Running a nonprofit is no easy feat; from managing volunteers to putting on events and everything in between, a lot goes into keeping a nonprofit running smoothly. One of the most important aspects of any nonprofit is ensuring enough funds to support the mission.
Diversifying funding sources is critical to sustaining operations and achieving long-term success. Relying on a single funding source can make an organization vulnerable to budget or funding priorities changes. Diversifying funding sources helps insulate organizations from fluctuations in any one area and can provide a steadier stream of income that can be used to support ongoing programs and services. In addition, having a diversified funding base can also help an organization attract new donors and supporters. By demonstrating that an organization has a broad range of support, potential donors may be more likely to invest in the organization, knowing that their contribution will have a lasting impact.
As we get close to another new year, we thought it would be no better time to introduce some proven practical ways to fund a nonprofit. Remember, having a diversified funding stream is essential to ensuring stability and long-term success.
One of the most common—and effective—ways to help fund a nonprofit is through grant funding. The most common types are Corporate, Foundation, and Government. While there are many opportunities available, it is essential to thoroughly research and identify funders with a giving focus that closely matches your organization's mission and needs. The next step is to develop a strong application sharing your organization's story and clearly identifying how your request aligns with the grant guidelines.
Unsure how to begin to apply for grants? Learn how to get ready in one of our previous blogs, Proactive Ways to Get Your Nonprofit Grant Ready.
2. Individual Donations
Individual donations can be a consistent way to raise money for your nonprofit. Soliciting donations can be done in various ways, including adding a donate button on your website and social media pages. We encourage you to make giving easy for your donors by offering multiple ways to donate; this can include venturing into the realm of text messages where donors can simply click to donate. In addition, utilizing the convenience of online payment apps like Venmo can simplify the fundraising process and allows nonprofits to reach a wider audience of supporters, including younger donors.
3. Corporate Sponsorships
Corporate Sponsorships provide a way for businesses to align with charitable organizations. It is a form of marketing where each party benefits. The nonprofit promotes, advertises, and highlights its corporate partners in exchange for a financial donation. Therefore, it is essential to select partners who share your values.
4. Fundraising Events
Fundraising events are another way to diversify your nonprofit’s revenue stream while cultivating relationships with donors. Creative and fun fundraising events are a great way to excite donors while generating interest and awareness of the nonprofit, gaining new supporters and volunteers, and bringing the community together. Annual Galas provide an opportunity to gather to celebrate the year’s successes while highlighting the need for future donations. Funds are usually raised through ticket sales, auctions, and appeals made during the event. Sporting events, including golf tournaments, walk-a-thons, and 5k races, are fun and easy and can be supported by volunteers. Fundraising events can be a powerful tool for nonprofits to raise money and support their mission.
Are you looking to brainstorm ways to diversify your revenue streams? Schedule an On-Demand Strategy Consulting Session - we are here to help!
Debbi Mallinson enjoys working in collaboration with nonprofit organizations to develop a grant strategy to support their mission.