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What is a 'Fundraising Mix' and Why Does it Matter?

In the not-for-profit space, fundraising can be a challenge. One way to help grow your revenue is through a strategic fundraising mix, which ensures you have varying tools and tactics to raise funds that will help ensure consistent revenue for your organization.


Here are the top five reasons why a fundraising mix is important and why charities should prioritize it.


Diversification of Revenue

One significant advantage of having a diverse fundraising mix is the ability to diversify income sources, reducing financial risk. Organizations that rely solely on a single type of funding are vulnerable to economic changes. For instance, a charity dependent only on government grants could face severe challenges if those funds are cut. By utilizing various revenue streams, such as individual donations, corporate sponsorships, grants, and events, not-for-profits can spread their risk. This approach ensures that if one source diminishes, others can compensate, allowing the charity to maintain operations smoothly and continue its vital work without major disruptions.


Increase Your Reach

Having a diverse fundraising mix enables organizations to reach a broader audience. Some individuals may appreciate the convenience of online crowdfunding, while others might prefer participating in events or leaving a legacy gift. By employing various fundraising methods, organizations can appeal to a wider range of people, expand their donor base, and foster giving across different segments of the community.


Boost Fundraising Power

Different fundraising channels each have unique strengths and can complement each other effectively. Major gifts and grants can provide significant funding quickly, while regular small donations cultivate a loyal donor base, offering consistent support. Corporate sponsorships not only generate funds but also enhance visibility and provide networking opportunities. By leveraging diverse fundraising channels, charities can maximize their overall fundraising potential and create a greater impact.


Flexibility

Having diverse funding sources allows not-for-profits to be more flexible in their programs. Restricted funds are designated for specific projects, while unrestricted funds offer greater spending flexibility. A mix of funding sources helps organizations balance these constraints, ensuring they have the resources to support various activities and respond to new opportunities effectively.


Innovation & Adaptability

A diverse fundraising mix fosters innovation and adaptability. By experimenting with various fundraising methods, organizations can stay current with trends and best practices. This proactive approach enhances their fundraising capabilities and promotes a culture of continuous improvement and growth.


It's important for organizations to have a strategic fundraising mix to diversify income streams, increase resilience against economic fluctuations, and engage a broader donor base, ensuring long-term sustainability and maximized revenue potential. If your organization is looking to learn more about the fundraising mix, connect with us.

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