Regardless of whether a company is a for-profit or a nonprofit business, one thing they have in common is that they both must make money to remain in business. Although a nonprofit organization does not focus on making a profit, it must still have money to pay its bills and employees.

There are 27 different types of nonprofit organizations, and each nonprofit must employ tactics to make sure it can remain a sustainable organization. Although there are several ways nonprofits can make money, these four serve as good examples for any nonprofit group.

Grants for Nonprofits

Many corporations, foundations and government agencies offer grants to nonprofit organizations. These grants are usually given to nonprofit organizations with a distinct project or purpose that aligns with that of the donor business.

To save time and effort, it is crucial that nonprofit organizations research grants before applying and make sure that they are a good fit. If the missions, values - and even location in some cases - do not align, the chances of receiving a specific grant are next to none.

A nonprofit organization must apply for a grant. This process typically requires submitting information about the organization, its mission, the people it serves and what the organization plans to do with the money.

Grants are an excellent option for nonprofits because an abundance of them is available, and they can often provide large sums of funding.

Donations and Fundraisers

The top source of funding for nonprofit organizations consists of donations from individuals. Fundraising requires that nonprofit organizations have good relationships with their communities to attract support from the people in it.

Nowadays, the majority of fundraising takes place on online platforms, so nonprofit organizations need to have an online presence they use to interact with their donors online. From that point, they can leverage their supporters' relationships to reach a wider audience and increase the number of donors.

Outside of general engagement online, nonprofit organizations often host fundraising events to make money. From golf tournaments and walkathons to galas and cookouts, the options are plentiful.

Holding specials events to raise money instead of asking people for donations is a more efficient way to raise money because donors receive something in return.

Corporate Philanthropic Support

Many companies set aside money in their budgets specifically to spend on supporting community and social causes. Small local businesses may support community organizations, such as a local youth sports team or a religious organization, while large corporations may support nonprofit organizations with interests that align with the companies' interests.

For example, a financial advising company may choose to donate to an organization that teaches financial literacy. In return, corporations often request that nonprofit organizations mention them or place their marketing materials at an event to increase brand awareness and ultimately attract new customers.

Product and Services Sales

Although the aim is not to make a profit, this doesn't mean nonprofit organizations should not generate revenue through sales. There is no shortage of products that a nonprofit organization can sell to make money. The Girl Scouts and their cookies is a good example of an organization that has made selling a product a significant part of their funding.

The items sold do not have to be extravagant; they need only be interesting enough to draw attention and sustainable enough to keep sales consistent.

Nonprofit organizations may be eligible for discounts from product providers, which keeps costs down and increases the amount of money the organization can make.