You are passionate about making a difference, tackling social issues, and creating lasting change. You founded a nonprofit to bring your vision to life. Then reality sets in. You realize just how crucial funding is and how challenging it can be to secure. If this sounds like you, you are in the right place.

According to a 2024 report from the Nigeria Network of NGOs there are over 85,000 non-profit organizations in Nigeria registered with the Corporate Affairs Commission (CAC). With this growing number of nonprofits in Nigeria competing for limited resources, securing sustainable funding requires more than just a noble cause. It demands structure, strategy, persistence, and an understanding of how the system works. Let us start with the basics by looking at your organizational structure.

When you identify a social problem you want to solve, your first question should be whether there is more than one way to approach it. You need to determine whether your solution is best suited for a social enterprise, a charity, or a nonprofit organization. One of the biggest funding mistakes you can make is failing to research thoroughly or making a decision based on limited information.

For example, if you register as a charity, you have to eliminate funding options like impact investments or venture philanthropy. However, if you move away from the common practice of registering as an Incorporated Trustee with the Corporate Affairs Commission and instead register as a Company Limited by Guarantee under Section 26 of the Companies and Allied Matters Act 2020, your organization can engage in certain business activities that an Incorporated Trustee cannot. These may include offering consultancy services within its area of expertise to generate income or forming profit-generating partnerships with private companies.

It is important to note that a Company Limited by Guarantee cannot distribute profits. All income must be re-invested into the organization’s stated objectives, such as arts, science, religion, sports, research, culture, or education. If this section caught your attention, it may be wise to consult a lawyer.

Having established that, let us explore some common pitfalls to avoid.

Designing solutions that are not sustainable.

Solutions that are either too difficult to monitor, or hard to evaluate significantly reduce your chances of securing investments from venture philanthropists and institutional funders such as foundations and multilateral agencies. These funders prioritize measurable projects with clear impact indicators.

Lack of innovation in your solutions

Many nonprofits are working on similar projects or interventions. Funders actively look for fresh perspectives and innovative approaches to solving problems. These set your organization apart.

Not being strategic about governance and trustees

A resourceful board member with strong social capital and networking skills can be a game-changer for your nonprofit. Choose trustees who bring value beyond their titles.

Failing to be the biggest storyteller of your nonprofit

As a founder or nonprofit leader, you must consistently share stories about your work, why it matters, and how it creates impact. There is a popular saying about fundraising: “People invest in people and give because of people.” Your ability to communicate your mission effectively can influence funding decisions.

Lack of documentation and transparency

Keeping your financial and operational records in order is crucial. Funders expect transparency, and poor documentation can be a red flag. Thankfully, there are now a lot of free tools that can help you stay organized.

Outdated or non-existent digital presence

Your nonprofit needs an active and up-to-date digital footprint, including social media and a website. An outdated or missing online presence makes it harder for funders, partners, and beneficiaries to engage with your work.

Using personal bank accounts or email addresses

Professionalism matters. Always use official banking and email details for nonprofit transactions to build credibility and trust.

Relying on only one or two fundraising streams

A sustainable nonprofit adopts an “and” mindset rather than an “either-or” mindset. Diversifying your funding sources strengthens financial stability.

Lacking a structured fundraising strategy

Fundraising does not happen by chance. It requires clear mapping, planning, and deliberate action across different phases.

Sending vague partnership pitches or generic funding requests

Mass emails to every potential funder rarely yield results. Instead, research organizations that align with your mission. Understand what they fund, what you need from them, and how to tailor your pitch accordingly. Always value quality over quantity.

Ignoring or failing to read grant and funding application requirements

Many funding opportunities are lost simply because applicants overlook eligibility criteria or fail to follow instructions. Always take the time to review requirements thoroughly before applying.

Fundraising Strategies for Better Positioning

Starting from Within

If you’re a nonprofit or charity just starting out with a track record of less than two years, you are more likely to gain traction in fundraising through your personal network and volunteers. Your personal network is more inclined to trust you and understand your passion. With the right strategy, you can maximize this funding stream.

Instead of simply sending a flyer with a generic request for donations, engage people personally and persuasively. Have a conversation, or even a pitch, that conveys how important the cause is to you. Share why the project matters and what it aims to achieve.

If you can tie it to a personal interest of the potential donor, it increases your chances of securing their commitment. For example, you could say, “I know you love books, and with your support, more children will develop a reading culture.” If they are looking for a meaningful way to give back, suggest, “You mentioned wanting to support a cause annually, and this project would be a great fit.”

Find ways to involve them beyond financial contributions. You might encourage them to pledge their time occasionally or even adopt a specific project. Make the process easy and engaging. Keep them involved through personalized reports, public recognition (if they appreciate it), or annual awards and certificates.

Your volunteers are your biggest fundraising allies. Do you have volunteers who truly believe in your vision? Depending on their demographics, some may be willing to support operational costs through membership fees. Volunteers also need personal engagement and reminders. Encourage peer-to-peer fundraising with non-monetary incentives or friendly challenges to boost participation.

As a founder, you may need to contribute financially in the early days. To avoid blurring the lines between personal and nonprofit finances, set a fixed percentage of your income toward the organization. If you have an additional skill, consider monetizing it exclusively for nonprofit funding.

