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Without a predictable revenue stream, you\u2019ll have a hard time budgeting, funding priorities and planning for the future. Right now, many organizations are grappling with sudden federal grant cuts. If this is your nonprofit\u2019s situation \u2014 and even if it isn\u2019t \u2014 you should assess your revenue streams between audits using the same techniques professional auditors employ.<\/p>\n
Assess past sources<\/strong><\/p>\n Begin the process by comparing donation and grant dollars raised in past periods to identify trends. For example, have individual contributions been increasing over the past five years? What campaigns have you implemented during that period? You might go beyond the totals and determine if the number of major donors has\u00a0grown.<\/p>\n Make sure you estimate what portion of contributions is restricted. If a large percentage of donations is tied up in restricted funds, you might want to re-evaluate your gift acceptance policy or fundraising materials.<\/p>\n Grants can vary dramatically in size and purpose \u2015 from covering operational costs, to launching a program, to funding client services. Did one funder supply 40% of total revenue in 2022, 50% in 2023, and 65% last year? Even if you\u2019re still receiving grant money from this funder in 2025, such reliance on a single funding source is a red flag to auditors. It should be to you, too. If funding stopped, your organization might be forced to close its\u00a0doors.<\/p>\n Other types of income<\/strong><\/p>\n Fees paid by clients, joint venture partners or other third parties can be similar to fees that for-profit organizations earn. They\u2019re generally considered exchange transactions because clients receive products or services of value in exchange for their payments. Sometimes fees are charged on a sliding scale based on income or ability to pay. In other cases, fees are subject to legal limitations set by government agencies. You\u2019ll need to assess whether your services are paying for themselves.<\/p>\n Also, if your nonprofit is a membership organization and charges dues, determine whether membership has grown or declined in recent years. How does this compare with your peers? Do you suspect that dues income will decline? You might consider dropping dues altogether and restructuring. If so, examine other income sources for growth potential.<\/p>\n Challenges ahead<\/strong><\/p>\n Although this is a challenging time to find new revenue streams that could enable you to replace lost grants or diversify your sources of income, opportunities exist. Contact us for ideas or if you need help assessing your\u00a0income.<\/p>\n \u00a9 2025<\/em><\/p>\n <\/body> Without a predictable revenue stream, you\u2019ll have a hard time budgeting, funding priorities and planning for the future. Right now, many organizations are grappling with sudden federal grant cuts. If this is your nonprofit\u2019s situation \u2014 and even if it isn\u2019t \u2014 you should assess your revenue streams between audits using the same techniques professional […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,10,15],"tags":[8,11,12],"class_list":["post-17297","post","type-post","status-publish","format-standard","hentry","category-articles","category-news","category-not-for-profit","tag-articles","tag-news","tag-updates"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/17297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=17297"}],"version-history":[{"count":1,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/17297\/revisions"}],"predecessor-version":[{"id":17298,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/17297\/revisions\/17298"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=17297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=17297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=17297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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