The Nonprofit that Helps Itself, is the Nonprofit that Helps Others
by Chataun Denis on 12/16/11
One of the biggest challenges nonprofits face is generating consistent revenues. Solving this challenge is multi-faceted, but it's important to recognize that first there has to be a shift in strategy that relies less on charitable giving and focuses more on earned income. As earned income becomes stable, those funds can then subsidize the non income-generating programs, making it easier to fulfill your mission.
For example, we'll highlight two of our clients. The first is Johns Creek Arts Center (JCAC). JCAC relies mostly on revenue from its art programs. They offer a variety of art classes to the community, priced below market rate. Being a truly sustainable nonprofit, their budget is 90% earned income and they receive 10% in grant funding to support and subsidize projects and services offered to the underserved.
Auditory Verbal Center, Inc. (AVC) is another sustainable social enterprise. AVC is a nonprofit focused on teaching mild to profoundly deaf children to listen and speak without the use of sign language or lip reading. In addition, they have a full audiology department serving all ages. The income from audiology sales, supports non-income
generating programs. AVC has acheived major success by thinking
outside-the-box!
Business modeling requires assessing your organization's assets and capitalizing on them. Especially, with the the new year approaching and predictions of a worsening economy, take your nonprofit's destiny into your own hands. Develop a new product and/or service and start your profit machine! As the income starts rolling in, use it to advance your mission!
I once learned long ago, that I can't help anyone else until I first help myself. However good my intentions, if I deplete the source, there is nothing left to give.
Well then...the time is now to begin the new year with a fresh start and a new way of thinking? Turn your charity into a Profit-ABLE social enterprise! The fact remains. It costs money to do business...even the business of nonprofit.
