5 Revenue Streams Nonprofits & Small Businesses Should Consider
April 2025 / Amanda Stonerock
For nonprofits and small businesses, financial sustainability is key to long-term success. Relying on a single revenue source can be risky, which is why diversifying income streams is essential. Here are five revenue streams to consider:
1. Grants & Government Funding
Many nonprofits rely on grants from foundations, corporations, or government agencies. While competitive, these funds can provide significant support if aligned with your mission. Small businesses may also explore government contracts or grants targeted at specific industries.
2. Individual Donations & Memberships
For nonprofits, individual donors and membership programs can create a steady flow of income. Building relationships with donors through recurring giving programs or exclusive memberships ensures long-term support.
3. Earned Income & Fee-for-Service
Many organizations generate revenue by offering products or services. This could be anything from selling educational materials to providing consulting services. Nonprofits can explore social enterprise models, while small businesses can create subscription-based services or specialized offerings.
4. Corporate Sponsorships & Partnerships
Businesses and nonprofits can leverage corporate sponsorships for events, programs, or initiatives. These partnerships can bring in funding while also providing companies with opportunities for community engagement and brand visibility.
5. Fundraising Events & Crowdfunding
Hosting fundraising events—whether in person or virtual—can bring in both funding and awareness. Additionally, platforms like GoFundMe, Kickstarter, or Patreon allow organizations to reach a broader audience and secure support through online campaigns.
Building a Diverse Funding Model
The most successful organizations mix multiple revenue streams to create financial stability. A well-rounded funding model not only reduces dependency on a single income source but also provides flexibility to adapt to economic shifts and donor behaviors. Here’s how nonprofits and small businesses can achieve this:
- Balance Short-Term and Long-Term Funding: While grants and fundraising campaigns might provide immediate financial relief, earned income and corporate partnerships offer more predictable, long-term sustainability. Combining both ensures that your organization remains financially healthy year after year.
- Develop Multiple Donor and Customer Relationships: Relying too heavily on one large donor or one major client can be risky. Instead, focus on expanding your network by nurturing relationships with a variety of individual donors, corporate sponsors, and paying customers to create a more resilient income base.
- Leverage Existing Resources: Many organizations overlook revenue opportunities within their current operations. Whether it’s monetizing expertise through workshops, selling branded merchandise, or expanding service offerings, finding creative ways to generate income from what you already do can strengthen financial stability.
- Stay Flexible & Adapt to Trends: Funding landscapes are always evolving. Emerging trends like social impact investing, donor-advised funds, and digital fundraising platforms are transforming how organizations secure financial support. Staying informed and open to new opportunities will help you maintain a strong, adaptable funding model.
A diverse funding model is not built overnight, but with a strategic approach, organizations can strengthen their financial resilience and continue making an impact.