“Different roads sometimes lead to the same castle.” – George R.R. Martin
Are you diversified?
If you have been a client of mine, you will know that I often talk about the need for diversity in fund development. Organizations should not be totally reliant upon a few minimal streams of income especially special events.
Many organizations are facing changes in their funding streams and are recognizing the importance of a diverse funding base through a variety of sources of income.
A well balanced portfolio of donors is crucial to the safety and financial security of any nonprofit. And, your organization should have a variety of donors in each of the following areas: foundations, corporations, individuals and government support. The reason this is critical is because organizations that rely on singe sources of income put themselves, their programs, and the people they serve in jeopardy in the event that any funding source is eliminated. Another reason to have a diverse funding base is that most funders do not want to be the lone supporter of an entire program or organization.