Why is it important to diversify fundraising?

From nonprofitanswerguide.org

If there’s one thing the economic downturn has taught us – as individuals or as nonprofit organizations – it’s that diversification is key. Philanthropic and corporate funding sway alongside the economy. In a booming economy, they have more money to give (and in the case of foundations, they have more money that they have to give).

 There’s no simple formula that will apply to all nonprofit organizations. For example, an organization that provides job training to low-income people and is customized to meet the needs of specific large employers is likely to cultivate more corporate funding than the average organization. A scientific research institution may rely largely on government funding. Nevertheless, it’s a safe bet that you shouldn’t be putting all your eggs in one basket. The most important thing is to achieve a balance of funding that’s reliable, flexible and diversified enough to meet your needs.

          (Check out the Fundraising FAQ in this article)

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