Thursday, March 19, 2009

Services

Lots of non-profits solicit donations and grants as their primary revenue source. However, in today's tight economy, those revenue streams are starting to dry up. It is now time to think outside of the traditional fundraising box. Those non-profits that are going to survive the current slump are going to be those that are going to be creative about how they sustain themselves financially. One alternative financial strategy is to start offering services needed by the core demographic of people you serve at a reasonable price to cover operating costs. With state agencies having to pull back on the amount of services they can offer the public, non-profits have the opportunity to fill in some of the holes.

For example, there is currently a freeze on all travel funds for state employees. This means that field agents for some of these state agencies that used to provide essential continuing education opportunities for professionals such as social workers cannot provide these professional development opportunities this year. A nonprofit with a focus on social services advocacy and a knowledgeable staff can develop a partnership with their state's Department of Social Services to step in and provide the trainings needed in the field.

Partnerships

A partnership with a state agency in this case is essential. You will want to make sure that you and the regulatory entity that your audience will have to ultimately report to are on the same page in terms of interpreting regulations and requirements. You will also want to be able to offer professional development certificates or credits to your attendees. These certificates are a big draw, and you must get approval to offer them.

The Nuts and Bolts

Providing these services might seem a little daunting and expensive. Don't worry, with a well organized staff or team of dedicated volunteers, it is much easier then you think. Trainings for instance can be put together relatively quickly and at low cost.

For a training, you will need a topic, a presentation, a facility, and lunch. If you are lucky to have experts in your particular field on staff or as organizational members, picking a topic and putting together a presentation will be fairly easy. If you do not have these human resources at your disposal, you will need more lead time to do research or you can solicit experts in the field to present for your organization. You would be surprised how many people would be willing to give up a few hours to support a cause they are passionate about.

The next challenge is finding a facility. This is an area you can save on overhead cost if you are savvy and persistent. There are plenty of venues in your community that are willing to donate space to non-profits such as libraries and county offices. It might take a few calls, but chances are you will be able to find an inexpensive if not free venue in your area that will host about 100 people.

Next, set up the catering. It sounds like the last thing you would want to think about, but people are much more willing to pay for a workshop if lunch is being provided. Find somewhere inexpensive and reliable. You don't have to provide a three course meal. A simple boxed lunch and sodas will do. Your attendees will just want to feel taken care of and a little bit of lunch does just that.

Finally, set a price point. Remember, you will want to set the price a little higher than what it takes to put on the actual event since you will be paying for other operating costs with the money earned. However, be prudent when setting your price point. Remember, that as a non-profit, your mission is to serve the community. You will therefore want to make your services accessible to as many people as possible. Make sure your price point is reasonable.

Trainings are just one example of a service that organizations can offer in order to raise revenue. Consider how your organization serves your community and see if there are any service gaps you can meet. You might be surprised at the opportunities that present themselves.

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