Nonprofit organizations are often synonymous with tight budgets, relentless fundraising efforts, and staff motivated by purpose over paychecks, but diversifying funding could open up alternatives.

When you look at the statistics, the reputation is confirmed. Recent reports confirm that over 75% of organizations struggle with funding. As a result of this financial insecurity, more than 12% of new organizations don’t make it past their fifth year, and about 30% don’t make it past 10 years. Sadly, with every organization that closes its doors, a community or cause loses a champion, and the impact they would have made is lost.

Yet, what if purpose-driven organizations could operate beyond the cash-strapped model we have all come to know? What if I told you that nonprofit organizations can diversify funding to transform their financial landscape from barely operating in the black and surviving to creating a bigger impact and thriving?

At Kids on the Move (KOTM) we have not only beat the odds, as we have been serving families and children with disability and delays for 40 years, but we are in the slim 3% of nonprofits with a multi-million dollar budget. As a result, we have expanded programs, retained top talent, and recently launched a capital campaign, Hope In Motion, that will allow us to expand our campus and programs. The key to our longevity and financial success has been diversifying funding.

When you diversify funding, just like a for-profit organization, you strengthen the nonprofit to withstand the tests of time and ensure long-term success. Let’s dive into the top three revenue streams nonprofits can use to diversify and stabilize their budget.

Explore Grants to Diversify Funding

Whether awarded by local or federal government, grants are often underutilized resources that can empower nonprofits and bolster their budgets. When you consider that 92% of nonprofits operate with less than $1 million a year, and 88% spend less than $500,000 annually, it’s not hard to imagine the impact that a cash infusion from a sizeable grant could make on an organization and ultimately on the people or cause it serves.

Read the full article about diversifying funding by Rachelle Rutherford at Forbes.