6 Insights to Inspire Diversifying Revenue Streams

6 Insights to Inspire Diversifying Revenue Streams  Most nonprofit organizations report increasing revenue is a top priority in 2025. With ever-changing economic conditions and looming federal funding freezes, now is the time to review your nonprofit’s plans for the year.   Consider new ideas, expand on your current streams, and get creative with your appeals. Data shows that organizations with diverse revenue streams are more resilient and better able to find sustainable growth in the face of economic changes.    1. We recently asked nonprofit professionals which revenue streams their organizations depend on to fund their mission and programs. The following are listed in order from most to least used.  1. Individual Donations  2. Grants  3. Corporate Donations  4. Events  5. Monthly Giving Programs   6. Direct Services   7. Giving Tuesday  8. Planned Giving  9. Membership Dues  10. Peer-to-Peer    Evaluate your organization’s mix and identify opportunities where you can diversify to achieve overall growth.    Did you know?  Over 30% of nonprofits' annual revenue comes in December, mainly over the last two days. Use end-of-year giving and the holiday giving spirit to boost your fundraising options and get creative with your year-end appeals!      2. Boost your bottom line by appealing to your donors with recurring giving. Not only do recurring giving donors have a higher retention rate, but they also trend higher in annual donation amounts than one-time donors.  Stat(s)  Recurring donors give 42% more per year than those who make a one-time gift  On average, recurring giving accounts for 10% of a nonprofit’s incoming, unrestricted revenue  Recurring donors average 2x the retention of one-time donors    3. Running a peer-to-peer campaign or adding social fundraising to your planned campaigns can significantly impact your revenue. Let your volunteers, staff, board, and other supporters appeal to their networks on your behalf!  Stat(s)  $17,964.50  average amount raised by peer-to-peer fundraising campaigns    Get Creative!  Expand your sponsorship opportunities. In addition to your traditional asks, consider including advertisement opportunities in newsletters or giving sponsors more opportunities to get involved and be associated with your mission.    4. Has your organization considered a donor-advised fund (DAF)?   Donor-advised funds (DAFs) are one of the fastest-growing categories of charitable contributions.  Connect with DAF managers, and make sure your organization's information is accurate in any portal they use to make distributions.   Stat(s)   Annual grants from DAFs have more than doubled since 2019, to $54.8 billion in 2023  DAF payout rate is steady, at about 24%    5. Diversify funds and double your potential fundraising revenue by seeking and securing matching gifts.   Stat(s)  $2.86 billion is donated through matching gift programs annually  An estimated $4–$7 billion in matching gift funds goes unclaimed per year  92% of companies surveyed offer at least one kind of gift-matching program     6.   To make up for U.S. government grant deficits in 2025, private foundations would have to increase their grantmaking by 282%.        Insight  The U.S. federal funding freeze is creating alarming uncertainty.  Now is the time for your organization to stay determined and refine a scalable, strategic fundraising plan. Shifting focus to private grants, donor and sponsor stewardship, legacy planning, and other revenue streams can set your mission up for success.             

Amidst rapidly shifting economic conditions and federal funding freezes, increasing revenue should be a key priority for nonprofits in 2025.  

By leveraging a variety of nonprofit revenue streams, organizations can not only meet immediate fiscal challenges but also position themselves for long-term financial growth.  

These insights and expertly curated data in this infographic offer a comprehensive look at the most-used funding streams, strategies you should consider, innovative funding approaches, and more to fuel your mission and programs.  

Nonprofits must adopt a strategic, multifaceted approach to revenue generation. By focusing on scalable fundraising plans, organizations can not only meet immediate fiscal challenges but also secure long-term financial stability.   

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