Strategies for nonprofits to ensure financial stability
Financial sustainability is crucial to longevity and keeping the mission alive. So, what are some ways to achieve sustainability?
Look for individual funders
Seek out those individuals that have a passion for your organizations type of work and ask for a donation.
Go for grants
Hire a grant writer for your organization that can look for possible grants and go after those potential grants.
Have a fundraiser
Fundraisers can be a way to bring new potential donors into your organizations. These can be done quarterly, once a year, however you would like to do them. These events can occur in person, or online through the organizations website and social media sites. COVID changed the dynamics of how organizations can reach out to ask for funding and has allowed a way for new potential donors to reach organizations without having to leave his or her home through the rise of online giving. Just keep in mind to not overdo these events; keep them limited throughout the year
One crucial point to throwing these events is that you do not want to overspend. Remember this is about bringing money into the organization. So, look at your budget, look at what you can afford without hurting the organization. Keep cost to a bare minimum so that if the event does not have the turn out you hoped for or the donations you hoped for you didn’t hurt your organization in the long run by having the event.
Look at high-level donors
Look for those potential donors that have deep pockets and are looking to donate. In today’s times we have the Netflix donors who give small amounts monthly, and those individuals are definitely needed and valued, but don’t be afraid to look for those who are able to give large donations yearly, or a huge amount once. These donors keep the organization alive and thriving.
The baby boomer generation currently holds the majority of the wealth in the US, and is leaving their money to organizations rather than family. Why? Baby boomers feel that the money should go to a worthy cause.
Make the Ask
Regardless of how you could obtain the donations if you aren’t able to make the ask you will not receive the funds. Prepare for the ask, educate yourself on how to make an ask and feel confident and not like you’re a used car salesman. You are making an ask for something that you truly believe in, something you feel in your heart will make whatever your mission is better and those you are serving better. The ask becomes easy when it is from the heart.
Hire the best for your organization
Get your team in on the interviews allow those in the organization to help pick the best fit, this brings a sense of belonging and confidence that those in the upper seats have faith that everyone knows who the best fit for the position will be. If someone in the organization is not a good fit then look for his or her strengths and reassess his or her role and position, if it doesn’t align with the organization then its time get the individual off the bus and find the right person for the bus.
There are many ways to achieve funding for your organization and we just skimmed a few potential ways. Allow your creativity to spark a new potential way to reach your audience to allow your organization to become financially sustainable.
Phillip Trammel is a Spring 2023 graduate in the Masters of Nonprofit Leadership and Management program at Arizona State University. He is married with 6 children. Personal interest includes spending time with my family and playing music. Professional interest includes working with nonprofits to help promote music education to at risk youth.
Image by Lillian Finley
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