Financial Sustainability Strategies of Religious Nonprofit Organizations
The percent of religious nonprofit organizations (RNOs) facing uncertainty in operational capital and resources will rise as government funding diminishes. The RNOs that struggle to maintain a competitive advantage are at high risk of failure. Grounded in the resource-based view theory, the purpose of this qualitative multiple case study was to explore funding strategies leaders of RNOs use to achieve financial sustainability beyond the first 5 years of operation. Participants were 3 leaders of RNOs in Middle Tennessee with successful experience in applying funding strategies that increased revenue year-over-year while serving their constituencies. Data sources included face-to-face interviews and organizational documents. Thematic analysis was used to analyze the data. Three themes emerged: prioritizing core donors as primary parts of business strategy, fostering community within the organization, and collaborating with other RNOs to expand services. The implications for positive social change include the potential for leaders of RNOs to cultivate a stable donor base, increase funding capital, and support the economic and social development of the regional communities.