In the world of fundraising, building a balanced donor portfolio is similar to managing a diversified financial portfolio. Just as financial investors spread their assets across different areas to minimize risk, nonprofits should aim for portfolio balance in fundraising efforts across three main tiers of giving: major donors, mid-level donors, and everyday donors. This portfolio diversification reduces dependence on any single donor group, ensuring financial stability and growth opportunities for the organization.
Effective portfolio balance in fundraising typically includes:
- Major Donors: Contributing over $10,000 annually.
- Mid-Level Donors: Giving between $1,000 and $10,000 annually.
- Everyday Donors: Contributing less than $1,000 annually.
For many organizations, “major donors” usually exclude grants and corporate donations, though these large gifts pose a similar risk profile. By analyzing contributions from individuals, foundations, and corporations, nonprofits can create a clear picture of their donor base so grants and corporate donations are included in the benchmark data.
To learn more about portfolio balance allocation and other nonprofit benchmark data points, download the 2025 Virtuous Nonprofit Benchmark Report.
Industry Benchmarks
Benchmark data highlights how portfolio allocation varies across nonprofit organizations, especially based on size. For instance, larger nonprofits typically have a higher proportion of major donors compared to smaller ones. The top quartile of nonprofits in the benchmark report has a balanced portfolio with the following distribution:
- 29.8% from donors giving <$1,000
- 32.2% from donors giving between $1,000 and $10,000
- 38% from donors giving >$10,000
Calculating Donor Portfolio Balance in Fundraising
To assess the balance in your donor portfolio, calculate the percentage of your total revenue that comes from each donor tier using this formula:
Amount of Giving ($) in Each Tier / Total Giving ($)
This calculation provides insight into which donor group(s) your organization relies on most, helping you identify areas for adjustments. Remember, balance is key, so pay attention to the output of the formula.
Why Portfolio Balance in Fundraising Matters
A well-balanced giving portfolio maximizes generosity and reduces financial risk. Below are the two most common challenges that organizations with unbalanced portfolios face:
- Major Donor Dependence: Many nonprofits are overly reliant on major donors, with these contributions making up as much as 80% of their total revenue. While significant donations are valuable, they can create instability if sporadic or inconsistent, or worse, create a huge revenue loss if that major donor leaves. Organizations that rely too heavily on major gifts often find it challenging to plan and budget effectively, as funding fluctuates based on the arrival of these large, unpredictable donations.
- Missed Revenue from Small Donors: Conversely, some nonprofits have a large base of small, regular donors, which can provide predictable revenue streams. However, these organizations often struggle to scale up or fund new initiatives, as they miss out on potential revenue from individuals with greater giving capacity. Without cultivating mid-level and major donors, they leave substantial donor revenue untapped, ultimately limiting their financial growth.
Tactics to Achieve Portfolio Balance in Fundraising
Tools that support portfolio balance can be transformative for organizations working to stabilize their fundraising efforts. Discover how Virtuous can help you identify donors who are ready to increase their giving.
To create or improve balance in your donor portfolio, consider these strategies:
Increasing Mid-Level and Major Donations
- Wealth Scoring: Use wealth-scoring tools to identify donors with a higher capacity to give.
- Mid-Level Donor Program: Establish a program dedicated to engaging and upgrading existing donors into mid-level giving.
- Board Connections: Leverage your board members’ networks to connect with potential major donors who align with your mission.
Growing Your Small Donor Base
- Direct Response Channels: Test donor acquisition through direct mail or phone campaigns to reach new small donors.
- Peer-to-Peer and Event Fundraising: Host run/walk events or peer-to-peer campaigns to engage current donors and reach new supporters.
- Online Engagement with Influencers: Partner with influencers to reach new demographic segments through social media, particularly younger audiences who may become lifelong supporters.
By building a balanced donor portfolio, nonprofits can reduce financial risk, improve fundraising effectiveness, and sustain long-term growth. Adjusting your strategy to engage all tiers of donors ensures your organization remains resilient and adaptable, prepared to meet the challenges and opportunities that arise as your mission grows.
To learn more about donor portfolio balance and other nonprofit benchmarks, download the 2025 Virtuous Nonprofit Benchmark Report.
