5 ways to increase your organization’s income

It’s the same old story pestering many nonprofits: A pledge is made and for any number of reasons — from a donor’s bad intentions to economic reversals to a volunteer’s lack of follow-through — the money is never received. Because donations are such a vital source of income for most not-for-profits, this can be devastating. Fortunately, you can increase your nonprofit’s income and help keep your organization financially stable by implementing some new and traditional approaches. Here are five to get you started.

1. Provide services and programs related to your mission

A commonly accepted way to generate income is to offer services and programs for a nominal fee. These might include hosting speakers, classes or exhibits that are related to your organization’s mission and tax-exempt purpose. You can raise additional funds by selling exhibited items or having a program with advertising.

Also, evaluate those programs you currently offer. Are they as successful as they could be? Could they be modified to attract new people? Are you publicizing them well?

2. Produce special events

Although it takes a great deal of time and effort to plan, a creative and well-organized special event can be incredibly successful — particularly from a fund-raising point of view — because it can draw your usual donors and prospects.
Plus, special events, such as walks, tournaments, dinners, auctions and cook-offs, can be memorable and help potential donors and the media learn about your organization’s “softer” side.

3. Offer memberships

Some organizations may charge membership fees. Memberships typically work well for nonprofits that provide a service. In return for the fee, members get privileges they wouldn’t have received if they were simply donors, such as:

• Discounts on your programs or services,
• Discounts on products your organization sells,
• Invitations to special events, and
• Special opportunities, such as members-only programming or facility access.

In addition to providing income, memberships can benefit your nonprofit in other important ways. For example, people don’t always discuss the organizations to which they donate, but they may be more likely to publicize organizations to which they belong.

4. Earn income on investments

There are many options when it comes to investing your nonprofit’s money, so you’ll want to look at factors such as requirements for liquidity, risk tolerance, historical use of funds and possible conflicts of interest.

For short-term investments, a money market or short-term bond mutual fund can offer higher returns than a savings account while still providing a fair amount of liquidity. If liquidity isn’t as important, you might consider a long-term investment, such as real estate or longer-term bonds. Keep in mind that all investments have some risk involved, so it’s essential to monitor your risk diversification and the tax consequences, if any, of earnings.

5. Collaborate with other organizations

Working together with other organizations can help you earn — and save — money. For instance, you can rent or share office space with a nonprofit that has a similar or related mission. It can also be beneficial to exchange or share staff or service providers or to organize a joint event, which will bring new patrons to both of your organizations.

As the saying goes, two heads are better than one. Partnering with another nonprofit brings additional skills and experiences to the table that may help each organization generate new ideas and resolve issues.

Let your imagination run wild

The central elements of successfully implementing most of these ideas are creativity, promotion and organization. Even the most original event can fail if it’s poorly publicized or organized. And, as with any endeavor, it’s essential that the individuals involved be dedicated. With time and effort, the act of soliciting donors will be just one part of your nonprofit’s fund-raising strategy. •