Associations and non-profit organizations (NFPs) know that looking beyond membership dues to diversify their income stream is critical to their financial stability and growth. To effectively harness this potential, setting clear and measurable goals is essential. Following our earlier post: Assessing Your Current Revenue Streams: How to Identify Gaps and Opportunities, this blog post will guide you through the process of defining specific, measurable non-dues revenue targets that align with your organization's mission and long-term vision.

Why Set Non-Dues Revenue Goals?

Before diving into the how-to, let's briefly touch on why setting non-dues revenues goals is crucial:

1. Financial Stability: Reduces reliance on membership dues, creating a more resilient financial model.
2. Mission Advancement: Provides additional resources to further your organization's objectives.
3. Growth Opportunities: Allows for expansion of programs and services.
4. Performance Measurement: Enables you to track progress and make data-driven decisions

Steps to Setting Clear and Measurable Non-Dues Revenue Goals:

1. Align with Your Mission and Vision

A great place to start is with your association/NFP’s basics – your reason for being. That means revisiting your organization's mission statement and long-term vision. Any non-dues revenue goals should support, not detract from, these core principles.

The fundamental question to ask is, How can additional revenue streams help us better serve our members and community?

By diversifying income sources, organizations can invest in new programs, improve existing services, and foster innovation. For example, revenue from workshops or events can fund resources that directly benefit members. Ultimately, this approach not only bolsters financial sustainability but also strengthens the organization's ability to meet the evolving needs of its community, ensuring a more impactful and responsive service model.

• Example: If your mission is to advance professional development in your industry, consider goals related to educational programs or certification courses

If your mission is to advance professional development in your industry, consider how your educational programs or certification courses can contribute to non-dues revenue goals. For instance, by offering high-quality, specialized training, you can attract participants who may not be members, creating a new revenue stream. Additionally, partnerships with industry experts for these programs can enhance their appeal, driving attendance and generating sponsorship opportunities.This approach not only aligns with your mission but also helps diversify your revenue sources, reducing reliance on membership dues.

2. Conduct a SWOT Analysis

You already know how valuable a SWOT analysis can be in strategic planning exercises. It is equally useful in the context of setting your non-dues revenue goals. Assessing your strengths, weaknesses, opportunities, and threats in relation to non-dues revenue can provide crucial insights for developing effective non-dues revenue strategies. Let's break this down:

Strengths:

• Identify your association's unique assets that can be leveraged for NDR. This might include a strong brand reputation, a large member base, or specialized expertise in your industry
• Consider your current successful non-dues revenue streams. What makes them work well? Can these strengths be applied to new revenue opportunities?
• Evaluate your internal capabilities, such as a skilled marketing team or advanced technological infrastructure, that could support non-dues revenue initiative

Weaknesses:

• Recognize areas where your association may be lacking in terms of revenue generation.This could include limited staff resources, outdated technology, or a lack of diversification in current revenue streams
• Assess any internal resistance to pursuing new revenue opportunities, such as a culture that prioritizes traditional funding models
• Identify skills gaps that might hinder your ability to implement new NDR strategies effectively

Opportunities:

• Look for emerging trends in your industry that could be turned into revenue streams, such as new certification programs or educational content
• Consider partnerships or collaborations that could open up new revenue channels
• Evaluate technological advancements that could enable new revenue opportunities, like virtual events or digital products
• Analyze your member data to identify unmet needs that could be addressed through new products or services

Threats:

• Identify external factors that could negatively impact your non-dues revenue efforts, such as economic downturns or changes in industry regulations
• Consider competition from other associations or for-profit entities that might be targeting similar revenue opportunities
• Assess potential disruptions to your current non-dues revenue streams, like shifting member preferences or technological changes
• Evaluate the risk of overreliance on certain revenue sources and the need for diversification

By conducting this SWOT analysis specifically focused on non-dues revenue, you can:

1. Prioritize revenue initiatives that align with your strengths and capitalize on identified opportunities
2. Develop strategies to address weaknesses and mitigate threats that could hinder revenue growth
3. Create a balanced non-dues revenue portfolio that leverages your association's unique position while managing risks
4. Set realistic and achievable revenue goals based on a comprehensive understanding of your association's internal and external environment.
5. Allocate resources more effectively to support the most promising non-dues revenue opportunities.

Remember, the SWOT analysis should be a dynamic tool. Regularly revisit and update your analysis to ensure your srategies remain aligned with your association's evolving landscape and capabilities.

