11 Top Nonprofit Funding Sources in 2022


11 Top Nonprofit Funding Sources in 2022

Funding is very important for every nonprofit irrespective of their size. With every passing year, they look for new ways of revenue streams to support their mission and goals.

It’s quite common among nonprofits these days to look for funds from multiple sources to achieve financial stability and sustainability. Also, It helps nonprofits stay flexible and adapt to uncertain times like covid-19.

In this post we cover the most popular along with some new funding sources for nonprofits.

  1. Individual Donors
    For most nonprofits, nearly 80% of their fundings comes from individual donors. Hence, it is valid to say that nonprofits cannot ignore individual donors and should be considered as a "vital part" of their overall funding strategy. They can make one-time or recurring donations.

  2. Corporate Sponsorships
    It’s a kind of support that nonprofits receive from corporations to support their mission or specific event in exchange for brand exposure. The support can be in the form of donating money, goods or services, media sponsorships, employee giving etc.

  3. Government Grants
    Many nonprofit organisations get funds in the form of grants from all the levels of government if their cause is genuine. However, applying for grants can be time consuming and stressful, if it gets rejected. There are strict eligibility criteria, application rules with a lot of competition to get grants.

  4. Membership Fees
    One of the reliable and recurring revenue sources for a nonprofit is to collect membership fees from organisations or individuals. In return, registered members would receive free raffle tickets, early bird event registration, discounts on products / services or event tickets, exclusive members-only newsletters etc.

  5. Service Fees or Product Sales
    Most of the time we think only about donation as a source of revenue when it comes to nonprofits. However, the fact is that a good part of the overall income comes for nonprofit organisations from the fees of services or from the sale of products.

  6. Crowdfunding
    Crowdfunding
    is a great way to collect small donations for a large number of people online. As per P2PMarket Data, the UK is the 3rd largest crowdfunding market in the world. Some of the top UK crowdfunding sites are JustGiving, Kickstarter, Crowdcube, Crowdfunder, Indiegogo etc. These crowdfunding platforms can be used by nonprofits and even individuals to raise funds while acting on behalf of an organisation they feel passionate about. It’s a best way and economical way to reach out contributors and get your message out far and wide.

  7. Newsletter Advertisements
    Most nonprofits send out a monthly newsletter to engage with donors, members, volunteers and staff members. This could be a great way to earn some additional revenue by selling advertising space.

  8. Cause Marketing
    Cause Marketing is a mutually beneficial partnership between a nonprofit and a business. A classic example is where a service or product based business promises to donate a percentage of every sale to a nonprofit. Additionally, it helps nonprofits to reach new audiences with an opportunity to attract new supporters. In return, businesses can increase their sales, improve brand loyalty and build brand awareness and advocates.

  9. Income from Investments
    Investment income is money that is received from investment assets such as stocks, bonds, mutual funds etc. Many nonprofits do invest some portion of their funds into stocks, bonds and other assets to improve their financial status. It can truly be beneficial if used and managed properly. However, it can turn risky with chances of incurring loss too.

  10. Offline Methods
    Direct mail, door to door fundraising and phone calls are the great offline methods to raise funds to add a personal touch. This traditional way of fundraising is a bit costly and time consuming but quite effective too. However, it’s not possible to make use of it during the coronavirus pandemic.

  11. Events
    Another way nonprofit can use to raise funds is via events. Whether it is online or offline events, they can sell tickets to attend those events with an opportunity to upsell their membership plan / product / service. It’s the best way to highlight the work you do and introduce your upcoming projects to existing supporters.


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Happy funding!


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