Diversify Your Nonprofit’s Funding Sources in Uncertain Times
How to Maximize and Diversify Your Nonprofit’s Funding Sources in Uncertain Times
Diversify Your Nonprofit’s Funding Sources in Uncertain Times. Nonprofits in 2025 are facing significant financial challenges—from federal funding cuts to declining corporate sponsorships and shifting donor priorities. Relying too heavily on a single revenue stream can leave organizations vulnerable to sudden budget shortfalls, making it essential to diversify funding sources for long-term sustainability. Whether your nonprofit depends on grants, individual donors, corporate sponsorships, or fundraising events, now is the time to explore new revenue opportunities and strengthen your financial foundation. In this guide, we’ll outline key strategies to help your nonprofit maximize existing funding, tap into new sources, and build financial resilience in an ever-changing landscape.
Below, we break down 10 essential revenue streams that nonprofits should tap into and actionable strategies to maximize each one.
1. Online Donations
Online giving continues to grow, and nonprofits that make it easy for supporters to donate securely and conveniently will see more success.
✅ Optimize Your Donation Page: Make sure your website has a simple, mobile-friendly donation page with multiple payment options.
✅ Offer Recurring Giving: Encourage donors to set up monthly donations for predictable revenue.
✅ Use Peer-to-Peer Fundraising: Empower supporters to create their own fundraising pages for birthdays, holidays, or personal milestones.
✅ Leverage Matching Gifts: Promote corporate donation matching programs to double contributions.
👉 Tool to Try: Donorbox for embedded donation forms and recurring giving.
2. Event Fundraising
Hosting at least one annual fundraiser is a great way to engage donors and raise funds.
✅ Hybrid Events Work Best: Combine in-person and online components to reach a larger audience.
✅ Offer VIP or Sponsorship Tiers: Provide premium ticket levels or sponsorship opportunities to boost revenue.
✅ Include Auctions & Raffles: Partner with businesses to get donated items for silent auctions or prize giveaways.
✅ Use Text-to-Give: Allow guests to donate via text message during the event for quick, easy giving.
👉 Tool to Try: OneCause for virtual and in-person fundraising events.
3. Google Ads & Google Ad Grants
The Google Ad Grants program gives nonprofits $10,000 per month in free Google Ads to drive website traffic and donations.
✅ Apply for Google Ad Grants: If you haven’t already, apply here: Google for Nonprofits.
✅ Promote Your Fundraising Campaigns: Use the grant to advertise donation pages, events, and volunteer opportunities.
✅ Test Different Ads: Run multiple ads to see which messaging attracts the most donations.
👉 Pro Tip: Many nonprofits don’t fully utilize their Google Ad Grant, which is leaving quite a lot of money on the table. At IMPACT Funding Solutions, we offer this management service included for all clients. If you are looking for this as a stand alone service please Contact Us.
4. Service Clubs (Rotary, Kiwanis, Lions Club, Optimist International)
Local service clubs actively donate to nonprofits and often have grant opportunities for community projects.
✅ Find Local Chapters: Visit their websites to locate and contact your nearest chapter.
✅ Attend Meetings: Introduce your nonprofit and ask how their club can support your work.
✅ Apply for Grants & Sponsorships: Many clubs fund local initiatives and can provide one-time or annual funding.
👉 Where to Apply:
5. Local Banks & Credit Unions
Many banks offer small grants or sponsorships to nonprofits, especially for community development, financial literacy, and economic support programs.
✅ Build Relationships: Visit bank branches and introduce your nonprofit. This can also be done via letter or email. Each branch manager generally has funds to donate to their local charities at the branch level.
✅ Look for Community Grants: Check banks’ websites for corporate social responsibility (CSR) programs. ***This should be part of your annual grant strategy**
6. Private Donors & Major Gifts
Individual giving makes up the largest percentage of nonprofit funding. Attracting and retaining private donors is no small task. It takes a combination of brand management, marketing, email marketing and one to one contact.
✅ Develop a Major Gift Program: Identify high-net-worth donors who align with your mission.
✅ Personalize Donor Outreach: Build strong relationships through personalized emails, calls, and meetings.
✅ Offer Exclusive Perks: Provide major donors with insider updates, event invitations, or naming opportunities.
7. Corporate Sponsorships
Many businesses provide event sponsorships and cause-related marketing partnerships.
✅ Offer Tiered Sponsorship Packages: Include different levels of brand exposure (e.g., logo on event materials, social media mentions).
✅ Apply for Event Sponsorships: Companies like Best Buy, Coca-Cola, and Target sponsor nonprofit events.
✅ Engage Employees: Offer corporate volunteer days where employees get involved.
👉 Where to Apply:
8. Social Media Fundraising
Facebook, Instagram, and TikTok allow nonprofits to collect direct donations and promote fundraisers. Having the Paypal Giving Fund will allow you to set up META (Facebook & Instagram) fundraising. Giving Tuesday and other similar days provide opportunity to run online social media campaigns for fundraising.
✅ Set Up Facebook & Instagram Fundraisers: Use Meta’s nonprofit tools to accept donations.
✅ Leverage Peer-to-Peer Giving: Encourage supporters to start their own birthday fundraisers.
✅ Create Engaging Video Content: Short, powerful storytelling videos boost donations.
👉 Set Up Here: Facebook Fundraising
9. Earned Revenue (Selling Products or Services)
Many nonprofits generate income by selling merchandise, memberships, or services.
✅ Sell Branded Merchandise: T-shirts, mugs, and tote bags can raise awareness and funds.
✅ Offer Paid Workshops or Classes: If your nonprofit has expertise in a subject, charge for educational programs.
✅ Launch a Subscription Program: Monthly memberships can provide exclusive content, discounts, or perks.
10. Grants
While grants should not be your only revenue source, they play a critical role in funding programs. Grants can be the highest percentage of funding for your nonprofit, and can provide money for operating costs, program budgets, and capital campaigns.
✅ Create a Grant Calendar: Plan which grants to apply for each quarter, and plan ahead for the year in advance.
✅ Focus on Operating Grants: Not many funders offer general operating support so always make these priority. Most grants are program grants, so having a well defined program with impact statistics, a clean program budget can help you be successful with program grants.
✅ Hire a Grant Writer: If you don’t have time, work with a professional to increase your success rate.
CONTACT US FOR MORE INFORMATION ON OUR GRANT WRITING SERVICES
Final Thoughts – Diversify Your Nonprofit’s Funding Sources in Uncertain Times
A nonprofit that relies on only one or two revenue streams is at risk of financial instability. By diversifying funding sources, your organization can weather economic shifts, sustain operations, and continue serving your community. Start by implementing two or three of these strategies today, and watch your nonprofit’s financial health grow!
