A common mistake made by not for profit organisations is to try and obtain as much revenue as possible from as many sources as possible.  Done strategically and in line with key objectives, then that is a good approach but done poorly and it could impact on the viability of your organisation.

As a not for profit organisation you may receive revenue from the following sources:

When looking at ways to obtain revenue ensure you have a clear objective for the use of the funds, how it will be used and that the organisation can support it how the funds will be used.  Avoid applying for grants that your organisation is not able to implement or manage.  If you do this then you may run the risk of incurring significant additional costs to implement the program or you may be required to redirect other funds linked to different programs or projects.  In addition, if the funds are not used in accordance with the funding agreement then you may be required to pay them back and this may be difficult if you have already used them.

This is why it is vital to ensure you are not just applying for any form of funding but that it is linked to your strategic objectives, your organisation can also implement and manage the requirements of the funding agreement and importantly you can accurately track how the funds have been used.

This last point is the focus of the next post.