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Jul 15, 2024
Generating Sustainable Revenue for Arts and Humanities Organizations
Arts organizations empower communities and ensure everyone has an opportunity for individual expression and acceptance. How this comes about varies, and securing the funding to accomplish your mission and goals is vital for success, especially when funds are unexpectedly in jeopardy.
From embracing recurring giving to matching gift opportunities to holding events, and utilizing peer-to-peer fundraising, we'll explore how art and humanity organizations can discover and implement new revenue sources to accomplish your mission and empower communities across the U.S. to create.
Securing Financial Stability
Nonprofits are responding to emerging challenges to sustainability. As funding decreases and organizations look for ways to replace revenue streams, take a step back and analyze your financial makeup. Understand how your finances have changed year-over-year and identify what your organization needs to ensure it can accomplish its mission.
Implementing or strengthening diverse revenue streams benefits long-term sustainability and longevity. Arts, culture, and humanities organizations have a variety of potential revenue streams they can tap into to replace lost funding. It's crucial to consider streams outside of traditional nonprofit revenue sources like donations, grants, large gifts, planned gifts, legacy events, and other similar options to accomplish your organization's mission.
How to Implement New Revenue Streams
Traditional giving opportunities are decreasing, and while these streams still account for a significant amount of funding for organizations, emerging revenue streams are gaining momentum and significance.
Consider how your organization could benefit from using these ten new revenue stream opportunities:
- Converting one-time donors to recurring donors is an impactful opportunity. As one-time donors are already familiar with and passionate about your organization, turning them into repeat donors to extend donor longevity and retention. For example, donors who give monthly average an 80% retention rate, while the industry average for donors of any type is about 40%.
- Consider this 7-step guide to help set up a recurring giving program at your organization.
- Matching gifts also offer immense opportunities. Matching gift programs encourage the for-profit world to match employee gifts to nonprofits. A simple way to start a matching gift program is by partnering with a platform that empowers nonprofits.
- Platforms, like Double the Donation, take the guesswork out of establishing a matching gift program.
- Peer-to-peer fundraising is one of the most popular new avenues to generate revenue, attract donors, and engage current donors because your organization's supporters fundraise for you.
- With requests from some of your organization's most loyal fans, peer-to-peer fundraising is a logical choice to implement at your organization. With a few steps, your organization can automate this ongoing revenue stream and rely on it for continuous giving. These nonprofit giving experts share top tips for implementing peer-to-peer fundraising at your organization.
- Peer-to-peer fundraising campaigns also give your organization options. You can easily set up a standalone campaign, add a peer-to-peer element to any existing event, or use it as an online fundraising stream for specific projects or initiatives.
- A fun, emerging giving trend is having donors vote with their donations to decide between whatever your organization would like. Some options include an art contest with a portion of proceeds or another recognition going to the winner, or a support-influenced initiative campaign, where supporters decide what you support.
- Voting can be an easy addition to any event or a standalone campaign and can take place on social media, by text, or even by email. Your organization can set a vote to any monetary amount, and each vote is a donation directly to your mission.
- Voting initiatives are critical because they result in unrestricted funds for your organization.
- While legacy events have always been a key revenue stream, new event options are emerging to reach new donors and keep current donors engaged.
- Creative events can be both digital and in-person, including performances, exhibitions, tours, game nights, and virtual events like an art auction, a bake sale, or a standalone raffle.
- Consider whether your organization can incorporate a virtual aspect into an existing event, like live streaming a performance or playing games virtually online.
- If your organization is looking for options to refresh its legacy events, consider GiveSmart’s Fundraising Event Success Hub for a wealth of event-related resources.
- Another alternative to legacy events is for your organization to consider partnering with other organizations to have a presence at local community events, such as fairs, festivals, runs/walks, expos, concerts, and others.
- These events offer accessible fundraising opportunities with table-based activities. They are a simple way to increase engagement and reach new donors, volunteers, and supporters.
- Nonprofits of any size can capitalize on the significant opportunities stock gifts, endowment funds, and donor-advised funds hold. All three represent immense opportunity, and no longer require what was previously a restrictive amount of resources for some nonprofits.
- Stock gifting is accessible and easy for all donors and nonprofits through platforms like DonateStock, which GiveSmart has partnered with. Stocks represent $100 billion in untapped funding for nonprofits.
- Here are the top tips and tricks on how to start accepting stock with your nonprofit.
- Donor-advised funds (DAFs) are also one of the fastest-growing charitable contributions available for nonprofits.
- DAFs are investment accounts, where the sole beneficiary is a nonprofit. Donors contribute to these accounts, which are invested to grow assets tax-free. Donors designate what they want the fund to support, and nonprofits can capitalize on them.
- According to the National Philanthropic Trust, DAFs have increased 400% over the last decade.
- GiveSmart’s expert fundraisers compiled everything you need to know about DAFs, including how to set up a DAF giving program at your nonprofit.
- Creating a membership and offering benefits, like free or discounted event attendance or merchandise purchases, is a simple way to turn one-time donors into recurring donors.
- Your organization could also create business/corporate-level memberships for businesses to offer exclusive employee benefits.
- These memberships can be further supplemented by creating educational programs, classes, and workshops, selling branded merchandise, publications, or ad space, or renting out your nonprofit's spaces for events, meetings, and private functions.
- Your nonprofit can gain funds from selling access to programs and classes, as well as time sales, like merchandise from your gift shops or advertisements during events and meetings.
- Many new grant opportunities are available to your organization.
- Seek federal and local government grants that support the arts and culture sector.
- Ensure any new grant opportunities align with your mission and that your organization’s capabilities match that of the restricted funds.
- The Society of Nonprofits compiled 30+ grant opportunities for arts and humanities organizations nationwide.
As your organization navigates fundraising shortfalls, these alternative revenue streams promise to transform your arts, culture, and humanities organization's funding and present new opportunities to sustain and even grow its financial health.
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