Diverse revenue streams provide a sustainable financial foundation for nonprofits. Explore revenue streams your nonprofit should pursue in this guide.
It’s important for you to diversify your revenue sources. This is especially important now because of the current chaos of eliminating (and then not eliminating, at least for now) federal grant funding. We also saw disruption five years ago when the COVID-19 pandemic started.
This guest post by John Killoran covers a variety of revenue sources to help you diversify your funding. I’d like to emphasize the importance of recurring/monthly giving. This is a great way for nonprofits of all sizes to bring in a steady stream of revenue.
By John Killoran
Leaders across the nonprofit sector face a common challenge: striving to serve a growing community of beneficiaries with constrained budgets. The good news? Revenue diversification unlocks financial sustainability for nonprofits, providing a powerful alternative to relying on limited funding for your mission.
With various funding sources, your organization can develop dependable revenue flows that not only sustain your organization’s day-to-day operations but also enable it to grow. In this guide, we’ll explore five revenue streams your nonprofit can access to strengthen its financial sustainability.
1. Mobile Giving Campaigns
The future of fundraising is mobile, with a growing number of donors using their smartphones to find new nonprofits, complete transactions, and tell their friends about their experiences. That’s what makes mobile giving campaigns so successful—these fundraisers make contributing convenient for donors.
According to Snowball Fundraising’s mobile giving guide, there are five steps nonprofits should follow to start a mobile giving campaign:
[Alt text: The steps to start a mobile giving campaign, which are explained in the following text.]
- Evaluate your mobile fundraising logistics. Begin by defining the basics of your fundraiser, such as which staff members will oversee the campaign and how you’ll promote it to donors.
- Choose mobile giving channels. Determine which mobile giving strategies resonate most with your supporters, such as a mobile-responsive donation page on your website or a text-to-give campaign.
- Select a mobile giving provider. Connect with relevant software providers to streamline your mobile giving strategy. For example, you’ll need to partner with a text-to-donate provider before launching a text campaign to receive a shortcode and accept donations.
- Incorporate mobile giving into your fundraising plan. Plan how you’ll integrate mobile giving campaigns into your existing fundraising initiatives, such as by adding a QR code to your flyers so direct mail donors can easily donate online.
- Track and adjust your strategies. Monitor key performance indicators (KPIs) as donors interact with your mobile giving campaigns to determine the most effective strategies.
Since mobile giving is self-sustaining—meaning donors can contribute to these campaigns with little intervention from your nonprofit—these campaigns allow you to collect revenue in the “background” of your other initiatives. In other words, you can focus on your mission while revenue pours in from your mobile donation page or text-to-give campaign!
2. Fundraising Events
While your nonprofit can host countless types of profitable fundraising events, focus on the ideas that are most likely to appeal to your target audience. Create an event calendar to plan the timing of each fundraiser, including time before and after for event planning and follow-up.
Follow these best practices to maximize your event revenue:
- Invest in event-specific technology. Tools with capabilities specific to the type of event you’re hosting are purpose-built to maximize your event’s success. For example, event registration software can help with ticketing for an auction. However, your nonprofit will unlock other functionalities by choosing auction software, such as an item inventory, mobile bidding, and other auction-specific tasks.
- Offer tiered ticket pricing. Create flexible ticketing options that cater to a range of budgets so your event remains accessible to a broad audience. Encourage greater contributions by offering perks to higher-priced tickets, such as exclusive access or premium seating.
- Plan events in various formats. Donors prefer different event formats for various reasons. Perhaps the majority of your donors are local, but others want to participate from another geographical location. Some of your supporters are excited for an outing, while others don’t want to leave their house. Plan a mix of in-person, virtual, and hybrid events to maximize event participation.
The best part? Fundraising events pair perfectly with more passive forms of fundraising, such as your mobile giving campaigns. Promote your text-to-give shortcode at an auction or feature QR codes on event posters that link to your mobile donation page for increased donations.
