peuterey outlet peuterey sito ufficiale giubbotti peuterey outlet peuterey outlet peuterey sito ufficiale giubbotti peuterey outlet peuterey outlet peuterey sito ufficiale giubbotti peuterey outlet woolrich outlet piumini woolrich outlet giubbotti woolrich outlet peuterey outlet peuterey sito ufficiale giubbotti peuterey outlet hogan outlet scarpe hogan outlet hogan outlet online moncler outlet moncler sito ufficiale piumini moncler outlet woolrich outlet piumini woolrich outlet giubbotti woolrich outlet hogan outlet scarpe hogan outlet hogan outlet online woolrich outlet piumini woolrich outlet giubbotti woolrich outlet

Supporting the workers of Indianapolis: Employed—Unemployed; Happy—Frustrated; Executive—Employee. All are welcome!

Home » The Indy At Work Blog

Money Making Nonprofits: Oxymoron or Reality?


Guest Blogger

Surprising to many, the nonprofit sector is largely funded by fees!

  • 50% fees/sales
  • 30% government contracts
  • 12% charitable contributions
  • 8% other (earned interest)

Can’t fathom it?  Think about the huge dollars coming in…


This revenue reality can be shocking because of our typical view of nonprofits as penny-pinching organizations dependent on donor dollars.

As a fundraiser, I’m biased toward donor dollars.  I believe that a nonprofit fueled by philanthropy is a powerful thing.

It means something special when a person is willing to give away their hard earned dollars for someone else’s benefit.  Consumer dollars just don’t carry that same significance.

Some questions to consider:

  • Should fee-based nonprofits still be designated as tax-exempt?
  • Are donors influenced by a nonprofit’s revenue strategy?
  • How do we address the tension between the philosophy of philanthropy and the practicality of diversifying revenue strategies?
  • Is there reason to pay attention to the stereotypical view of poor nonprofits?

Leave a comment with your response to one of the questions above!  What do you think about fee-funded nonprofits?

About the Guest Blogger: Jessica Journey is a nonprofit professional, thriving in the Indianapolis community. She’s been featured in a book, promoted in the Chronicle of Philanthropy, and showcased as a top tweep.  Jessica has more than six years of experience in nonprofit fundraising and philanthropy.  Read her blog at www.jessicajourney.com.

 

Like this post? Share it through your social networks:

Sun, October 30 2011 » Corporate Culture, Ethics and Fraud, Leadership

4 Responses

  1. rslaughter October 31 2011 @ 1:58 pm

    Great questions, Jessica! I want to talk about all of these issues.

    For example, you ask: "Are donors influenced by a nonprofit’s revenue strategy?"

    Yes, absolutely! We turn off NPR during pledge week and we complain that nonprofits don't make money the way we "think they should." Of course, these aren't necessarily reasonable points of view, but it's easy to throw stones at people who depend (at least in part) on donations for money.

  2. Nikita Mitchell October 31 2011 @ 3:12 pm

    Great post. I will admit that my business frame of mind really values income strategies that aren't dependent on philanthropy/charity. I gave a presentation recently with my manager on this topic at a conference, actually. While I know it's often not reasonable to expect those we serve to cover the full cost of services provided, developing strategies to be sustainable without fully depending on those who just want to "do good" (via charity or volunteerism) is critical to sustainability.

  3. Nikita Mitchell October 31 2011 @ 3:15 pm

    Oh and to answer your last question, yes I think it's critical that we pay attention to the stereotypical view of poor nonprofits. The poverty mindset is crippling in my opinion. There will never be "enough" money to do everything we need to do. However, there is so much more that can be done with what we have if we'd shift our mindsets and think more strategically about how to change our communities. Okay, I'm done (for now)! lol

  4. Jessica Journey October 31 2011 @ 9:07 pm

    Hi, Nikita. Love your comments! Thanks for following my blogging over to the Indy at Work site – much appreciated.

    Yes, like you, I typically preach revenue diversification to nonprofits. And, I do love sliding scales that meet clients where they are.

    But, I do think twice about nonprofits' tax-exempt status when a majority of their funding is coming from the commercial sale of products or services. And, I am concerned when a person believes they have done their part to support a cause when they buy a branded product instead of give a donation.

    And, Robby, you are right! It is amazing how skeptical the typical citizen can be in considering income for nonprofits but don't think twice about how for-profits make their money!

One Ping

  1. Good Riddance, Pinktober! | Jessica Journey October 31 2011 @ 10:29 pm

Leave a Reply