Why Diversifying Funding Sources Is Key for Your Organization

Did you know that diversifying funding sources for your fundraising efforts can increase engagement and provide more opportunities to raise money for your organization?

Although repeating successful fundraisers can be beneficial, switching them up can help you achieve even more.

Why diversify fundraising?

Diversifying your revenue streams offers benefits for both your team and your supporters. In fact, some reasons you should consider having multiple fundraising ideas or sources include:

• Risk reduction – Having several fundraiser types in place provides you with an extra financial cushion should economic issues or unexpected expenses arise.
  
  
• Mass appeal – Providing multiple fundraising options can make appealing to a wider variety of people easier. Plus, consistent promotion keeps you top of mind.
  
  
• Adaptable fundraising – Audiences and preferences change over time, so your fundraising sources should change with them. For instance, as children grow, families may become busier. In this case, providing digital or mobile fundraising opportunities (in addition to other opportunities) becomes crucial, as families don’t have to take time out of their busy schedules to attend an event or go door-to-door to raise money.  

Ultimately, making the most of every fundraising opportunity can help you raise more money and keep your community more engaged.

How to diversify your fundraising streams 

Need ideas for creative revenue streams for your organization? Take a look at our top five recommendations below.

Have an "always-on" fundraiser in the background

"Always on" or passive fundraising requires little management, allows you to earn without much effort, and prevents fundraising fatigue. One popular strategy is gift card and online shopping fundraising with RaiseRight. Here’s how it works:

1. Enroll your organization or group in a RaiseRight fundraising program.
2. Add participants to your fundraiser.
3. Buy physical or eGift cards for hundreds of brands you know and love, or shop online through RaiseRight.
4. Earn money for your cause (up to 20%) with every purchase. Donations come straight from the brands, so your supporters don’t have to pay anything extra out of pocket.

RaiseRight is convenient and fits into everyone’s everyday lifestyle, making it easy to raise money 24/7, 365 days a year. 

Switch things up seasonally

Year-round fundraisers are ideal, but every season also presents a new opportunity for a unique fundraiser. Hosting themed events—like pumpkin painting or a Spring Fling dance—adds variety to your efforts. Again, this can help attract a larger audience, as different fundraisers appeal to different interests.

You can also try adding a virtual component to these fundraisers to reach those who cannot attend the event in person. 

Here are some suggestions for each season:

• Spring – Charity run, movie night, or golf tournament

• Summer – Outdoor concert, community yard sale, or car wash

• Fall – Harvest Festival, Trunk or Treat, or auction

• Winter – Penny drive, bake sale, or holiday dinner

You can host the same set of events every season or switch up your ideas from year to year. For instance, you can opt for a golf tournament one spring and a 5k walkathon the following year—the choice is yours!

Run an online giving campaign for low-effort donations

Direct giving is often a beneficial addition to events and fundraising sales. You can use an online donation or crowdfunding platform to create a page dedicated to your cause or group. Then, seek out individual or recurring donations by:

• Spreading the word about your digital giving opportunities on social media
  
  
• Dedicating a spot in your newsletter to discussing your goals and how your audience can help you secure funds with digital donations.

Seek sponsorships from local businesses or corporations

Another way to receive additional funding is through sponsorships. Here’s how it works: 

• Seek out companies willing to support your organization, group, or nonprofit.
  
  
• Pitch the idea to them, discussing their impact on your group. It may also be worth mentioning any potential tax benefits they can receive by sponsoring your organization.
  
  
• When they become your sponsor, they agree to provide monetary or in-kind (material) donations.

In exchange, you promote their business by recognizing them on:

• Social media
• Flyers
• Event materials
• Newsletters

Ultimately, it’s a win-win.

Research grant opportunities

Depending on your organization's type or cause, you may qualify for a grant from a government agency or another foundation. Organizations from schools to nonprofit and direct-benefit groups may be eligible! 

Assign one or more people on your team to research possible grant opportunities. Then, have volunteers dedicate time and energy to filling out each form and providing all requested documentation. If your cause is selected for a grant, you’ll have an extra funding source to add to your other strategies.

Add year-round funding to your strategy with RaiseRight

If you’re ready to diversify your fundraising streams, trust RaiseRight to help you get started. Our gift card and online shopping programs are the passive, always-on fundraiser you need for simple and convenient year-round earnings.

Slow season? School break? Winter blues? RaiseRight has you covered 24/7, 365, with minimal management and endless earning opportunities.