Things are changing in the NFP world. Grants are becoming harder to source, and nonprofits have more competition than ever, making it harder to seek sponsors and donors.

As many NFPs rely mainly on some type of government funding or grant, when things change, it can be a struggle to keep up. For the majority of NFPs, it can be tricky to find sustainable income in order for them to carry out their social impact goals; it is time for them to get creative with their NFP finances.

More nonprofits have to consider some kind of commercial angle to their business. While it does go against the grain for many nonprofits, the truth is, that if they don’t manage to commercialise some of the approaches to business, they may not be able to keep their doors open at all.

NFPs rely on a lot of volunteers to ensure their doors remain open, but the heart of the matter is, passion does not maintain a business alone. It may get it started and help it retain its focus, but NFPs can no longer rely on donations to come in regularly to keep them afloat.

While these business transactions can come in many forms, they often include creating new beneficial partnerships, diversifying the nonprofit to create a more profitable arm, improving marketing strategies and developing a new and improved management model.

Like with any business, you need to test the waters to see what may work for your specific situation. And as more NFPs start to diversify, the need to be even more transparent is more important than ever. There is a strong duty of care when it comes to modern-day charities, and the public wants to know exactly where their donations are going.

Of course, as the NFP landscape starts to shift, so must the expectations of the public and donors. People don’t expect to see the not-for-profit sector taking their financial matters into their own hands; but, if they wish to remain open in the long-term, many NFPs will find they have no choice but to look to new and unexplored avenues.