Uncertainty about the future for non-profit organizations was a key theme in the latest State of the Sector Report: Safety Net. This is in part due to organizations doing more with less resources, and rising costs.
Scale Collaborative is working to address these challenges by supporting non-profit organizations and their teams, and identify financial strategies that will not only create resiliency but help them thrive. While much of the funding in the non-profit sector is tied to specific projects, the key for organizations is to find ways to have unrestricted funding available to ensure there are appropriate internal resources to carry out the organization’s mission and vision.
Since 2016, the Victoria Foundation has been a key community partner with Scale Collaborative through the Thriving Non-Profits program.
“We provide the tools, the resources, and the learning, but it’s the organizations that choose what’s right for them and their mandates.” – Kristi Rivait, Scale Collaborative
Since 2016, the Victoria Foundation has been a key community partner with Scale Collaborative through the Thriving Non-Profits program.
Thriving Non-Profits
Thriving Non-Profits is a leadership training program created by non-profit leaders for non-profit leaders. The program helps organizations develop the mindset, culture, and diversified revenue strategies required to integrate new entrepreneurial approaches to achieve financial resilience and greater community impact.
Kristi Rivait, director of Partnerships and Programs at Scale Collaborative, said, “In 2015, we started the conversation with Victoria Foundation about teaching entrepreneurial strategies to support the sector –looking at different kinds of revenue streams, essential cultural shifts, and how to develop a strategy with their team.”
“Non-profits and charities are solving today’s greatest challenges,” explained Kristi. “They’re also creating vibrant cities and communities. We know that needs are becoming more complex and costs are increasing at the same time traditional funding trends are showing diminishing returns. For organizations to be resilient, they can diversify their revenue streams to help weather financial ups and downs, support their internal operations, and create more impact. Organizations need access to tools, knowledge, and expertise to help build abundant organizational cultures and financial strategies. This shift in mindset is critical for creating the world we want to live in, where everyone belongs.”
Scale and Victoria Foundation partnered to pilot Thriving Non-Profits for 8 Victoria organizations in 2016 and has grown steadily from there. Program participants engage in various strategies to help their leadership teams inspire a culture shift from scarcity to abundance: diversifying revenues and increasing impact through vehicles like social enterprise, corporate partnerships, and asset acquisition and development, such as real estate. By 2022, Thriving Non-Profits has been delivered to over 200 organizations across five provinces.
The program is conducted over 5 months, with a cohort of 12 organizations, with up to three participants from each organization. Organizations receive seven hours of expert coaching, covering nine revenue strategies to develop a single action plan for revenue diversification.
How Can Non-Profits Generate Revenue?
Although grants and funding will always be critical to the non-profit sector, sustainable non-profits can’t rely on grants, government contracts, or donations alone – they need to find additional revenue sources and assets to continue delivering their services to their communities.
To help shift the mindset, Scale Collaborative starts by helping the program participants understand the culture and beliefs that surround money. “We then go into the different strategies,” shared Kristi, “to see what’s revenue is possible and show what potential strategies might look like and what things you want to consider in your organization. Then they learn and share as individuals and come together in their organization teams at the virtual sessions to strategize. We’ll try to have a senior staff member, a board member, and an executive director participate, covering the three areas of your organization to ensure the culture shift reaches across the organization. As a team, identify the best idea for their organization with a particular strategy.”
There are different types of revenue that organizations can bring in to fund their operation. Donations and philanthropy, including government funding, are essential, but there’s also the possibility of earning revenue, which can include funds from services rendered, products sold, leveraging expertise, or having an asset that provides additional revenue, such as rent collected. The goal is to create multiple revenue streams that go back to the non-profit to support operations and the programs they deliver to their communities.
Revenue Diversification Strategies
“A fee-for-service strategy,” said Kristi, “is one example and many organizations aren’t used to charging fees. It doesn’t mean the beneficiary is paying those fees; it could be a different kind of partnership that allows for lower costs. What we’re noticing is that when organizations do have fee-for-service strategies, they’re actually able to have a greater impact through a paying audience, who are also in need of the services within the community. The revenue generated from payment can then go back into the programs, creating better access to opportunities for everyone involved.”
Created for Leaders by Leaders
Thriving Non-Profits program was developed based on the real-life experience of leaders who understand the unique challenges and dynamics of the non-profit sector. The “for-non-profit leaders by non-profit leaders” approach has ensured that the experience of operating a non-profit has deeply informed the strategies, tools, resources and coaching that participating organizations receive. The cohort approach and peer learning provide opportunities for ongoing collaboration and capacity building. After completing the program, organizations become part of a growing Thriving Non-Profits Alumni and online Community where they can tap into the expertise, peer learning, and a network of other like-minded leaders across Canada.
Making an Impact
To date, the Thriving Non-Profits program has worked with over 250 organizations through 20 cohorts- 9 out of 10 participating organizations have implemented at least one enterprising strategy. Organizations from all different sectors participate- from accessibility and inclusion to youth services to food security to climate change and everything in between.
“The Thriving Non-Profits Program provided our organization with a strong foundation for future fund diversification, and it created a safe space to learn with and from other organizations and offered new perspectives and out-of-the-box thinking.” – Kara Udell, Executive Director, Capital Region Food Share Network
Bridging the Capital Gap: Thrive Impact Fund
The Thrive Impact Fund was developed and launched in 2021 to fill a gap for BC impact organizations— providing access to early-stage and flexible loans to support social enterprise growth and assets acquisition. Thrive provides flexible term loans and revenue-based financing, a “shared success” financing model.
Thrive is an impact-first fund, which means that the focus is on impact over financial returns. “Impact is defined by the organization,” explained Kristi. “We support organizations that want to scale something that’s really working, or purchase an asset, whether that’s a truck or a building. We’re not trying to replace the financial institutions but help support organizations with particular capital gaps, and this enables them to access traditional financing when they’re ready.”
The fund is designed for longevity. As each loan is repaid, those funds are loaned out again—this means that any investment into the fund by investors has the ability to generate multiple benefits.. In its first year of operations, Thrive has invested in a number of enterprises addressing issues such as reducing plastic pollution, healthy waterways, waste diversion and supporting local artists.
To learn more, read Why Investing in Impact Organizations Makes Sense.