3. Recurring Donations
While securing new donors is crucial, most nonprofit leaders know that acquisition is more costly (and less reliable) than retention. In fact, research from the Fundraising Effectiveness Project shows that only 23% of first-time donors ever make another gift, while 58% of repeat donors stick around for another year.
Successfully encouraging your existing supporters to give again, especially on a recurring basis, creates a stable financial foundation of predictable revenue. The most effective way to secure continued support is through a formal monthly giving program, which includes:
- Defining tiers and benefits. Attach benefits to specific giving levels to incentivize repeated donations. For example, donors giving $10 each month could receive quarterly impact updates, while those giving $50 monthly are invited to exclusive events.
- Emphasizing the impact of small, regular contributions. Use real-world impact to demonstrate the value of monthly donations. For example, $10 monthly might feed a family for a week, while $50 monthly funds one day of emergency shelter for a family in crisis.
- Automating communications to retain recurring donors. Send regular messages to thank donors for their repeated support, acknowledge their commitment, and celebrate milestones regarding their involvement.
In addition to the steps outlined above, remember to highlight the convenience of recurring gifts. Once donors join your monthly giving program, the process will run automatically, eliminating the need to donate manually. They can even opt-in to recurring donations through your text-to-give campaign for an easier sign-up process!
4. Corporate Contributions
While it’s tempting to think of individual donors as your nonprofit’s target audience, revenue can come from other sources, too. Companies and businesses often contribute to nonprofits as part of corporate social responsibility (CSR), or a company’s efforts toward improving society.
According to Double the Donation’s CSR guide, there are five main facets of CSR:
- Philanthropic, which involves a company directly supporting a nonprofit through charitable contributions, such as matching gifts
- Volunteerism, in which a company encourages employees to engage with nonprofits by offering grants or paid time off
- Environmental, in which a company adjusts its values and practices to be more environmentally conscious
- Ethical, which involves companies looking after the welfare of their employees
- Economic, through which companies invest in their communities
Collaborating with businesses can unlock new revenue and boost visibility since your nonprofit will gain the attention of a company’s employees and customers. To get started, identify companies with values that align with your mission and pitch mutually beneficial opportunities for them to support your cause. For example, request the company sponsor a fundraising event and offer to promote their brand at the fundraiser in exchange for their support.
5. Grants
Grants provide substantial funding for both general operations and specific projects. When your nonprofit secures a grant to cover an essential cost, you’ll have more room in your budget for other financial needs, like funding your programs and services.
Start by researching foundations or programs that align with your mission. You can also search according to your nonprofit’s needs. For example, search for marketing grants if you spend too much on marketing. Follow the grantor’s instructions for applying while highlighting your nonprofit’s unique need for funding.
For support with the application process and grant usage (if awarded), enlist the help of a professional grant agency. Their expertise is especially useful for grants with extensive eligibility and usage requirements. For example, a grant agency might be helpful when applying for the Google Ad Grant, especially if your nonprofit has never participated in the program or created a Google Ad.
Each revenue diversification strategy mentioned in this article offers unique benefits. Implementing numerous ideas provides multiple revenue streams and allows your nonprofit to tap into more benefits than possible with just one or two fundraising ideas. Plus, promoting these giving opportunities via multiple channels ensures you reach the largest audience possible with fundraisers that appeal to them.
John Killoran is an inventor, entrepreneur, and the Chairman of Clover Leaf Solutions, a national lab services company. He currently leads Clover Leaf’s investment in Snowball Fundraising, an online fundraising platform for nonprofit organizations.
Snowball was one of John’s first public innovations; it’s a fundraising platform that offers text-to-give, online giving, events, and peer-to-peer fundraising tools for nonprofits. By making giving simple, Snowball increases the donations that these organizations can raise online. The Snowball effect is real! John founded Snowball in 2011. Now, it serves over 7,000 nonprofits and is the #1 nonprofit fundraising platform.










