyze patterns from donor behavior, segment audiences, and suggest the best engagement strategies based on timing, channel, and giving history.
Some of the ways engagement-boosting AI will help foundations reach out to donors are:
- Recommending the best time to contact a donor based on past interactions. AI tells you who to reach out to when to do it, and what the best medium to engage your donor is.
- Writing the first draft for your foundation’s target donor that is personalized and human-like.
- Highlighting lapsed donors who are disengaged and are most likely to re-engage with the organization.
- Using relationship mapping to discover hidden prospects within your network.
Launch a Funder Learning Circle
A learning funder learning circle is when a group of individuals with a common interest or mission come together and learn from each other. While it’s not a direct fundraising event, it affords foundation community members the opportunity to meet and network within niche spaces. For instance, a foundation could set up a funder learning circle focused on its mission, such as agriculture and food security.
This will help attract other foundation members, local businesses, or community partners who also have an interest in exploring this issue. Using funding learning circles isn’t just to check off an attendance list but rather to engage to raise awareness and build credibility around your foundation. Connections made within a funder learning should be registered and used for prospective donor outreach in the future.
Encourage Peer-to-Peer Fundraising
Peer-to-peer fundraising is an effective way to raise funds for a public foundation that relies heavily on public donations to maintain its charitable status. A private foundation’s endowment or pool of assets generally comes from a family, a few individuals, or a large corporate sponsor. So, while a peer-to-peer fundraising event may benefit a private foundation, P2P events usually fall under fundraising ideas for nonprofits and public foundations.
However, peer-to-peer fundraising will still work wonders to raise money for any foundation organizer looking to do the work. Here are a few creative fundraising ideas to set up a peer-to-peer fundraising campaign for your foundation:
- Invite board members to raise money: Ask each board member of your foundation to raise a certain amount of money in a certain timeline, such as $5,000 in 5 days, by reaching out to their personal and family network. Give board members templates, tools, and an easy marketing strategy about your foundation’s mission to share online or in person.
- Sell raffle tickets: Raffle off different events or experiences, such as upscale wine-and-dine meals at local restaurants or a personal chef for a night. Alternatively, ask the members of your foundation to sponsor a charity potluck dinner and sell tickets to this event.
- Host an online silent auction: Ask local businesses or corporate sponsors to donate items or services for the auction. Set up an online fundraising page on a fundraising software platform to register donors, sell, and track auction items and bids. Activate a “mobile bidding” feature that allows supporters to bid from their phones, computers, or tablets.
Encourage Giving from Donor-Advised Funds (DAFs)
Supporters can be encouraged to invest in a donor-advised fund (DAF), which is where money is deposited into an account and then distributed to the charities of their choice over time.
DAFs are lucrative options for major donors who want to give to a cause while eliminating setup fees. Donor-advised funds also give wealthy donors immediate tax breaks. The minimum amount to open a DAF account varies, but it may require an initial deposit of $25,000 or much more. This type of fundraising effort is ideal for foundations because it will raise additional funds consistently without the need for extensive administrative work or management of individual donations.
Secure Ongoing Funds for Your Foundation
The best foundation fundraising ideas of 2025 combine the principles of relationship-building with cutting-edge technology such as AI tools for organizing large amounts of data. Foundations, whether private or public, should always be ahead of the game when it comes to securing sustainable funding.
Here’s a summary of key fundraising ideas for foundations to implement this year:
- Leverage prospect research with AI-powered tools that help identify potential donors with information about their giving habits, their capacity to give, and their philanthropic interests.
- Launch a funder learner circle to raise awareness and share ideas about your foundation’s mission and philanthropy.
- Encourage peer-to-peer fundraising between community members, board members, and founders, asking them to support a range of online or in-person events that spread awareness and raise money.
- Inspire major and wealthy donors to open up a donor-advised fund (DAF) where their money goes directly to your foundation and provides them with certain tax reliefs.
Implementing these fundraising strategies helps stabilize funding resources and maximize your foundation’s reach and impact. Your foundation can then do what it’s set out to do: support other charitable organizations in a big way!
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