Annual giving: Overview, steps, best practices, and examples

Predictable annual giving keeps nonprofits strong, enabling them to plan ahead and sustain their impact throughout the year. Many organizations struggle to secure these unrestricted donations consistently, which makes long-term planning difficult. Unlike year-end appeals that focus on a specific season, annual giving campaigns nurture ongoing support year-round.

A strategic approach to annual giving campaigns engages both new and loyal donors while optimizing fundraising efforts, ensuring your organization has the resources it needs to thrive. Consistent donor engagement and thoughtful stewardship strengthen donor relationships and boost retention, creating a stable foundation for long-term growth.

What is annual giving?

Annual giving is the practice of raising unrestricted donations that provide reliable funding for a nonprofit’s daily operations and programs. These gifts sustain mission-critical expenses like staff salaries, outreach, office supplies, services, and technology that keep the organization running throughout the year.

Annual giving isn’t a one-time campaign but an ongoing strategy. It engages both new and loyal donors, creating a steady foundation of support. This base allows nonprofits to strengthen impact and pursue long-term growth.

What is an annual fund?

An annual fund is the structure through which annual giving is organized and managed. It serves as the central pool of unrestricted donations collected throughout the year, often through multiple annual giving campaigns. A strong annual fund sustains day-to-day operations and helps nonprofits engage donors consistently, building lasting relationships.

Why annual giving is important

Annual giving is vital because it provides nonprofits with reliable funding they count on year after year. This steady support covers operating costs and fuels ongoing programs, giving organizations the confidence to plan ahead and invest in long-term growth. It also strengthens donor relationships by offering consistent opportunities for engagement and stewardship.

How to set up a successful annual giving campaign

A successful annual giving campaign starts with careful planning and structured execution. Follow these steps to lay a strong foundation for your annual giving campaign:

1. Define your annual giving campaign goals. Identify what you want to achieve, such as increasing donor retention, acquiring new supporters, or raising average gift amounts. Ensure your goals align with your nonprofit’s mission and broader fundraising strategy.
2. Assign team roles and responsibilities. Determine which staff and volunteers will oversee key areas like communications, donor outreach, events, and reporting. Establish clear accountability to keep the campaign organized and on track.
3. Identify donor groups. Segment your donors and prospects by giving history and demographic characteristics, layering in engagement levels to guide your outreach priorities. This step ensures your efforts focus on the supporters most likely to engage and give.
4. Plan your outreach and make a schedule. Map out general touchpoints throughout the year to communicate with your supporters. Think about timing and frequency, as well as the types of engagement that best fit your goals. A fundraising platform will streamline this process, keeping direct mail, email, events, and digital campaigns organized all in one place.
5. Prepare engagement initiatives. Decide which types of donor engagement to implement, such as regular updates, volunteer opportunities, community events, or recognition efforts. This step establishes the framework for connecting with supporters throughout the campaign.
6. Engage and steward donors. Thank supporters and maintain ongoing communication to build relationships and encourage future giving.
7. Monitor progress and adjust your approach. Track campaign performance against your goals and make adjustments as needed. Use insights to improve future campaigns while keeping the execution flexible.

Annual giving campaign best practices

A strong annual fund depends on clear planning and communication, along with effective donor stewardship. Use these best practices to strengthen your annual giving campaign results.

1. Build a dedicated annual giving team

Assign experienced staff to lead your annual giving campaign, and involve members from different departments to bring diverse skills to marketing, outreach, donor engagement, and events. 

Make sure everyone is trained on your customer relationship management (CRM) and prospect research tools. Clearly define roles and establish backups to keep the campaign moving smoothly if unexpected challenges arise. 

Hold regular team check-ins to maintain coordination and resolve issues quickly. These meetings also reinforce team goals and keep everyone aligned and focused on maximizing donor impact while creating a culture of accountability and shared success.

Pro tip: Encourage communication and sharing of goals between your annual gifts and major gifts teams so they complement, rather than compete, in donor cultivation and stewardship.

