The Heartbeat of Sustainability: Your Annual Fund
There’s something powerful about being in a room full of fundraisers, each at different stages of their careers, sharing both the successes and the challenges we face in our sector. This month, I had the chance to do just that with our friends at the Community Foundation of Broward, as they hosted the Lilly Family School of Philanthropy course on Developing Annual Sustainability.
During my time in the course, the conversation kept circling back to one foundational truth: so much of a nonprofit’s stability and success starts with the basics, the annual fund.
Why the annual fund matters
The annual fund is more than just a line item in a budget. At its heart, it is about building consistent support for ongoing operations and programs year after year. It cultivates a regular giving habit within your community, clarifies your mission for donors, and strengthens the relationship between supporters and your organization.
A well-designed annual fund:
provides essential resources for daily operations and core services
offers an opportunity to deepen donors’ understanding of your mission and impact
helps ensure donors feel seen and connected to your work over time
encourages donors to give again and again, creating a dependable stream of support
helps surface future leaders and champions who might evolve into major gift or governance roles
Strategy and sustainability
Research continues to show that organizations that invest strategically in fundraising do more than just raise money; they strengthen their overall effectiveness. The Association of Fundraising Professionals’ Fundraising Effectiveness Project reported that in the first quarter of 2025, total dollars raised increased by 3.6 percent compared to the prior year, even as the number of donors declined slightly nationwide. This indicates that when nonprofits focus on building deeper relationships, they inspire donors to give more generously and consistently.
Equally encouraging, about 57 percent of donors now participate in a recurring giving program, up from 46 percent just a few years ago. This shift toward sustained, repeat giving demonstrates that donors are eager to stay connected when organizations make it easy and rewarding to do so.
In short, the annual fund is not a nice-to-have. It is a strategic lever for building resilience, strengthening relationships, and intentionally investing in the infrastructure that keeps missions moving forward.
Final Reflections
It was invigorating to step back into a classroom of fundraisers doing the hands-on work. What stood out most was how much the conversation returned to the fundamentals, loyalty, regular giving and stewardship, rather than jumping straight to “big plays” or new platforms.
This experience is a reminder that sustainability is rarely the result of one blockbuster gift or one gala. It grows from everyday choices: inviting donors to give again, saying thank you early, saying thank you often, and making sure your supporters feel they are part of your mission. That steady work builds the trust and momentum that support a strong annual fund.
If your organization does not yet have an annual fund, or it has not revisited its annual giving strategy in a while, consider this your invitation. You do not need a perfect plan to begin. You simply need to start with intention, build the habit, steward well, and ask consistently. Because ultimately, the annual fund is about more than the gift itself; it is about creating community, connection and confidence in your mission year after year.