Show Me the Money

HayDay Services is bringing you a series of “how-to” articles related to sustaining your organization, because writing more grants can’t be the only answer. 

Part 2: Money

In part 1 of this series, Kimberly helped define sustainability and listed five ways to diversify your fundraising and strengthen long-term sustainability. If you missed that post, you can read it HERE. First up on her list: Money.

When organizations think about sustainability, money is often the first thing on their mind. That should come as no surprise, because it is the most familiar category. Need to grow your programming? Get a grant. Have unexpected expenses? Grow your individual donors. Have a large infrastructure or equipment expense? Start a capital campaign.

Money should never be your ONLY answer to sustainability, but it is an important one. Fundraising is how you raise money for your organization/programs. Grant funding is certainly one strategy of a fundraising plan, but it should never be your only plan. As Kimberly said in the last article, “The goal is to pursue a healthy mix (of fundraising) rather than leaning on one type.”

How your organization raises funds will differ based on what type of organization you are. For nonprofits (non-governmental organizations), fundraising options include:

• Grants – both private and public funding, though smaller nonprofits may struggle to meet requirements for federal grant awards.
• Individual Donations – things like direct mail, monthly planned giving, and “donate now” buttons on your website.
• Major Gifts/Endowments – this requires long-term strategies and the stewarding of donors.
• Fees for Service – can be on a sliding scale to ensure those who need your services have access.
• Planned Giving/Bequest Giving – working with current donors to leave a gift through a will or estate plan.
• Capital Campaigns – a focused campaign for a specific amount of money to improve an organization’s infrastructure, equipment, or endowment.
• Corporate Sponsorships – funding from a corporation (or possibly a foundation) to sponsor a specific event, building, or large project.

Government agencies (from state agencies to cities, counties, townships, and parishes) don’t have as many fundraising options at their disposal, but they still have choices:

• Grants – both private and public grant funding, though many government agencies are not eligible for private grants.
• Taxes – and the options here are plentiful and certainly varied based on where in the country the government is located. Options include property, sales, hotel occupancy, and other forms of taxes. Some communities are able to set up special tax districts, such as a Community Improvement District in the State of Georgia where businesses within the district pay an extra tax that goes to the district for infrastructure improvements.
• Fees for Service – a great example of this is a Parks and Recreation Department that charges for individuals to participate in sports teams, art classes, and activities provided at the Senior Center. Some government agencies charge developers impact fees for the wear and tear (during the construction phase) of new neighborhoods, office buildings, and more.
• Licenses – Government agencies charge for things like business licenses, alcohol licenses, and more.
• Tickets and Court Fees – Police departments and courts charge fines and forfeitures when the law is broken.

Because government agencies don’t typically receive donations or have access to private grant funding, some agencies create a foundation to provide access to those funding sources. When I worked for a city, there was a Public Safety Foundation that raised these types of funds for the police, fire, and 911 departments. It’s not a plan to enter into lightly because it takes work, but it is a way to help diversify your funding.

I would argue that a big part of fundraising is collaborative fundraising: the way to do it successfully to the benefit of all. Examples on the grant front include:

• Submit joint proposals with two or more organizations. Because bonus: funders look fondly upon collaborators and their proposals.
• Don’t apply for funding when it is a better fit for a partner agency.
• Explore sub-contracting awards received to local agencies.
• Share your grant knowledge – remember, we are working to benefit the community and all those we serve, not see who can bring in the most money.

Each year, Giving USA provides a snapshot of charitable giving. 2025 continues a long-standing trend that the largest funding to nonprofits was from individuals ($394.2 billion), followed by foundations ($117.15 billion), bequests ($62.19 billion), and corporations ($43.67 billion). This is a good reminder to bosses and boards that simply expect grant professionals to continually raise more and more money through grants. And while there is an exception to every rule, most nonprofits need to understand two things:

• Grants are not money growing on trees – there is a finite amount of funding available and only so many agencies who fund our organizations and work. So, raising the grant figure on an annual basis is not the solution to our fundraising woes.
• Individual giving is a more likely revenue source to meet our fundraising needs.

No matter where the money comes from, if your agency is relying on one source then you’re not going to be successful. Property values can plummet (reducing your property taxes collected), grants are cancelled (hello 2025-2026 federal grant funding), corporate giving decreases (as seen in the 2026 Giving USA report), and more. When you have a diverse revenue stream, you are able to pivot when necessary. And that’s what we want for nonprofits and government agencies serving their community – the ability to stick around to meet community needs.

Stay tuned in two weeks when we’ll talk about the next aspect of sustainability, because believe it or not, it’s not ALL about the money.

PS: Am I missing something from my lineup of revenue sources? If so, let me know what it is by sending an email to hello@haydayservices.com.