Just like any other organization, nonprofits must rely on funds to pursue their mission. As nonprofits, you have the ability to build revenue using multiple sources. And this can be helpful in reducing your chances of falling victim to a financial crisis. Consider expanding your library of revenue sources to help grow your nonprofit.
Five nonprofit funding sources to consider
Nonprofits can apply for grants from the government at local, state, and federal levels as well as private and public foundations. You are not required to repay any money awarded to you through a grant. In order to be awarded a grant, your organization needs to have charitable status. You can find government grants at grants.gov and foundations grants from the Foundation Center.
The downside is that it can take a significant amount of time for you to see the funds. And you need to brush up on your grant writing skills to craft a winning application. In addition, grants also come with specific conditions like reporting requirements that you should consider before applying.
2. Online fundraising
Donations make up the largest percentage of a nonprofit’s funds, which is why they find a lot of success raising money via crowdfunding. The crowdfunding model lends itself to large and small nonprofits alike. While other nonprofit funding sources have specific constraints, online fundraising offers flexibility. You can run fundraisers throughout the year. And it helps simplify your online and offline giving by keeping it organized in one place.
Another perk is that it allows individuals to start fundraising on your nonprofit’s behalf, which will only add to your donation pool. Start your free fundraiser today.
For example, Caitlin of Rancho Relaxo uses crowdfunding to help animals in need.
3. Membership fees
One nonprofit funding source is through membership fees from individuals or organizations. As a result, members usually receive specific benefits in return. Brainstorm some potential benefits your nonprofit could provide like free tickets to your events. This is a key way to secure predictable and recurring donations to your cause.
Donors and members can differ. Often members feel like they have a higher stake in the organization and may contribute in other ways like volunteering. Take note that your charter may not allow for for memberships, which may be costly to change.
4. Corporate sponsorships
Often for-profit businesses seek to help nonprofits as a way to expand their corporate social responsibility and to increase brand awareness. Finding a sponsorship from a big company that is in line with your mission can help increase your brand awareness as well.
These corporate contributions can take many forms. They may sponsor an event, provide a donor matching program or do cause-related marketing with a fundraiser. In return for the financial support, the for profit business to use your nonprofit’s good reputation to promote their product.
5. Fees for services or products
Many nonprofits receive income based on services or products that they provide for the public or other organizations. For instance, a public university receives government funding. But they also can make money from ticket sales for athletic games and tuition.
If you are considering this as a funding option, make sure that your service or product relates to your nonprofit’s mission. Goodwill Industries is a good example a nonprofit that takes in-kind donations and then sells them to sustain their purpose.
Expand your revenue sources
Ready to boost your revenue and jumpstart growth for your nonprofit? Build out your budget with a diverse selection of nonprofit funding sources to help sustain your nonprofit’s mission.