Greetings. This is your Nonprofit Possibility Engineer Russell Dennis. I wanted to talk with you about sources of funding for your organization. So, some of your work may lend itself to sources of funding that are different than others. A really important source of funding is donations, private donations. Here, you have a little bit more flexibility with how the money is spent, and a lot of donations can fund your operations, salary, staff, rent, all of the overhead type things that a lot of people don’t like to talk about. The reality is, though, if you don’t have a structure and support structure, you can’t very well deliver services or programs to others. So, donations are a critical source of funding.
What about mission-based revenue? This is income that you earn from charging people market rates for services that you deliver to those that you subsidize for free. So, business income that’s directly related and in line with the services you already deliver, is a good source of revenue, also adding some flexibility. Of course, to get new projects and programs off the ground, we have grants, and grants come from many sources, private foundations, local governments. The thing with grants is that most of them are targeted specifically to that program and often you don’t have any funds in there to take care of your day-to-day operations. But they’re there and they can help you make an impact with the people that you serve.
So, those are just a few of the different types of funding that are available out there. And let’s not forget about what we call in kind services. This is where we get pro bono type work from professional firms, computer marketing firms, all sorts of things. Any type of professional service you can imagine can be requested on a pro bono basis. Things that you pay for. In other words, these in kind services are as good as money in the bank, because you’d have to pay to have this brainpower if you didn’t get it for free. And there’s an art and a little bit of a science to that. It’s best, if possible, to have a diverse range of funding sources so that you’re eggs aren’t in one basket. On the other hand, you don’t wanna have so many sources of funding that you manage them badly.
So, if you’re interested in raising more money for your nonprofit, where do you turn? Well, I have a course and the link is below, on the Thinkific platform, Building Successful Fundraising Plans. In there, you’ll have an overview of all the things you need to consider, from how much money you need to what are the best sources to where you go to contact folks. If you’re tired of being on the money-go-round, or you’d like to have more diverse sources of revenue, then this course is probably for you.
You can also have a discovery session with me by booking … go on to the link below, [bit.ly/bookrocks 00:03:56] and we’ll talk about some of the sources of revenue that you have and maybe look at ways you can increase that revenue or look for some other sources.4 Steps to Building a High Performance Nonprofit