June “Question of the Month” results reveal the income source most members rely on

As leaders in this industry know all too well, balancing revenue streams remains one of the most pressing challenges. Whether accessing public sector grants and contracts, maximising returns from property development and lettings, or building income through consulting and tenant services, the question of dependency on any single source is never far from the agenda. 

In our latest "Question of the Month," we explored whether AOIs, IDs, and STPs rely more heavily on one particular income source than others. IASP member polling results reveal a greater reliance on public funding amongst organisations, with 36% of respondents identifying this as their primary income dependency. 

Real estate income emerged second in terms of sources of income, with 32% of organisations citing this as their primary revenue stream. This reliance on property-based income reflects the importance of rental revenues, property management fees, and real estate investments in sustaining operations. 

Services income ranked third, representing 24% of respondents who depend primarily on fee-based activities, consulting, or direct service provision. This category encompasses various revenue-generating activities that organisations provide to their communities or clients. 

Of those surveyed, only 8% of organisations reported having no particular income source reliance, suggesting that most entities operate with a concentrated revenue model rather than truly diversified income streams. This finding highlights that organisations may face vulnerability when their primary income source experiences disruption. 

The results underscore the critical importance of public funding in the sector, with more than one-third of organisations depending heavily on government support, grants, or public contracts. This dependency raises important questions about sustainability and the potential impact of policy changes on organisational stability. 

The close competition between public funding and real estate income—separated by only four percentage points—suggests a divide between those leveraging public resources and those building wealth through property investments. Meanwhile, the significant portion relying on services income demonstrates the vital role of direct service provision in organisational sustainability. 

These findings provide valuable insights into the financial landscape facing AOI/ID/STP organisations and may inform strategic planning discussions around revenue diversification.