Small nonprofits often feel pulled in many directions when it comes to fundraising. Whether it’s a handful of major donors, one high‑impact event, or a few key grants, recognizing this pattern helps small teams use their limited time more efficiently. And by concentrating on the activities that deliver the greatest return, while still building community support, organizations can strengthen relationships and build a stronger foundation for growth.

Why Small Teams Struggle to Keep Up

Nonprofits often juggle a long list of fundraising activities: events, campaigns, grant applications, donor meetings, and community outreach. For small teams, this can quickly become overwhelming. And sometimes, with limited staff and volunteer time, it’s easy to feel unsure which fundraising activities are actually worth the effort.

The 80/20 rule, also known as the Pareto Principle, offers a simple way to focus your activities. In fundraising, it often means that 80% of your results come from 20% of your efforts. And, by recognizing this pattern, small nonprofits can concentrate on the activities that deliver the greatest impact.

What the 80/20 Rule Means in Fundraising

Typically, the 80/20 rule is applied to donors: a small group of supporters often provides most of the funding. However, the principle applies to other fundraising activities as well. Not every event, campaign, or grant produces equal results. Often, one or two activities generate the majority of results, while others take a significant amount of time and deliver less than your team hoped for.

The 80/20 rule doesn’t mean ignoring smaller donors or activities. It just means recognizing where the biggest impact comes from, and making sure your limited time is used wisely.

Why This Matters for Small Nonprofits

For small nonprofits and charities, every hour of effort matters, and by applying the 80/20 rule, organizations can:

Prioritize high‑impact activities. Focus on the donors, events, and grants that generate the most revenue.
Evaluate time versus the return. Determine whether an event or campaign is worth the effort compared to its results.
Strengthen relationships. Dedicate more time to major donors, where “major” is defined by what makes sense for your organization. That might be someone who gives $100 or someone who gives $10,000.
Reduce burnout. Avoid having staff take on too many projects, especially those that may not yield the results your team is looking for.

Practical Ways to Apply the 80/20 Rule

Once you understand where your strongest results come from, the next step is to use that information in your day‑to‑day work. The 80/20 rule becomes most helpful when it guides small decisions throughout the year, not just during annual planning. These practical steps can help your team stay focused on the activities that make the biggest difference.

Review past results. Use your data to see which events, campaigns, or grants produced the strongest results compared to the time invested.
Focus on what works. Keep the activities that deliver strong results and consider scaling back or simplifying those that don’t.
Test new ideas. Try new activities, but make sure they fit your team’s capacity before committing long‑term resources.
Work within your capacity. Use lighter‑touch activities to stay connected with all donors, while dedicating more time to your stronger relationships.

A Practical Example

Consider a small community nonprofit with two staff and several volunteers. They run three fundraising activities each year: a peer‑to‑peer campaign, a small seasonal event, and an online giving day.

The peer‑to‑peer campaign brings in $7,500, builds strong supporter engagement, and requires some coordination from volunteers.
The small seasonal event raises $2,500 but takes significant volunteer time to plan and run.
The online giving day raises $5,000 and relies mostly on scheduled emails and social media posts.

By applying the 80/20 rule, the team sees that most of their revenue comes from the peer‑to‑peer campaign and the giving day. They decide to scale back the seasonal event, freeing up volunteer time for other fundraising activities.

Keeping the Rule in Perspective

It’s important to remember that the 80/20 rule is meant to help your team focus, not overlook any supporters. Smaller donors and lower‑revenue activities still matter because they strengthen community ties and create room for future growth. The key is to look at your team’s capacity and choose the types of activities that work best for you.

Even as a small team, you can still make space for fundraising. By applying the 80/20 rule, you can focus on the donors and activities that generate the strongest results for your team while still building support in the community.

If you’re ready to build a stronger fundraising foundation, the Strategy Playbook gives small nonprofits ready‑to‑use tools and templates that help teams stay organized with their fundraising throughout the year. It’s built for real‑world capacity and gives you what you need to stay focused on the work that matters most.

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