How to construct a multi-source income stream for your organisation. Jo Scard, Fifty Acres
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1 A NEW FUNDING MODEL
2 How to construct a multi-source income stream for your organisation Jo Scard, Fifty Acres
3 Hands up?
4 Where is your organisation getting its income? 1. Government 2. Fundraising 3. Fee for service 4. Products 5. Crowd funding 6. Other? 7. Who has DGR status?
5 WHAT S HAPPENING NOW Revenue Streams Healthy revenue streams are vital for Not-For-Profits Competition There is increased competition for traditional revenue streams Change And, some traditional revenue streams are drying up
6 ESSENTIAL QUESTIONS What traditional revenue streams are still available? What nontraditional revenue streams should we consider? What can you be doing now to future proof your income stream?
7 DEVELOPING A REVENUE PLAN Decide Future Goals based on Current Resource Capacity Identify Your Income Strategy Select Revenue Sources & Develop Plan Evaluate & Efficacy Organise & Evaluate Build, Start or Borrow? Expertise Evaluate & Improve Organize goals, decide where you want to be, assess strengths and weaknesses, evaluate the opportunities and threats. Do I build on an existing revenue source? Do I need to start something new? If you expect adding that you ve had little experience, you may need to acquire specialist knowledge/ expertise. Regularly evaluate revenue development and review efforts that appear to be underperforming or not meeting expectations. Making a detailed assessment will ensure that the plans for development are clear, concise, and realistic. Can I borrow or use a revenue source from somewhere else? Could include gifts, marketing, giving programs, earned income or government. Evaluate your organization s results and aim for continued improvement.
8 IDENTIFY YOUR GOALS Resource Where are we Where do we want to be? How can we get there? Revenue Donors & Volunteers Expenses Earned income & social enterprise
9 TRADITIONAL REVENUE STREAMS: GOVERNMENT Scale Options Levels Government funding is the second biggest income source in the NFP sector, and is responsible for 34% of income Government funding is available primarily through grants, and payment for a service, such as employment services Funding is available at the federal, state and local level
10 TRADITIONAL REVENUE STREAMS: GOVERNMENT FUNDING However, for many Not-For- Profits government funding is no longer a major source of revenue. This is because Federal funding for NFPs is drying up and continued, long-term government funding is uncertain There are high levels of competition Some organisations choose not to accept or rely on government funding as it can restrict their ability to comment on key issues of concern
11 TRADITIONAL AND NON- TRADITIONAL REVENUE STREAMS: FUNDRAISING \ As a revenue-raising avenue, fundraising has traditional tools, such as: \ Flyers \ Door knocking \ Fundraising calls \ Street fundraising \ But also non-traditional tools, such as: \ campaigns \ Facebook \ Twitter \ YouTube
12 TRADITIONAL REVENUE STREAMS: PHILANTHROPIC FUNDING Philanthropic funding is another major source of revenue, both through foundations and high net-worth individuals, is another major traditional source of revenue for Not-For-Profits, however Again, competition is fierce. Many foundations require the organisation has deductible gift recipient (DGR) status.
13 TRADITIONAL AND NON- TRADITIONAL REVENUE STREAMS: CORPORATES Traditional relationships between Not-For-Profits and corporates is not what it once was Corporate giving programs, and in kind donations However, the relationship between NFPs and corporates is now evolving There is also cause related marketing And partnerships with NFPs
14 NON-TRADITIONAL REVENUE STREAMS: EARNED INCOME ACTIVITIES According to a recent Giving Australia study, 29% of NotFor-Profit organisations operate a commercial venture or social enterprise. The primary ways Not-For-Profits earn an income are either through: Fee for service work Or product sales
15 NON-TRADITIONAL REVENUE STREAMS: EARNED INCOME ACTIVITIES \ Fee for service for service work might include: \ Extending primary service to the general public for a fee for example the Community Café in Brisbane s Fortitude Valley, a soup kitchen which also serves as a café to the public \ Launching a separate service such as catering, or domestic cleaning or providing cultural awareness training to businesses.
16 NON- TRADITIONAL REVENUE STREAMS: EARNED INCOME ACTIVITIES Another method of earning an income is to sell products, either by: Selling products developed and branded by the NFP for example Save the Children neckties or Amnesty International T-Shirts. Or sourcing and reselling products like the Oxfam Shop.
17 NON-TRADITIONAL REVENUE STREAMS: CROWD-FUNDING \ Not-For-Profits are increasingly utilising crowd-funding as a tool for revenue raising. Last year, for example: \ The ASRC in Melbourne raised over $153,000 for their food justice truck \ Edgar s Mission raised over $162,000 for the Raising the Roof campaign \ While NFPs can utilise mainstream fundraising platforms, such as Pozible, IndieGoGo, an increasing number of NFP specific platforms have launched, including: \ chuffed.org \ startsomegood.com
18 OVERVIEW Traditional Government funding (federal, state and local level) Philanthropic Grants Foundations Payments for service High-net worth
19 Earned income OVERVIEW: Non traditional Fee for service, product sales Social enterprise Mainstream crowdfunding websites: Pozible, IndieGoGo NFP specific crowdfunding websites: Chuffed, Start Some Good
20 OVERVIEW: EVOLVING Fundraising Traditional: flyers, door-knocking, fundraising calls, street fundraising Non-traditional: , Facebook, Twitter, YouTube Corporates Traditional: corporate giving, in kind donations Non-traditional: cause related marketing, partnerships
21 REVENUE STREAMS: CHECKLIST! Decide future goals based on your current capacity Undertake a SWOT check-in - what are the warning bells? Identify your income strategy - build, start or borrow ideas? Select your potential revenue sources and develop a plan Evaluate your organization s results and aim for continued improvement
22 Thank you!
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