Navigating Financial Uncertainty Rethinking Revenue: Diversification with Intention

Nonprofits are evaluating their traditional ‘three-legged stool’ funding models and evolving towards a more intentional approach.
 

What Some Organizations are Doing:

Shifting toward earned revenue: Some organizations are developing and monetizing proprietary content, training programs, and tools to create sustainable earned income streams. Developing a plan that will allow the organization to focus on obtaining an agreed upon percentage of earned income over a specific time frame will help to ensure a positive outcome.
 

Prioritizing individual giving: Unrestricted giving is becoming a priority, allowing organizations to pivot and adapt when other revenue sources shift. Leaders are focusing on cultivating recurring donors and major gifts to build a more resilient funding base.

Strategic corporate partnerships: Beyond traditional sponsorships, organizations are forming aligned partnerships that offer corporations tangible outcomes and visibility. Examples include “sponsor a tutor” models that tie funding to mission impact for education-driven organizations.
Key Tip: If your funding model depends heavily on any one leg (e.g. government or foundation funding), start exploring ways to build resilience through other sources now-before you need them.

This article is the first in a planned series entitled Navigating Financial Uncertainty.