"When the idea came up, (Newman's Own) I said, 'Are you crazy? Stick my face on the label of salad dressing?' And then, of course, we got the whole idea of exploitation and how circular it is. Why not, really, go to the fullest length, and the silliest length, in exploiting yourself and turn the proceeds back to the community?"
Paul Newman, screen legend and co-founder of Newman's Own (1925-2008)

Grants & More

Why Your Organization Needs a Good Fundraising Plan

“Organizations should not receive more than 30 percent of their funding from any one source. An organization could lose 30 percent of its funding and probably survive, though it would be difficult, but the loss of more than 30 percent of funding would put any organization in dire straights. This rule means that while you could have more than 30 percent of income coming from membership (and many groups do), you cannot have one member providing 30 percent of all an organization's money. The IRS recognizes this principle with their "one-third rule." This rule says if more than one-third of an organization's total income comes from one person, foundation, or corporation, that organization does not meet the test of a public charity [that is, a 501(c) (3) organization] and if this condition persists for five years or more, an organization risks losing its public charity status.” – Kim Klein, Fundraising for Social Change, 1996

It’s just good sense, in any case, that an organization should not rely too heavily on one source of income – a founder or generous patron, a single foundation, etc.