We at Professional Grant Writers often talk about the importance of diversifying your nonprofit’s income stream. Though we specialize in grant writing, we understand that grants are looked at as investments by funders and that nonprofits with a strong, diverse funding base are considered stronger investments. And thus better candidates for grants.
It’s never a good idea to rely only on grants to fund a nonprofit, or any single revenue stream. New nonprofits often struggle with this concept, but it’s something we place at a high level of importance. So how can your nonprofit diversify its income streams, and what options are out there for doing so?
It all comes down to strategy. It’s important to develop short- and long-term fundraising strategies that will tap into and build multiple revenue streams, including the following options:
- Fees for goods and/or services (even as a nonprofit, you can institute nominal service fees)
- Individual donations and major gifts
- Corporate contributions
- Foundation grants
- Government grants and contracts
- Interest from investments
- Loans/program-related investments (PRIs)
- Tax revenue
- Membership dues and fees
Adding in fundraising events like auctions, happy hours, golf tournaments, and more, along with grant writing, and your nonprofit has a long list of options for bringing in funds. And don’t be afraid to get creative; brainstorming these and other ideas will help generate a healthy list.