What are the benefits and challenges of diversification of revenue for nonprofit organizations

Diversification of funds for nonprofit organizations is often thought of as the best practice for financial security, especially in uncertain times. This study will explore what types of fundraising activities are most effective for nonprofit organizations as well as if diversifying funds is the correct choice for a nonprofit. The sustainability of fundraising activities is another element that will be discussed in this paper. The current lack of research limits the findings and conclusions of this study. Based on the information gathered, there is no conclusion that can be drawn. The results of this study suggest that further research is needed to determine if diversification of revenue is effective or sustainable for nonprofit organizations. Future research should also include in-depth information regarding how to decide what is best for your organization, which fundraising activity or activities have the highest return on investment and the key methods that were utilized for success