A Recession-Proof Nonprofit Business Model
by Chataun Denis on 05/24/11
Today, someone sent me a quote that was so simple, yet so profound. "Nonprofit is a tax structure, not a business model". Not sure who to give credit, but I will be using it from now on! Definitely relevent in the current economy, if you manage a nonprofit, I highly encourage you to diversify your revenue sources. If you intend to remain solvent, you don't want to over-rely on any one source of income, especially grants. 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 the tax structure doesn't allow for a profit to be made. This isn't true. Nonprofits can and should generate more revenue than they spend. The proper term for that profit is "surplus". Is your nonprofit positioned to generate a surplus for this year? Are you generating sufficient income to cover all your expenses? Is your nonprofit in need of additional streams of revenue? Will your nonprofit survive the recession? If you answered yes to any of these questions, there is room for improvement. The good news is, opportunities are unlimited if you have the right perspective. Here's to making your nonprofit recession-proof!