New & improved income streams: Looking beyond traditional fundraising

But the fundraising landscape is changing. Donor expectations are evolving, competition for support is increasing and organisations need to think creatively about how they can build sustainable income for the future.

That means asking an important question:

What else could we be doing?

Why explore new income streams?

Diversifying income can help an organisation become more resilient. Relying too heavily on one or two sources of income can leave charities vulnerable when circumstances change, whether that is a shift in donor behaviour, changes to grant funding, economic pressures or increased competition.

Exploring new income streams can also provide opportunities to:

• Reach new audiences and supporters
• Make better use of existing skills, assets and networks
• Strengthen established fundraising activity
• Respond to changing donor behaviour
• Reduce reliance on a small number of income sources
• Create more sustainable income for the future

However, diversification shouldn't mean pursuing every new fundraising idea that comes along.

Find the right opportunities

The most successful new income streams are usually those that fit the organisation. Before investing significant time and resources, it is worth considering:

Who are our audiences?
Do we understand what motivates them to support our organisation and what they might be willing to engage with?

What assets and expertise do we already have?
Your organisation may have valuable knowledge, networks, intellectual property, facilities, events or professional expertise that could open up new opportunities.

Where are the gaps in the market?
Research can reveal opportunities that aren't immediately obvious, from new partnerships and corporate opportunities to different approaches to individual giving.

Do we have the capacity to deliver?
A potentially lucrative income stream isn't useful if the organisation doesn't have the people, skills or resources to develop and manage it effectively.

Don't chase the latest trend

There is always another fundraising trend promising to transform income generation. But new doesn't automatically mean better.

The key is to understand your organisation, your supporters and the wider fundraising environment before deciding where to invest. A new income stream should have a clear purpose and fit within your wider fundraising strategy.

Sometimes the greatest opportunity isn't an entirely new form of fundraising. It may be about improving an existing income stream, refining your approach, reaching a different audience, investing in better stewardship or identifying untapped potential.

Test, learn and develop

New income streams rarely become successful overnight. Research, testing and evaluation can help organisations understand what works before committing significant resources. Start with a clear proposition, identify the audience, test the approach and learn from the results. And don't be afraid to adapt.

A pilot that doesn't deliver the expected results isn't necessarily a failure. It can provide valuable insight into what your supporters want...and what they don't.

The right expertise can make a difference

Whether you are looking to develop an established fundraising programme or explore completely new opportunities, having the right expertise can help you make informed decisions.

Our network of consultants includes specialists across a wide range of fundraising disciplines. We can provide strategic advice and guidance, bespoke research, hands-on expertise, mentoring and ongoing support.

Our insight is simple:

Don't chase every opportunity. Find the opportunities that genuinely fit your mission, audience and resources, and then give them the best possible chance of succeeding.

What new income stream could your organisation explore? If you're looking at ways to diversify or improve your fundraising income, talk to us about how we could help.

‍