Growing in financial confidence continues with a look this month at financial growth, the goal of every nonprofit. Does your organization have a successful program that produces positive results? Why not replicate that for growth? The important thing here is to maintain the quality when replicating. You can do so by allocating adequate staff, leadership, as well as board involvement, and making sure to track programmatic and financial performance to ensure its success.
How about creating a simple funding growth model that is aside from your programs and the money those bring in? This model could be used for general donations which could support your general operations. Some studies talk about diversification and how it’s good to have different streams of revenue in case certain types of donors become burnt out from giving to your cause. However, most of the large successful nonprofits focus on one type – keeping it simple and focusing your revenue sources around a specific type.
I found a really great article that states “When nonprofits and funding sources are not well matched, money doesn’t flow to the areas where it will do the greatest good.” So then why not a simple funding model, one that you know a specific group of funders will donate to when they see fit? As your organization pursues growth, find which sources are promising and focus your fundraising efforts around that source.
We plan for reaching our goal but it’s also important to be aware of the “fiscal cliff.” It’s really critical to track your spending and monitor your revenues coming in. If issues arise makes changes early on rather than waiting until it’s too late. It’s easier to take away unnecessary expenses early on instead of having to cut back valuable staff down the road in order to save money.