An age old problem is how charities and other nonprofit making organisations make themselves more sustainable…nowadays you cannot rely on prior funding opportunities as they may dry up!
We have spent a great deal of time in helping 3rd Sector organisations over the past few years and with each hour spent with each organisation it has become apparent that many of these charity, voluntary and community groups are rethinking traditional income sources in response to changing circumstances.
It is no surprise that there is increased competition for grants and donations and many organisations are having to explore more sustainable options, such as earned income or a change of model. We have surveyed the organisations that we are currently working with on future income opportunities for them over the next few years and just under 50% said donations or grants were essential and the balance opted for commercial trading or contracts but with the caveat of a lack of expertise and resource.
There are a few steps to take for Charities to bridge that gap in this sector and to help them identify the revenue opportunities from both market research and their own assessment and aid them to create a robust business development plan to maximise a revenue stream.
A few simple steps can be undertaken by the organisation by
Knowing your audience and having a clear idea of your funding audience will allow you to resource the areas of funding that will yield the greater return.
Review charging models through research can ensure that you can evaluate that charging businesses for services is viable in this sector.
Make it a team effort as Diversifying their income is not a job for one person and so we get the whole team trained and involved and this is particularly important at small charities.
Focus their efforts by not trying for ten new income streams but concentrate efforts on a few avenues of funding.
Work your assets as from our experience we have proven knowledge of identifying if a charity is sitting on a latent asset such as the hiring of meeting rooms in a building or rent it out on the weekend?
Many charities are rethinking their financial model and exploring more sustainable options and Client Marketing have been delighted to assist in this transformation and this is so important for all charities, big or small, to think about ways of increasing their funding streams including community fundraising, individual donors, social media, trusts and businesses.
Interested to hear your views on changes in the 3rd sector.