Diversifying Cash Flow for Queer Nonprofits
Dear nonprofits and fundraising professionals,
For many Queer nonprofits, financial sustainability can be a challenge. Relying too heavily on a single source of funding—whether it be government grants, corporate sponsorships, or individual donors—puts organizations at risk of instability, especially in today’s shifting political and economic climate. To build long-term resilience and ensure the sustainability of their missions, LGBTQIA+ organizations must prioritize diversifying their funding streams.
Here are key strategies for expanding financial resources and securing the future of Queer nonprofits:
1. Reduce Dependence on Government Grants
Government grants can provide substantial support, but they often come with restrictions, long application processes, and political risks that disproportionately impact LGBTQIA+ nonprofits. Over-reliance on public funding makes organizations vulnerable to policy changes that can threaten their financial security.
Alternative Approaches:
Prioritize private foundations that explicitly support LGBTQIA+ initiatives.
Develop grant relationships with family foundations, community funds, and philanthropic entities that offer greater flexibility.
Explore international funders who support human rights and LGBTQIA+ advocacy.
2. Strengthen Individual Giving Programs
Individual donors often provide the most flexible and reliable form of funding. A strong base of individual supporters helps Queer nonprofits maintain independence and weather financial uncertainty.
Actionable Steps:
Create a monthly giving program to establish a steady stream of donations.
Personalize donor stewardship to build lasting relationships and encourage repeat giving.
Use storytelling to connect donors with the impact of their contributions.
3. Engage Major Donors & Legacy Giving
Major gifts and legacy giving programs can significantly boost nonprofit sustainability. Many LGBTQIA+ donors are looking for meaningful ways to support causes they care about, both during their lifetimes and beyond.
How to Cultivate Major Donors:
Host exclusive donor events to build community and deepen engagement.
Identify and cultivate donors with the capacity to make larger gifts through one-on-one relationship-building.
Offer legacy giving options such as bequests, charitable gift annuities, and endowments.
4. Leverage Corporate Partnerships
Despite some companies rolling back DEI commitments, there are still businesses eager to support LGBTQIA+ organizations in ways that align with their values and workforce engagement goals.
Best Practices for Corporate Partnerships:
Focus on authentic partnerships with companies that have a track record of LGBTQIA+ inclusion.
Offer multiple engagement opportunities, from sponsorships to employee giving programs. Connect with your local LGBTQIA+ employee resource groups!!
Develop corporate volunteer programs that foster deeper involvement beyond financial support.
5. Explore Earned Revenue Models
Earned revenue is an underutilized strategy for many queer nonprofits but can provide an additional source of unrestricted funding.
Examples of Earned Revenue:
Offering training, workshops, or consulting services on LGBTQIA+ inclusion.
Hosting ticketed events or conferences.
Selling branded merchandise that supports the organization’s mission.
6. Seek Community-Based and Faith-Based Giving
Local community foundations, giving circles, and progressive faith-based organizations can be strong partners in supporting LGBTQIA+ nonprofits. Religion and faith are often viewed in opposition to Queer organizations and missions, but we all know the world is not so binary. Every year that I have produced a regional Pride event, faith-based and religious organizations are some of the first to support the event. You just need to learn where to find them in your own community.
Opportunities to Explore:
Identify LGBTQIA+ giving circles that prioritize grassroots initiatives.
Partner with affirming religious organizations that actively support queer justice work.
Engage local businesses and community leaders to rally behind mission-driven initiatives.
7. Apply for Impact-Driven Social Justice Grants
Many funders focus on intersectional work that aligns with LGBTQIA+ justice, racial equity, healthcare access, and economic empowerment.
Where to Look:
Research funders through platforms like Candid and Philanthropy News Digest.
Connect with funders focused on broader equity initiatives that intersect with LGBTQIA+ rights.
Consider partnerships with organizations in other movements to co-apply for funding opportunities.
8. Activate Peer-to-Peer Campaigns
Peer-to-peer fundraising can mobilize supporters and expand donor networks while raising funds for specific initiatives. Harness the power of your community! Historically, the greatest supporters of the LGBTQIA+ movement has been itself.
Effective Strategies:
Use platforms like Give Butter and GiveLively to engage supporters.
Encourage board members and major donors to host peer-to-peer fundraising campaigns.
Set clear fundraising goals and provide updates to keep donors engaged.
Diversifying funding is not just a financial strategy—it’s an act of resilience. By reducing dependence on any single funding source and exploring multiple revenue streams, Queer nonprofits can ensure financial stability while remaining mission-focused.
Now is the time to rethink sustainability and invest in relationships, partnerships, and creative funding strategies that allow LGBTQIA+ organizations to thrive for generations to come.
Sincerely,
Queers
Queer For Hire provides fundraising support and LGBTQIA+ diversity training for nonprofits, professionals, and corporations.
Learn about our Fundraising Services <here> – we’ll lead or support your fundraising efforts, whether you need general support or want to focus on raising money from and for the LGBTQIA+ community.
Learn about our Fundraising Trainings <here> – we can coach your board, staff, and fundraising team on how to fundraise and how to engage LGBTQIA+ donors.
Learn about our other services <here> or our resources <here>.
