Monday, February 13th, 2012 at
4:03 pm
Article by Wesley Mccormick
It is important for nonprofit organizations, whether just starting or a well established nonprofit, to create diversified streams of income. By developing multiple sources of funding, your organization will be less dependent on each revenue stream. The more diverse your organization’s funding channels are, the better your organization will be able to withstand hard economic times.
Grants, for example, are a great way for nonprofit organizations to generate the revenue needed to operate. However if an organization is relying too heavily on grants and their grant funding runs out or is reduced, the organization may struggle trying to make up for that loss of funding in other ways. It is always better to be prepared by having fundraisers, and soliciting donations in addition to applying for grants.
The need for multiple sources of funding has become even more important with the recent decline in the American economy. As bank accounts shrink; individuals, organizations and foundations are becoming more selective over which organizations they are making contributions to. This is creating more competition between nonprofit organizations for the resources available. The organizations which are best equipped to deal with this competition are those which are the most diverse in their revenue streams less reliant on one single source.Organizations should look to fundraising efforts as a way of marketing and getting the organization name out into the community as opposed to just generating revenue for your organization. Fundraising events while they may not always create a large amount of income for an organization cannot always be measured by the amount of money they generate at that event. The possibility of future donations and contributions based on the relationship which will be established at a properly structured event can generate continuing revenue and benefactor contacts far into the future.
Organizations which have been successful time using one revenue source need to establish a variety of untapped channels of revenue. Any organization will be strengthened by new and innovative sources of income, and additional funding is always a welcome supplement to organizations wanting more freedom in accomplishing their mission and fulfilling their goal.
For years now there has been a secret weapon of many nonprofits across the United States. CharityNetUSA has been helping Small to medium size charities with business plans, outreach programs, Grant proposals and Fundraising diversification. With todays economic hurtles, having an experienced professional organization in you corner can be of great value. Nonprofit organizations can have a friend in the business, CharityNetUSA, with helpful advice, valuable contacts and proven methods to generate new channels of new income your organization may not have considered, until now!
If you would like more information on 501c3 status, Grants and the grant application process and the full range of services offered to the nonprofit community please contact CharityNetUSA by visiting http://www.CharityNetUSA or call 1.877.857.9002
About the Author
For help and advice on creative funding sources for your non profit, visit http://CharityNetUSA.com