Nonprofits – Revenue is not a Dirty Word
|May 2, 2011||Posted by M. P. under Management||
Do you know that your 501c3 nonprofit is eligible to make revenue through the sale of services or items? Scouts have popcorn and cookies, pins or flexible bracelets in a rainbow of cause colors are sold to raise funds and a very famous Towel supports a local nonprofit organization. These goodies are tasty and fun – and in the case of the towel, exceptionally lucrative – but they are not the only avenues to income. A nonprofit with savvy leadership can monetize their unique assets related to service offerings such as original training curricula or publications on a niche topic area.
The article The Social Entrepreneurship Spectrum: Nonprofits With Earned Income by Issie Lapowsky in the May 2011 issue of Inc. magazine, provides a helpful introduction to earned revenue models including the pros and cons, information on common tax issues and mini-case studies. Earned income endeavors do not guarantee a successful return, but with a quality product and a dedicated team, your nonprofit may find itself in the business of selling as well as serving.