2. Ensure your solicitation calendar is comprehensive

A solicitation calendar keeps your fundraising on track and ensures asks happen at the right time. Build it around key dates and prospect portfolios, while using recent outreach to guide your strategy.

Include in your calendar:

• Major fundraising dates and deadlines
• Key giving periods (end of calendar year, fiscal year-end)
• Your nonprofit’s events
• Frequency of solicitations by donor segment and key prospects
• Opportunities for cultivation and stewardship

This structure helps you plan asks and coordinate follow-ups, keeping donor relationships strong year-round.

3. Conduct prospect research for major gifts

A large portion of annual fund revenue typically comes from major gifts—sometimes up to 60%. Thorough prospect research and donor qualification ensure you focus your efforts where they matter most by identifying donors with both the capacity and the inclination to give.

Key insights to collect include:

• Biographical information: age, birthplace, occupation, professional background
• Wealth indicators: real estate, stock ownership, financial holdings, assets
• Giving history: past contributions to your nonprofit or similar organizations
• Affinity markers: volunteer service, board involvement, demonstrated passion for your mission

Balancing capacity and affinity gives you a clearer picture of who is most likely to contribute significantly. This data-driven approach helps you build stronger relationships with major donors and tailor your asks. It also ensures no opportunities are left on the table.

4. Segment donors by level

Tailor your outreach to different levels of the donor pyramid to maximize giving potential and strengthen relationships.

Typical segments include:

• Major donors: Approach major gift givers with personalized strategies informed by prospect research. Highlight the long-term impact their leadership gifts have already made and the difference their new gifts will make going forward.
• Recurring donors: Reinforce their sustained impact and show how steady support drives stability in your programs.
• Volunteers and event attendees: Invite them to deepen their involvement by making a first or increased gift. Frame it as a natural extension of their existing commitment.
• Lapsed donors: Re-engage with updates on recent successes and clear reasons why their renewed support matters now.

This level of segmentation ensures no group is overlooked and each donor feels valued according to their relationship with your organization.

Pro tip: Throughout your campaign, keep donor data in your fundraising CRM system up to date. Track responses and donors’ giving history each month. Monitor engagement regularly to adjust messaging and strategy in real time.

5. Craft compelling, personalized messaging

Your annual giving appeals should help donors see their individual role in advancing your mission. Messaging that feels personal and relevant inspires stronger connections.

Ways to strengthen your communications:

• Address donors by name.
• Highlight the donor’s impact, not just your organization’s needs.
• Tailor solicitations to past giving (e.g., gift amount, specific campaigns, or their length of support).
• Use concrete examples of how annual gifts sustain your operations and programs.

Even small touches of personalization make a big difference. For example, instead of a generic appeal, say: “Your support for our scholarship fund had an incredible impact. An annual gift will allow us to take that impact even further by reaching more students in the coming years.”

This kind of message helps donors connect emotionally to your mission and see the lasting value of their support.

6. Implement a multi-channel outreach strategy

A multi-channel strategy helps you reach different donor segments without overwhelming supporters. Use donor prospect research software to analyze donor preferences and tailor communications, since some donors respond best to phone calls or direct mail, while others prefer email and social media. Segmenting your lists this way ensures each communication resonates and drives maximum engagement.

Effective channels include:

• Email campaigns: Use clear subject lines and strong calls to action for quick, effective outreach. (more actionable tips in our guide to effective fundraising email campaigns)
• Text messaging: Best for urgent reminders during giving days or deadlines.
• Phone calls: Offer a more personal touch for donors with whom you already have a connection.
• Direct mail: Deliver high-quality, visual materials that stand out more than email and reach supporters who don’t engage online.
• Social media: Expands your reach with shareable, engaging content, though it’s less personal than other channels.