3. Identify Potential Revenue Streams

Based on your SWOT analysis, brainstorm potential non-dues revenue sources. Think about your unique strengths, industry trends, member needs, underutilized assets, and partnership opportunities. Consider how to address weaknesses or threats through new revenue streams and explore digital transformation possibilities. Common options include educational programs, conferences, sponsorships, publications, consulting services, job boards, affinity programs, data services, webinars, merchandise sales, facility rentals, IP licensing, and exhibitions. Evaluate each potential revenue source against your SWOT findings to ensure alignment with your association's capabilities and market position. 

Common options include:

• Educational programs and workshops
• Sponsorships and partnerships
• Publication sales
• Advertising
• Consulting services
• Events and conferences
• Certification programs

4. Set SMART Goals

For each chosen revenue stream, create specific, measurable, achievable, relevant, and time-bound (SMART) goals. SMART goals provide focus, increase motivation, improve accountability, and enhance the likelihood of success.They transform vague aspirations into concrete, actionable plans, making it easier to allocate resources effectively and measure outcomes.

• Specific: Clearly define what you want to achieve
• Measurable: Establish concrete criteria for measuring progress
• Achievable: Set realistic and attainable goals
• Relevant: Ensure the goal aligns with your mission and vision.
• Time-bound: Set a clear timeline for achievement

As an example, a SMART goal might be: "Increase revenue from our annual conference by 20% (from $100,000 to $120,000) within the next fiscal year by adding a virtual attendance option and securing five new corporate sponsors."

5. Develop Key Performance Indicators (KPIs)

Key performance indicators (KPIs) are quantifiable measurements used to gauge an organization's performance over time. KPIs are critical for non-dues revenue initiatives because they provide concrete data to assess progress, inform decision-making, and drive continuous improvement. KPIs help associations focus on what matters most, align efforts across teams, and quickly identify areas needing attention.

When setting KPIs for non-dues revenue goals, it's important to choose metrics directly tied to your objectives and provide actionable insights. These indicators should be regularly monitored and analyzed to ensure your association stays on track with its revenue diversification efforts.

Identify KPIs that will help you track progress towards your goals.These might include:

• Revenue per stream
• Profit margins
• Number of participants or customers
• Customer acquisition cost
• Customer lifetime value

Each of these KPIs offers valuable insights:

1. Revenue per stream helps you understand which initiatives are most successful
2. Profit margins reveal the efficiency and sustainability of each revenue source
3. Number of participants or customers indicates market reach and popularity of offerings
4. Customer acquisition cost shows how efficiently you're attracting new business
5. Customer lifetime value helps in assessing long-term profitability and retention strategies

By tracking these KPIs, associations can make data-driven decisions to optimize non-dues revenue strategies and achieve financial goals more effectively.

6. Create an Action Plan

To bring your goals to life, break them down into actionable steps with assigned responsibilities and deadlines.Tranlsating high-level objectives into concrete tasks ensures clarity and accountability throughout your organization. Here's an example:

1. Research virtual conference platforms (Marketing Team, by end of Q1)
2. Develop sponsorship packages (Development Team, by end of Q2)
3. Launch early bird registration campaign (Marketing Team, start of Q3)

By breaking down goals in this way, you’ll create a clear roadmap for achieving your non-dues revenue objectives, making it easier to track progress and adjust strategies along the way where needed.

7. Regularly Review and Adjust

Now that you have your goals, KPIs, and action steps in place, you will want to make sure you have a system to regularly review your non-dues revenue goals. This ongoing evaluation is crucial for maintaining momentum, addressing challenges in a timely way, and ensuring your strategies stay aligned with your association's evolving needs and market conditions. This review could be quarterly or semi-annually, depending on your organization's needs.

During these reviews:

• Assess progress against KPIs
• Identify obstacles and develop solutions
• Adjust goals or strategies as necessary

Setting clear and measurable non-dues revenue goals is a critical step in ensuring the financial health and mission advancement of your association or non-profit. By aligning these goals with your organization's core purpose, conducting thorough analysis, and following the SMART framework, you can create a roadmap for sustainable growth and impact.

Remember, the key to success lies not just in setting these goals, but in consistently working towards them, measuring progress, and adapting them as needed. With a strategic approach to non-dues revenue, your organization can build a more resilient financial foundation to support the important work you're doing.