Six Powerful Ways Nonprofits Can Diversify Revenue Today

Donations are the beating heart of modern fundraising. Along with grants, they’re the main way nonprofits generate revenue. But there is more to donations than revenue. They are how most supporters first connect to a mission, how trust is built, and how impact is funded day to day. That will not change.

What has changed is the environment nonprofits are operating in.

Grant funding has become less predictable, shaped by policy shifts, delays, and growing competition. Donor participation has softened in many sectors. Operating costs continue to rise. None of this means philanthropy is failing, but it does mean that relying on a single revenue source puts even strong organizations at risk. We’ve written before about this era of uncertainty and developed a guide to resiliency for nonprofits. This blog will focus on a few specific ways that nonprofits can diversify their revenue. 

Diversifying revenue is not about abandoning donations or chasing every new idea. It is about building resilience. It is about giving your mission more than one way to keep moving forward when conditions shift. Below are six powerful ways nonprofits are diversifying revenue right now, structured to be practical, usable, and adaptable.

Six Techniques to Diversify Your Revenue

Diversifying revenue means choosing a mix of approaches that fit your mission, your capacity, and your community, so no single funding source carries all the weight. The strategies below are widely used because they are flexible, relationship-driven, and effective across a range of nonprofit sizes. Each one offers a different way to strengthen stability while giving supporters more meaningful ways to participate in the work.

1. Peer-to-Peer Fundraising That Turns Supporters Into Advocates

Core idea
Peer-to-peer fundraising works because people trust people. Instead of asking supporters to give, you invite them to fundraise on your behalf, sharing why the mission matters to them with their own networks.

This is not about replacing your voice. It is about amplifying it through authentic relationships you could never reach on your own.

Why it builds resilience
Peer-to-peer expands reach without requiring proportional increases in staff time or marketing spend. It brings in new donors who are more likely to give because the ask comes from someone they know. It also deepens commitment from existing supporters by giving them an active role in the mission.

Over time, this creates a wider, more engaged base of people who feel ownership, not just affinity.

Key best practices

• Focus heavily on first-time fundraisers. Clear guidance, encouragement, and simple tools make the difference between someone signing up and actually raising funds.
• Emphasize community over competition. Progress, shared milestones, and collective impact matter more than leaderboards alone.
• Reduce friction. Templates, examples, and clear next steps help supporters get started without feeling overwhelmed.

2. Ticketed Events and Auctions as Reliable Revenue Anchors

Core idea
Events and auctions create moments where generosity, community, and visibility converge. Whether it is a gala, a run, a walk, or a creative local gathering, these experiences give supporters a reason to show up together.

They are not just about the dollars raised on the day. They are about connection.

Why it builds resilience
Well-designed events establish predictable points in the year when attention and revenue spike. They create natural opportunities for sponsorship, major gifts, and public expressions of support. They also engage people who prefer experiences over traditional donation appeals.

For many nonprofits, events serve as financial anchors that help stabilize cash flow between quieter periods.

Key best practices

• Bigger is not always better. Smaller, mission-aligned events often outperform large, expensive galas when overhead is kept in check.
• Creativity matters more than polish. Unique experiences build stronger memories and deeper loyalty.
• Design events as gatherings, not obligations. When people feel welcomed and energized, generosity follows.

3. Membership and Sustainer Programs That Create Predictable Income

Core idea
Membership and recurring giving programs are about belonging, not perks. They invite supporters into an ongoing relationship with the mission, rather than a series of one-time transactions.

When done well, they make supporters feel like partners, not ATMs.

Why it builds resilience
Predictable, recurring revenue improves planning and reduces volatility. Long-term supporters tend to give more over time, engage more deeply, and advocate more consistently. Retaining a donor is also far more efficient than constantly acquiring new ones.

Strong sustainer programs turn uncertainty into continuity.

Key best practices

• Go beyond a checkbox recurring gift. Explain why sustained support matters and what it enables.
• Recognize milestones and growth. Acknowledge loyalty, upgrades, and longevity.
• Communicate impact regularly and honestly. People stay when they see the difference they are making.

4. E-Commerce and Earned Revenue That Reinforces Identity

Core idea
Merchandise and mission-related products give supporters a tangible way to express their values. A shirt, a mug, or a limited-edition item becomes a conversation starter and a visible signal of belonging.

This is not about becoming a retailer. It is about reinforcing identity.

Why it builds resilience
E-commerce creates ongoing micro-revenue that helps smooth gaps between major campaigns. It is especially effective with younger, digital-native supporters who may not start with large gifts but are eager to show support. Over time, small purchases add up and often lead to deeper involvement.

It also extends your mission into the world, far beyond your owned channels.

Key best practices

• Start simple. A few strong, mission-aligned offerings outperform large catalogs.
• Reduce risk through print-on-demand or limited runs. Avoid inventory that ties up cash.
• Tie every purchase to impact. Make it clear what each item helps accomplish.

