Specifically in the current economy, if you operate a non-profit, I highly encourage you to diversify your sources of income. If your intention is to continue to be financially sound, you don’t want to over-depend on a single type of asset. Securing various types of revenue will increase the likelihood that your organization will survive over time. To learn more about starting a nonprofit company click here.
A prevalent falsehood centered on not for profit businesses is that they can’t and shouldn’t make a profit. This is far from the truth. A non-profit is a business and it should bring in income. It is unfortunate many people who start non-profits don’t fully understand how to actualize a non-profit plan for business that generates adequate revenue to make a profit. It’s straight forward, you create a product and you pitch it. To learn more about nonprofit coach click here.
Let’s explore some everyday examples so you have a better idea of what I’m talking about. The Quicksilver Track Club (QTC), www.quicksilvertrackclub.com, is a first-class track and field training club that trains at risk children. Their mission is to coach children, increase their athletic aptitude so secure funding for college. As you can see if you visit the website, the registration fee is $235 per year. The club is not free. Certainly, they’re serving economically disadvantaged children, but it costs money to deliver this service. A large number of persons who start not for profits wish to administer their services without a fee and you just can’t operate an enterprise without profit. And without a clear understanding of this elementary concept, you cannot begin a flourishing not for profit. To learn more about grant writing workshop click here.
An alternate earned revenue opportunity is the retail of tangible products. The American Cancer Society has gained mastery in the venture of marketing its wares. From their page you can acquire jewelry, shirts, jackets, watches, and a myriad of other items. They have a crystal beads bracelet that is sold for $18.99. If they sold 1,000 of these in one month, they’ve produced $19,000.00. Their tote product sells for $12.99. Again, selling 1,000 of these will gross $13,000.00. At press time they reported on their page that they amass $58 million dollars through their multiple fundraisers and goods.
Making A Way Housing, Inc. attains the majority of its profits through the rental of real estate. The organization’s primary enterprise is providing affordable dwellings for displaced persons and those undergoing treatment for alcohol and substance abuse. The householders pay rent that is subsidized by grants. Rental fees are not market rate, but they’re not free either. They have 70 two-bedroom units. Each unit is lived in by two householders who bear a cost between $100-350 per month. Based on these occupancy rates, they might amass between $14,000 and $49,000 per month.
I like to use the illustration of the pie graph. A pie has many slices. For the nonprofit, each wedge represents a source of income. I suggest that the pivotal and the largest wedge of any non-profit’s revenue pie should be attained earnings. The wise person is the one who actualizes their nonprofits business plan with earned revenue as the based.