For example: Start with a postcard showing donors’ impact, follow with an email series highlighting impact stories, and close with a volunteer-staffed gratitude phone-a-thon. Throughout the campaign, use ongoing social media posts to maintain engagement and expand your reach.

7. Promote corporate matching gifts

Matching gifts are a form of corporate philanthropy that lets employees increase their impact at a nonprofit of their choice. If an employer offers a matching gift program, donors just need to submit documentation after giving to a 501(c)(3) nonprofit. Once approved, the employer matches the donation.

Not all donors know about matching gift programs or how to use them. Raising awareness is a high-return strategy—84% of donors say they’re more likely to give when a match is available. An estimated $4–7 billion in matching gifts goes unclaimed each year (source: Double the Donation), highlighting the potential impact of educating donors.

Ways to promote matching gifts:

• Create social media posts highlighting matching opportunities.
• Send emails explaining the impact of matched donations.
• Use donor data to identify supporters who work for companies with matching gift programs.
• Offer matching gift software to help donors check eligibility and submit requests.

Including matching gift education in your communications significantly boosts fundraising with minimal extra work from your staff.

8. Create a central annual fund hub

Build a dedicated landing page for your annual fund campaign. This should serve as the central hub for all donor engagement and include:

• How donations are used and why they matter
• Your nonprofit’s mission, vision, and what sets you apart
• Annual fund goals and your events calendar
• Online donation form and links to crowdfunding pages or event registration (ensure compliance with state solicitation laws)
• Updates using real stories and images showing the impact of donations

Use this hub across all communications to simplify giving and encourage recurring donations, while making it easy for donors to share and stay engaged.

9. Diversify donor engagement opportunities

Offer multiple ways for donors to participate beyond one-time gifts, such as:

• Child campaigns: These are smaller, focused initiatives tied to your annual fund. They help donors connect more personally and reveal what motivates them.
• Membership rewards programs: Provide exclusive benefits or events in exchange for recurring support.
• Pledging programs: Allow donors to commit now but pay later, providing flexibility and steady funding.
• Volunteer and peer-to-peer opportunities: Give donors hands-on or social ways to support your mission.

Tip: Use your CRM to segment donor lists and match these opportunities to the right audiences, making each ask more relevant and effective.

10. Plan donor engagement events strategically

Design events that actively engage donors and support your annual fund goals. Offer a mix of experiences—large galas, small community gatherings, virtual sessions with guest speakers, or peer-to-peer fundraising challenges—to maintain interest and broaden participation.

Include hands-on involvement opportunities, such as volunteer activities or interactive workshops, to deepen donor connections. Highlight corporate sponsorships to boost visibility and attract new donors, while increasing financial support.

Ensure every event clearly communicates the impact of donor contributions and strengthens relationships. This approach encourages ongoing engagement throughout the year.

11. Practice year-round donor stewardship

Thanking donors after a gift is standard, but true stewardship goes further. Graham-Pelton’s guide to elevating your donor stewardship recommends recognizing donors for more than donations by acknowledging their actions and ongoing overall support.

Ways to show appreciation include:

• Sending regular appreciation emails
• Publicly recognizing major or long-term donors
• Personally reaching out to recurring donors
• Creating a physical and/or virtual donor recognition wall
• Hosting a donor appreciation event before your annual fundraising push

Acknowledging both monetary gifts and overall support of your organization makes donor relationships more authentic and less transactional.

12. Recognize and celebrate your supporters

End your annual fund campaign with meaningful recognition. Host a wrap-up event—virtual or in-person—where you share achievements along with impact stories and testimonials from your community. Using a video presentation captures these highlights and visually reinforces how donor contributions made them possible.

Follow up with personalized thank-yous and timely tax receipts to make giving feel valued and seamless. Acknowledge both donors and staff for their commitment, and spotlight major milestones to show the collective impact. Recognizing donors’ contributions builds stronger relationships and encourages repeat giving, while setting the stage for ongoing support in the next fundraising cycle.

