Part 1: Rethinking the Role of Grants
 

Most fundraisers know the familiar grant application question: How will you keep this program running after the grant ends? I remember how baffled I felt the first time I read that question, as if there was some secret to sustaining nonprofit programs outside of grants that I hadn’t been let in on.

That led me to explore this important question: How do we sustain our work year after year with more than just hope that another grant will come around to keep it going? We’ll explore that question further in this three-part blog series, where we’ll dive into how diversifying revenue streams can strengthen nonprofits’ financial foundations. This first piece focuses on earned revenue as a potential revenue stream to explore, and how it starts with rethinking the role of grants and approaching them differently.

Grants are an incredible tool. They help nonprofits start something new, test an idea, or bring a program to life. They also drive us a little crazy, with bespoke application forms, limited project-based funds, and reporting requirements that can feel misaligned with the scope or size of the grant award. Still, they remain a powerful and essential funding source, and organizations rely on them to do work that carries meaning and impact for the communities we serve. 

Predictable, sustainable, and unrestricted revenue (the kind that is not tied to pre-approved budgets or multi-page reports) allows us to keep essential programs going once the grant runs out. One way to move toward this type of revenue is to look at where earned income approaches align with your programs and services. Consider what could be piloted or adapted into an earned revenue model that stays true to your mission, maintains accessibility, and continues to deliver the impact you want to see in the world. 

Here are some steps to get started:

Imagine the possibilities

What if a grant-funded program could evolve into a training model that partners or agencies would pay for? What if grant support for feasibility work opened the door to consulting, product development, or another earned income stream that fits with your mission? What if a capacity-building grant gave you the financial systems that made long-term investment more realistic?

Not every organization will pursue these specific paths, but imagining them shifts the way we see the potential of grant dollars.

Think of grants as nonrepayable capital
 

Grants can cover the risk of trying something new or give time to strengthen internal systems. The key is to ask, what is this grant building toward? It could be:

• Piloting services that can generate revenue. A grant can provide the runway to test a model that, once proven, includes a fee or earned income component. This creates the possibility of future revenue while expanding impact. 
• For example: Imagine your organization runs a community education program that is consistently at capacity. A grant could help you pilot a version of that program designed for professionals or partner agencies, offered on a cost-recovery or fee-for-service basis. The initial funding supports development, materials, and evaluation, while the earned revenue from later sessions helps sustain the work and reach new audiences.
• Building credibility for future investment. A well-run pilot, backed by data and outcomes, makes it easier to approach future funders or even consider repayable capital to resource that program so that it can scale (more on this in part three of our series). 
• Investing in capacity. Grants that support governance, financial systems, evaluation, or staff skills may not be flashy, but they often pay off in efficiency, and position your organization to attract other funding. Having strong governance and efficient systems are critical to developing and managing more sophisticated revenue streams, help mitigate potential risks, and are necessary when accessing financing to support organizational growth. 

Consider return on investment
 

When we talk about sustainability, it helps to borrow the idea of return on investment. For nonprofits, this does not only mean financial return. It includes outcomes for participants, efficiencies created, or credibility gained. It also means looking honestly at the effort it takes to apply for a grant. How much is the grant worth compared to the time it will take to write the proposal, pull data, gather letters of reference, and coordinate partners? How many staff hours go into grant research in the first place?

Being strategic about how you work and which grants to pursue can make a difference. For example, tools like Grant Connect can save time by narrowing the search to funders that actually align with an organization’s work, making it easier to focus on grants with the greatest potential for long-term benefit.

Where to Begin
 

For leaders considering how to take this approach, these steps can be useful:

• Take stock of your organization’s current revenue sources and how stable they are.
• Identify organizational strengths that could form the basis of earned income.
• Find grant opportunities that support pilots or capacity building.
• Design projects with sustainability in mind, including a clear plan for what comes next.
• Track your program revenue, expenses and impact, so you have evidence to guide future decisions.

Some funders are already signalling a focus on financial sustainability. Capacity-building and multi-year grants are becoming more common, giving nonprofits a chance to strengthen themselves in ways that last beyond the grant period.

Grants will always play an important role in our sector. By approaching them with a creative intention, and by thinking about what they build toward, we can use grants not only to start programs but to strengthen organizations for the long run.

At Thriving Non-Profits, we are committed to supporting this shift. Through learning, coaching, consulting, and access to capital, we work alongside nonprofit leaders who want to grow sustainable revenue and build resilient organizations.

Curious to learn more? Stay tuned for our next blog post, where we’ll explore what makes an earned-revenue idea worth pursuing, and how to test it before investing too much time or money.