Although revenue isn’t a nonprofit’s end goal, it fuels the activities to carry out the organization’s mission. That’s why it’s important to diversify nonprofit revenue for financial health and to avoid depending on just one or two sources. After all, individual donations only account for about 10% of revenue for nonprofits. Let’s explore some potential sources of income to keep your nonprofit on track.
1. Seek individual donations
Donation amounts don’t have to be huge to make an impact; the smallest donations add up as more and more individuals contribute. Encourage giving with easy online options and reminders.
Take your efforts a step further by offering monthly giving programs, in which 45% of worldwide donors are enrolled. These donors could be encouraged with quarterly nonprofit giveaways to remind them of the difference they’re making. Helpful gifts, like a Cork Coaster or silicone spatula, will remind them of your mission when they reach for the items.
2. Charge member dues
Membership dues create a steady stream of revenue. To determine pricing, consider the cost of the benefits each member will receive. These could include free passes to an event, local discounts or access to exclusive services. Also consider the administrative costs associated with managing these benefits.
At membership renewal time, you can thank members for re-upping their support. A phone stand or a tire gauge can express your gratitude.
3. Host events
Host events for any season and any budget, with ideas, such as a local car wash, 5-K walk/run, silent auction, holiday gala or raffle. Marketing the event, getting the word out and engaging donors are key to a successful event. You can leverage social media as an inexpensive tool to pull in a large crowd.
Host a festive event with branded balloons or bring fun to any event with nonprofit giveaways, like Frilly Flyers or Confetti Beach Balls.
4. Pursue corporate sponsorships
Partnering with a likeminded corporation is a win-win. Not only will your nonprofit gain a new stream of revenue, but also the corporation will earn recognition for its connection to a charitable cause. For tax reasons, be sure the benefit to the for-profit business doesn’t outweigh the benefit to the nonprofit.
5. Strive for legacy gifts
A legacy gift is a donation made by someone through their will. Although these donations are less common, they can represent highly significant contributions. Legacy gifts can be encouraged by honoring a donor’s wishes, examples include funding a program important to them, or by honoring donors with an inscription or dedication ceremony.
6. Offer advertisement opportunities
Chances are your organization already has an established newsletter and website. A creative way to increase nonprofit revenue is to allow businesses to purchase advertising space. It’s a win for both organizations, as they get their brand in front of your audience while you earn revenue.
7. Furnish rental space
If your nonprofit has its own building, renting out space during times you’re not using it can be a relatively easy source of revenue. The building could be rented for public and private events by individuals or organizations in your community.
8. Apply for grants
According to Zippia, government grants make up about 80% of nonprofit revenue. Grants are typically awarded to nonprofits for a specific program or purpose. Keep track of application deadlines and research eligibility criteria to make the most of your time and ensure you’re filling out the best applications to meet your nonprofit’s needs.
More is better with diverse nonprofit revenue
The more diverse your nonprofit revenue is, the more stable your nonprofit’s funding becomes. If one source falls through unexpectedly, you’re still in good shape with other sources to support your mission.