Expanding your revenue streams doesn’t mean abandoning what already works. Instead, integrate creative, mission-aligned income sources with your existing strategy. This approach creates a healthier financial foundation and unlocks new ways to engage your donors.

To spark inspiration, we’ll explore 3 strategies that go beyond one-off donations and traditional events. Before implementing these suggestions, remember that launching a new revenue stream is a strategic shift. Make sure your board reviews proposals for these ventures to ensure they align with your long-term plan.

1. Launch a nonprofit thrift store

Opening a thrift store provides a reliable, mission-aligned income source that converts community support into sustainable funding. Think about nonprofits like Goodwill and Habitat for Humanity ReStore that have turned donated goods into a dependable revenue stream. While these are large-scale examples, smaller nonprofits can also employ this creative idea, like Lost-n-Found Youth.

With a strategic approach, a thrift store can also serve as a physical representation of your mission. For example, Goodwill employs people from its workforce development programs and uses the revenue from its thrift stores to fund those same community-based services.

How to launch a successful thrift store

• Start small. You don’t need a giant retail space from day one. Start with a pop-up shop or a small retail space in your existing facility.
• Build local partnerships. Connect with local schools, community groups, and businesses that give in-kind donations, so you can maintain fresh inventory without relying solely on individual gifts.
• Create guidelines for donations. Work with your board to establish guidelines for items you can and cannot accept. This protects your organization from the costs of disposing of unsellable items.
• Consider unrelated business income tax (UBIT). Income from thrift stores is generally exempt if they sell donated goods or are volunteer-run. However, purchasing new inventory for resale may trigger tax obligations. Consult a tax professional to ensure accurate Form 990 reporting.

Choosing the right POS system

A modern point of sale (POS) system is your key to managing sales and tracking inventory. To find the best POS system for your thrift store, ThriftCart recommends looking at the platform’s:

• Scalability: Will your POS system grow with your thrift store and accommodate additional stores or product lines?
• Customizability: Can it be tailored to your store’s needs, or will you need to overhaul operations to accommodate it?
• Compatibility: Does the POS system integrate with your existing tools, such as payment processors and printers?
• Security: Is the system PCI compliant, and does it have robust security features to protect customer data?
• Customer support: Does the provider offer training, and is there a knowledgeable support team available?

2. Try a roundup donation or checkout campaign

What if you could raise money by asking for supporters’ change? That’s the magic of round-up programs and checkout campaigns. This strategy involves asking supporters for a small donation when purchasing an item from your store, buying from one of your corporate partners, or giving online.

For instance, let’s say someone is buying an item from your museum’s gift shop. You might ask them to round up their purchase to the nearest dollar. Or, if a supporter is registering for your annual 5K on your nonprofit’s website, your form could prompt them to add a flat $5 or $10 donation before they check out. This low-touch ask is hard to pass up when you emphasize that the contribution will amplify their impact.

How to make your program a hit

• Train your team. A friendly and confident ask from a cashier or volunteer can make all the difference. Give them a simple script to explain how small contributions help your mission succeed.
• Create corporate partnership agreements when working with local businesses. This document should clearly state how the funds will be collected, when they will be remitted to your nonprofit, and how your logo and brand will be used.
• Show gratitude instantly. Use your nonprofit’s donation tax receipts to send an immediate thank-you message. Reinforcing the donor’s positive impact right away encourages them to give again.

3. Offer fee-based workshops and services

Your organization is full of experts with incredible skills and knowledge. Paid workshops, classes, or consulting services create a valuable revenue stream while positioning your nonprofit as a leader in its field.

Consider what your team does best. Does your animal shelter have a top-notch dog trainer? Sell paid obedience classes. Does your environmental group excel at sustainability practices? Offer paid workshops to local businesses. Does your organization focus on financial literacy? Provide paid budgeting workshops to community members.

Think about how you can transform your internal expertise into a public good that people will want to access.

How to create helpful services and workshops

• Create a fair pricing strategy. Research the market rate for similar services. Consider offering a tiered model with a standard rate for corporate clients and a discounted rate for individuals or other nonprofits.
• Leverage your existing assets. Design your services and workshops around the expertise and resources you already have to avoid overstretching your team and budget.
• Run a pilot program first. Test your service with a small audience first. Gather feedback and work out any issues before committing significant resources to a full launch.

Wrapping up

Stepping outside your fundraising comfort zone is the first step toward financial stability. Whether you’re opening a thrift store or selling services related to your mission, these creative revenue streams deepen connections to your community.

By involving your board early and staying mindful of tax compliance, you ensure that these new ventures raise money and build a sustainable future for your mission.