 Easing into Funding Conversations

I once read that the Partnerships Manager at Jobberman said, “People do not appreciate first contact messages asking for money.” Before sending cold emails or LinkedIn messages asking for funding, start with a conversation or an alternative request.

Lay the groundwork months or even years ahead. Reach out to potential individual donors who are interested in your impact area with an introductory message. If they are involved in teaching or consulting, ask if they would be willing to volunteer their expertise. You might also request a meeting by asking, “You have funded similar projects before. What would you like to see done differently?” or “We need high-level guidance on X, Y, and Z.” If they see potential in your work, they may be more inclined to open a funding conversation.

To avoid coming across as intrusive, send potential funders an introductory email first. Follow up with updates on your progress, and after one or two cycles, invite them to join the next phase. Stay visible and engaged with the individuals or organizations you hope to partner with. Some funders may eventually reach out to you after observing your work, but do not hesitate to take the initiative by presenting a well-thought-out request.

 Strategic and Corporate Partnerships

Sometimes, you do not need direct financial contributions. If you are fundraising for a project, visibility is just as crucial as funding. Segment your partnership approach into monetary support, visibility, tangible items, and collaborations. Avoid sending mass or generic emails.

For corporate partnerships, align your pitch with their Environmental, Social, and Governance (ESG) goals. Offer co-branded campaigns where sponsors receive public recognition. When approaching philanthropists, research their foundation/home offices and previous giving history. Clearly outline the available funding options in your request.

For visibility, seek partnerships with blogs, newspapers, or media houses that align with your mission. Explore free ad spaces or interview opportunities. If you need a physical space, consider youth centers, religious institutions, or community stakeholders. When sourcing products or in-kind donations, do not limit yourself to large manufacturers or distributors. Small and medium enterprises (SMEs) can also be valuable contributors.

One of the most strategic partnerships is with other nonprofits. Organizations can form consortiums to apply for institutional funding or matching grants. A strong partnership can also support crowdfunding and peer-to-peer campaigns. Engage with other founders and actively participate in non profit communities.

Communities and Information

Joining associations like the Nigeria Network of NGOs and subscribing to newsletters from Leap Africa and similar organizations can provide valuable insights into funding opportunities. You cannot leverage opportunities you are unaware of, so stay informed. 

Government Grants

To access government grants, ensure that your projects align with national priorities like the Sustainable Development Goals (SDGs) and Environmental Sustainability. Your nonprofit must be registered with the Corporate Affairs Commission (CAC).

Strategic networking is key. Attend government workshops, build relationships with policymakers, and collaborate with consultants who specialize in grant applications. If your nonprofit operates in Lagos, follow the Lagos State Office of the SDGs for relevant updates.

Grants

Do not rely solely on grants as a primary funding source. They are often time-bound or project-specific. Conduct thorough research on grant providers, the types of projects they have funded in the past, and their current priorities. Ensure you meet all eligibility requirements. If necessary, hire a professional grant writer to improve your application.

A useful tip is to set up Google Alerts for relevant grant keywords. This way, Google will notify you of new opportunities and trends in the nonprofit funding space.

Social Media as a Fundraising Tool

Last year, I noticed several nonprofits promoting their impact reports through social media ads. One caught my attention, and I downloaded their report. I had never heard of them before, but now I am aware of their work.

Using social media effectively for fundraising goes beyond posting flyers. Everyone is doing that. Instead, engage your audience with compelling storytelling from different perspectives. Share stories from volunteers, the founder, beneficiaries, and past partners. A strong social media strategy featuring real people and informative content relevant to your field will build a loyal and engaged audience.

Ensure that your social media platforms provide clear and easy ways for people to donate. If necessary, run ads or collaborate with influencers to increase your reach and attract potential donors.

 Generating Revenue

Before exploring revenue-generating activities, check the limitations of your nonprofit’s registration status. Nonprofits can generate income through merchandise, services, and other offerings. For example, Chess in Slums Africa sells chess Filas, while The Well Teachers Foundation provides workbooks and training programs to fund work in underserved schools.

Other potential revenue streams include digital monetization through YouTube, blogs, or social media channels. Nonprofits can also explore investment funds or establish a social enterprise arm. However, it is advisable to consult a legal professional to ensure compliance with regulatory requirements.

Registration in Another Jurisdiction

This is an uncommon but viable strategy. Registering as a 501(c)(3) organization in the United States, for example, increases your chances of receiving donations from individuals or corporations in that jurisdiction who seek tax-exempt contributions.

The process requires time and careful navigation. There is a test period before an organization qualifies for tax-exempt status. Additionally, nonprofits must establish a U.S. presence and demonstrate charitable operations within the country. Researching other jurisdictions can also present opportunities for international fundraising.

Plug Into Giving Trends

Trends in fundraising come and go, but some can be valuable short-term strategies. If you notice a new pattern such as the rise of giving clubs, consider incorporating it into your fundraising approach.  

Fundraising is a continuous process of testing, learning, and refining. However, not every trend is worth following. Be cautious of volatile financial instruments as donation methods. If you do not fully understand a trend, it is best to avoid it.

Conclusion

Fundraising is not a one-time effort. To sustain your nonprofit, you must continually develop creative and lawful strategies to access the resources needed to achieve your goals. Do not rely on a single funding stream, and do not wait until your next project to start thinking about funding. The best time to build a strong financial foundation is now.