Financial sustainability is necessary for the long-term survival of any business, but for non-profits, money-making comes with an entirely different set of factors to consider — and collecting sufficient and continuous funds to deliver their organisational mission has long been giving NGOs and non-profits sleepless nights.
Even if you do have a stable source of revenue, it’s a good idea to look at diversifying and innovating with your money flow.
Diversify your income with tourism
As a general rule, NGOs and non-profits should not let any of their income streams be responsible for more than 30 per cent of their total income. The reason is that it is exceptionally difficult to adapt and survive if an organisation suddenly loses more than one-third of its income.
Although tourism is not the first industry that comes to mind when thinking about corporate social responsibility, there is a growing interest from tourism businesses not only to meet environmental criteria but also to give back to the people and places they visit. There’s also an increasing trend, particularly among millennials, to engage with brands that do good. Both the financial calculations and customer pressure are making tourism businesses look for new ways of working with communities. This in turn is opening new doors for NGOs and non-profits to engage with tourism, and to raise funds directly or indirectly through travel-related activities.
Here are a few sources of in-kind and unrestricted funding that tourism can bring to your organisation:
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Image source: One Horizon, Kenya