As nonprofits explore ways to maintain sustainable growth, diversifying revenue has been a recurring focus for many. But what does it mean to diversify a nonprofit’s revenue? Investors diversify investment portfolios in order to decrease volatility and to see more stable returns on their investments. Nonprofits seek to do the same by diversifying the sources of funding they rely on to fulfill their missions. 

Importance of Diversifying Revenue

Nonprofits are competing for finite resources in unpredictable climates. The recession exposed the vulnerabilities of many organizations who relied too heavily on funding that decreased during the hard economic times. Although charitable giving has been on the rise year after year, smart nonprofit managers are seeking to strengthen their organizations to sustain growth in the future. 

Resource dependence theory states that an organization is controlled by the sources of funding on which they rely to operate. Those who control the resources hold the power. Organizations with fewer sources of funding feel these impacts even more. A 2017 study found that over half of nonprofits surveyed reported resource constraints as being a top concern, followed by managing growth at 42 percent.

Not all funding is created equal - some brings with it stipulations that require additional resources for organizations to manage. Others are highly unpredictable and cannot be relied upon for…

The reality of the nonprofit sector is that many organizations must rely on state and federal funding to advance their missions. Without this funding, many organizations would not be able to provide services to the population they seek to serve. Applying for and receiving funding seems like the perfect answer for nonprofits that are looking to get started, as well as for seasoned organizations that need extra room in the budget for new expenditures. 

What nonprofit staff may not consider when applying for and accepting this funding is the effect it will have on their organizations, staff members and clients. What could be bad about more money? Taxing applications, constant scrutiny, bureaucratization, collecting intrusive information from clients and extreme reporting, just to name a few. For already overworked program staff, this additional burden can seem extremely overwhelming.

So, how do you balance funding a program and remaining effective to the mission of the organization? Here are some ideas: 

Only apply for funding that fits into the realm of the established mission. Instead of trying to create a program that fits into what a grant wants, only apply for funding that is applicable to the work you are already doing.

Let technology work for you. Find computer software that will assist with running reports. Hand counting for grant reports should long be a practice…

I have always been a very aspirational person, and I have always aspired to do something great with my life. As I grew older and approached adulthood, however, my abstract dreams of “greatness” needed to become something concrete and I still did not know what that looked like or meant. I didn’t know how I could turn ideas into action, but I wanted to learn. After graduating high school, I decided I needed to find the passion and leadership that would steer my future. Therefore, I took a leap of faith, took “the road less traveled,” and applied for Public Allies Arizona.

From the get-go, through each step of the admission process, I witnessed myself growing. To be able to meaningfully pitch myself, I had to grapple with who I was and what I would bring to the table. Though it may have been nerve-wracking in the moment, I loved having to interview with so many organizations and having to think on my feet. Through being tested, my confidence grew. I saw myself rising to each new challenge. I would eventually be matched to Big Brothers Big Sisters of Central Arizona (BBBS), where I would become the Community Relations Assistant and—later—the Community Relations Specialist.

At BBBS, my work has consistently been about engaging and empowering others. Starting out, my main focus was recruiting community members to become change makers and role models in children’…

During my Master of Nonprofit Leadership and Management (MNLM) studies, I gained an appreciation for volunteers and an interest in how volunteers can engage in advocacy. Volunteers are considered the backbone of the nonprofit sector. According to the Corporate Social Responsibility Wire, 80 percent of nonprofits rely on volunteers for critical activities but admit they do not have the resources to manage them as they might like.

In addition, according to a Stanford Social Innovation Review report, nonprofit leaders are not taking the time to develop or support volunteer talent adequately, resulting in a weak or bland experience that leads to an unmotivated volunteer who has little reason to return.Nonprofits can enhance the operation by utilizing volunteer skills, talent and expertise. It is vital that nonprofits seek out volunteer talents and interest during the hiring process and assign volunteers to tasks related to their area of interest and skill.

However, volunteers can also be advocates. The terms advocacy and lobbying are generally used interchangeably to describe how nonprofits influence legislation and public policy. During my MNLM studies, I learned to appreciate a new definition of advocacy…

Before becoming a Public Ally, I somewhat understood the nonprofit sector, since the year before I had served as a City Year Corps Member in Chicago through AmeriCorps. I was knowledgeable enough about the fundamental role of specific nonprofits, but I never fully grasped the role of nonprofit agencies and their effect on social justice issues as a whole. 

Becoming an Ally enabled me to comprehend new perspectives regarding the fair and just relations between the individual and society. Further, it has exposed me to worlds and circumstances I’d never seen and were often difficult to witness. As a result, I have gained a new perspective on the importance of breaking barriers for social mobility and creating safety nets and economic justice. Consequently, my desire to play a role in transforming the world has truly been ignited.

Being a part of Public Allies in a state that was new to me challenged me to step out of my comfort zone and really immerse myself into every project put before me. I chose to see each project as a new opportunity. I told myself in the beginning of the program that, no matter what, I would always try to have an open mind and open heart. 

Through this program, I have been able to gain knowledge not just about the social injustices that have been the undercurrent of society for many centuries, but I also acknowledged my own privilege. I…