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Field Tip January 2008 Financing for the Long-Term

Field Tip Financing for the Long-Term

Bake sales just aren’t raising the dough like they used to.
Thankfully, there are other options—ones that lead to long­term sustainability.

Photo of two women decorating a cake. Caption reads "Milly and Doris hone their fundraising skills."By the Numbers: Interesting Statistics

January 2008

Growing competition for donor dollars is motivating many nonprofits to look beyond long-standing practices toward new revenue models. This issue of “Field Tips” highlights some innovative options and points you to resources.

Finding a strategy that fits
There are distinct patterns to the ways in which nonprofit organizations are funded. These patterns can provide important “guideposts” for similar organizations planning their fund development strategies. (See: Bridgespan “How Nonprofits Get Really Big”)
Business ventures
Nonprofit business ventures can be an important addition to your organization’s programs and revenue structure when they align well with your overall mission. They should be entered into very carefully, as most businesses struggle for some time before seeing success.

(See: Chronicle of Philanthropy “Making Money With a Mission” — subscription needed to read article. New York Times “Businesses Try to Make Money and Save the World” May 2007)

For-profit partnerships
These are business (not charity) relationships between for-profit and nonprofit organizations.

Capital funding resources

  • Good Capital
    Provides growth capital to social enterprises in a range of fields including workforce development, healthcare, education, fair trade, organic food, and non-profit services.
  • The Calvert Social Investment Foundation
    Lends to more than 200 community organizations, including loan funds, microfinance institutions, affordable housing developers and social enterprises.
  • Prudential Financial’s Social Investment Program
    Invests in the areas of economic development and education. The program will only consider proposals that do not qualify under mainstream investment guidelines.

The “Fourth Sector”
A new type of hybrid organization is taking root. This Fourth Sector—also referred to as for-benefit corporations and B Labs—are driven by a social purpose; are economically self-sustaining; and they seek to be socially, ethically, and environmentally responsible.
Featured consultants
Meet two of our consultants who specialize in helping nonprofits develop financial strategies for long-term sustainability.
Photo of Tom Triplett

Tom Triplett has graduated from bake sales to (somewhat) more sophisticated money-making venues. He helps nonprofits evaluate potential revenue sources that fit their unique situations, mission, and values. He also guides nonprofits to sustainable financing as major funding ends. Tom’s work tends to focus on non-philanthropic sources such as earned income, memberships, government, and “quasi-equity” (ask Tom about this). ttriplett@FieldstoneAlliance.org
Photo of Gordon Goodwin “Checking under couch cushions for loose change is one way of generating revenue,” says Gordon Goodwin. But he prefers more robust methods such as earned income and increased giving from individuals and organizations. Gordon helps nonprofits assess their products and services by identifying everyone who benefits from them, pinpointing what they cost to deliver, and finding alternative ways to deliver them. ggoodwin@FieldstoneAlliance.org
Related Fieldstone Alliance Books
Financial Leadership—Protect and grow your nonprofit’s assets.
Venture Forth!—Reduce your dependence on grants. Find, test, and launch a successful venture.
List of Resources

Funding/Giving Research

Business Ventures/Social Enterprise

4th Sector/For-Benefit Organizations

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Photo courtesy of the U.S. National Archives. Photographer, David Hiser, 1972.

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* Field Tips are "pebbles of wisdom" showcasing current information on a particular topic. This issue was originally sent as a greeting card to people on our mailing list.
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