Real-world annual giving strategies

The most effective annual giving campaigns use various creative strategies that inspire donors and strengthen long-term support. Real-world examples show how nonprofits of all sizes motivated participation, celebrated community involvement, and leveraged community support to grow their annual funds.

University of Alaska Museum of the North

Holiday Challenge: Matching gifts

In 2024, the Friends of the Museum pledged to match donations dollar for dollar up to $10,000. The community responded enthusiastically, contributing $27,915 in gifts. With the match, the museum raised $37,915 to support its most immediate needs.

This example shows how a timed matching challenge motivates donors and increases annual fund contributions by sparking greater engagement.

Princeton University

Annual Giving Volunteer Achievement Awards 2025

Princeton University’s 2024–25 Annual Giving campaign raised $68,407,815, marking the seventh-highest total in the program’s history. More than 140 alumni volunteers actively engaged their peers, boosting both participation and contributions.

Recognizing volunteer efforts through awards like the Harold H. Helm ’20 Distinguished Service Award and the Class of 1960 Award highlighted the role of volunteer leadership. This approach shows how motivating and acknowledging volunteers deepens engagement and drives stronger results for annual giving campaigns through peer-to-peer outreach.

Coulee Region Humane Society

Donated services and medical supplies

The Coulee Region Humane Society (CRHS) shows how in-kind giving strengthens annual funds. In 2024, local veterinarians and businesses donated $22,121.20 in medical supplies and services, helping the shelter care for animals while stretching its annual fund. These gifts allowed CRHS to maximize every dollar spent and better support pets in need.

Recognizing these contributions also strengthens community ties. By highlighting in-kind donations alongside traditional gifts, CRHS gives supporters more ways to participate and feel connected to the mission. This approach demonstrates that annual giving isn’t just about cash—it’s about involving everyone in meaningful ways to make an impact.

Frequently asked questions

These FAQs address common questions nonprofits encounter when looking to run an effective annual giving campaign.

Can smaller “child campaigns” really boost our annual fund?

Yes, targeted, smaller initiatives linked to your main annual fund engage donors on a more personal level. They can also uncover new contributors who haven’t participated in larger campaigns.

How do non-monetary contributions factor into our annual fund?

Non-monetary contributions like volunteer hours, in-kind donations, and donated services directly support your annual fund by reducing operational costs and extending program impact. Remember that recognizing these types of contributions strengthens donor relationships and encourages future giving, even though they don’t involve direct monetary gifts.

Should we integrate live events or crowdfunding into our annual giving strategy?

Absolutely, you should integrate live events and/or crowdfunding into your annual giving strategy. Carefully planned events or online crowdfunding campaigns will expand your reach and create urgency, while attracting donors who prefer interactive or digital giving experiences. Just remember to always ensure compliance with state solicitation regulations.

How do we keep our annual giving campaigns fresh each year?

Keep your annual giving campaigns fresh every year by introducing new annual giving campaign ideas. These initiatives diversify your appeals and maintain donor interest.

Sustain your nonprofit’s growth with annual giving

Predictable annual giving keeps your nonprofit strong and enables effective planning, providing a solid foundation for donor engagement. Clear goals, a dedicated team, and the right fundraising tools focus efforts and build lasting donor relationships, which support long-term growth. Aligning your team around these priorities ensures every donor interaction is purposeful and meaningful.

Following best practices brings your strategy to life and deepens connections with your supporters. Personalized messaging and thoughtful donor stewardship engage donors, while diverse giving opportunities encourage ongoing participation. Consistently recognizing contributions reinforces commitment and sets the stage for continued success in future campaigns, helping your nonprofit achieve its mission year after year.

About the Author

Aaron Dahlstrom

Aaron Dahlstrom is the Vice President of Digital Marketing at Graham-Pelton. Creative and considerate, Aaron plans and executes Graham-Pelton’s presence across all digital mediums, ensuring that those who invest their time engaging with the firm experience the timely thought leadership and bold approach audiences have come to appreciate.