What to do if you lose a funding source

Nonprofits are facing a lot of uncertainty when it comes to funding, and there’s a chance you may lose one or more of your current revenue sources. These steps can help you bounce back and future-proof your organization against further loss. Here are some of our top articles on what to do if you’ve lost a source of funding.  

Diversifying nonprofit revenue streams 

Relying heavily on a single funding source is always risky, and best practice is to have a diverse range of revenue streams. This ensures that your nonprofit can keep the doors open even when you lose one source of funding. 

Learning from peers to refine your nonprofit funding strategy: While every nonprofit is different, you can learn a lot from your peers and how they are funding their organization. Learn how benchmarking against your peers is a helpful way to find new and different sources of funding worth pursuing. 

How nonprofit boards can support a sustainable funding strategy: Your board may be the key to unlocking new funding and partnership opportunities. This article shares how your board can help you develop a fundraising strategy, prioritize outreach, and offer support to make the process easier.  

Seeking more flexible, multiyear funding 

Flexible, multiyear funding is the most helpful type of contribution a nonprofit can get, especially during these uncertain times when the needs of our communities outgrow our capacity. Despite that, very few funders are giving these types of grants. These articles can help you understand the current funding landscape and how to ask your funders for more. 

Where do foundations stand on multiyear funding? Two-thirds of foundations we surveyed awarded at least one multiyear grant in 2022, including 15% that awarded more than 50. Yet, despite the trust it builds between nonprofits and funders, the number of multiyear grants is still low. Dig into the data to learn more about grantmakers’ views on multiyear funding. 

4 things we learned about foundations and general operating support: General operating support, or unrestricted grants, give nonprofits flexibility to invest the money wherever it’s needed most. But less than a third of funders offer these types of grants.  Learn why flexible funding matters and why it’s challenging to track. 

How to ask your long-term funders for more money: With rising costs, increased needs, and possible funding loss, this may be the right time to reach out to your reliable, long-term funders to ask for more. This article shares practical tips on how to approach these supporters to get additional funds when you need them most. 

What are funders doing to reduce the burden on nonprofits? 

Where are we seeing sustained changes in grantmaking practices to reduce grantee burden? Nonprofits spend dozens of hours doing grant-related paperwork, whether it's filling out applications or reporting results. But some funders are making these processes simpler. With less paperwork, nonprofits can spend more time running programs and serving their communities. Here are three ways funders are reducing that burden. 

Losing a source of revenue is always a challenge. What has helped you diversify your funding, future proof your organization, and keep the doors open in difficult times? Share in the comments!