Running head: A DISCUSSION ON CURRENT FUNDRAISING TRENDS 1

A Discussion on Current Fundraising Trends and The Mental Health Association of Central

Florida’s Revenue Sources (Option 2)

Kathryn Sunderman

University of Central Florida

A DISCUSSION ON CURRENT FUNDRAISING TRENDS 2

Abstract

This research paper will discuss the current trend of mission income versus the traditional

sources of revenue in the non-profit sector. This paper will discuss the different forms of

funding, and argue that all organizations in the nonprofit sector should include some form of

mission driven income. In addition, the case of the Mental Health Association of Central Florida

will be discussed, and a breakdown of its current forms of funding will be analyzed. Through this

analysis, suggestions will be made as to how the Mental Health Association can improve the

organization by increasing funding and expanding its reach.

A DISCUSSION ON CURRENT FUNDRAISING TRENDS 3

A Discussion on Current Fundraising Trends and The Mental Health Association of Central

Florida’s Revenue Sources

Fundraising is one of the most important aspects of a functional and impactful not-for-

profit organization. Without funds, the mission of an organization could not be carried out, and

the needs of many communities would not be met. That said, understanding the best ways to

generate income, and how to properly allocate that income, is key for any organization looking

to expand reach. There are several well discussed traditional types of fundraising that nonprofits

have been utilizing for years, but a more recent trend called mission income is arguably one of

most profitable and reliable sources of income a nonprofit organization could adopt. The Mental

Health Association of Central Florida is an example of an organization that utilizes both

traditional sources of income and mission income, and would likely benefit by engaging in

mission income more aggressively.

Traditional Streams of Revenue versus Mission Income

According to Davis (2014), nonprofit income can be confusing as most people do not

know how to utilize all the different resources available to them. Many leaders of organizations

in the nonprofit industry are overly consumed with traditional types of fundraising such as

annual events, strong donor relationships, and government funding, which does not have to be a

bad thing as these are all viable sources of funding for any nonprofit. However, while the

aforementioned fundraisers may be viable sources of income, these traditional sources of funding

can be unreliable and unsustainable. Mission Income on the other hand “is the largest single

source of revenue, yet it is the least discussed” (Davis, 2014).

First it is essential to define Mission Income. Mission Income is a service or a product

that is sold to a customer for monetary value and used to help fund a nonprofit. While “earned
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income is not something new for some nonprofits” (Worth, 2017), it is a current trend in the

industry that is on the up and up. This is in part because America is such a materialistic society

and also because advancements in social media have paved an easy avenue for marketing

philanthropic products as trendy, attractive, and even conventional. What is even more

important, is that a not-for-profit organization has the opportunity to work its way into niche

markets and offer products or services that are actually of value to individuals and other

organizations.

Grace (2005) states that “the evidence is clear, more often than not, traditional

fundraising done poorly can come off as begging, which only causes an organization to lose

credibility with potential donors.” More traditional styles of fundraising operate under the

assumption that human beings are philanthropic in nature, whereas the current trend of mission

income operates under the assumption that human beings are self-consumed by nature and more

concerned with personal gain than societal well-being, which quite frankly is more realistic. In

fact, current customers purchase mission goods or services not just because it offers clear

personal value, but because they like the idea that their personal gain also benefits others (Davis,

2017).

Ultimately, any form of fundraising that actively generates revenue for a nonprofit is

good, but some forms are more profitable and reliable than others. The recent uptick in the

nonprofit industry to pursue mission income truly works in a society like America where people

are consumed with materialistic value and personal gain, and will ultimately lead to more impact

felt in the community from the nonprofit sector.

Overview of the Mental Health Association of Central Florida

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The Mental Health Association of Central Florida (MHACF) located in downtown

Orlando was founded in 1946, and is recognized as one of the first nonprofits in the Orlando

area. Once an affiliate of the national organization Mental Health America, it is now a separate

entity classified as a 501(c)3 organization with sixth paid staff, three contractual staff members,

and a team of fourteen interns. The mission of this organization is “To provide mental health

services, support and information to the members of our community.” There are five programs in

total by which the Mental Health Association of Central Florida fulfills this mission. The first

three are facilitated within the main MHACF office, whereas the other two programs are carried

out within other facilities. A breakdown of funding for each of the programs will also be

discussed.

The programs that the Mental Health Association operates within the main office are

called Mental Health Connections, Reflections, and Guardian Advocate. Mental Health

Connections is a referral service where clients fill out a referral form to assess their mental health

related needs, and gather other pertinent information (i.e. insurance provider if applicable, age,

contact info, etc.). Based on the information in their referral and the services they request, an

intern will then research a database to find mental health related providers that will meet the

needs of the client, who can then expect to receive an email and or phone call with a list of

providers that the client may then reach out to, to make appointments with. The Mental Health

Connections program directly fulfills the mission by connecting Central Florida residents to

mental health services.

Reflections is the second program the Mental Health Association facilitates that directly

provides support to members of the Central Florida community as stated in the mission

statement. Reflections does this by providing different support groups, events and workshops
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monthly that are available to anyone in the community and, aside from the workshops, are

generally free of charge.

Guardian Advocate (GA) is another main program at the Mental Health Association.

