What can you do in your organization when the nonprofit sector is in crisis? 

Everyone plays a crucial role—whether you’re the Executive Director, a staff member, or a Board member. The goal is to find ways to ensure your organization has the financial resources needed to deliver on your mission, especially as needs are growing and becoming more complex.

But how can you achieve this? How do you become like some organizations that are thinking in new ways and creating resources by developing or attracting earned revenue? 

First, let’s dig into why this crisis exists and then discuss what you can do about it. 

Recent sector reports from the Ontario Nonprofit Network (Ontario) and Vantage Point (British Columbia) have highlighted the financial crisis taking place in our sector, which has been exasperated due to COVID-19 and inflation. 

Some trends have been affecting the nonprofit sector for the past 20 years, including:

  • Reduction in core and government funding and limiting administrative rates
  • Significant increase in the number of nonprofit organizations, creating higher competition over grant dollars
  • Shift in granting priorities that provide support to programs over operations, creating a lack of core operational funding
  • A growing competition for donor attention while donations are decreasing across Canada at the same time

It is important to recognize that these trends have had a real, ongoing impact. The difficulties our sector faces are a result of years of relying on a dependent financial model that organizations have traditionally operated within.

In recent years, unforeseen events have increased the demands on our organizations, reducing our ability to raise resources through these traditional methods. Grants, contracts, and donations will always be critical for the nonprofit sector, but the weight of the sector and the needs, health, and well-being of our people and planet cannot be supported by grants, contracts, or donations alone.

Okay, so what can you do about it when these trends continue to exist to create the financial resources your organization needs to deliver on its mission? 

How is it that some organizations dealing with these same trends are doing well financially? 

“Charities and nonprofits rely on three core sources of revenue: government funding, philanthropy, and earned income. Of these, only earned income offers any prospect for growth over the long-term.” – Strengthening the Third Pillar of the Canadian Union: An Intergovernmental Agenda for Charities and Non-Profits.

This all sounds great in theory, but… what are the revenue options organizations can develop or attract for long-term financial stability? How do you look at different types of revenue and decide which ones are right for your organization? How can you save time thinking this through when you are dealing with increased demands?

In our work at Thriving Non-Profits, we understand the diminishing returns of traditional fundraising. At the same time, we see a rise in what’s possible for organizations through earned revenue and other innovative approaches to raising resources. These revenues can be intentionally and thoughtfully built into a fund-development approach where multiple revenue streams are all focused on helping you achieve your mission. 

To become a thriving nonprofit, some of the things your organization will need to consider are:

  • Understand what financial strategies are possible, depending on your charitable status
  • Think through which strategies are right for your organization
  • Understand which strategy is for short, medium, or long-term financial needs 
  • Shift the culture of your organization and become comfortable moving away from the status quo and risk aversion, moving from a culture of scarcity to a culture of abundance
  • Use your revenue strategies to increase your impact

The great news is that when your organization has multiple streams of revenue, you can plan for the future and navigate financial ups and downs because when one stream fluctuates, another stream is there to balance it. Your organization becomes more resilient.

Being a thriving nonprofit can transform how you achieve your mission and support your operations and team.

If you want to delve deeper into exploring different financial strategies and what is possible for your organization, join the 1-hour workshop on January 24th at 1 p.m. EST, designed for organizations interested in learning about creating financial resilience and increasing their impact. Register for the workshop here: https://www.eventbrite.ca/e/thriving-non-profits-revenue-diversification-workshop-tickets-791277962687

Unlock new possibilities for your organization’s sustainability and growth with Thriving Non-Profits and become part of the shift from scarcity to abundance.

Keep up with innovative resources and programs for the nonprofit sector by signing up for the Thriving Non-Profits newsletter and follow Thriving Non-Profits on LinkedIn.

Kristi Rivait – Co-founder and Director, Partnerships and Programs, Scale Collaborative, and co-founder of Thriving Non-Profits. Scale Collaborative envisions a thriving, connected, and abundant social change sector, and through its Thriving Non-Profits program, platform, and community, works with hundreds of nonprofits and charities to transform through capacity-strengthening revenue diversification towards greater impact.

Kristi Rivait brings 20+ years of leadership experience in the nonprofit sector, including 10+ years as an Executive Director.  Kristi is an expert at operational transformation, change management, and diversifying revenue.