The Need for Nonprofits to Diversify Revenue Streams

In the 5 years, since I have founded SEM Link, there has always been the challenge of obtaining the resources that are needed to achieve our mission. As a non profit organization, although our goal isn't to make a profit, it costs money to run our programs and operate our organization. The constant task that is set before me as an executive director and for me to engage my board in assisting me with is ensuring that we have enough funds in the account and other resources for our needs as an organization. I must sadly admit, that unfortunately most times we don't have enough funds and other resources to achieve all of our programming goals or operations projects.

There are several reasons for this and it has nothing to do with the economy. The main reason that we don't have enough funds is due to apathy in the community. This apathy is based on several misconceptions of how nonprofits get their funding and what each individuals, community organization, corporation, professional society and small business owner can do to provide the resources necessary for non profits like ours to achieve all of our programming goals.

One of the ways that I have changed my approach to ensuring that we have enough resources to achieve our goals as a organization is to look at what we need beyond just funds. So the past two years, I have took the bigger picture approach to fundraising by developing a resource development year. Each year, when I set our annual budget, I determine what resources are needed to achieve the programming goals. In the revenue I look at the actual funds that are needed to achieve programs and operations and set the budget based on that, for that is my ideal situation. Then I look at the items in our budget that can be replaced by in kind service or good donation by an individual or business. Then I look at the number of volunteers needed for our programs. Then I set goals to obtain those resources for myself and SEM Link's board and we pound the pavement to get what we need.

However, I know that the most important resource that any non profit organization is financial contributions that individuals and corporations make to the organization. You see the reason that many people don't give including some non profit board members is that they assume that because you are a non profit organization you can get your fundings from grants. However, typically non profits organizations only get receive funding from about 25% of the grant proposals they submit annual. Why does this take place. Mainly because funders have limited resources and can't support every organization that submits a request for funding. Even if you have a great proposal or program, you can not receive proposal simply because your project didn't fit their funding proposals or your organization is less known that other organizations that may have submitted proposals.

So what does an non profit need to do in order to survive, we must develop and implement a diversified revenue stream. A diversified revenue stream means that your organization has multiple methods for obtaining funds for its organization. This include earned income strategies where nonprofits do things to earn revenue for themselves, this can be as complex as selling a good or service or signing up for programs such as goodsearch that allow non profits to earn money when its supporters do everyday things like search or shop online. The next part of a diversified revenue stream is ensuring 100% participation from your board in their required annual contribution to the organization. Whenever you apply for grant or seek corporate funding they want to know how is your board giving. The board given is an important aspect of this diversified stream in how can we ask others to give, if the one entity that is committed to the organization, the board of directors doesn't give to the organization.

The next components of the diversified revenue stream are a corporate giving, individual giving and annual giving fund. The corporate giving plan sets up an infrastructure for corporation to exhibit corporate social responsibility. It lets corporations understand the benefits of giving to your organization and how they will be recognize for their gift. It usually is a structure that has multiple levels so that corporations can give to either the level of their ability or to the level they want to be recognized in the community. The second part of this is an individual donor campaign, which encourages and provides an venue for individuals to make a financial contribution to your organization. SEM Link's individual donor campaign is "Donate Your Lunch Money" which stresses to individuals that even a small amount of money like your lunch money can make a difference in helping an organization achieve its mission. An annual donor campaign allows individual or corporations to make a pledge to make an annual contribution to an organization. It provide an organization security that ever year, they will receive a certain amount of funds from certain individuals or corporations.

So I say all of this to say, that we can no longer afford to be apathetic. Non profits don't achieve their mission with funds from grants alone. It is up to the community (individuals, corporations, small business owners and professional societies) to do their part in providing the resources to help non profit organizations. So I encourage you to help SEM Link "unveil potential through exposure" by donating your lunch money, become a corporate partner, volunteering or becoming an annual giver.

Creating a Partnership with Elected Officials to Promote Student Achievement and Career Exploration in Math and Science

As non profit organization, we are constantly looking for ways to obtain resources and support for our programs and services; for without resources we can't achieve our mission. People always see grants, volunteers and corporations, but have we explored the resources and connections that we can get form our elected officials.

I know that me personally,although I am the first person to vote in an election and sign a petition, I don't have much interaction with my elected officials on the local, state and federal level. However, as I am beginning efforts to make SEM Link a national organization, I am getting suggestions that I can't do that without building relationships with elected officials on the city, county, state and even federal level. What resources can these elected officials provide to our organization? The first thing that I can think about is name recognition, even if the elected official doesn't give you a dollar, it validates your organization's presence in the community having the endorsement and support of the elected official. The second resources is connections in the community, it takes a lot of money and influence to become an elected official, if he or she believes in your mission that politician can connect you to all the money, power and influence that helped them get elected to not only get the resources that are needed, but to get your name out in the community as well as build your brand. Finally, the new relationship with the staff of elected officials can get you access to discretionary funds, information about upcoming grants and in some cases a voice to affect policy in the area in which you serve.

As I think about what we can do to become a national organization, that is able to "unveil potential through exposure", I have to look at building relationships with the elected officials in the areas we serve.