Whether it's through grants, individual donations or membership fees, nonprofits rely heavily on funding sources to continue their missions. However, when those resources are limited, they require other forms of funding to keep going.
Fortunately, there are many additional funding options available for organizations to leverage when resources are low. Below, 10 Forbes Nonprofit Council members share what some of those alternative forms of funding are that nonprofits can take advantage of and how these sources can help support an organization's mission.
Members pictured from left to right.
Photos courtesy of the individual members.1. A Revenue-Generating Product
Monetize your nonprofit's strategic initiatives by creating a for-profit or working with like-minded nonprofits to develop a revenue-generating product. The Mozilla Foundation is a great example of a nonprofit productizing its services with Firefox. We also did this successfully with Fair Work, an evidence-based solution for corporations to achieve workplace fairness. - Linda Goler Blount, Black Women’s Health Imperative
2. In-Kind Donations
It sounds cliche, but pro bono executive talent, interns, software, coffee and lunch meetings, office supplies and even occupancy all contribute to the bottom line. The networking around securing low-cost or no-cost needs builds community, and network adequacy that will translate to financial rewards. A recurring 10% profit share at a favorite restaurant adds up! - Gwen Cooper, Accessia Health
Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
3. Consultation Services
Chances are that you are an expert in your field. You know specifics about your community, its location and the issues they face. Your insights and analyses have great value and others will pay for that knowledge. Being an expert also means staying current on happenings in your field, which only increases your value to others. I consult regularly and always encourage my team to do so as well. - Puvan Selvanathan, Bluenumber
4. Matching Gift Programs
Matching gift programs can provide a huge source of revenue for nonprofits. They are often underutilized, leaving millions of dollars on the table annually. Nonprofits can easily double some of the donated dollars by encouraging supporters to take advantage of corporate matching gift programs. Simply inserting a matching gift form into your thank you letters will help generate additional funds. - Victoria Burkhart, The More Than Giving Company
5. Crowdfunding
Crowdfunding is a way for organizations to raise money from a large number of people, usually through an online platform. Nonprofits can share their campaign on social media and through their own networks to reach a larger audience and solicit donations. - Leonard Freeman, Oregon Tilth
6. Diverse Donor Outreach
Diversify funding sources to include corporate, foundation and individual donors. This is the time-proven way to build a solid revenue base. Also, it is key to let go of the scarcity mindset. Global wealth reached a record high of $530 trillion in 2021 across the globe, and while there may be setbacks with recessionary pressures in 2023, nonprofits should embrace an abundance mindset. - Jono Anzalone, The Climate Initiative
7. Sustainable Fundraising Opportunities
Create a multiyear sponsorship that increases with value and promotion. This will make sponsors eager to sign up for a multiyear recognition. Look for various "cause marketing" opportunities where you are capitalizing on where people's habits already exist, i.e., dining, social media, products or services that provide a royalty back to the nonprofit. - Aaron Alejandro, Texas FFA Foundation
8. Crypto And NFTs
Nonprofit leaders should explore opportunities within the crypto and NFT space. It’s a great way to connect with a new audience and bring some unrestricted funding to your organization. Do your research and select a platform that can support your organizational goals the best. It also opens up your organization to solicit and receive donations worldwide without limitations. - Christopher Dipnarine, 4MyCiTy Inc.
9. MATTER
Valuable support is about more than money. Instead, consider many things that could "MATTER" when advancing your mission, including money, assets, time, talent, exposure and relationships. Inviting partners to share gifts from a variety of places provides value and more access points to engage. So, invite nontraditional gifts such as influence, promotion, unique skills and more to harness support. - Betsy Chapin Taylor, FAHP, Accordant
10. Nonprofit Awards And Grants
Some awards come with cash prizes. Or, you can use the publicity to let your community know about the exceptional work that your organization is doing, which has the potential to bring in donations. I have used this approach to raise the visibility of my organization, and this has paid dividends in grants and donations from MacKenzie Scott and others. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
