In today’s evolving landscape, nonprofits face unparalleled challenges in securing essential funding. With proposed policy changes casting shadows of unpredictability over funding avenues, there is an urgent call for innovative strategies in nonprofit financing. PNC Institutional Asset Management’s® Nonprofit Strategy and Solutions team is a dedicated specialty group comprised of nonprofit sector veterans who understand the unique challenges and opportunities faced by nonprofits and associations. In navigating times of uncertainty, we offer the following five strategies for consideration.
IDEAS for nonprofit growth and financial sustainablilty
Investments
Examine your various pools of assets as there may be potential for subtle changes that could improve your financial well-being and offset possible future gaps in funding. Meet with your investment advisor to review your investment policy statement, spending policy and portfolio as you focus on your goals and plan for your organization’s longevity.
Diversity
Explore creating or expanding alternative sources of funding, including building new relationships with private foundation funders and incorporating, or adjusting, fee-for-service opportunities to add to your operating budget and reserve.
Endowments
Grow or finally build that endowment. Consider using financial storytelling to engage the support of sympathetic donors who might be encouraged to fund any financial gaps. Furthermore, communicate the current and future state of your organization to your donor community including specific figures that outline impact, needs and finances.
Alliances
Consider collaborating with similar service providers by sharing space and resources, thereby reducing operating costs. Additionally, encourage and educate your board to double-down on their allyship by fundraising within their personal networks, matching major gifts and connecting to corporate funding prospects.
Strategize
Regardless of whether a change affects you today, create your contingency plans for tomorrow with variable strategies that include scaling back on programs, services and/or staff, if necessary. Create a team of funders, program managers, community members and others to focus on helping your organization be financially resilient. Ask your advisor to connect you with our experienced Nonprofit Strategy & Solutions team to collaborate on a customized approach that allows you to focus on your organization’s mission.
For more information, contact the team at IAMNonprofitStrategy@pnc.com.
