Why Nonprofits Should Invest in Both Grants and Social Media: A Research-Backed Argument

Nonprofits often ask whether they need to invest in both grant support and social media. Based on current research, sector reports, and philanthropic trends, the answer is clear: yes. Both pillars reinforce one another, amplify organizational visibility, and significantly improve fundraising outcomes.

This article synthesizes findings from academic studies, industry surveys, and fundraising data to demonstrate why grants and social media together create a more resilient and effective growth strategy for nonprofits.

Social Media Drives Donor Action and Fundraising Performance

Recent research confirms that social media is one of the most influential drivers of donor decision-making.

A comprehensive 2025 fundraising report found that 32% of online donors say social media is the channel that most inspires their giving (360MatchPro, 2025). Additional data from Nonprofit Source reveals that among people who follow or engage with nonprofits on social media, 55% take action — and of those, 59% donate, 53% volunteer, 52% donate goods, and 43% attend events (Nonprofit Source, 2024).

These findings align with broader fundraising trends. According to the 2024 Online Giving Study, 13% of all fundraising revenue now comes from online channels, the highest proportion ever recorded (Amoroso, 2024). As donor behaviour shifts toward digital engagement, an active online presence is no longer optional — it is foundational.

In short: Social media drives real donor behaviour and fuels the fundraising pipeline.

Funders Use Social Media as a Signal of Credibility and Capacity

Many grant reviewers and institutional funders now look at a nonprofit’s online presence as part of their due diligence process.

An empirical study published in Research in Accounting Regulation found that nonprofits with higher social-media activity received more funding and less oversight, indicating that funders use social visibility as a proxy for capacity, transparency, and legitimacy (Huang, Liu, & Mashruwala, 2023).

Additional nonprofit research finds that social media consistently strengthens stakeholder trust, improves communication, and positively affects organizational reputation (Stoddard, 2022).

This is especially important because funders increasingly expect evidence of:

• active programming

• community engagement

• transparency

• ongoing impact

• responsive communication

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An inactive or outdated online presence can raise concerns and weaken an otherwise strong proposal.

Bottom line: Social media enhances grant competitiveness by reinforcing your legitimacy.

Storytelling + Real-Time Visibility Creates Essential Social Proof

Grant applications tell a powerful story, but social media shows it in action.

A qualitative analysis of nonprofit communication strategies found that authentic storytelling, transparency, and two-way engagement were the most effective tools for building trust with supporters and funders (Becker & Park, 2022).

Social media provides real-time “proof of impact”:

• photos from programs

• testimonials

• volunteer activities

• community partnerships

• updates from the field

This real-world visibility validates the outcomes described in grant proposals and makes reviewers more confident in your program delivery.

Together, grants and social create a full 360° picture of your mission.

Diversifying Your Outreach Reduces Financial Risk

Relying solely on grants or individual donors puts nonprofits at risk, especially in fluctuating economic conditions.

The AFP Fundraising Effectiveness Project (2025) reported that while total dollars raised increased in early 2025, the number of donors decreased overall, and the number of small-gift donors dropped by 11.1% year-over-year (AFP, 2025). This signals a shrinking donor base, particularly among small and mid-size supporters.

In this environment:

• Grants provide stability and essential program funding.

• Social media re-engages lapsed donors, attracts new ones, and maintains community visibility.

Using both channels helps nonprofits hedge against economic volatility and changing donor habits.

Younger Donors Expect Nonprofits to Be Active Online

Donor demographics are shifting rapidly.

A 2024 Blackbaud study on Gen Z philanthropy found that 84% of Gen Z supports nonprofits in some way, and they overwhelmingly rely on social media to discover, evaluate, and trust organizations (Blackbaud Institute, 2024).

Gen Z donors:

• check social media before giving

• expect transparency and consistent updates

• trust organizations with active digital footprints

• prefer simple, low-friction giving experiences

Without a strong social presence, nonprofits risk losing relevance to emerging generations of supporters.

Grants keep the mission funded. Social media keeps the mission seen.

Conclusion: The Evidence Is Clear, Nonprofits Need Both

Research strongly supports a dual-investment approach:

• Social media drives engagement, donations, and credibility.

• Funders view online visibility as a sign of organizational health.

• Younger donors rely on digital presence to make giving decisions.

• Grants and social reinforce each other through storytelling and validation.

• Diversifying outreach strengthens financial resilience.

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This is exactly why Vee does both grant writing support and social media management. These functions aren’t separate, they’re interdependent.

When nonprofits keep both active, they see stronger funding outcomes, higher visibility, and more sustainable growth.

References (APA Style)

AFP Global. (2025). Fundraising Effectiveness Project: Q1 2025 data shows increases in dollars raised, declining donor counts. Retrieved from https://afpglobal.org

Amoroso, E. (2024). Online giving study. ScholarWorks at CSUSB. Retrieved from https://scholarworks.lib.csusb.edu

Becker, K., & Park, H. (2022). Nonprofit narratives on social media: Authenticity, transparency, and community engagement. Global Journal of Community Psychology Practice.

Blackbaud Institute. (2024). Gen Z philanthropic giving behaviours. Retrieved from https://www.blackbaud.com

360MatchPro. (2025). Fundraising statistics report. Retrieved from https://360matchpro.com

Huang, S., Liu, X., & Mashruwala, R. (2023). Social media activity and nonprofit funding outcomes. Research in Accounting Regulation, 35(2).

Nonprofit Source. (2024). Social media and nonprofit donor behaviour statistics. Retrieved from https://nonprofitssource.com

Stoddard, M. (2022). Social media’s impact on nonprofit capacity and public trust. SPNHA Review, 28(1).