6 Strategies For Diversifying Revenue In Uncertain Times
Future-Proofing Your Nonprofit
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Nonprofits are no strangers to uncertainty—whether from economic downturns, environmental disasters, shifting donor priorities, or changes in government policy. Despite the challenges these moments of uncertainty present, they also show just how adaptable and strong the nonprofit sector is. Over the past few decades, nonprofits and their supporters have risen to meet these challenges head on. The 2008 financial crisis reshaped giving patterns, with many nonprofits turning to individual donors to compensate for funding losses elsewhere. More recently, the pandemic disrupted traditional fundraising models and reinforced a critical truth: nonprofits with diversified revenue streams were better positioned to adapt and sustain their missions.
This isn’t a new trend—history shows that nonprofits with diverse revenue streams tend to remain more stable during economic downturns and shifts in donor behavior. Organizations that proactively build diverse funding sources aren’t just reacting to change; they’re preparing for long-term sustainability. Data from the pandemic highlights this impact:
Before we get into strategies, let’s acknowledge what you may be feeling right now. Times of uncertainty can be overwhelming, but they also present opportunities. Now’s the time to lean into fundraising and partnerships—not to wait and see. A well-thought-out plan to diversify your revenue streams puts you in the driver’s seat, helping your organization manage challenges with confidence.
The best way to capture new revenue is to build a diversified strategy. Long-term financial health depends not just on securing funding but on making sure it lasts. Nonprofits that diversify their revenue sources and create a unified strategy are in a stronger position for both stability and growth.
Diversifying nonprofit revenue goes beyond adding new income—it’s about finding the right balance between stable, dependable funding and potential growth opportunities. Your nonprofit’s ability to stay resilient in uncertain times relies on how well your funding model adjusts to evolving donor interests, changes in the economy, and your organization’s evolving needs.
The strategies in this article offer practical steps to strengthen your organization’s financial foundation.
Predictable revenue is the foundation of financial stability, and recurring giving is one of the best ways to achieve it. A well-designed program doesn’t just bring in consistent funds—it strengthens donor relationships. When supporters commit to giving regularly, they become more engaged with your mission, increasing their lifetime value to your organization.
Developing a solid recurring giving program helps reduce the need for expensive donor acquisition efforts. Focusing on retaining donors and monthly contributions creates a dependable income stream that sustains your nonprofit through unpredictable times.
Why it matters: Donors who cut back don’t always stop giving—they may just prefer smaller, manageable gifts. A strong recurring giving program provides consistent revenue, smoothing out financial volatility.
The data: Recurring donors have the highest retention rates—up to 90%.
What you can do:
Corporate and community partnerships provide more than financial backing—they foster mutually beneficial relationships that strengthen your nonprofit’s mission. More often, businesses are focusing on corporate social responsibility (CSR) and looking for ways to collaborate with nonprofits. In addition to sponsorships, companies can contribute through employee giving programs, volunteer efforts, and in-kind donations, all of which can increase your organization’s ability to raise more.
A solid corporate partnership can help stabilize your organization during uncertain times while connecting you with new donor networks.
Why it matters: Many companies maintain corporate social responsibility (CSR) funding or are open to supporting nonprofits through sponsorships, employee giving, and in-kind support.
What works: Organizations that focus on corporate partnerships and CSR initiatives are better positioned to sustain their mission and adapt to changing financial landscapes. You can secure sustainable support by partnering with businesses that share your mission. Ongoing CSR efforts like matching gifts and corporate grants offer opportunities for recurring funding and strengthen relationships with corporate sponsors.
What you can do:
Grants provide a critical funding source for many nonprofits, but sustainability depends on diversifying beyond a single grant type. Federal funding can fluctuate due to policy changes, making private foundation and corporate grants more reliable in certain circumstances. Unlike government grants, private funding often allows for more flexibility in how you use the funds, making it easier to focus on long-term impact rather than short-term compliance.
