How can board members help diversify your nonprofit's revenue streams?

Most Board members know very little about how nonprofits are funded and less about fundraising. Step one really is educating your Board about how your organization is funded, and what are other potential sources of revenue - raised and possibly earned. Once they understand the landscape of nonprofit funding, your Board members can be more helpful in assessing your particular situation. The size of your organization also is a key variable in shaping how much involvement your Board will have in fundraising. If your organization has few staff, the Board may need to be more involved. If you have professional fundraising staff, the Board's involvement will be more strategic and less tactical - until it's time to cultivate major donors.

Empowering board members to diversify revenue begins with education on the financial landscape and potential revenue streams. Encourage them to leverage their networks and skills to explore new funding avenues like grants, sponsorships, or partnerships. Foster a culture of innovation and openness, where board members can propose and collaborate on fresh fundraising initiatives. Regular discussions on financial strategies and reviewing progress towards revenue diversification goals can keep the board aligned and proactive in securing varied income sources for the non-profit.

I believe board members should start by analyzing the organization's current revenue streams using tools such as Revenue Radar, which maps out all existing funding sources and evaluates their reliability, growth potential, and alignment with the organization's mission. > identify emerging trends and potential new funding avenues using techniques such as PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental) which could include identifying untapped corporate partnerships or exploring innovative financing mechanisms like social impact bonds > a structured "Give or Get" policy that requires board members to personally contribute or assist with securing a certain amount of donations each year can be effective

Board members can help diversify your nonprofit's revenue streams by first assessing the current funding landscape. They can leverage their networks to identify new donors, grants, and partnerships. Encourage innovation by exploring earned income opportunities, events, or online campaigns. Provide strategic guidance to develop a comprehensive fundraising plan. Regularly review revenue streams for sustainability and adjust strategies as needed to ensure a diverse and robust funding base.

1. Board members should regularly review the nonprofit’s financial statements and revenue sources to understand its current financial health and dependence on specific funding streams. This assessment helps identify vulnerabilities, such as over-reliance on a single funding source, and areas where diversification is needed. eg. A nonprofit relying heavily on government grants might be vulnerable to policy changes. Board members can recommend diversifying into individual donations or corporate partnerships to reduce this risk. 2. Analyze Existing Donor and Funding Patterns. If the analysis shows a strong base of small donors but a lack of major gifts, the board might suggest cultivating relationships with high-net-worth individuals.

With the great wealth transfer approaching, a tremendous number of stocks and funds are about to exchange hands. Enabling stock donations and bequests can go a long way in opening up your non-profit to provide a final opportunity to do good to our aging population.

Engaging with the community your nonprofit serves can reveal unmet needs or potential areas for service expansion. Lead to developing new programs that attract funding from sources aligned with these specific needs Conduct a thorough market analysis to understand the landscape of your nonprofit sector. Identify what other similar organizations are doing, understanding the needs of your target population, and assessing where there are gaps in services that your organization could fill Look into innovative fundraising methods. This could include digital campaigns, crowdfunding, or leveraging social media platforms to reach new donor demographics. Storytelling and showing the impact of your work can be powerful tools in these campaigns

The best way to organize Board involvement in diversifying your revenue streams is by training them in what it means to engage potential funders in your organization's work. Too often, fundraising is thought of as being about asking for money. And it's rare that Board members want to ask for money - even from a foundation that's set up specifically to give out money. Instead, teach your Board members that fundraising is a vehicle through which people who care about your mission can become involved in the solution to whatever problem or issue your organization addresses. Few people have the time or energy to devote to working full time or as a volunteering to solve real problems. Most people can make a difference by giving money.

1. Board members can brainstorm and evaluate new revenue streams that align with the nonprofit’s mission. This could include developing fee-for-service programs, launching social enterprises, or expanding into new fundraising campaigns like crowdfunding. e.g., A nonprofit focused on education might consider offering paid training programs or certification courses to generate revenue while advancing its mission. 2. Before fully committing to a new revenue stream, board members can advocate for piloting new initiatives on a smaller scale. This allows the organization to test the viability of new ideas without overcommitting resources.

Once Board members realize that "fundraising" is really about expanding the community of people who are doing something about the cause your organization addresses, they usually find it easier to talk about your organization to their friends, neighbors, work colleagues, and school alumni. They get to talk about something that is deeply meaningful to them, and about the solution and impact your organization has had, and how much more it can have when more people join the community of supporters. They can say, "I'm lucky enough to have the the time to be a Board member, in addition to making a financial contribution. I invite you to join us, learn more about our work, and see how your contribution can make a difference."