Guardian Advocacy is a volunteer position where someone who is certified can stand as an

interim guardian for an individual who has been Baker Acted, is older than 18, is incapable of

making informed medical decisions for themselves, and does not have a family member who can

make informed decisions for them. The Guardian Advocate program at the Mental Health

Association consists of a couple different facets. First, MHACF offers a training and certification

course, for anyone who would like to be Guardian Advocate certified. Second, anyone who has

been GA certified is welcome to volunteer through MHACF for different Baker Act receiving

mental health hospitals.

The other two programs that the Mental Health Association oversees, but are conducted

through other agencies, are The Outlook Clinic and Orlando United/Pulse Counseling. The

Outlook Clinic is a free counseling and psychiatric service for Orange County residents who are

eighteen or older, suffer from depression and or anxiety, and also have a co-occurring medical

disorder. This program has a team of three administrators, two of which are under the MHACF

budget, and is located at (and partly funded by) Advent Health. Orlando United/Pulse

Counseling is a service offered at Orlando United Way that offers free counseling to victims of

the Pulse tragedy.

Traditional Funding Methods at the Mental Health Association

The Mental Health Association currently operates on a budget of about $400,000

annually. Originally, the Department of Children and Families (DCF) used to provide direct

funding for several MHACF programs. However, years ago when Governor Rick Scott
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privatized state funding which lead to the establishment of management entities, MHACF fell

under the management of Central Florida Cares Health System (CFCHS). Funding that comes

from the management entity, CFCHS, is used for the Reflections program that was described

earlier (C. Melton, personal communication, April 9, 2019). The other two traditional avenues by

which the Mental Health Association accrues revenue are an annual luncheon and grants.

The annual Legacy of Champions Luncheon is generally expected to bring in about

$30,000-$50,000 in profit which is used to cover the payroll for the year. Any extra funds from

the Luncheon are used to cover the deficit of any of the other programs or operational costs. The

Mental Health Association does apply to grants, but very few. Any funding awarded through a

grant is generally used for the Orlando United/Pulse Counseling service. Though this program is

overseen by Orlando United Way, it is covered by the MHACF budget (C. Melton, personal

communication, April 9, 2019).

Ultimately, traditional sources of income are necessary and should not be undervalued. In

fact, it is these traditional sources of income that maintain the overall functionality of this

organization. The issue however, is that the aforementioned current sources are barely covering

the operational costs of this organization. MHACF would benefit greatly from pushing harder for

more revenue through traditional sources by applying to more grants, building stronger donor

relationships, and hosting larger more profitable events. Then after ensuring operational costs are

being covered, the Mental Health Association would have more freedom to focus their attention

on marketability, which consequently, will generate more revenue and expand impact.

Mission Driven Income at the Mental Health Association

The Mental Health Association of Central Florida does also generate mission driven

income in three ways. The first way is through the sale of bracelets that promote mental health
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awareness. Though, is it worth noting that these bracelets are not sold in mass quantity and as a

result do not generate much income. The second way the Mental Health Association utilizes

mission income is through relationships with Baker Act receiving mental health hospitals; the

product being Guardian Advocate Certified volunteers. Mental health hospitals such as

University Behavioral Center, Aspire Mercy and Kennedy, and the Veteran’s Hospital all pay

MHACF to supply Guardian Advocates for patients in need of them. This is an extremely niche

market that the Mental Health Association has cleverly tapped into and utilized to the benefit of

both the organization and the consumer.

The third and final way the Mental Health Association utilizes mission income is through

a product called “preferred provider.” Mental health providers such as individual counselors and

psychiatric clinics can pay to be a “preferred provider” in the Mental Health Connections

database. Paying to be a “preferred provider” means that they are given preference over the other

providers in the database, and as a result can expect that MHACF will refer more potential

clients to their office than the average database provider. This is a great example of how the

Mental Health Association has tapped into an extremely niche market and offers a product of

value for the consumer that consequently benefits the organization.

Conclusion

The current trend of nonprofits to pursue some form of mission income is a great sign

that nonprofits are moving to a more stable and functional position to comfortably carry out their

missions and expand impact. Carried out effectively, mission income has the capability of

generating the greatest amount of revenue over all other income sources for a nonprofit. While

there is still room for traditional fundraising in the nonprofit sector, as they are effective forms of

generating income, some form of mission income should be utilized by all nonprofits that have
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an opportunity to provide a unique product or service to a niche market. The Mental Health

Association definitely has room to improve in both traditional forms of fundraising and the

current trend of mission income, however, it is a prime example of an organization that has taken

advantage of offering a unique product to a niche market. Through more discussion and the rise

of recent success stories of nonprofits who have utilized the mission income model, there is no

doubt that the current trend of mission income will only continue to lead more organizations to

financial stability and overall success.

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References

Davis, K. E. (2014). In th Trenches 7 Nonprofit Income Streams. Rancho Santa Margarita,

California,USA: CharityChannel Press.

Grace, K. S. (2005). Beyond Fundraising New Strategies for Nonprofit Innovation and

Investment (Second Edition ed.). Hoboken, New Jersey: John Wiley & Sons Inc.

Worth, M. J. (2017). Nonprofit Management Principles and Practice (Fourth Edition ed.).

Thousand Oaks, CA: SAGE Publications, Inc.