Revenue Sources
Introduction
| The
ACHIEVE Process
Building Multiple Revenue Sources Overview
Although most intermediaries can use more money, the time and expertise required to add a new revenue source or enhance an existing one can be considerable. The choices you make can affect your rate of growth and your ability to sustain your organization at a new level of service delivery. While more revenue is needed and helpful, not all income growth strategies come at the same “price” to your organization. Some revenue sources are easier to implement and take less technical expertise than others; some are more suitable to the mission and strengths of your organization. A frequently-faced question for most intermediaries concerns the best way to grow and sustain increasing levels of income.
Two added wrinkles make the question more complex and the answer more urgent. The cost sharing requirements associated with a Federal grant require you to know how to rapidly raise money and where to turn for help in meeting a cost share or completing a match by the grant deadline. As a teacher and information resource to organizations in your community and to your sub-awardees, you will also be expected to share expertise and deliver training in raising money.
Keep these terms and phrases used throughout this guidebook in mind:
Cost sharing – The portion of a grant’s cost assumed by an institution, which is more than a token amount and not paid by the Federal government.
Financial Resources – The various assets of your organization, from actual cash, property and inventory to your staff and volunteers, good will, reputation, constituent base, board members and partners of your organization.
Income Strategy – The direction you will take in the coming 12 months to generate more income, whether contributed, earned or some other form. One of four strategies makes sense for most organizations: raise cash from existing revenue sources; raise cash from a new source; form an alliance or partnership with an organization that brings cash; or form an alliance or partnership with an organization that brings in-kind resources.
Matching – The value of cash, in-kind and other contributions contributed by non-Federal third parties.
Revenue source – A discrete income source with its own characteristics and requirements. It can be earned income or unearned income. Each of 14 discrete income streams is called a revenue source.
These definitions will gain meaning as you read through the 7-step revenue building process, apply the income strategies and evaluate the revenue sources for your potential use. You are on the path to raising more money and building multiple revenue sources for your intermediary.
Introduction
| The
ACHIEVE Process