Strengthening Our Communities: Pathways to Financial Sustainability for For-Purpose Organisations
For-purpose organisations are the heart of many communities, addressing local needs and creating lasting impact. However, staying financially sustainable is an ongoing challenge. Recently Community Waikato hosted a Managers Forum to exchange ideas about how to create greater sustainability within our organisations. Together, we explored ways to ensure organisations can continue their vital work while staying connected to the communities they serve. The focus of our conversations was firstly around seven potential income streams: these being donations, sponsorships, fundraising, social enterprise, grants, contracts, and membership. Secondly, we discussed how we can make the most of what we have.
What follows is a summary of some of the key insights generated during this forum.
Donations: Building Relationships and Trust
A key part of creating financial stability is finding ways to engage more people and ensure donations are ongoing. Forum participants stressed the importance of making donor relationships personal and meaningful. It’s not just about asking for money—it’s about showing how donations directly help solve real problems in the community.
One suggestion was to share stories that clearly show the difference each donation makes, whether it’s through social media, newsletters, or thank-you notes. Donors want to feel connected to the cause and see the results of their contributions. By showing transparency and gratitude, organisations can build trust and create lasting relationships.
Recurring donations, such as payroll giving or gifts left in wills, were also highlighted as ways to ensure long-term support. Understanding why people choose to give can help tailor experiences that deepen their commitment to the cause.
Sponsorship: Building Meaningful Partnerships
Sponsorship can provide an essential source of funding, but it works best when it’s a partnership that aligns with both the sponsor’s values and the organisation’s purpose or mission. Forum participants discussed how important it is to be clear about what an organisation can offer to potential sponsors, whether that’s visibility, community engagement, or the chance to give back.
Contributors emphasised the value of building personal connections with sponsors, such as hosting meet-and-greet events or providing regular updates on how their support is making a difference. By making it easy for businesses to get involved and showing the shared benefits, organisations can create strong, ongoing sponsorship relationships.
They also highlighted the importance of looking for “connectors”—people or organisations that already have ties to local businesses and can help open doors to new sponsorship opportunities.
Fundraising: Bringing the Community Together
Successful fundraising is about more than just collecting money—it’s about bringing people together around a shared cause. Participants at the forum discussed the need to diversify fundraising efforts, using a mix of events, partnerships, and platforms that make it easy for people to contribute.
One suggestion was to host annual events that not only raise money but also raise awareness about the organisation’s work. Piggybacking on existing community events or partnering with local businesses can also help create new fundraising opportunities.
Making it easy for people to give was another key theme. Whether through payroll donations, crowdfunding platforms, or even tapping into existing networks, organisations need to offer a range of ways for people to get involved. When people feel connected to the cause and see the real-world impact of their contributions, they’re more likely to keep giving.
Social Enterprise: Creating Lasting Impact Through Business
Many community organisations shy away from revenue-generating activities, fearing they conflict with their mission. However, some forum participants encouraged a shift in thinking: social enterprise can be a powerful way to generate steady income while staying true to an organisation’s values.
By leveraging the skills and knowledge already present within the organisation, leaders can explore opportunities like offering training, consulting, or selling products that meet community needs. The key is to think beyond day-to-day operations and consider what unique value the organisation can offer to the broader community.
Conducting market research to understand what services are needed and how they could be provided is an important first step. With careful planning, social enterprises can help create both financial sustainability and greater social impact.
Grants: Planning for the Future
Grants are an essential source of funding for many community organisations, but they come with challenges—especially when the funding runs out. Forum participants discussed the importance of choosing grants that align with long-term goals and building relationships with funders that go beyond just filling out an application.
One practical tip was to develop a simple, one-page resource that clearly outlines the organisation’s mission, impact, and stories of success. This can be shared with multiple funders and updated regularly to reduce the strain of constant grant applications.
Collaboration was also a key theme. By working with other organisations, groups can increase their capacity, share resources, and make a stronger case to funders for why their work deserves support.
Contracts: Balancing Income and Values
Contracts can offer reliable income for community organisations, but they need to be carefully balanced with the organisation’s mission/purpose. Participants emphasised the importance of understanding what potential contract partners value and framing the organisation’s work in a way that resonates with them.
Collaboration was seen as a way to secure larger contracts and share the work across multiple organisations, ensuring that the contract doesn’t take resources away from the core mission/purpose. Maintaining strong relationships with contract partners is also essential to ensuring long-term stability.
At the same time, participants stressed the need to stand firm on values—organisations should not compromise their mission for the sake of a contract, but rather seek out opportunities that align with their purpose.
Membership: Keeping the Community Engaged
For many community organisations, membership plays a vital role in both financial sustainability and ongoing support. Participants discussed the importance of keeping long-term members engaged by offering clear benefits and acknowledging their continued support.
Offering exclusive opportunities, such as discounts or access to special events, can add value to a membership model. At the same time, partnering with local businesses to offer additional benefits to members was seen as a way to create stronger ties between the organisation and the community.
Making the most of what we have
For community organisations, making the most of what we have is about working together and supporting one another. One way to do this is by pooling resources through collective purchasing, where groups can join forces to get better deals and save money. Equally important is looking after the wellbeing of our staff, volunteers, and ourselves—our people are our most valuable resource. It’s also helpful to reflect on how things have always been done and consider new approaches that might make our work easier or more effective. By connecting with other local organisations, we can share ideas, resources, and even physical spaces, helping everyone achieve more. Streamlining processes, reviewing where we spend money, and building stronger peer networks can also free up time and energy to focus on what really matters—serving our communities. Through collaboration and a willingness to embrace change, we can stretch our resources further and continue making a meaningful impact.
Conclusion: Strength in Community and Sustainability
The conversations at the Managers Forum highlighted the profound power of community. Building deeper relationships with donors, collaborating with other organisations, and partnering with businesses that share similar values were identified as key pathways to success. By focusing on trust, transparency, and shared goals, for-purpose organisations can create a strong foundation for long-term financial sustainability.
However, financial stability is just one piece of the puzzle. It’s about creating lasting connections that keep us rooted in the communities we serve, ensuring we continue making a meaningful impact for years to come. True sustainability also means embracing collaboration, innovating in how we manage resources, and putting the wellbeing of our people first. When we work together, share our skills, and focus on shared outcomes, we strengthen not just our individual organisations but the entire community. Through this collective effort, we can create a future where for-purpose organisations thrive and continue their vital work, deeply connected to the communities they support.