What Funding Models Support Your Mission?

If your nonprofit is living grant to grant, just one funding gap away from a crisis… you’re not alone.
But that doesn’t mean you’re stable. It means you’re surviving.

As The Fixer™, I’m here to tell you the truth: no single revenue stream will keep you sustainable.

To lead with strategy, you need a funding model that reflects your mission, matches your capacity, and balances risk.

Let’s break it down.

What Is a Funding Model?

A funding model is more than a list of grants or a few donor names. It’s the intentional structure you build to consistently generate revenue to support your mission.

It answers:

• Where does your money come from?

• How much of it is restricted vs. flexible?

• What happens when one stream dries up?

Common Funding Models for Nonprofits

Here are six you should understand — most orgs use a mix:

1. Foundation Grants

• Competitive and often restricted

• Good for pilot programs or research-backed initiatives

• Risk: Lack of renewals or shifting priorities of funders

2. Government Contracts

• Larger dollars, often multiyear

• High compliance, slow payment cycles

• Best for orgs with strong infrastructure

3. Individual Donations

• Ranges from one-time gifts to major donors

• High flexibility when unrestricted

• Requires relationship-building and ongoing engagement

4. Earned Income / Social Enterprise

• Fees for service, product sales, consulting, or training

• Helps diversify unrestricted funds

• Best when tied directly to your mission

5. Corporate Sponsorships & Partnerships

• Often tied to events or branding

• Can offer in-kind support as well as funding

• Needs strong visibility and alignment

6. Membership or Subscription Models

• Recurring income tied to access, community, or value

• Useful for advocacy groups or content-focused orgs

Fixer’s Funding Formula: 3 Key Questions

1. What does your mission demand?

   • Do you need flexibility or structure?

   • Are your services fee-based or free?

2. What is your capacity to manage each stream?

   • Do you have systems for grant compliance?

   • Can you manage client payments or donor tracking?

3. What’s your risk tolerance?

   • If one funder walks away, can your org survive?

Real Talk: Diversify — But With Intention

The goal isn’t to do everything. It’s to do the right things well.

Too many founders hear “diversify” and chase every opportunity — events, products, grants, donors — and end up overwhelmed with 10 weak streams and no strategy.

Instead:

• Build depth in 2–3 streams first

• Add complexity as your infrastructure grows

• Create a long-term funding vision, not just a short-term cash grab

Pro Tip: Track Your Mix Annually

Use a simple pie chart to visualize your current funding breakdown. Then set targets to shift it based on your goals.

Download the Funding Streams Brainstorm Sheet to evaluate your current model and plan your next move.

 Need help building a funding plan that actually works? Let’s talk: trinitystrategic.co

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