Changemakers Corner: Now More Than Ever, The Importance of the Funding Pie

Every year on March 14th, we celebrate Pi Day (3.14), a nod to the mathematical constant that never ends. But this year, think about a different kind of pie—the one that keeps your organization running— your funding pie. Successful nonprofit organizations rely on multiple fundraising streams to ensure financial stability and sustainable growth. Avoiding over-concentration in one area keeps your organization nimble when responding to changes in the fundraising landscape. Losing a major donor or corporate partnership would hurt—but it doesn’t have to be a crisis. 

Understanding Your Funding Pie - Revenue channels that every nonprofit should consider 

1. Annual Giving Programs: These programs typically combine regular donations from individuals, ranging from small to large contributions, and help establish a reliable base of support. Annual giving programs include recurring gifts, appeals (often tied to the time of year or significant date), events, and peer-to-peer giving. 

2. Major Gifts and Capital Campaigns: These focused fundraising efforts target high-capacity donors for significant contributions, often supporting specific initiatives like building projects or endowment funds. Capital campaigns typically have a set timeframe and specific financial goals associated with each part of a project. Major gifts can also include planned gifts. 

3. Corporate Partnerships and Sponsorships: These gifts take many forms, everything from matching gift programs where companies match their employees' donations to corporate grants for specific projects or general operations to in-kind donations of products or services. 

4. Foundations and Grants: Institutional funding sources can provide substantial support for specific programs or general operations. Long-term relationships with foundations and grants can provide unwavering support in difficult times.  

5. Planned Giving: Legacy gifts—such as wills, trusts, life insurance policies, or charitable gift annuities—allow donors to make long-term investments in your mission. Planned giving programs provide stability and future funding opportunities.  

6. Earned Income & Fee-for-Service Programs: Revenue generated by offering products or services related to their mission. Examples include: Membership fees (e.g., museums, professional associations), Tuition or program fees (e.g., educational workshops, training programs), Ticket sales for events or performances, Social enterprises, where nonprofits sell goods or services to support their cause  

Your Recipe for Success 

Just like a good pie crust is the foundation of a blue-ribbon pie, and made of very simple ingredients, fundraising is built on simple but important pillars. Remember that each funding stream requires different approaches and resources, but together they create a robust foundation for nonprofit sustainability. This Pi Day, take time to analyze your funding streams. Is your pie well-balanced? Are you overly reliant on one slice? Now is the time to explore new opportunities and secure your financial future. 

Submitted By: Kate Newsome | Inbloom Development Consultant | Connect w/ Kate