Why Every Nonprofit Needs a Backup Plan
If you’re a nonprofit leader sweating over the latest federal funding pause, you’re not alone. With President Trump’s recent halt on government grants and funding, many organizations are scrambling to figure out how they’ll keep their doors open.
Here’s the good news: your nonprofit can thrive—without relying on government money.
Nonprofits have always been mission-driven, but too often, they’re also grant-dependent. The problem? When the money stops flowing, so do the services. That’s why it’s time to think like a business and build earned income streams that create financial stability.
What is Earned Income?
Earned income is money your nonprofit makes, rather than fundraises. Think of it as using business strategies to fuel your mission.
Nonprofits around the country are already doing this—successfully. And so can you.
4 Ways Nonprofits Can Make Their Own Money (Without Compromising Their Mission)
1. Offer Paid Services (Yes, Even Nonprofits Can & should Charge Money!)
Many nonprofits already provide services people would gladly pay for—they just don’t charge. If you offer value, don’t be afraid to set a price.
✅ Examples:
- A domestic violence shelter offering paid corporate training on best practices to create a trauma-informed workplace and intervention.
- A food pantry providing cooking classes at a fee while continuing to offer free groceries to the community.
- A mental health nonprofit hosting paid stress management workshops for businesses.
💡 Quick Tip: Make sure paid services don’t exclude your core audience. Offer sliding scales, sponsorships, or pay-it-forward models so those in need still receive help.
2. Sell Products That Support Your Cause
If your nonprofit has a loyal following, they want to support you beyond donations. Give them something in return—literally.
✅ Examples:
- A nonprofit supporting at-risk youth selling T-shirts designed by program participants.
- A rescue shelter selling pet food and accessories.
- A literacy nonprofit selling custom journals or children’s books written by students.
💡 Quick Tip: You don’t have to manufacture products. Use print-on-demand services like Bonfire or Teespring to sell custom merch without upfront costs.
3. Launch a Social Enterprise (A Business That Fuels Your Mission)
Some nonprofits go beyond earned income and create separate, mission-driven businesses that bring in steady cash flow.
✅ Examples:
- A re-entry program for formerly incarcerated individuals running a coffee shop that doubles as a job training center.
- A domestic violence nonprofit opening a thrift store that funds emergency housing.
- A sustainability-focused nonprofit running a zero-waste grocery store.
💡 Quick Tip: If your business idea is big, consider setting up a separate for-profit or hybrid entity to avoid tax complications.
4. Create Membership or Subscription Models
People will pay for ongoing value—especially if it supports a cause they care about. Offer exclusive benefits in exchange for financial support.
✅ Examples:
- An environmental nonprofit offering a monthly “green living” membership with exclusive webinars and discounts on sustainable products.
- A history museum offering VIP memberships with early access to exhibits and members-only events.
- A nonprofit farm providing a weekly CSA (Community Supported Agriculture) box for a fee.
💡 Quick Tip: Make sure subscribers feel like they’re part of something special. Exclusive content, behind-the-scenes updates, and a sense of community will keep them engaged.
Why This Matters Now More Than Ever
Relying on government funding is risky—but building earned income streams makes your nonprofit unstoppable.
You’re no longer waiting on grant approvals. You’re not stressed when the budget gets slashed. You’re in control of your own revenue, which means you can focus on your mission, not your money problems.
And let’s be honest—donors love to see self-sufficient organizations. When they know you have multiple income streams, they’re more likely to contribute, not less.
Your Next Steps
1️⃣ Pick one earned income idea that fits your nonprofit’s mission.
2️⃣ Test it on a small scale before going all in.
3️⃣ Track the results and tweak your strategy as needed.
Nonprofits don’t have to struggle just because government funding is in limbo. The ones that thrive are the ones that think creatively, act boldly, and stop waiting for someone else to fund them.
CALL TO ACTION: Join the Conversation!
I’d love to hear from you:
What’s stopping your nonprofit from generating its own revenue?
Drop your thoughts in the comments, and I’ll tackle them in an upcoming blog post or podcast episode.
And if you need help brainstorming, and implementing an earned income strategy for your nonprofit, without sacrificing your sanity or self care let’s talk. Book a sales call with me to learn how I’ll support you.