Nonprofits Need to Diversify Their Funding Sources: 3 Key Points

Alan Deckman, President
TCORS Capitol Group, LLC. (TCG)

To ensure durability amid times of potential volatility, nonprofits have an imperative to diversify the sources of their revenue stream. From individual and corporate giving, to non-cash means, like donor-advised funds (DAFS), stocks, and cryptocurrency, a tapestried array of potential sources for financial support can reinforce a nonprofit’s ability to endure and grow.

With more than 30 years of experience in lobbying, government relations, and association management, as the president and principal owner of TCORS Capitol Group, LLC. (TCG), I’ve had the privilege to work closely with nonprofits, helping to identify their strengths and needs. As the founder and president of the CT Blockchain Association, I continue to hone my expertise in blockchain, and to observe how rapidly developing technology intersects with both the for- and nonprofit spheres. Now, more than ever before, there are an increasing number of diverse financial resources that can benefit and bolster nonprofits, expanding their reach, and supporting their ability to thrive.

Assessing Current Strategies

 In order to identify opportunities for growth, nonprofits should conduct a full review of their current budget and income sources. In a recent article on “How Nonprofits Can Diversify Their Financial Resources,” a panel of nonprofit leaders and experts at Forbes suggest several concrete steps for evaluation, including taking a big-picture view of financial resources, identifying fixed organizational costs, building an earned revenue model, and adopting a zero-based budget approach. For example, Patrick Riccards of the Driving Force Institute advises “It can be scary, but zero-based budgeting is essential. We all need to be good stewards of the finances we receive. That means ensuring that every dollar spent and hour worked is directed toward our mission and having an impact. Just because we funded something doesn’t mean we continue to do so in perpetuity. Zero-based budgeting demands we take a close look at programs and separate the needs from the wants.” (Forbes) The Forbes article outlines critical ways to look at where funding is coming from and how to sustain its flow.

Nonprofits should also evaluate current strategies for donor outreach, thinking creatively about how to reshape and reinforce these vital relationships and how to build new ones. As one possibility, The Association of Fundraising Professionals (AFP) offers a structured approach to monthly giving programs, suggesting that naming the program, creating a welcome email series focused on donor impact, and showing ongoing impact with regular updates, encourages the recurring donors to continue to give. AFP also suggests “selling products or services that align with your mission is another smart way to diversify your income and deepen your connection with supporters. From launching a small merch line to renting out space on your premises, earned income can serve as a valuable supplement to recurring and one-time donations.” (AFP Global) Reinvigorating relationships with individual and corporate donors can be a helpful step toward attracting new contributors.

As another tool, nonprofit investment advisor site Infinite Giving offers a helpful quiz to determine “How Diverse Are Your Revenue Streams?” available here.

Finding Focus Amid Expansion

 The Charity CFO cites “eight nonprofit funding sources to consider: individual donations, grants, earned income [in the form of selling goods, offering services, or licensing intellectual property], corporate sponsorships, membership fees, special events, endowments, and investment income.” Infinite Giving adds “peer-to-peer fundraising, matching and planned gifts, and service and product fees” to this list.

Yet, with all of these possibilities, nonprofits often also benefit from focusing their attention on a carefully curated list of key funding sources. In Forbes, Matthew Gayer of Spur Local states “Everyone is talking about, or thinking about, revenue diversification right now—or they should be. Our best tip on beginning work toward that goal is to start simple and focused. Pick one new revenue source to target, or leverage an existing strength. Too often, organizations try to grow two to three sources at once, limiting their ability to grow any one source deeply. Set realistic goals with a targeted focus.”

Though diversifying income streams can be vital for nonprofits, paradoxically, Kevin L. Brown of Mighty Ally asserts the importance of streamlining revenue sources to promote growth, basing his philosophy on a 2007 in-depth study by the Bridgespan Group, published by the Stanford Social Innovation Review. The Bridgespan Group explains that it focused on studying how nonprofits “get really big,” with the caveat that “getting big is not the right choice for every nonprofit, of course. Securing large-scale funding generally involves some programmatic trade-offs. And large sources of funding appear to be more readily available for – and appropriate to – some missions than others.” Brown extrapolates: “To be clear, we’re not talking about relying on a single donor. That’s too risky. Instead, we’re saying you must engage and grow a single type of donor, of which many in that category are funding you…You must pick three audiences. Max. Because yes, you can customize your messaging a bit depending on the medium. But you ultimately have one brand.” (Mighty Ally) Focusing on building and strengthening select key sources can help nonprofits to flourish.

A Role for Digital Assets (and Other Non-Cash Revenue Streams)

 In a previous Partners Perspective, How Blockchain is a Boon to the Future of Nonprofits, I highlighted how “blockchain technology is poised to profoundly reshape the professional for-and non-profit spheres, from day-to-day transactions, to relationships, to essential structures and functions.” Thinking more expansively about possible revenue sources includes embracing this emerging technology, which supports transparency, eliminates third party transactions, and looks toward the future of philanthropy. Infinite Giving suggests that “the deregulated nature of cryptocurrency comes with risks but also potential rewards” and that “once a gift is received, the best donation platforms will automatically cash out the cryptocurrency for its cash value. After a cryptocurrency has been converted into cash, your donation platform should automatically transfer the funds to your nonprofit’s bank account.” Other non-cash revenue streams that might also expand the scope of possible donations include stocks (“Just like individual traders, nonprofits can also receive and sell stocks.”), DAFs (“Donor-advised funds…Essentially, DAFs are charitable giving accounts created for individual donors or organizations. The donor contributes to the fund and acts as an advisor for how and when the funds should be spent, but it’s ultimately managed by the sponsoring organization.”), and endowments (“Endowments are investment accounts that provide long-term revenue by generating investment income. Some nonprofits may assume they’re too small to start an endowment, but in reality, nonprofits of any size can launch one if they have the right strategy.”). By opening up the possibility of these alternative non-cash revenue sources, nonprofits unlock more opportunities to prosper.

Further Reading and Resources

Expert Panel, “How Nonprofit Organizations Can Diversify Their Financial Resources,” Forbes, 18 August 2025
Houghton, Karen, “14 Revenue Streams for Nonprofits & How to Diversify Yours,” Infinite Giving, 2 December 2025
Stockert, Britt (Fundraiser Coach) and Lynch, Jena (Education and Community Engagement Manager at Donorbox) “Many Ways to Give: The Importance of Diversified Nonprofit Funding,”
Association of Fundraising Professionals (AFP), 18 August 2025“8 Nonprofit Revenue Streams to Strengthen Your Mission,” The Charity CFO
Foster, William and Fine, Gail, Bridgespan Group, “How Nonprofits Get Really Big,” Stanford Social Innovation Review, Spring 2007
Brown, Kevin L., “Diversified Funding is a Nonprofit Nemesis,” Mighty Ally

Alan Deckman is the President and Principal Owner of TCORS Capitol Group, LLC. (TCG), a full-service government relations and association management firm that has provided the highest quality of expertise and knowledge in the areas of lobbying and association management for more than 30 years. TCG is a proud TANGO partner. Mr. Deckman is also the Founder and President of the Connecticut Blockchain Association, whose mission it is to develop, promote, and advance blockchain technology and to establish Connecticut as a leader for blockchain innovation. The Connecticut Blockchain Association strives to create a unifying advocacy voice for the Blockchain industry in the state of Connecticut.