What would you do if you were given an unexpected large donation? I was driving home one night when I received a call letting me know that, instead of the $5,000 request, we would be receiving $50,000. It was a good thing I was about to pull into my driveway as the tears of thanksgiving began to fall. The relief of knowing that we would make budget that year was indescribable.
Financial sustainability can keep leaders up at night. It is one area that seems to transcend all types of ministries and churches. Big or small, capacity often feels stretched. The mission and needs of people are real, and the resources don’t always feel like enough.
When I stepped into the role of Executive Director, I prayed for the day when the financial health of the ministry was stable enough to not live donation to donation. And it definitely was less stressful when we were making revenue and budgeting decisions 6-12 months in advance. Yet the praying for the resources to meet the ever-growing needs never fully stops.
One of the most common questions on a grant application is whether the ministry has sustainable funding for the program after the 1 year grant ends. Sometimes I wanted to answer that if they gave more than 1 year of funding, the program would be sustainable!
At times, sustainable funding can begin to sound like a myth. Can it be achieved? Perhaps the issue isn’t whether sustainability exists but how we define it. It’s a myth to believe there is a single, permanently sustainable funding source.
Sustainable funding is not guaranteed funding. Any single source of funding could end overnight. If 20% or more of your funding comes from one donor or source, your ministry becomes more vulnerable to sudden change, whether priorities shift, circumstances change, or funding ends unexpectedly.
Similar to wise investing advice, a healthy funding approach includes diversification. Having multiple funding sources across different sectors increases your ability to maintain stable funding during a crisis.
There are many ways funding can come into a ministry. You don’t need all of them—but relying on only one creates risk. Consider some possible revenue sources:
- Donations/tithing
- Grants
- Events
- Social Purpose
- Member fees
- Rental Income
- Endowment Fund
- Legacy Giving
- Securities
It’s also helpful to reflect on who your funding comes from. A strong model draws from more than one sector, such as:
- Individuals
- Community Groups
- Churches
- Foundation
- Business
- Government
A diversified funding model uses multiple sources and sectors.
A sustainable funding model rarely happens by accident. It grows from a thoughtful plan that identifies the activities needed throughout the year. It centres on saying thank you and building relationships.
At first glance, this may seem overwhelming. Especially when looking at the technical aspects of the fund development plan. Yet we go back to the prayer. You are not alone. God is generous and will give opportunities for the resources that you need, including the wisdom and capacity to build a funding model that fits your ministry’s size and season.
The Studio by CCCC is a place to have the conversation about your sustainable funding model. Visit cccc.org/thestudio to learn more.
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