Announcing A New Report
Diversifying Nonprofit and Movement Revenue:
A Call for Conversation and Action
At the LeadersTrust, we collaborate every year with hundreds of leaders across many movements and fields to provide trust-based, long-term capacity-strengthening investments that support transformational change. At the heart of this work is our commitment to continually listen and respond to what’s needed, including when that calls for changes in organizational, practitioner and funder practices.
One area of need that leaders are increasingly lifting up is how to diversify their funding beyond traditional revenue streams such as foundation grants and government contracts.
Leaders seek to increase independent revenue – which provides greater flexibility, fewer limitations, and the ability to respond nimbly and engage in the full spectrum of strategies and tactics to build power and achieve their policy goals over the long term. But many organizations do not have the capacity to tap these flexible streams of support, which include small and mid-sized donor programs, memberships, events, online fundraising, and social enterprises.
In order to listen more deeply about how to increase individual giving, we commissioned a study with independent consultants, and in partnership with the Irvine Foundation. We hope that their report, which is now available for download here, will be a starting point for conversation.
Drawing from interviews with nonprofit and movement leaders, consultants, and funders, we hope the report begins to tackle what it would take—in philanthropic investments, capacity building, changes in practices, and mindsets—to truly expand traditional revenue streams.
In the report, you will find major themes and reflections that emerged from the research divided in three parts: 1) how mindset about fundraising are shifting and need to take root and grow; 2) what organizations need to increase independent revenue; 3) questions to inform a path forward. We outline these themes below.
1. Shifting Mindsets About Fundraising
The first section is about the positive shifts in mindsets and approaches to fundraising that are already under way among organizations and movements working on social justice issues—and what it will take to help these shifts take root and grow. These evolving ideas include:
- Shift #1: Independent supports self-determination and freedom of movement leaders.
- Shift #2: Organizing, communications and resource generation are not separable.
- Shift #3: Raising resources is a shared responsibility.
- Shift #4: Organizations and movement should approach fundraising with an investment mindset.
- Shift #5: We need to transform how we think and feel about money and fundraising.
- Shift #6: When fundraising is about love rather than charity, who belongs and how they contribute expands.
2. What Nonprofits and Movements Need To Generate Flexible Revenue
Consensus is growing about the investments and supports that nonprofits need:
- More general operating support
- Dedicated funding for raising revenue and learning from peers
- Leadership and professional development for fund development leaders
- More support for assessing strategies that are a feasible and planning for success
- Access to data and expertise on donors and fundraising from individuals
- Experimentation and incubation spaces
3. Questions for the Path Forward
Several critical questions were posed that could help advance conversation and action, which include:
- Given that every organization has different needs, what will it take to support organizations and movements to experiment with and adopt promising resource generation solutions?
- How can we tap the expertise already available in our movements?
- How could we collectively raise resources?
- How might intermediaries respond better to the resource generation needs of movements?
- How can foundations change their mindsets and approaches when to supporting nonprofits and movement to generate flexible resources?
- Are we thinking big enough?
Our hope is that this paper lays the groundwork for conversation, answers, and coordinated action among practitioners, funders, and capacity builders about transforming fundraising for power building and social change. At the heart of this work is our commitment to lift high the voices of leaders and make visible their needs, wishes and wisdom. Ultimately, any next steps in this work must be identified and shared in partnership. We are honored to be with you on this journey.