Passive Income Need Questionnaire for Charity Owners

  Theme 1: Funding Stability & Dependency

1. Does the organization rely heavily on a small number of major donors or grantors for a significant portion of its funding? (Y/N)
2. Do we experience significant stress or operational challenges during "off-seasons" for fundraising? (Y/N)
3. Would the loss of our top one or two funding sources threaten our ability to deliver core programs? (Y/N)
4. Do we frequently have to adjust our program budgets based on what funding we secure, rather than what is most needed? (Y/N)
5. Is a large amount of staff time and energy dedicated solely to writing grant applications and running fundraising campaigns? (Y/N)

Theme 2: Mission Alignment & Resource Leverage

1. Do we have physical assets (e.g., building space, equipment) or intellectual property (e.g., curriculum, research) that is underutilized? (Y/N)
2. Could our mission-related products or services (e.g., training workshops, publications, expertise) be offered on a fee-for-service basis to a broader audience? (Y/N)
3. Does our charity have a strong brand reputation that could be leveraged to create trusted, mission-aligned products? (Y/N)
4. Are we often forced to pursue grants that are slightly misaligned with our mission just to secure funding? (Y/N)
5. Would having a reliable income stream allow us to be more innovative and proactive in our program offerings? (Y/N)

Theme 3: Operational Freedom & Long-Term Vision

1. Would unrestricted funds (money not tied to a specific project) significantly enhance our ability to cover administrative costs and invest in organizational growth? (Y/N)
2. Do we have a "rainy day" or reserve fund that is sufficient to sustain operations for at least 3-6 months? (Y/N)
3. Is our long-term strategic plan constrained by the uncertainty of year-to-year funding? (Y/N)
4. Would the board and key stakeholders support generating revenue through social enterprise or earned income strategies? (Y/N)
5. Does the idea of our charity having a self-sustaining revenue stream appeal to our leadership team? (Y/N)

How Charity Owners Should Interpret Their Answers

Scoring: A "Yes" answer in Theme 1 and Theme 3 indicates a strong need for diversified income. A "Yes" in Theme 2 indicates the potential to create it.

• High "Yes" in Theme 1 (Funding Stability & Dependency): This reveals a high vulnerability to funding shocks. The need for passive/sustainable income is critical for operational survival and reducing the constant pressure of fundraising. It's about creating financial stability for the organization.

• High "Yes" in Theme 2 (Mission Alignment & Resource Leverage): This shows you have untapped assets. Your charity is sitting on potential revenue streams that could be ethically monetized in a way that supports or even advances your mission (e.g., selling educational materials, renting out space, offering paid certifications).

• High "Yes" in Theme 3 (Operational Freedom & Long-Term Vision): This indicates a desire for strategic autonomy. The need is not just for money, but for the freedom that unrestricted income provides. It allows the charity to focus on its mission-driven work rather than donor-driven work and to plan for the long term.

Summary for Charity Owners:

For a non-profit charity, developing passive or earned income is about mission sustainability. It’s a strategic move to build a more resilient, independent, and impactful organization. The goal is to generate revenue that allows you to say "no" to misaligned funding and "yes" to innovative projects, ensuring the charity's long-term health and effectiveness.