Funding the Future | Part 1: The Case for Diversification
If your non-profit lost its biggest funder today, how long would you survive? Too many non-profits rely on a single major donor, a handful of grants, or one corporate partner—and it’s a ticking time bomb. The funding landscape is shifting, with cuts, freezes, and changing donor priorities. Without a diversified income strategy, non-profits risk financial collapse.
Why Diversification Matters
More stability – When one income stream slows, others keep you afloat.
Increased independence – You’re not at the mercy of a single funder’s shifting priorities (better if some of this can be unrestricted).
Greater impact – Sustainable income allows you to plan long-term and scale your mission.
The Cost of Not Diversifying is too high, and many organisations, despite their size, have either closed, restructured, merged or shut down vital programming. The USAID and FCDO cuts are just an acceleration of what has been happening for years. Funding has been getting harder to come by. But it is not impossible.
How to Get Started
Assess your funding mix – What percentage of your income comes from each source? This can be a simple exercise that costs nothing, and honesty is the best policy.
Identify gaps – Are you too dependent on one grant, one donor, or one campaign? You should also consider how much time you have to invest in other income sources (do not leave it too late as you will need a minimum of a year to see results). Never conduct a scattergun approach and ensure that there is return on investment. Be very targeted to where funds can come from for your organisation. Not all income is good, and some may actually lose you money.
Explore new opportunities—In this 10-part series, we’ll explore high-net-worth giving, corporate partnerships, social enterprises, digital fundraising, and more.
What’s your biggest challenge when it comes to funding diversification? Drop your thoughts in the comments—let’s make this an interactive journey!
New Global Markets (NGM) Consulting
Stay tuned for Part 2: Unlocking High-Net-Worth Giving & Major Donors.