Which of the following is an essential component of a nonprofit’s fundraising strategy?

A diverse approach that includes grants, events, and individual donations is essential to a nonprofit's fundraising strategy because it helps ensure a more stable and sustainable source of funding. By not relying on just one type of income, the organization can mitigate risks associated with fluctuations in funding sources. For instance, if one funding stream decreases, having multiple other channels allows the organization to continue its operations and maintain its mission.

This multifaceted strategy also allows nonprofits to reach a wider audience, tap into different communities, and build relationships with various stakeholders. Engaging in a variety of fundraising methods can create more engagement opportunities and foster a sense of community and support among different donor demographics. This holistic approach enhances visibility and can lead to increased contributions over time, fostering long-term sustainability.