Diversifying Revenue for Non-Profits in Today’s Economy: Why It Matters More Than Ever

In today’s uncertain economy—where government funding is tightening and competition for grants is intensifying—non-profits are under growing pressure to think beyond traditional sources of funding. For many, grants have become the default (and often only) source of revenue.

Take healthcare as an example: in British Columbia, many “independent” primary care centres rely heavily on grants from health authorities. And while political will currently supports these services, we also know that governments are under increasing pressure to demonstrate fiscal restraint. That means even long-standing funding sources are vulnerable to policy shifts or budget cuts. Grants, while necessary, rarely provide the kind of long-term financial resilience that non-profits need to thrive.

One of the most effective strategies? Revenue diversification.

But before we dive into that, let’s talk about fund development—and why it’s a strategic imperative.

What Is Fund Development, and Why Does It Matter?

Fund development is more than just fundraising. It’s the intentional, long-term process of building relationships, systems, and strategies to generate ongoing financial support. This includes individual giving, grant writing, donor stewardship, fundraising campaigns, and sponsorship development. When approached strategically, fund development becomes a cornerstone of organizational sustainability—not just a task added to someone’s plate when time allows.

Importantly, fund development is not the same as revenue diversification—though the two are closely connected.

Fund development focuses on philanthropic income streams (such as donors, foundations, and fundraising activities). Revenue diversification, on the other hand, is a broader financial strategy that includes all types of income: philanthropic, earned, contractual, and investment related.

In short: fund development is how you build and grow your philanthropic income. Revenue diversification is what your overall funding mix looks like. Together, they support long-term financial resilience.

What Does Revenue Diversification Actually Mean?

At its core, revenue diversification means intentionally developing multiple streams of income, so your organization isn’t overly reliant on one or two sources. This increases financial stability, supports long-term planning, and—critically—frees the organization to innovate and grow.

Many non-profits operate in a constant state of survival, focused on securing the next grant, which is understandable - grants are often the most accessible and substantial source of funding, especially for organizations without a strong fundraising culture or infrastructure. But operating in survival mode can be draining for leadership and the team.  Diversifying the revenue base allows a shift from crisis response into a more empowered, future-focused approach.

What Can Non-Profits Do to Start Diversifying?

Here comes the point where everyone wants to know what to do – what are the list of activities I can do to diversify my organization’s revenue?  As important though are some of the less discussed components that lend themselves to long-term success.  Which is why I’ll talk about those:

Culture Comes First

Perhaps the most overlooked element of fund development and revenue diversification is organizational culture. Non-profits that succeed in this work embed financial sustainability into their DNA. That means:

• Leadership understands fundraising is part of mission advancement—not separate from it.

• Staff see revenue as a shared responsibility.

• The board champions financial health and actively contributes to it.

• The strategic plan names fund development goals alongside programmatic goals.

Culture shift takes time—and intention. But it lays the foundation for everything else. To get started, consider these three strategies:

1. Integrate Fund Development into Staffing Plans

If your organization doesn’t yet have a dedicated fundraiser, start by assigning fund development responsibilities to a team member as a formal part of their role. This should be a supported and intentional shift—not an informal add-on to an already full workload. Fund development needs structure, time, and clear expectations.

When resources allow, invest in professional fundraising capacity. Even a part-time or contract fundraiser can lay essential groundwork: building systems, cultivating relationships, and developing a donor strategy.

That said, fund development shouldn't live in isolation. Team members across the organization should understand that fund development is part of everyone’s job—just in different ways. This doesn’t mean every staff member needs to solicit donations, but it does mean they recognize how their role contributes to the organization’s financial sustainability. Whether it’s sharing impact stories, participating in donor visits, or simply understanding how their work aligns with funder priorities, everyone has a role to play.

To make this approach work, expectations must be clearly defined and properly resourced. Staff need the tools, training, and leadership support to participate meaningfully. When embedded into job descriptions thoughtfully and reinforced through organizational culture, this shared responsibility model strengthens fundraising outcomes and reinforces long-term sustainability.

2. Prioritize Board Engagement

Boards don’t need to be made up of fundraisers to support revenue growth. What they do need is a clear understanding of their role in advancing the organization’s financial health—and appropriate support to do so. This may include:

• Introducing prospective donors

• Participating in stewardship activities

• Advocating for the organization with funders or community leaders

Strong boards also ensure that fund development is embedded in strategic planning and that fundraising practices align with the organization’s values.

3. Explore New Revenue Streams

Once fund development is embedded and the board is actively engaged, the organization is in a much better position to creatively and strategically explore new income sources. This could include:

• Individual Giving Programs: One-time or monthly donations

• Social Enterprise: Mission-aligned ventures that generate income

• Fee-for-Service Models: Offering services at a cost or on a sliding scale

• Corporate Partnerships: Sponsorships, in-kind support, or employee giving

• Membership Models: Recurring revenue in exchange for value-added offerings

It’s highly recommended that leadership teams create a comprehensive fund development plan that includes intentional exploration of alternative revenue streams.

Final Thoughts

Fund development and revenue diversification aren’t quick fixes—they’re long-term commitments. But they are essential if we want our non-profits to thrive, not just survive. Grants will likely remain a key piece of the puzzle, especially in healthcare and other publicly funded sectors. But they shouldn’t be the whole puzzle.

Building a resilient, mission-driven, and financially sustainable organization takes time, intention, and collaboration. In today’s economic climate, that work isn’t just important—it’s urgent.