It is important for non profit organizations, both those just starting out and those which are well established, to have a diversified stream of income. By diversifying where your revenue is coming from, your non profit organization will be less dependent on each revenue source. The more diverse your organization is the better it will be able to withstand changes in funding.
Grants, for example, are a great way for non profit organizations to generate the revenue which they need to operate. However, if an organization is relying too heavily on grants and their grant funding gets pulled or reduced, the organization may struggle trying to make up for that loss of funding in other ways. It is better to be prepared by having additional fundraising initiatives and soliciting donations in addition to applying for grants.
The need for multiple sources of funding has become even more important with the recent decline in the American economy. As bank accounts continue to shrink, individuals, organizations and foundations are becoming more selective over which organizations they are making contributions to. This is creating more competition between organizations for the resources available. The organizations which are best equipped to deal with this competition are those that are the most diverse in their revenue sources and the least reliant on one single source.
Organizations should look at fundraising efforts also as a way of marketing and getting your name out into the community in addition to generating revenue for your organization. Fundraising events, while they may not always create a large amount of income for an organization, cannot always be measured by the amount of money they generate at that event. This is due to the possibility of future donations and contributions based on the relationship which may have been established at one of these events. Additionally, hiring a professional fundraiser can be a smart move for even the youngest of non profit organizations. Not only does a professional fundraiser have experience working a variety of different events, a professional fundraiser knows how to make connections and secure sponsorships.
Even non profit organizations which have been successful over a period of time using one revenue source should consider working to find new untapped sources of income. This will strengthen any organization and all organizations will welcome more income; as more income allows the organization more freedom in working towards accomplishing their mission and fulfilling their goal.
Want to learn more about the do’s and don’t of fundraising effectively? Check out CharityNet USA’s short video “The 8 Truths of Fundraising” .
Website, e-mail blasts, non profit cards, print ads; all of these methods of marketing can be confusing and unknown territory for non profits whose focus is keeping the organization running. One of the oldest and more cost-effective forms of non profit marketing is and will continue to be word-of-mouth. If your non profit can get volunteers or donors by referrals then you have the best marketing team already acting on your behalf: your current members. If your non profit is not getting attention, give your current members an incentive to promote your services. If your non profit isn’t getting new people interested, you might want to give your current marketing strategies a tune-up.
If you are looking for different creative ways to market your non profit without running up your marketing tab, here are some examples to get you started:
Print Material (non profit cards, logos, brochures) – Small non profits have relied on this relatively inexpensive method of conveying marketing information: cards, brochures, and circulars. Keep in mind when purchasing these items that you want your print material to stand out. You want people to remember who you are because of a catchy name or design that really catches their attention.
Samples and free offerings – When considering this method of marketing, the question you need to keep in mind is, “Can my non profit truly afford to offer something for free?” Giving away services or products that you make is usually an inexpensive marketing strategy that will leave people appreciating the value of your products. People never get tired of these special offers and great treatment. On the other hand, if you say that the goods or services are “free” or “without charge,” be certain there are no unstated terms or conditions that qualify the offer.
Pictures– Making pictures available on your website may attract potential customers to your organization. By showing pictures of your events or services on your website, they may want to get directly involved immediately. This strategy of “pulling” people in also gives them an opportunity to find out more about what your non profit does. Consider posting pictures or flyers in specific neighborhoods in your local area.
Public relations – To get your non profit in the news, send a press release you draft yourself to every newspaper in the area. The trick is to give the reporter an angle that makes the story interesting to readers; examples would be such events as a grand opening, a contest, or a new event/activity that your non profit is hosting.
Signs – Don’t forget about “signage.” Signs work best if they’re bold, edgy, professionally done, and consistent with your non profit values. Keep in mind that they should be well-lit, and tell the viewer your message quickly. Signs don’t have to be in stationary locations. Examples would be items such as T-shirts, shopping bags, and bumper stickers. These items are creative forms of signs and can do a great job of advertising your services to new potential volunteers or donors. Another great sign that is often times overlooked is your vehicle; you can get a magnetic sign for your car door with your non profit name, logo, and slogan or some art.
Have any other non profit marketing suggestions to offer to the community? Share them in the comments box below!
Many non profits do not take the time to hash out an estimated budget for their programs before embarking on the grant proposal process. However, establishing a budget is an essential step in the operation of every organization, regardless of whether or not they are seeking grant funding. Without conducting some research regarding costs and making financial calculations, a non profit cannot accurately determine how much money they need in order to achieve their goals, and therefore do not know the amount of funding they should request from foundations.
“This online course is designed to help with the basics of developing a project budget, and it is geared for those who have general knowledge of proposal development. (Beginners might want to take the Proposal Writing Short Course.) When you complete this course, you will know:
The basic components of a project budget
Different types of financial documents often required for proposals
How overhead costs and fringe benefits may be incorporated within the budget
How to access resources on the Web, which provide templates of project budgets
You do not need an accountant to prepare your non-profit organization’s budget; however, if you have little knowledge about project budgeting, hiring an accountant can be useful the first time around. If you do choose to prepare your own budget, the task does not have to be overly complicated or time consuming if you use free online tools and resources like the Proposal Budgeting Basics course.
Here are a few additional resources that will aid in preparing your organization’s budget:
Non profit Guides provides a sample budget, proposal cover letter, letter of inquiry, proposal, and other helpful examples.
The Cleveland Foundation’s website offers a Grantee Toolkit including sample templates for a project budget request.
Website, e-mail blasts, non profit cards, print ads; all of these methods of marketing can be confusing and unknown territory for non profits whose focus is keeping the organization running. One of the oldest and more cost-effective forms of 
Many non profits do not take the time to hash out an estimated budget for their programs before embarking on the grant proposal process. However, establishing a budget is an essential step in the operation of every organization, regardless of whether or not they are seeking grant funding. Without conducting some research regarding costs and making financial calculations, a non profit cannot accurately determine how much money they need in order to achieve their goals, and therefore do not know the amount of funding they should request from foundations.