It goes without saying that nonprofits depend heavily on the financial support of their donors to execute their mission. However, relying solely on one source of revenue is risky. This is why having diversified revenue streams is critical to the financial health of your organization. Diversifying revenue streams provides nonprofits with more stability, and can result in exceeding fundraising efforts.
In this article, we are going to look at the reasons why you should diversify revenue streams.
Why Diversify Revenue Streams
There are many benefits to diversifying revenue streams, but first and foremost, these different sources of revenue result in more revenue. In addition to your donors, you are also receiving money through grants, corporate sponsors, special events, and more. Since there are multiple streams of revenue, your nonprofit has a security blanket in case of a time of uncertainty or risk.
Another key benefit to diversifying revenue streams is that you broaden your network and expand your outreach. Recruiting new donors, landing corporate sponsors, and even receiving grants help build your community and raise awareness for your cause.
How to Diversify Revenue Streams
Now that we understand why diversifying revenue streams is important, let’s explore a few ways to successfully do this.
Land Corporate Sponsors
Establishing a corporate sponsorship raises awareness of your work and brings in money that could turn into recurring revenue. A corporate sponsorship is when a nonprofit receives support from a for-profit to help them in their fundraising efforts.
Nonprofits are not the only ones to benefit from this type of sponsorship. Corporate sponsors also gain recognition by supporting your mission because you are promoting them. They also are giving back to the community in which they do business and often times a nonprofit partnership helps corporations achieve their social responsibility goals. There are different types of corporate sponsorships, such as financial, in-kind, media, and employee giving. Make sure to do thorough research and find the best potential sponsors for you.
Seek Gifts from Foundations
If you aren’t looking for corporate sponsorships, there are family and corporate foundations that give sizable donations to nonprofits. These types of foundations also may offer grants that are open for application. Keep in mind grants are not always dependable, and you can obtain a gift without going through the grant process.
Encourage Peer-to-Peer Campaigns
Peer-to-peer campaigns allow your donors to share your mission with their friends and family through individual fundraising. These types of campaigns are perfect for donors who prefer online fundraising. Before you encourage donors to embark on their own campaign, find the best peer-to-peer fundraising platform to use.
There may be some friendly competitions as a result of the campaigns, but these fundraising efforts are benefiting a great cause. Encouraging donors to launch peer-to-peer fundraising campaigns will help spread the word about your work.
Host Special Events
Hosting special events is a fun way to boost donor retention and raise money. Organizing a special event takes a lot of time and attention to detail, so make it a team effort. Yet there are many pros to hosting these events, including attracting new donors, and of course, securing an additional revenue stream.
In order to reduce the workload for your donor relations team, create a QR code for registering. Encourage local businesses to donate products such as prizes and food, or even ask for volunteers. Take time to plan a special event that the whole community can be involved in!
Ways That OmniAlly Supports Diversification
OmniAlly’s Digital Donor Engagement System℠ is the perfect platform to promote the types of revenue streams while reducing your workload. OmniAlly also offers a virtual wall solution as an add-on feature to your digital wall. This feature makes it easier to implement omnichannel messaging across different platforms.
Digital walls also shine the spotlight on corporate sponsors by displaying their logo or with a panel highlighting the sponsor. A QR code is easy to add to your digital donor wall. And, they can also be included on the website of your corporate sponsor. Or simply guiding your donors straight to a donation page.
Digital donor walls are savvy promotional tools that allow you to showcase the services or products that your nonprofit offers. Again, a quick QR code scan can quickly lead to a product or service page so the customer pays instantly.
When it comes to keeping your audience up-to-date on your capital campaigns, digital donor walls make this easy. Create individual QR codes for your campaigns and incorporate them into the call to action on your campaign page. If you really want to raise campaign awareness, share brief impact stories from individuals impacted by the fundraising. There is no end to how your donor recognition wall or virtual wall can be used in diversifying revenue streams.
Including the diversification of revenue streams in your fundraising strategy results in financial stability for your nonprofit. Promoting your events and campaigns, and recognizing your donors and corporate sponsors plays a big part in retaining support. Finding the right tool to generate revenues is vital for your team. With OmniAlly’s digital and virtual wall solutions, you can do all of this effectively and with little effort.
Begin diversifying revenue streams with your digital donor wall and reach out to book a demo.