Non-Dues Revenue for Nonprofits: The Basics

Generating non-dues revenue for a nonprofit is much more than just a robust fundraising strategy.

Many nonprofits aren’t aware of the impact that non-dues revenue can have on their mission. It’s always good to diversify your nonprofit’s revenue stream by including non-dues revenue in your financial strategy, rather than relying on membership dues to keep the lights on. But the question on many nonprofits’ minds is how to generate non-dues revenue while maintaining nonprofit status, other than just donations.

What is Non-Dues Revenue (NDR)?

Simply put, non-dues revenue is any money an organization makes outside of dues. There are essentially two types of non-dues revenue—revenue earned from vendors, advertisers or suppliers interested in reaching an industry and community; and revenue made from charging members additional fees for meeting registrations, webinars, books, professional certifications, publications and reports, subscriptions, branded merchandise and more.

While it seems easy to understand, it can be unclear on how to leverage assets to tap into these revenue streams—especially if your nonprofit doesn’t have a strong sponsorship strategy like sponsor space in newsletters.

Can Nonprofits Even Make a Profit?

Yes! One would think that with a name like NONprofit, creating revenue wouldn’t be an option and would affect the nonprofit status. However, nonprofits can make a profit as long as all profits are invested back into the organization. These funds can be used for a variety of operational activities:

• Office supplies
• Rent and utilities
• Salaries/wages of employees
• Event expenses (venue rentals, event materials, catering, etc.)
• Technology and software
• Recruitment efforts (volunteers and members)
• Legal services
• Insurance
• Licenses and registrations

So, any non-dues revenue your nonprofit gains will impact the difference you can make. Imagine if your nonprofit organization had a larger budget for your event expenses or recruitment efforts – non-dues revenue could do this for you!

Benefits of Non-Dues Revenue for a Nonprofit

Having a diverse revenue stream for a nonprofit is a game changer when managing a nonprofit’s finances. As a nonprofit, you know all too well the challenge of achieving your goals on a small budget. Implementing more non-dues initiatives will grow that budget and allow you to do so much more.

Non-dues revenues will:

• Provide your nonprofit with financial stability—no more worrying about keeping the lights on; instead, you can focus on using funds to achieve your mission.
• Increasing recruitment efforts—whether your nonprofit is looking for more members or more volunteers, raising awareness and attracting individuals costs money.
• Enhance your nonprofit’s impact—increased finances allows you to provide more resources and aid to your nonprofit’s community.

Examples of Non-Dues Revenue for Nonprofits

So, you’re ready to boost your nonprofit’s capabilities with a non-dues revenue program – start with these ideas for repurposing, repackaging, and/or enhancing existing assets within your organization.

Monetize your website

Use your web platform as an advertising agent. Even if you aren’t a techy person, it can be quite simple to add a sponsor’s or advertiser’s logo, link to their product or services or even a quick block of text to promote another organization/business.

Things to keep in mind: anything your nonprofit shares on your website should align with your goals, mission and message.

Newsletter ad space

You may have a weekly, monthly or even quarterly newsletter. This is usually on a routine basis, so having a small spot for an advertiser to share their product or business can bring in a small bit of consistent non-dues revenue to your organization.

Things to keep in mind: those receiving your newsletters are very tuned into your messaging and are used to a particular type of communication. Don’t let ad space contradict your message or take over your newsletter; this could lead to high unsubscribe rates.

Tickets for events

Whether you’re putting on huge fundraising events or more modest educational sessions, you can charge admission/ticket fees. These fees are flexible and you can even offer discounts for your members, making them feel valued and more likely to attend.

Things to keep in mind: ticket pricing should reflect what is being offered at the event. Educational sessions with highly regarded speakers can be more expensive than small events with local educators. You don’t want to price people out of an event or experience higher operational costs than ticket revenue.

Read more: How to Plan a Fundraising Gala

Meetings and conferences

This is one of non-dues revenue’s highest and most steady earning potential. Your nonprofit may already have well-developed meetings with exhibitors and sponsors; or perhaps you simply convene with little fanfare. Regardless, the potential revenue from meetings is limitless. Utilize everything from physical sponsorships like banners to digital sponsor slots on your mobile app.

Things to keep in mind: no one wants to go to an event where everything is sponsor-city, so don’t go overboard!

Read more: How to Write a Sponsorship Letter (+ 7 Templates)

Rent our your facilities

Depending on the size of your nonprofit, you might have a building or multiple office/conference rooms at your disposal. Offer these spaces for a rental fee for other local organizations (like clubs) or businesses to use for their meetings, events or training sessions. This extra income can be earned on a regular monthly basis or for one-off events.

