Nonprofit Earned Revenueby Chataun Denis on 07/10/15
Especially in the current economy, if you manage a nonprofit or are on the board of directors, I highly encourage you to pursue diversifying your nonprofit's revenue sources. Having multiple streams of revenue will increase the likelihood that your business will sustain over the long term.
A common misconception about nonprofits is that they can't and shouldn't make a profit. This is totally untrue. A nonprofit is a business and it should make a profit. It is unfortunate that the majority of people who start nonprofits don't fully understand how to develop a nonprofit business model that generates sufficient revenue to make a profit. It's fairly simple, you create a product and you sell it.
Let's look at a real life example so you have a better idea of what I'm talking about. The Quicksilver Track Club, a small grassroots nonprofit based in Atlanta, GA, is an elite track and field training program that works with at risk youth. Their mission is to train kids, build their athletic ability so they can get college scholarships. They have a registration fee of $235 per year. The program is not free. Yes, they're serving economically disadvantaged kids, but it costs money to deliver this service. Far too many people who start nonprofits want to give their services away for free and you just can't operate a business without revenue. And, without a clear understanding of this basic concept, you cannot build a successful nonprofit.