Can you believe we’re approaching the end of 2020 already? It’s been a heck of a year! As nonprofit leaders search for creative new ways to generate sustainable revenue for their organizations, Jenni wants to provide some food for thought. In this episode of the Nonprofit Jenni Show, we’ll play a trivia game about the most successful types of creative revenue ideas! We’ll also revisit an interview from the archives with Brad Kimbler, CEO of the social enterprise Staff 360, which is owned by the nonprofit Safe Haven Family Shelter.
Does Your Nonprofit Sell Anything?
Nonprofits have been hit hard this year financially, and people want to help however they can. Next month, I’m releasing a “Gifts That Give Back” holiday gift guide to help nonprofits sell their products to shoppers who want to make a difference with their purchases!
Does your nonprofit sell a product or service? Let me know what you sell and what mission your products support for a chance to be included in the shopping guide!
(Note: I am not charging nonprofits any fees to have your items included, and I will not collect any of your buyers’ info—they will be directed to purchase items straight from your website!)
3 Questions About New Revenue Streams for Your Nonprofit
In my latest episode of the Nonprofit Jenni Show, I host a quick game of trivia to test your knowledge about successful new revenue streams! My sister appears on the podcast to play trivia based on the book Originals by organizational psychologist Adam Grant. These three trivia questions can help you find revenue-generating creative ideas to support your nonprofit:
Which child (oldest, middle, or youngest) is most likely to develop revenue-generating creative ideas?
You may be surprised to learn that the most successful, creative kids are the youngest of their siblings! If you’re an oldest or middle child, that doesn’t mean you can’t come up with new revenue streams for your nonprofit -- it just means you need to get in the mindset of a youngest child.
In his research, Adam Grant found that youngest children are more likely to be successful in finding creative ways to earn money because their parents typically put less pressure on them to do specific chores, earn high grades at school, and have perfect behavior. The youngest child is usually given a lot more leeway in their behavior and have more time to pursue creative hobbies. They also usually feel less afraid to fail; they know that if one of their creative ideas doesn’t work, they can always try again.
As you brainstorm creative new ideas to earn revenue for your organization, don’t be afraid to explore ideas that have the potential to fail. Remember that when you start researching a new idea, or even try launching a new idea, there are countless more revenue streams to try if your first attempt doesn’t work.
When you brainstorm new revenue streams, should you procrastinate?
Do you think you should procrastinate:
Before you start brainstorming ideas for new revenue streams
During your brainstorming process -- For example, you brainstorm ideas for a new revenue stream, and then you take a break before you start implementing your ideas.
Never -- You should reward yourself with a break after you’ve developed the new revenue stream.
Grant found it makes most sense to procrastinate before you start brainstorming solutions to help your organization earn more revenue. In his research, he found that procrastinating early on in the brainstorming process helps promote creativity. For example, if you play a video game, paint with watercolors, or engage in another type of relaxed activity before you start brainstorming new revenue streams for your nonprofit, your mind has a chance to wander and come up with better ideas in the background.
Grant found that if someone procrastinates during the brainstorming process, the procrastination doesn’t really help. For example, let’s say you decide to let yourself relax for a while after you’ve brainstormed some ideas for new revenue streams. You may think taking a break before you start to implement a new revenue stream would offer the same benefits of taking a break before you start brainstorming solutions in the first place.
Unfortunately, once you’ve made a decision about which revenue stream to pursue, Grant found that you’re less likely to allow yourself the flexibility to brainstorm other revenue-generating possibilities. Your mind has less of a chance to consider alternatives and find the idea that has the greatest potential for success.
When you have an idea for a new revenue stream, what type of person is the best at helping you refine your vision?
Let’s say you’ve come up with an idea for a new revenue stream for your nonprofit. Now it’s time to run your idea past a colleague or friend to get their feedback. What type of person is the most likely to provide input that will make your plan more successful?
Here are your options:
A manager (Such as a board member or your Executive Director)
An investor (Such as a major donor and/or grant maker)
A focus group (A group of people who match the demographics of your target audience, such as a group of people you might ask for donations in the future)
Another creator (Another nonprofit leader who has developed revenue streams for their organization)
The last option, another creator, is your best bet!
In his research, Adam Grant found that managers and investors are very risk-averse. They typically want to support ideas that are already familiar to them. (This is why many nonprofit leaders like to host signature fundraising events with the same theme and format year after year.) People in a managers or investor role are likely to shy away from innovative ideas that have the potential to fail.
This may make you think that a focus group made up of your target audience would be better at helping you refine your fundraising plan. For example, if you come up with a revenue-generating idea that will specifically target Millennials as donors, you may put together a group of ten local Millennials, pitch your idea to them, and ask for their feedback. However, Grant found that when you put people in a focus group, you’re actually putting them in the hypothetical role of a manager or investor. The people in your focus group are tasked with deciding whether your idea will make money, and this makes them feel like they need to get in the managerial mindset to offer good advice.
However, if you approach another creator, you’re more likely to get feedback that actually helps you improve the revenue potential of your idea. For example, you could go to the Executive Director or Development Director of another nonprofit organization and ask them for feedback on your idea. Other creators are interested in learning about new ideas, but don’t feel like they actually have a personal stake in your organization. They’re disconnected enough to give honest feedback without having to enter the mindset of a manager or investor.
Example of a Creative Revenue Stream: Staff 360
Brad Kimbler is the CEO of Staff 360, a revenue-generating social enterprise owned by the nonprofit Safe Haven Family Shelter. This week on the podcast, you can hear my interview with Brad about how Staff 360 supports a nonprofit mission while also generating revenue for the organization!
Listen now on:
Schedule a Free Call with Jenni to Talk Through Your Marketing Challenges
I would love to take a look at your social media profiles, website, and other marketing materials to help you find new ways to improve your storytelling and calls-to-action! I offer a free half-hour call to all social sector organizations so we can identify some realistic goals and action steps for your marketing, management, and development plans.
If you need more strategic, ongoing support, I would love to chat with you through biweekly coaching calls! I also offer several free and affordable DIY resources to help you walk step-by-step through the planning process for your marketing and fundraising strategies.