Nonprofits obtain the majority of their funding, about 68%, from individual donors. Building diverse revenue streams that fund services and support organizational growth is essential to a nonprofit organization's success.

Typical nonprofit funding sources and their percentage of revenue:

• Individual Donations: Receiving individual donations from friends, family, coworkers, and the public is the primary fundraising method for most 501(C)(3) nonprofit organizations. Target should be 60-70% of your funding should come from Individual Donations!

• Program Fees: Charging reasonable fees for programs or services.

• Corporate Sponsorships: Establishing relationships with local businesses that generate corporate gifts to help fund the organization.

• In-Kind Gifts: Receiving donations of equipment, services, or goods that the organization may otherwise need to purchase.

• Grants: Foundation and government grants provide a short-term infusion of revenue to launch or expand programming for established nonprofits. Organizations require a successful history of diversified fundraising and sustainable operations to compete for grant funding. 

• Bequests: Receiving gifts from the estate of a person upon their death.