5. Corporate Partnerships That Go Beyond One-Off Sponsorships

Core idea
The most effective corporate partnerships are participatory, not transactional. They move beyond logos on banners toward shared experiences, employee engagement, and aligned values.

Done well, they benefit everyone involved.

Why it builds resilience
Corporate partnerships diversify revenue beyond individual donors while opening doors to matching gifts, team fundraising, and long-term collaboration. They also increase credibility and visibility, especially when companies actively participate rather than simply sponsor.

These relationships can evolve over time, growing alongside the mission.

Key best practices

• Think beyond sponsorship packages. Look for ways companies and employees can participate.
• Use events and challenges as entry points. Shared activity builds stronger relationships than passive exposure.
• Focus on alignment and longevity. The best partnerships feel natural, not forced.

6. Take Advantage of Corporate Matching Programs

Core idea
Corporate matching programs allow companies to match their employees’ charitable donations, often dollar for dollar and sometimes at even higher ratios. Many employers also match volunteer hours or peer-to-peer fundraising, turning individual generosity into amplified impact.

The opportunity is simple. A gift that is already given can often be doubled, without asking the donor to give more.

Why it builds resilience
Matching programs increase the value of existing donations rather than requiring entirely new revenue streams. They strengthen relationships with both donors and employers, while improving return on fundraising efforts already underway.

Because matching relies on supporter employment rather than donor wealth, it broadens participation and reduces dependence on major gifts or grants. Over time, consistent use of matching can materially increase revenue with relatively low effort.

Key best practices

• Make matching visible at key moments. Donation forms, confirmations, and follow-up emails are ideal places to remind supporters to check eligibility.
  
  
• Educate supporters simply. Many donors are unaware their employer offers matching. Clear, plain explanations increase participation.
  
  
• Connect matching to impact. Show what doubling a gift makes possible to reinforce urgency and follow-through.

Resilience Comes From Options, Not Abandonment

Donations will always be central to nonprofit work. They are personal, powerful, and deeply human. Diversifying revenue does not diminish these powerful connections but rather strengthens them.

When nonprofits offer multiple ways to engage, they meet supporters where they are. When they balance different revenue streams, they reduce risk without losing focus. When they build resilience intentionally, they protect their ability to serve their communities, even when conditions change.

The goal is not to do everything. It is to do what fits. Start small. Learn what works. Build from there. In an uncertain landscape, options are what keep missions moving forward.

If you’re interested in learning more about how you can diversify your revenue with Peer-to-Peer Fundraising, eCommerce, or any of the topics we mentioned above, we’re ready to chat.

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Frequently Asked Questions About Diversifying Nonprofit Revenue

Are ticketed events and auctions still worth it given rising costs and donor fatigue?

They can be, but only when they feel meaningful, mission-aligned, and well-scoped. Events like these still perform well, especially when costs are controlled. Smaller, creative gatherings often outperform large galas because they prioritize connection over spectacle. 

Where should a nonprofit start if it wants to diversify revenue but feels overwhelmed by the options?

Start with what already exists and by identifying your capabilities. The most effective first step is identifying where supporters are already engaged and building from there. Diversification works best when it is incremental, not all at once. Test one strategy, learn what works, and improve it over time.

Can small or understaffed nonprofits realistically diversify their revenue, or is this only for large organizations?

Yes, small nonprofits can and should diversify. Diversification is about balance, not scale. Relationship-driven strategies like peer-to-peer fundraising, recurring giving, and matching gifts work especially well for smaller teams because they rely more on community than infrastructure. Focus your execution on one or two strategies to avoid spreading your efforts too thin.

Does diversifying revenue mean we should focus less on donations?

No. Donations remain central to nonprofit fundraising. Diversifying revenue strengthens donation programs by reducing pressure and risk, but cannot replace donations on their own. Offering multiple ways to engage allows supporters to participate in ways that fit their lives, while keeping donation appeals authentic and sustainable over time.

Is peer-to-peer fundraising effective if our donor base is already stretched thin?

Yes, because peer-to-peer expands your reach without adding financial pressure to your existing donors. This is because supporters are not being asked to give more themselves. They are invited to share your mission with their own networks. This brings in new donors through trusted relationships while deepening engagement for existing supporters. A knock-on benefit here is that you can energize your donor base, rather than adding fatigue. 

How does haku support nonprofit revenue diversification? 

haku helps nonprofits diversify revenue by bringing fundraising, events, supporter engagement, and data into one connected platform so teams spend less time juggling tools and more time growing impact. You can run ticketed events and auctions, manage direct giving and recurring donations, launch peer-to-peer and DIY campaigns, and create ecommerce or membership offerings all from a single system within the haku platform.

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