What's Blocking Associations from Diversifying Income?

Insights From Our Income Diversification Roundtable.

In a rapidly evolving landscape, non-profit membership organisations must generate alternative revenues to sustain operations, grow and increase their impact.

We ran a closed door, income diversification roundtable with association professionals recently to discuss the topic and to help identify avenues for income.

What emerged throughout our discussion was fascinating and not what you think.

The overwhelming consensus of all that participated, and the key reason many associations struggle to make meaningful progress in this area is.

The biggest road block isn’t a lack of clear opportunities, viable revenue streams or external market conditions - it’s more about internal cultural mindset, and lack of understanding from leadership, resulting in limited support for those on the ground who are tasked with generating income.

Why?

Because diversification isn’t just about strategy - it’s about people, leadership, and a willingness for the whole organisation to embrace a different way of thinking and working.

Common Roadblocks Raised

Our roundtable participants shared barriers with us, the reoccurring themes were:

1. Fear of Commercialisation – Many within not-for-profits worry that commercialisation undermines their core mission. The perception that revenue generation is at odds with purpose can create resistance at every level.

2. Risk Aversion at the Top – Boards and executive teams often shy away from transformation due to a fear of failure. Without a bold vision and buy-in from leadership, new initiatives are stalling to make progress.

3. Siloed Thinking – Many organisations operate in silos, with commercial efforts seen as separate from (or even competing with) core operations, rather than new income seen as an enabler of greater impact and growth.

4. Lack of Commercial Expertise – Many membership bodies and not-for-profits lack in-house experience and expertise in revenue-generating models, leading to hesitancy and slow adoption.

Overcoming Barriers

While these challenges are significant, they are not insurmountable.

We have worked with many membership organisations to introduce and embed income diversification strategies. The implementation of which, always, without fail, involve internal change management, cultural and mindset shifts.

Some of the ways we have seen membership organisations shift the dial to include commercial activity include:

1. Changing the Narrative Around Commercialisation – Leadership teams must reinforce internally and with members and other stakeholder groups like volunteers, that generating revenue supports and strengthens the organisation’s purpose, not detracts from it. Income diversification is about ensuring the sustainability of an association, not profiteering.

2. Foster a Culture of Innovation and Risk-Taking – Encourage a mindset where testing and learning is the norm. Small, low-risk pilot projects can help build confidence and momentum for larger initiatives – proving the concept is key. Measuring the success and impact of pilot projects will also build  a business case for future opportunities.

3. Educate and Engage Stakeholders – Boards, staff, and members must be taken on the journey. Internal education on the ‘why?’ and ‘how?’ of diversification of income ensures alignment, enables the association to reinvest in activity to advance its mission and crucially avoids hikes in membership fees.

4. Invest in Commercial Capability – Bringing in expertise, whether through hiring, training, or tapping into external experts, is critical. Organisations must equip themselves with the right skills to execute commercial programmes, partners and products effectively.

5. Embed Commercial Thinking into Strategy – Commercial initiatives shouldn’t be seen as ‘extra’ or a last minute back-fill of missing income, but as an integral part of the organisation’s overall business and membership/industry engagement strategy. Defining parameters, aligning new income goals with your purpose and mission-driven objectives ensures clarity and cohesion.

 

The Time for Change is Now

The discussion made one thing abundantly clear: organisations that fail to embrace commercial thinking will struggle to sustain their impact in an increasingly competitive landscape.

Association leaders must drive this change, breaking through cultural resistance and creating an environment where income diversification is not just accepted across the business and with members, but actively championed from the top.

Transformation isn’t easy, but for membership bodies and not-for-profits, it’s essential. The challenge is not just about what needs to be done—but whether leaders have the courage to make it happen.

Is your organisation ready?

Take Part In Our Second Income Diversification Roundtable.

Membership body professionals are invited to join our follow up roundtable discussion exclusively for associations, on the 13th May at 9.30am on Zoom. Join us to discuss how member bodies can breakdown the barriers, go for growth and generate new income.

Register using this link