Why Face-to-Face Fundraising is More Effective than Grants and Galas for Small Nonprofits

Tom Iselin
Aug 4, 2015
5 min read

Updated: Dec 13, 2025

Grants and galas can be effective sources of fundraising, but this video shows you why face-to-face fundraising is the best strategy for raising money, when time and resources are scarce . . . and why it's the best LONG-TERM strategy!

Why Face-to-Face Fundraising is More Effective than Grants and Galas for Small Nonprofits

Today I want to talk with you about the effectiveness of face-to-face fundraising versus grant writing and galas—because I want you to win at the fundraising game.

If you’re running a small nonprofit, you already know how hard fundraising can be.

You probably have:

Little or no fundraising budget
No professional development staff
A board that’s mostly passive about fundraising
A small donor pool
Very little time to raise money

Sound familiar?

Now layer this on top of that reality…

The Brutal Fundraising Landscape for Small Nonprofits

Fundraising is fiercely competitive.

You’re competing with 1.5 million other nonprofits for a limited pool of funds. And here’s the part most people don’t fully grasp:

Over 80% of nonprofits have budgets under $500,000
Over 90% have budgets under $2 million

That means the vast majority of nonprofits are just like yours—small, under-resourced, and competing against organizations with massive fundraising staffs and budgets.

It gets worse.

20% of all charitable giving goes to the top 400 nonprofits
Of the remaining 80%, more than 60% goes to large hospitals, universities, religious institutions, and major cultural organizations

What’s left for small nonprofits?

Not much.

Which is exactly why how you spend your fundraising time matters more than ever.

Why Efficiency Matters More Than Elegance

With limited time and resources, small nonprofits must use the most effective fundraising methods possible.

Yes—many communication methods can work:

Grants
Galas
Mail
Email
Events

But data consistently shows that the most effective fundraising methods are:

One-on-one, face-to-face asks
Small group gatherings and house parties

Here’s the problem…

Most small nonprofits spend less than 10% of their time using these methods.

How much time are you spending?

Probably not enough.

The Grant Writing Myth: A Cautionary Tale

Let me share a real example.

When I was running Higher Ground, a nonprofit serving wounded veterans, I applied for a $155,000 grant.

Sounds great—until you see the math.

The application was 62 pages long
It took 60 hours to complete
It required 4 reports, each 25 pages
Each report took 30 hours

Total time invested: 210 hours

Grant amount: $15,000

That’s about $71 per hour.

Now compare that to what happened during the same period…

Face-to-Face Fundraising: The Stark Contrast

During that same timeframe, I:

Took 60 donors to coffee or lunch
Held one-on-one meetings
Built relationships

Money raised: $935,000

That’s roughly $5,200 per hour.

Dozens of times more effective.

And here’s another key question:

How long does a grant usually last?1–3 years, if you’re lucky.

How long can a donor last?

5 years
10 years
20 years
A lifetime
Even a bequest

And donors give more than money.

Why Donors Are Worth More Than Grants

Donors can provide:

Money
Time
Skills and expertise
Influence and connections
Advocacy in the community

They become:

Mission ambassadors
Connectors
Long-term partners

A grant can’t do that.

The Gala Illusion: Another Reality Check

Now let’s talk galas.

I once assessed a nonprofit gala that:

Took nearly 3,000 hours of staff time
Grossed $155,000
Had $85,000 in direct expenses
Netted about $70,000

When staff time was factored in, the return came out to roughly $5.80 per hour.

Now imagine if that organization:

Spent half that time on donor cultivation
Hosted small gatherings
Did one-on-one meetings

At just $250 per hour, they would’ve raised $175,000.At $500 per meeting, they could’ve raised $350,000.

Same time.Radically different results.

Why Face-to-Face Fundraising Wins

Face-to-face fundraising works for three powerful reasons.

1. The Odds Are Insanely Good

If a donor has an emotional connection to your mission, there’s a 70% chance they’ll say yes in a face-to-face ask
If they volunteer and you ask on-site, that jumps to 90%

Those are incredible odds.

2. Trust Is Built in Real Time

Face-to-face asks allow donors to:

Feel your passion
Ask questions
Build trust
Connect emotionally

People give to people they like and trust.There is no faster way to build that than being together.

3. It’s Highly Efficient

Grants take dozens (or hundreds) of hours
Galas take thousands
Face-to-face asks take one hour

Coffee.Lunch.A site visit.A program tour.

Simple. Powerful. Effective.

Your Winning Fundraising Strategy

If you want to raise more money, here’s your play:

Double or triple the time you spend on face-to-face asks
Call donors
Meet them for coffee or lunch
Host small dinners or wine tastings
Give tours
Show programs in action

Do whatever it takes—but do it in person.

I recommend spending at least 30–50% of your fundraising time in face-to-face settings.

That’s your winning ticket.

And did you know that 65% of all money raised in the country comes in the form of face-to-face asks, but the average nonprofit only spends 5-10% of their time doing it! Not good odds!

Key Takeaways

Small nonprofits must maximize efficiency
Grants and galas are often low ROI
Face-to-face fundraising produces the highest returns
Donors provide far more long-term value than grants
Relationship-based fundraising scales impact

Summary

I’ve used every imaginable fundraising method, and face-to-face fundraising has been my secret weapon for raising millions of dollars.

You can still write grants.You can still host galas.

Just do them smarter—and shift more time toward what actually works.

Challenge:This week, assess your fundraising efforts and reallocate at least 30–40% of your time to face-to-face fundraising.

If you do, I’m confident your revenue will increase 5–10x within a year.

That’s not hype.That’s math.

Tom Iselin

Rated One of America’s Best Board Retreat

and Strategic Planning Facilitators

About the Author

Tom Iselin is recognized as one of America’s leading authorities on high-performance nonprofits. He has built nine sector-leading nonprofits and two software companies, written six books, sits on multiple boards, and has been rated one of America’s Best Board Retreat and Strategic Planning Facilitators. His work on nonprofit strategy, board leadership, and culture has been featured on CNN, Nightline, and in Newsweek.

Tom is the president of First Things First, a firm specializing in board retreats, strategic planning services, fundraising strategy, and executive coaching for nonprofit CEOs.

Board Retreats & Strategic Planning

If you’re looking for a board retreat facilitator or strategic planning facilitator who has been in the trenches and understands real-world nonprofit challenges, Tom can help your board gain clarity, build alignment, and create an actionable plan that improves performance and impact. His sessions propel organizations to the next level of performance and impact . . . and they're fun!

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