| Fundraising is critical to the success of most small | | | | for the Disabled," a fictitious nonprofit that |
| nonprofit organizations. Unfortunately, too many | | | | represents countless real nonprofit organizations. |
| nonprofit leaders secure one funding source and then | | | | Happy Times has been in business for 30 years and |
| stop. They incorrectly assume that they don't need | | | | has received most of its support from a grant from |
| to seek other revenue. They don't think about the | | | | the state it operates in. Unfortunately, the state cut |
| possibility of losing the one funding source or what | | | | its budget in half last year, and now Happy Times |
| might happen to their organization if the worst should | | | | must also cut its budget in half since it has no other |
| happen. | | | | source of revenue or fundraising. Had the leaders of |
| Ideally, the funding for any nonprofit should come | | | | the organization had the foresight to establish a |
| from lots of different sources and no one source | | | | fundraising office many years ago while times were |
| makes up more than about 30% of the overall | | | | still good, there would be a solid source of funding |
| revenue. I'm talking about fundraising here, not | | | | from any number of possibilities like special events, |
| program fees or earned income. If more than half of | | | | foundation grants, direct mail, giving clubs, or other |
| your fundraising revenue comes from one grant or | | | | community support. Cutting programs wouldn't be an |
| event and that grant or event goes away, what | | | | issue right now. |
| then? Which program or service will get cut? Don't let | | | | Have a look at your sources of donations and decide |
| that happen! Make sure that you have several | | | | which ones are dangerously providing too much when |
| different sources or streams of donations. These | | | | compared to the whole. Work on beefing up other |
| diversified revenue streams will help you take the | | | | fundraising revenue streams to balance them all out |
| loss of a grant or donor in stride without too much | | | | so that you are better able to weather economic |
| trouble. | | | | storms. |
| Consider the example of "Happy Times Day Center | | | | |