Increasing Nonprofit Revenue: How to Bring In More Dollars
Maintaining, and hopefully, increasing Nonprofit revenue ranks among the top concerns of not-for-profit organizations.
Nonprofit revenue comes from several sources:
Here are some factors to consider in the efforts at increasing Nonprofit revenues in the areas of donations, events and sponsorships.
Two strategies for increasing Nonprofit revenue from donations are to expand the donor base and increase the average giving amount per donor.
Adding donors, like for-profit customer acquisition efforts, involves:
In the case of Nonprofits, the value proposition is the mission. Potential donors receive the message and make the donation (buying) decision in the same way a consumer decides to buy a product or service. If potential donors clearly understand the organization’s mission, believe in it and in the ability of the organization to fulfill the mission, they will be motivated to give.
Increasing the average giving amount focuses attention on existing donors. Keeping donors engaged via ongoing communication becomes a top priority for the organization. The communications should remind donors that:
The greater the engagement of Donors, the more likely requests to increase average giving amounts will be accepted.
In the effort to increase donations, two other Stakeholder groups merit consideration.
Volunteers and the Board of Directors represent some of the Nonprofit’s strongest advocates. Not only do these Stakeholders tend to donate at above-average levels, but they also have the motivation and means to expand the Donor base through their own networks. Peer-to-Peer fundraising is an example of how organizations can tap into the energy and enthusiasm of these dedicated supporters.
Nonprofit revenue also flows from events. Whether the event’s purpose is educational, social or purely to raise money, the goal is to bring in dollars more than are spent to stage the event.
To be successful in increasing Nonprofit revenue, events need to be more carefully planned and executed.
Organizations focused on increasing Nonprofit revenue are more likely to reach their objectives by focusing on improvements in donor, sponsor and event management.