4 Ways to Build Sustainable Revenue for Your Nonprofit

Today’s nonprofit fundraising landscape can be characterized by one word: uncertainty. Due to rapidly changing government regulations and a strained economy, many charitable organizations like yours are facing funding challenges that leave them feeling defeated. How do you keep the lights on, fund your programs, and plan for the future during such times?

Building sustainable, diversified revenue streams will support your mission even during times of financial uncertainty, when donations are ebbing rather than flowing. Let’s dive into a few income streams your nonprofit can cultivate to generate sustainable funds for your mission, ensuring you can continue your work regardless of circumstances.

1. Build a Recurring Giving Program

One of the struggles nonprofits face with donations is their one-time nature. While donors who have given once to your organization are more likely to donate again than an individual who has never made a gift, there’s no guarantee that they will. And, there’s no telling when their next gift might come, meaning their timing might not align with your nonprofit’s needs.

Recurring giving programs remove the uncertainty around donation income. Monthly or quarterly gifts provide steady, predictable revenue, allowing you to plan ahead and fund programs with more confidence.

When implementing a recurring giving program, prioritize making the enrollment process as easy as possible for donors. Embed your recurring donation option directly into your online donation form and set suggested giving levels. You should also provide an option for donors to set a custom monthly gift amount. That way, they can make donations that fit their circumstances. 

For best results, each giving level should have an accompanying impact statement. For instance, let’s say that you run an animal shelter nonprofit. Your recurring gift levels and respective impact statements might look something like this:

• • $10/month – Provide a bag of treats for a shelter animal.
  • $25/month – Cover a week’s worth of food and treats for a shelter animal.
  • $50/month – Fund a veterinary exam for one new animal.
  • $100/month – Support the cost of spay/neuter surgery and microchipping for one adopted pet.

Make sure that your donation tools automatically issue donation tax receipts for each gift and an annual gift receipt for donors who make gifts throughout the year. Don’t forget to properly steward your recurring donors to keep your connection strong and inspire them to get involved with your nonprofit in other ways, such as volunteering or attending events.

By positioning recurring donors as fulfilling a meaningful, appreciated role within your community, you make it easier for supporters to commit, building long-term support that your organization can depend on.

2. Offer Mission-Aligned Product Sales

Some individuals are more likely to support a charitable cause if they receive something in return, and others are proud to show their support for a nonprofit mission. Branded products perfectly meet these needs.

It’s simple: partner with a provider that offers branded nonprofit products, design your items, and then sell them in-person, through an online store, or both! Popular branded products generally fall into these categories:

• • Apparel: T-shirts, hoodies, tank tops, sweaters, athletic wear

• • Accessories: Hats, beanies, tote bags, drawstring bags, keychains

• • Drinkware: Ceramic mugs, water bottles, tumblers, travel mugs

• • Stationery: Notebooks, sticky notes, calendars, greeting card sets

• • Home goods: Dish towels, fridge magnets, picture frames

• • Tech accessories: Mouse pads, phone wallets, USB drives

Most nonprofits start small by choosing one or two types of items to sell. Then, as they get a better sense of what their community wants, they’ll branch out to a larger product pool. Be sure to set an affordable pricing strategy as well to entice community members to make a purchase.

This idea is particularly valuable for nonprofit universities, museums, and cultural organizations. Just think back to the last time you browsed the gift store at an aquarium or your alma mater’s online merch shop. However, it can be applied to all types of nonprofits—all you need are creative designs that your supporters are excited to purchase!

The best part about this sustainable revenue stream is that the products your community members purchase increase your organization’s brand visibility, build community, and spark new conversations. You’re not just getting funds for your mission, you’re also spreading awareness for your cause, effectively hitting two birds with one stone!

3. Create a Thriving Nonprofit Thrift Store

Nonprofit thrift stores are an increasingly popular revenue stream for charitable organizations that want to generate sustainable revenue by selling secondhand products. Best of all, as a registered nonprofit, your organization can source inventory through in-kind donations.

