Before you can expand your nonprofit revenue streams, it’s important to understand where your funding stands today. Many organizations assume they’re diversified simply because they have a few different sources, but true diversification means no single stream dominates your budget or puts your mission at risk.
Start with a basic breakdown:
- What percentage of your total revenue comes from each source?
- How reliable is each stream year to year?
- Which sources are restricted vs. unrestricted?
Next, assess risk and alignment:
- Are you overly reliant on one funder, grant, or donor?
- Are your income sources aligned with your mission and values?
- Do any streams create cash flow gaps or seasonal shortfalls?
This analysis can reveal both vulnerabilities and opportunities. For instance, you might find that while grant funding covers most of your programs, it leaves little room for innovation or admin costs. Or you might discover underutilized assets that could support earned income.
Use these insights to clarify where you need to strengthen, stabilize, or rebalance.