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Nonprofit consultants in Los Angeles, CA

We knew this was coming.  Given previous forecasts, it was only a matter of time before grantmaking flattened and started to decline.

Eighty-one percent of foundations expect their grant making to be flat or to decline in 2019, according to a survey conducted earlier this year, a worrisome sign for nonprofits that are already feeling the pinch from a drop in individual giving.

Chronicle of Philanthropy

Should nonprofit organizations panic? No.

However, charities must diversify their funding streams if they plan to be healthy and sustainable long-term.

During our consultations with nonprofit founders and executives, we consistently emphasize the importance of funding diversification.  We often ask the following:

“Aside from grant funding, what other components of revenue generation are being sought and cultivated by your nonprofit organization?”

More often than not, that question is met with a look of confusion, defiance, fear – or a combination of all three.

And that’s not good.

Relying on grantmaking as your sole source of funding is financially irresponsible.

It is a losing strategy.

Rather, charities must identify and seek other sources of funding – corporate sponsorship, EICs, etc. – if their strategic plan is to remain relevant and healthy.

Aren’t you tired of your nonprofit organization teetering on the brink of financial collapse?

Schedule a free strategy call today.

You’ll be so glad you did.

To read the full article regarding grantmaking predictions for 2019, click here.