A strong grant strategy doesn’t just chase funding—it aligns with mission-driven priorities. Successful organizations develop relationships with funders, seek multi-year grants, and position themselves as strong candidates by demonstrating financial health, measurable impact, and a plan for sustainability.
Why it matters: When policy changes impact federal grants, private foundations, and corporate grants remain viable funding sources.
What you can do:
Peer-to-peer fundraising is about more than just raising money—it’s about creating a community and rallying supporters to become ambassadors for your cause. When donors take on the role of fundraisers, they bring in new networks of potential supporters, many of whom may not have been aware of your organization before. This type of fundraising harnesses personal connections, making it more likely that new donors will feel a deeper sense of trust and commitment.
A well-executed peer-to-peer campaign can also strengthen donor engagement by giving supporters a tangible way to contribute beyond making a one-time gift. Your organization can foster stronger relationships and encourage long-term involvement by recognizing and celebrating top fundraisers.
Why it matters: Peer-to-peer fundraising extends your reach through loyal supporters, helping you raise funds that might otherwise be out of reach.
The data: During the COVID-19 pandemic, peer-to-peer campaigns saw a 24% rise in the average donation size, from $87.46 to $108.62
What you can do:
Organizations that focus on building meaningful relationships with major donors—not just soliciting gifts—are more likely to retain their support year after year. This means going beyond standard appeals and creating opportunities for major donors to see their contributions in action, whether through exclusive updates, VIP events, or direct involvement in your mission.
Why it matters: Major donors will continue to support your organization during downturns. Keeping them engaged is essential.
The data: In 2020, 45.6% of nonprofits received the same level of major donor support, and 38.9% saw an increase.
What you can do:
Adaptability is one of the most valuable traits a nonprofit can develop. Economic and political changes show why relying on a single funding source is risky. Ensuring long-term success depends on diversifying nonprofit revenue streams. The most resilient nonprofits continuously assess their financial landscape and proactively adjust their strategies to ensure long-term sustainability.
A strong revenue diversification plan doesn’t just respond to crises—it anticipates them. Keeping track of donor retention, nurturing relationships with funders, and exploring new fundraising channels will help you stay ahead and make the most of new opportunities.
Why it matters: Economic and political shifts show why it can be risky to rely on just one funding source. Nonprofits that monitor trends and adapt their strategies stay ahead.
The data:
What you can do:
The data’s clear: Even in uncertain times, the fundraising must go on. Bloomerang looked at customer data comparing March and April 2020 revenue with the previous year, which showed that nonprofits that kept communicating with their donors saw growth, while those that pulled back experienced declines.
Why it matters: Nonprofits may hesitate to reach out during times of uncertainty, but maintaining communication with donors is more important than ever. Your donors want to help, and regular, consistent engagement can drive their continued support. Focusing your asks on your mission helps keep your community engaged and connected to your work.
What works: The numbers tell the story. Continuing your fundraising efforts and connecting with your donors can lead to better results, even in challenging times. The Bloomerang data shows that the customers that:
Now’s the time to ramp up your fundraising efforts. Diversify your revenue streams, engage your community, and make the ask. Your supporters are ready to make a difference—they just need to know how.
Even though current events may be unsettling or challenging, we know that donors still give in times of uncertainty, corporate partnerships can still grow, and alternative funding sources are available. Nonprofits that actively seek new funding sources, build strong donor relationships, and adapt to change are best poised to succeed.
Diversifying nonprofit revenue isn’t just about surviving tough times; it’s about setting up your organization for future growth. When you embrace diversification, you’re not just protecting your nonprofit—you’re creating opportunities to expand.
Revenue diversification keeps you agile. When funding sources change, a solid strategy helps you adjust smoothly—to maintain stability and position your nonprofit for whatever comes next.
Has your organization made strides towards diversifying nonprofit revenue? Let us know your experience.
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