Sustainability: Diversifying Revenue

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 1: What is Sustainability?

Doing good work efficiently and effectively is only half the equation. The other half is making sure that work can continue long after a single grant cycle or annual appeal letter. Of course, the other, other half is whether or not the people served by a nonprofit truly continue to benefit and grow from its programs and services, but that’s actually three halves, another discussion for another day.

Sustainability isn’t a new idea, but it’s a discussion we need to have and a plan we need to enact often. In fact, my favorite definition of sustainability was introduced in 1987, the same year that Dirty Dancing and I Wanna Dance with Somebody Who Loves Me ruled the box office and Top 100, respectively.

According to the United Nations Brundtland Commission, sustainability means meeting the needs of the present without compromising future generations’ ability to meet their own needs. For mission-driven organizations, that principle translates into a very practical question: how will your programs survive when today’s funding runs out?

Organizations that depend heavily on one grant, one contract, or one generous donor are vulnerable to sudden shocks. A change in political leadership, a shift in foundation priorities, or an economic downturn can leave a well-run program scrambling. The most resilient agencies protect themselves by spreading their support across multiple streams, so that no single loss threatens the whole operation.

When you break sustainability into distinct approaches, you can assess which ones fit your agency’s capacity, mission, and community, and then decide where to focus first.

Here are five ways to diversify your fundraising and strengthen long-term sustainability:

• Money. This is the most familiar category and includes government grants, private foundation and corporate grants, individual donations, major gifts and endowments, service fees, planned giving, capital campaigns, and, for local governments, tax revenue. The goal is to pursue a healthy mix rather than leaning on one type.
• In-kind and operational support. Not all value arrives as cash. Volunteers, donated facilities, shared equipment, and loaned staff all reduce expenses and extend your budget. Building organizational capacity through certifications, “train-the-trainer” models, and reserve funds also strengthens your foundation.
• Collaboration. Partnering with other organizations lets you share resources and save one another money. Shared buildings, vehicles, staffing, technology, and bulk purchasing all lower costs while deepening community ties.
• Redesigning operations. Sustainability sometimes means looking inward. Take an honest stock of what works, what doesn’t, and what could be improved, then redesign processes to run more efficiently.
• Alternative sources of revenue. Consider earning income directly by providing consulting or training services, trading services with partner organizations, selling advertising space on your website or social channels, or renting out facility space.

No organization can or should pursue all five at once, and that is not the point. Start by identifying which categories are most relevant to your mission and which are most realistic to tackle first. A small agency might begin with collaboration and in-kind support, while a larger one leans into fees for service or alternative revenue. The key is intentionality. When you can clearly describe to a funder how you’ll leverage resources to support your work beyond the funding period, you demonstrate the stewardship that inspires lasting confidence.

Sustainability is not a one-time task but an ongoing discipline. By diversifying deliberately and revisiting your strategy regularly, your organization can weather uncertainty and keep serving the community for years to come.