DIVERSE FUNDING STREAMS

An organization that in 2007 relied heavily on government grants and contracts was likely in trouble by 2009, thanks to the great recession.   Another organization that relied heavily on contributions from people in the building trades in that same timeframe probably saw a similar problem. As the construction business went, so went their contributions.

Your financial advisor will tell you, diversify your investments. The same advice goes for nonprofit diversity of income streams. I’m not just talking about earned and contributed income. I am speaking of diversification within both of those major streams. Earned income could include multiple contracts, fees, business-related revenue, etc. The more diverse you are, the more you can withstand financial troubled waters. On the contributed side, the same is true. The more donors you have, the more diversity. The greater mix of foundations and individuals you have, also, the more diversity.   Add in a couple of fundraisers, and the mix is even greater.

So when you look at your funding plan, the question is: how diverse is it? Having one that is not diverse is bad news. But it is also good news, because it is likely that you have greater opportunities to grow your revenue. The next steps are yours.

For more information be sure to check out my book Board Essentials: 12 Best Practices of Nonprofit Boards

About Dave Coleman

Dave Coleman Principal / Consultant Phone: 253-237-4118 After many years of nonprofit leadership and the privilege of getting to know hundreds of organizations through my work with the M. J. Murdock Charitable Trust, I am pleased to offer my services to you at BoardTrek Nonprofit Consulting. Our small Pacific Northwest based company is focused on helping guide nonprofit organizations and their leaders into the future by offering our services in board governance, strategic planning, leadership development and organizational change. Always feel free to contact me with your thoughts and questions.
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