Review: Proven Strategies to Increase Your Nonprofit’s Revenue
Nonprofit business owners constantly worry about finding and maintaining regular funding. According to U.S. Census Bureau data, only 43 percent of nonprofits that started in 2005 still existed in 2010. Failure reasons include lack of capital, market misunderstandings, and faulty models.
This article provides strategies to increase nonprofit revenue, ensuring survival and growth. Feel free to share your own revenue-generating strategies in the comments.
1. Hold Benefit Events
Benefit events raise money for causes or charities. Companies can help with event expenses like rentals and catering, spreading the word about your organization. Examples of benefit events include concerts, auctions, fairs, races, balls, galas, lectures, and bake sales. Increase event revenue by offering raffles, branded merchandise, and purchasable food and services. Consider targeting millennials with active events.
2. Build a Strong Social Presence
Having an online and social media presence is necessary to raise money. Engaging with nonprofits via social media leads to action, with donations being the most common action taken. Focus on the social media channels that provide the most value. These platforms allow you to engage with and recruit new donors, and keep supporters updated.
3. Don’t Depend on Grants
Although grants contribute to revenue, they should not be the sole source. Nonprofit Hub suggests that only 20 percent of funding should come from grants to avoid jeopardizing the organization. Start by applying for local grants to build credibility and support.
4. Pay Attention to Volunteers
Volunteers are more likely to donate money, thus involving them is crucial. Provide volunteering opportunities to make people feel part of something bigger and show them how their work impacts the organization. Fundraising, food collection, labor, and tutoring are popular volunteering activities.
5. Consider Crowdfunding
Crowdfunding campaigns for social causes received 30 percent of the $5 billion spent. Organizing an online crowdfunding campaign is more affordable and easier than hosting a fundraising event. Market and promote your campaign through social media, flyers, and volunteer assistance. Follow crowdfunding best practices like creating a video, setting realistic goals, and expressing gratitude for donations.
6. Implement Giving Levels
Offering different giving levels increases the amount donors contribute, as it influences their perception of what is appropriate. Livestrong, for example, suggests donation amounts ranging from $25 to $1,000, with an option for donors to choose their own amount. Ensure giving levels are relevant and realistic, without deterring potential donors.
Ready to Implement These Strategies?
Now that you have these strategies to boost your nonprofit’s revenue, it’s time to take action. Explore our library of free sample business plans for insights from other nonprofits.
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