If you’ve been in the nonprofit sector long enough, you’ve heard it—and probably said it:
“We need more donors.”
But after working with organizations across the country for over 15 years, I can tell you this:
Most nonprofits don’t have a donor problem—they have a CRM system and process problem when it comes to cultivating and engaging donors.
Let’s talk about it.
The Real Issue Isn’t Always Acquisition
Yes, new donors matter.
But what I see far more often is this:
Donors give once and never hear from the organization again
Mid-level donors are never cultivated into major donors
Long-time supporters aren’t meaningfully engaged
Staff don’t have a clear strategy for outreach or follow-up
That’s not a donor shortage.
That’s a donor cultivation problem.
You Might Already Have the Donors You’re Looking For
Inside your CRM software right now, there are likely:
Donors who have capacity but haven’t been asked
Donors who gave generously once—and disappeared
Donors who are engaged in mission but not in giving
Donors who are ready for deeper relationships
But if your system isn’t set up to surface those opportunities, they stay hidden.
Your CRM Software Should Be a Cultivation Engine
Your CRM software is not just a place to store data.
It should help you answer:
Who should we be building relationships with right now?
Who hasn’t been contacted in 6–12 months?
Who is increasing their giving—and why?
Where are we overly reliant on a small group of donors?
When used well, your CRM system becomes a strategic tool that drives engagement and growth.
But here’s the reality…
Most organizations aren’t set up to use their CRM software strategically.
I consistently see nonprofits invest in CRM software—but not in:
Thoughtful system setup
Clear data structure for constituents and gifts
Staff training
Documented processes and SOPs
So the system becomes:
A data entry tool
A reporting headache
Or worse… something only one person understands
And when that happens, donor cultivation becomes inconsistent—or doesn’t happen at all.
If you want to diversify funding, you have to diversify relationships.
And diversifying relationships doesn’t happen by chance—it happens through structure and consistency.
Think about your own life.
The relationships that grow stronger over time aren’t the ones you check in on once a year. They’re the ones where you:
Stay in touch
Pay attention
Follow up
Show genuine interest
Donor relationships are no different.
But here’s the part that often gets missed:
Cultivating donor relationships should be guided by a written, strategic development plan.
Not just good intentions. Not just “we should reach out more.”
A plan.
A plan that requires:
Knowing who your donors are
Understanding how they engage
Tracking interactions consistently
Following a clear, repeatable process
Aligning outreach and engagement with a documented development strategy
Without that foundation, funding will always concentrate in the same places—no matter how many new donors you try to reach.
What It Actually Takes to Achieve Funding Diversity
If we’re being honest, funding diversity doesn’t happen from one initiative or one campaign.
It happens when the right pieces are working together.
Organizations that successfully cultivate and grow a diverse donor base have:
A diversified, strategic development plan
A clear structure for how gifts and donors are categorized
Properly configured CRM software
Defined processes for donor outreach and follow-up
Staff who are trained in both fundraising and the CRM software
Visibility into donor behavior and trends
Written documentation that ensures consistency across the team
In other words—they’ve invested in infrastructure, not just tools.
And when those pieces are in place:
A Strategic development plan + Properly configured CRM software +Trained staff = Diversified Funding
Final Thought
Diversifying funding isn’t just about finding new donors. It’s also about using your CRM software and processes to fully cultivate the donors you already have.
Questions You Might Be Asking
1. We already have a CRM system—why isn’t it helping us grow?
Most CRM software is only as effective as how it’s set up and used. If your data structure is unclear, your team isn’t trained, or your processes aren’t documented, the system can’t support strategic decision-making.
2. Where should we start if we want to improve donor cultivation?
Start with your foundation:
Review how your data is structured (e.g. constituent and gift segmentation)
Identify gaps in donor engagement tracking
Define a simple, repeatable process for outreach and follow-up
Ensure your team knows how to use the system consistently
3. Do we need new software to fix this?
In most cases, no.
Many organizations already have the tools they need—they just haven’t been fully set up or utilized to support donor cultivation and engagement.
