Four Keys to Diversified Funding
1. INDIVIDUAL DONORS
Engage these types of individual donors:
- Leadership gifts/major donors
- Mid-level donors
- Monthly givers
- Bequest and estate commitments
- Donor Advised Fund holders
- IRA Qualified Charitable Distributions
Build relationships through:
- Peer-to-peer campaigns
- Annual and capital campaigns
- Social media
- Traditional mail solicitations
- In-person meetings/meals
2. CORPORATE PARTNERSHIP
Businesses improve brand equity and grow their customer base through charitable event sponsorship, program underwriting, and employee matching gifts (both financial and volunteer).
Customers connect businesses and nonprofits through purchase incentives, give back meals, gift collection sites, and round up campaigns.
Through these opportunities, the nonprofit grows their audience, gains new donors and advocates, and improves their community.
3. FOUNDATION AND GOVERNMENT GRANTS
Grants support programs, projects, organizations, capital projects, research, and more. They range from small local philanthropic club gifts to large, multi-year collaborative government agreements. Funder and project alignment is key as is developing relationships with key funders. Organizations need to be ready to manage and support the ongoing and long-term requirements of the funding.
4. PROGRAM/SERVICE FEES
While common in some nonprofit verticals such as the arts where a ticket is required, many nonprofits have a misconception that they must offer their programs for free. Nonprofits are, however, businesses that must generate the income necessary to hire and retain staff, produce quality programming, maintain facilities, and prepare for the future. Program fees are one way to show the value of the program while also creating buy-in on the part of the beneficiary.
ACTION: HOW DIVERSE IS YOUR FUNDING?
How is your nonprofit doing when it comes to diversified funding? Evaluate your income sources. Are there gaps? Start now to develop a work plan to boost your fund diversity by tapping more of these four key components.
RBW Strategy is available to help think through strategies and calibrate next steps toward fundraising success. Learn more at www.rbwstrategy.com/about-us/working-with-us/.