WHY CONSIDER INDEPENDENT INCOME GENERATION?
Relying solely on grants and donations can limit a non-profit’s flexibility and sustainability. Earned income offers several unique advantages:
Autonomy: Unlike grants and donations, earned income doesn’t come with specific conditions, allowing your organization to allocate resources where they’re most needed and respond quickly to changing circumstances.
Avoiding Mission Drift: Independent income generation allows your organization to focus on what truly needs to be done, rather than altering your core activities to align with donor priorities or funding trends.
Financial Resilience: A diversified funding portfolio makes your non-profit less vulnerable to budget cuts, donor shifts, and political changes.
Before pursuing this funding approach, key questions must be addressed, such as:
- What income-generating activity can best provide the support your nonprofit needs to sustain its core work?
- Can it be implemented without compromising your values or diverting resources from core activities?