Frequently Asked Questions
We consider grant support to be soft money in that the amount you receive will change from year-to-year. For this reason, it is important that all nonprofit organizations have a diverse portfolio of revenue sources, similar to a personal investment strategy. Look to develop a robust resource development program that may include foundation grants, individual donors, major gifts, government support and contracts, and fees for service.
While budgeting is not our expertise, we follow the rule of thumb to not let one source of funding exceed more than 30 percent of a non-profit’s budget. If an organization loses 30 percent of its revenue, it could likely restructure in order to survive. However, if the loss were to exceed 30 percent, keeping the organization solvent would be a significant challenge.