Things to keep in mind: don’t let this affect your ability to operate your nonprofit. If it displaces your own meetings and activities, it’s not worth the headache!

Job board

Implementing a job board benefits more than just your specific industry; it’s also a fantastic way to make non-dues revenue. An industry-specific job board will provide relevant job postings for your members and give employers a pool of higher-quality candidates. Most job boards, including ours here at WildApricot, utilize a revenue-share model, so it’s free to set up and a passive way of generating non-dues revenue.

Things to consider: do you want this to be a members-only job board? Or open it up to the public? Think about what you will charge for job listings and what kind of opportunities you will allow to be posted.

Fundraising appeals

Your nonprofit is likely already familiar with how to ask for donations and it is a crucial part of your financial strategy. When sending out an appeal for donations, utilize all avenues of communication. A complete fundraising strategy will include email campaigns, text messaging, direct mail, phone calls, calls-to-action (CTAs) on your website and regular requests in newsletters.

Things to consider: while building non-dues revenue through fundraising appeals is important, don’t overdo it. If every time you communicate with those in your database, the request is for a donation, you’ll drive people away, increasing unsubscribes and losing donors.

Read more: How to Create a Stronger Annual Appeal Letter

Flyers in welcome packets

We’ve talked a lot about embracing sponsorships and advertising for your non-dues revenue strategy and your new member welcome packets are no different. Allow an advertiser to pay and have a promotional flyer included in each packet delivered. New members will likely read through everything included in this packet, making it highly valuable to advertisers.

Things to consider: you don’t want to fill these packets with a bunch of advertising flyers. Pick one, maybe two advertisers for the coveted spot and select advertisers who offer something valuable to your new members.

Gated content

Many nonprofits house a lot of fantastic educational content on their website. Putting a small fee some of this premium material can be another stream of revenue for your nonprofit. This content could be anything from an e-course, white paper, educational webinar, e-book or guide, case study and more!

Things to consider: if your members already pay yearly/monthly dues, consider including this gated content in their membership but allow non-members to buy access to this content as a part of the non-dues revenue strategy.

Certifications, education and training

We’ve mentioned how charging ticket fees for events is a major stream of revenue when it comes to NDR. Your nonprofit can utilize a similar strategy for certifications, education and training you offer. Whether these courses are on-demand on your website, live virtual training or in-person sessions, charging a small fee to generate more revenue is a good idea.

Things to consider: make sure the sessions you offer are worth the price and that there are features that entice individuals to attend. This can be done by having a unique educational course or a highly accredited speaker/educator.

Merchandise

Selling branded merchandise is a great way to raise awareness of your nonprofit and build non-dues revenue for your organization. Mugs, hats and t-shirts are classic options that everyone loves, but think of other unique merchandise to stand out from the crowd. For example, consider handheld, portable fans, especially if your nonprofit is putting on an outdoor fundraiser during the hotter months.

Things to consider: if your current merch isn’t selling, ask your members what they want to see! You don’t want to purchase a bunch of hats that sit in a storage closet and don’t sell.

Read more: Can Nonprofits Sell Products? Here’s What You Should Know

Launch Your Nonprofit Non-Dues Revenue Strategy

This list is really just a good starting point. Every nonprofit has different goals and a unique mission – some of these ideas might not work for you and some of them might be the solution to any budget woes. Hopefully this information will help your nonprofit garner the funding you need to sustain your legacy, embark on new initiatives and make a greater impact on your community.

Software to boost your non-dues revenue efforts

Utilizing software to automate tasks can help with many of the strategies we’ve mentioned. If you don’t have a nonprofit management software, consider trying ours! WildApricot is a powerful, all-in-one cloud software that allows you to manage membership, website, events and more all through your browser.

Here are some features that will help your NDR strategy

• Website builder: use our widgets to embed event calendars and donation forms on your website. Gate your premium content by building pages with exclusive access.
• Payment processor: securely receive payments and donations through Personify Payments, our built-in payment processor. You can also track these payments or donations, automate invoices and report this data easily to your finance team.
• Event management: plan your next event, whether its a fundraiser, educational seminar, training session or conference, with our event registration software. Create the event listing and customize registration forms plus, individuals can register and pay for tickets easily online.
• Email and contact database: easily communicate with your nonprofit’s members by automating email confirmations and reminders. Use this feature to send out your newsletters, promote events, build email campaigns and segment your audience for specific messages.
• Online store: sell merchandise or services and accept payments instantly. Generate and manage your nonprofit’s sales all from one platform.

Try a 60-day free trial of WildApricot today and see the benefits our software can bring to your nonprofit’s non-dues revenue strategy!