Figuring out what drives the resource of your nonprofit organization can be a difficult task. Many nonprofits rely on one or two sources of revenue without thinking about the implications of if resources from revenue stream drops, so does the nonprofits capacity to offer services. The purpose of this article is to give a basic overview of some of the more common forms of revenue streams that can drive donations for nonprofits:

Individual Donors
Individual donors can be low, mid or major level givers. Regardless of their level of funding, the fact that they are giving to your organization indicates that they believe in your mission and should be valued at every level. There are various ways to facilitate donations as a nonprofit. Nonprofit organizations usually ask donors to pay a small amount for the services they provide, but another way to get donations is by asking people to give a small amount in exchange for the services they provide. It will take time to cultivate relationships with major donors and to find out what types of gifts they would like to give. These are some of the typical ways nonprofits generate money: individual donations and recurring donations.

Foundations
Foundations are often very large, and depending on how large the foundation is, it may be difficult to grant grants to an organization that needs significant funding. Most foundation grants are made on a one-off, or a regular, schedule. Grants are also made in limited amounts from foundations. Foundations may contribute only a modest amount to the income of many nonprofits, but it is often used to fund programs that benefit the community and support programs that already exist. If your organization is large enough, you may be able to find a grantor for your organization through one of the many public foundations.

Corporations
Corporations give large donations to nonprofits in order to support their mission. Companies make donations to nonprofit organizations in various ways. There are multiple examples of corporate giving making an impact for nonprofits. Many companies help nonprofits by donating items for upcoming fundraisers and auctions. Some companies offer to match gifts made by employees who give to charitable organizations. Some companies provide employee funds as a result of employees volunteering at an organized group. Companies giving money to nonprofits may be huge corporations or small businesses.

Government Funding
There are plenty of grants that nonprofits can get from different sources, including the government. Many nonprofits mainly owe their funding to the government, but some types of organizations depend heavily on grants from other government agencies. If your organization is interested in learning more about how grant money is awarded, grants.gov is an outstanding resource.

If you are an nonprofit and want to raise funds, be prepared to access a variety of funding sources. Relationships with potential sponsors – be they wealthy people, foundations, corporations, or even federal funders — requires work. Be sure to diversify your donation sources to build up revenue to make an impact in the community.

Looking for more information? Contact MyCommunity. MyCommunity exists to build relationships and tools that equip organizations so that they can maximize their impact. Our suite of tools is designed to help organizations of all sizes focus on their mission without worrying about the logistics. We understand the importance of building strong relationships, so we provide the necessary tools to maximize impact and make a difference like our easy-to-use platforms MyDonors and MyVolunteers. Likewise, MyNonprofitCoach equips nonprofits with the training they need to be successful. Schedule a demo for any of our solutions here.

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Sources:
https://www.jotform.com/help/485-chapter-11-revenue-streams-for-nonprofits/
https://vialogue.wordpress.com/2008/08/09/good-to-great-and-the-social-sectors-notes-review/
https://gracelead.files.wordpress.com/2016/07/good-to-great-social-sectors-summary.pdf