Nonprofits today are navigating a shifting fundraising landscape in Bermuda— where donor loyalty is uncertain, competition for funding is intense, and technology is transforming how we connect. In our 2025 NAB members survey, 48% of nonprofits reported missing their fundraising targets in the last fiscal year, and many members report that raising funds from individuals and corporations now takes significantly more effort, diverting resources away from direct mission delivery. 2023 data from the Bermuda Foundation showed over half of registered charities operated at a net loss. When comparing our 2025 survey data with Wavecrest Philanthropy’s 2020 data on revenue sources, individual giving declined from 19% to 8%, corporate giving declined from 31% to 25%, and foundation funding rose from 16% to 29%.
These trends are especially concerning. Individual giving is typically the leading revenue source globally but in Bermuda it is significantly lower. There is also uncertainty around the impact of the new Corporate Income Tax on the future of corporate giving on island, which has traditionally been a leading revenue source for nonprofits. If these trends continue, it will put a growing reliance on a few institutional funders, increasing vulnerability for organisations.
Against this backdrop, a clear, strategic approach to fund development is essential for survival. Here are five steps to help your nonprofit strengthen its fund development strategy and build a more resilient revenue base.
Step 1. Ground Fund Development in Strategy and Planning
Strong fundraising doesn’t happen in isolation — it’s best built on a foundation of strategy and planning. To position your organisation for success:
- Ensure you have a clear strategic plan that defines your goals, outcomes, and growth priorities, and develop a monitoring dashboard with key performance indicators (KPIs) for the board to track to monitor implementation.
- Map your programmes and services out in a one page, visually appealing theory of change (also called a Logic Model) to show how your strategies and activities address a problem you are trying to solve, by leading to measurable outcomes that contribute to solving the problem.
- Use data to back the need — funders expect evidence of effectiveness and accountability. You should have clear metrics that show the extent of the problem and related need for your services, as well as evidence of the outcomes your work has achieved. If you don’t have this data, you need to prioritise getting it.
With a solid and strategic foundation, your organisation can communicate its vision and objectives more clearly, and raise funds with greater confidence and credibility.
Step 2. Build a Realistic Fund Development Plan
A solid fund development plan is part financial roadmap, part fundraising strategy. It connects your revenue goals to your programme objectives — and ensures your budget is grounded in reality, not wishful thinking. This means, your fund development plan should be created in tandem with your annual programme and operational planning and annual budgeting processes.
To strengthen your planning:
- Ensure your programme and operational plans, organisational budget, and fund development plan are connected, realistic, and mutually reinforcing. These are three distinct items, all of which are needed and interconnected.
- Plan early and base fundraising projections on historical data, with any growth projections taken very conservatively given our current environment.
- Determine what you can reasonably raise, and budget expenses accordingly and perhaps conservatively. While you can be aspirational in your fundraising targets, do not be aspirational in the donations projected in your budget.
- Track your fundraising KPIs: donations raised, donor growth, donor retention, donor dependency ratio, and fundraising return on investment.
When fund development is integrated into budgeting, you can plan sustainably.
Step 3. Diversify and Balance Your Revenue Sources
Relying too heavily on one funding stream is risky. Sustainability comes from a healthy mix of income sources. Diversify your revenue streams — consider grants, corporate partnerships, individual giving, events, memberships, and earned income:
- Corporate giving and sponsorships — leverage community alignment and shared values.
- Foundations and grants — focus on mission fit and measurable impact.
- Individual giving — cultivate donor relationships through annual, major, and planned giving.
- Earned income and social enterprise — explore mission-aligned ways to generate unrestricted funds through existing strengths and assets.
Diversification mitigates risk and opens new opportunities for innovation and partnership.
Step 4. Focus on Relationships, Not Just Revenue
Fundraising is about more than transactions — it’s about trust and long-term connection. Every donor, large or small, wants to feel valued and understand the difference their support makes.
Strengthen your approach through the fundraising cycle:
- Prospecting – identify potential supporters aligned with your mission.
- Cultivation – engage them with your story, invite them into your work.
- Solicitation – ask with clarity and confidence.
- Stewardship – follow up, show impact, and express gratitude.
Stewardship is where loyalty grows — and loyal donors are the foundation of sustainable fundraising.
Step 5. Embrace Innovation and Data
Technology is reshaping philanthropy — and nonprofits that adapt will thrive. To modernise your fund development strategy:
- Invest in fundraising software or CRM systems to track donors and measure performance.
- Use social media and storytelling to reach new audiences and inspire giving.
- Explore AI tools to assist with personalised engagement and tailored outreach.
- Tailor your approach to different generations — from legacy gifts to digital micro-donations, different ages give differently. Know how to leverage this.
Innovation doesn’t replace relationships — it strengthens them by making your efforts more strategic, efficient, and responsive.
The Bottom Line
Fund development isn’t about chasing donations — it’s about building a community of support around your mission. When your fundraising is grounded in strategy, diversified for resilience, and powered by relationships, your nonprofit becomes more sustainable — and your impact, more profound.
In a changing philanthropic landscape, a smart fund development strategy isn’t a luxury. It’s your lifeline.
Want to learn more?
👉 Register for NAB’s Fund Development Planning training on December 9th from 9am to 5pm, and start showing up with clarity, confidence, and purpose. Register online at www.nonprofitalliance.bm/events/