Many board members have vast networks of potential donors and service providers. Yet, they often have limited time to research them and craft a compelling message. Tools like LinkedIn's Sales Navigator let you easily slice and dice your board members' networks and find potential donors, sponsors, and service providers. Afterward, you can give your board members a template to contact the respective connections, thus opening the door for you.

1. Board members can leverage their professional networks to open doors to new corporate partnerships, sponsorships, or philanthropic contributions. These connections can provide access to new funding sources that the nonprofit might not otherwise reach. 2. Facilitate Introductions to High-Value Donors - A board member might host a private event where potential donors can learn more about the nonprofit’s impact directly from its leadership, creating a more personal connection. These are some interventions to look into

This is a very important role for boards and often overlooked, because they may not have the tool or knowledge on how to be an effective advocate.

Speaking about your organization's mission is something your Board members can do in their private lives - at parties or at other organization's benefits. Many wealthy people support each other's organizations - a "quid pro quo" that is often expected. If you want your Board members to speak to elected officials or the media, please take the time to train them in how to be most effective. They will need to have talking points aligned with your organization's public positions, and they may need a little more exposure to your work to become comfortable talking about the impact of your work and your methods.

Board members play a pivotal role in advocating for your nonprofit, serving as ambassadors who can amplify your mission and broaden your reach. Their unique networks and influence can unlock new funding opportunities and foster strategic partnerships, essential for diversifying revenue streams. By actively engaging with stakeholders and policymakers, board members can not only raise awareness but also drive systemic change, ensuring your organization remains resilient and impactful in an ever-evolving landscape. Lead with purpose and vision, and empower your board to harness their collective strengths for transformative growth.

Board members can significantly aid in diversifying your nonprofit's revenue streams by leveraging their networks to identify potential donors, sponsors, and grant opportunities. They can advocate for and facilitate partnerships with businesses and community organizations. Additionally, they can contribute expertise in exploring new fundraising avenues, such as social enterprise initiatives. Monitoring and evaluating progress involves regularly reviewing financial reports, setting and tracking revenue goals, and adjusting strategies based on outcomes.

Every well-run organization ought to have an annual plan that lays out program goals aligned with the annual budget. It's part of the Board's fiduciary responsibility to review, question, and approve the annual budget. By also reviewing the annual plan, your Board will be well educated about your work and well equipped to talk about your organization to potential funders. And they will be partners with you in being accountable to the public for your work and outcomes. Nonprofits don't pay taxes because they work for the public good so they are ultimately accountable to the public. Boards act on behalf of the public. Having measurable goals allows both staff and Board to see your organization's impact and talk about it to multiple audiences.

When Board members understand that a well-trained staff is more productive, they will start to support Learning & Development budget items. Perhaps their company would sponsor a specific training for your team - it's a concrete fundraising goal that could come out of the company's HR or Marketing budget, instead of its philanthropic budget. Be creative in brainstorming with Board members about in-kind recognition to provide your staff and volunteers - perhaps a Board-sponsored pizza party (with gluten and dairy free alternatives), or even a special Board-funded bonus pool at year-end.

Remember that Board members are going to have comparatively little time to spend on your organization. At most they will spend 20% of their time on your group and 80% on their own jobs or companies. Usually you'll get 10% of their time. So manage your expectations accordingly. The CEO and Development staff will have to do the lion's work of fundraising. But Board members are valuable - no, essential - members of the fundraising team. In particular, their involvement is critical to cultivating major donors. Because many Board members are major donors themselves. So they can say "join me in making a significant gift to have a significant impact on this cause we both care about" and have it resonate in a way that a staff person can't.

I'd include: Uphold board accountability practices. First, the board should assess its performance to determine if it has the people, capacity, and expertise to best "assess [the] organization" and "explore new opportunities." Then, it should put in place an actionable plan to address findings--likely including its own diversification. Boards that take part in regular, member-driven, self-reflection are more aware of how their performance impacts an organization's outcomes. The ability to set goals for and monitor themselves allows boards to more intentionally and effectively carry out their responsibilities--including ensuring resources... As it's said, "You can't improve what you don't measure.”

When adding a new board member to diversify revenue, it's crucial to assess not just what they can bring, but why they’re joining and how they'll fit into the existing dynamic. The key purpose of bringing someone on should be clearly defined—not just to generate revenue, but to meet specific organizational needs. Ask yourself: What role will they play, and is that role something they genuinely want to perform? Without this reflection, you risk redundancy and missed opportunities. Align new members with the board’s goals to ensure meaningful contributions and overall cohesion.