How nonprofits and organizations can diversify their funding streams
The COVID-19 pandemic has had a significant impact on the way organisations across the world operate. As the crisis continues to develop, organizations need to be ready to adapt to ensure their operations run as smoothly as possible, and reduce risk through a diversified income stream.
Most organizations are already thinking about how they can find and utilize different funding sources understanding that it’s never really a good thing to put all your eggs in one funding basket.
These are some ways you can think strategically about the longevity of your organization through funding arrangements.
Undertake some analysis on your current fundraising outreach and look at what is working, what is not, and what should be maintained. Now might be the time to put effort into high net worth donors rather than smaller grassroots campaigns.
Before your corporate partners walk away, consider converting your corporate relationships away from cash into pro-bono or in-kind support, which can provide you with value, maintain the relationship and nurture how you work together in the future.
Crowdfunding is a fast growing and increasingly popular funding source for nonprofits and startups – and what makes them so successful is that they can reach a global audience. Crowdfunding platforms like Chuffed or Mightycause are specifically dedicated to fundraising for nonprofits and charities. Crowdfunding platforms can link in to your social media campaigns and simplify online giving for your donors.
Government funding and grants
For organizations funded by government contracts, renegotiate your deliverables to be outcome based (instead of hours based or physical outputs based). Many government departments are offering grants to assist nonprofits and other organizations so ensure you do your research and apply if you meet the criteria.