Not convinced? Here are a few nonprofits that are successfully running thrift stores:

• • Goodwill: This nonprofit’s mission is to “enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential.” To do that, it runs thousands of thrift stores in the United States and Canada, providing employment opportunities for beneficiaries and generating revenue for its cause.

• • AIDS Healthcare Foundation: This nonprofit provides high-quality HIV care and services to those in need. One way it acquires funding is through its Out of the Closet program, which runs thrift stores offering curated secondhand finds. At these thrift stores, 96 cents of every dollar goes to HIV and AIDS services provided by the foundation.

• • Tuscaloosa Public Library (TPL): The TPL runs the Friends of the Library used bookstore, which offers a diverse selection of secondhand books, including children’s books, magazines, CDs, DVDs, records, and more. This store contributes an average of $90,000 annually to the library, greatly enhancing the TPL’s offerings.

From just these examples, it’s clear that nonprofit thrift stores can generate tons of revenue for charitable causes. You just need to stock your store with products that interest your community. Aside from in-kind donations, ThriftCart recommends sourcing inventory from:

• • Consignment
  • Flea markets
  • Yard and garage sales
  • Estate sales
  • Auctions
  • Wholesalers
  • Abandoned storage units
  • Business liquidation
  • Dead stock
  • Other thrift stores

Before launching your thrift store, ensure you have enough support for its operations. You may need to recruit loyal volunteers to help staff the store, sort items, and assist customers. You may also want to purchase thrift store software, like a point of sale (POS) system, that keeps your store organized and helps you track what’s selling.

4. Promote Workplace Giving Opportunities

Workplace giving opportunities are charitable giving programs run by companies for their employees. These programs can unlock major funding, potentially doubling the gifts you receive, as long as you follow best practices.

The most popular types of workplace giving programs include:

• • Matching gifts: In these programs, the employer will match the employee’s charitable donation, usually at a set ratio and up to a certain amount. For example, a business might match employee gifts at a 1:1 ratio, with a maximum match of $100 per year. Matching gifts allow donors to essentially double the impact of their gifts without requiring them to give more.

• • Volunteer grants: Also known as Dollars for Doers, these programs award monetary “grants” to a nonprofit based on the hours an employee volunteers with that organization. Volunteer grant rules and guidelines can be extremely flexible and vary greatly from one business to another. For instance, one business might grant $100 to nonprofits that employees volunteer at for over 25 hours annually. Another might donate $10 per 10 hours an employee volunteers at an organization.

The main barrier to nonprofits claiming these funds is donor awareness. Many individuals aren’t aware of their employers’ workplace giving programs, which leads to lost funds. That’s why the key to securing these funds is marketing and promoting these opportunities extensively.

For matching gifts, include reminders on your donation page, in donation receipt emails, and in everyday messages. Integrate matching gift tools or directories into your donation form so donors can easily check whether their company offers these workplace giving programs.

For volunteer grant opportunities, start by discussing them with your volunteers. Get a good idea of which companies in your area offer volunteer grants and the requirements for obtaining them. For instance, many companies donate these grants when employees reach a certain number of hours volunteered. In that case, you can implement tools that make volunteer time tracking easier. You might also add an employer field directly to your volunteer signup forms.

Finally, connect with local businesses with corporate social responsibility (CSR) programs to discuss partnerships and ensure that your nonprofit is on their list of eligible organizations for matching gifts and volunteer grants. Emphasize the impact these companies can make and address how a partnership will reflect positively on them and boost their reputation to maximize your chances of securing their collaboration.

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There isn’t a one-size-fits-all approach to sustainable revenue. Each nonprofit has different circumstances and needs, making it difficult to establish a single approach that fits all organizations. The most successful nonprofits blend multiple sustainable revenue strategies together, tailoring them to their organizational strengths and community preferences.

Ultimately, your goal is to build financial resilience while staying true to your values. Start with the new revenue stream that feels most doable. Then, measure your results and scale up your efforts. Over time, you’ll create a steady financial foundation that powers your mission far into the future, regardless of what the fundraising landscape looks like.