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Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit
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Presentation Slides from Amuta21c: Strategies for Analyzing & Implementing Revenue-Generating Activities in a Nonprofit

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Presentation Notes from a workshop given at the Amuta21c Conference in Jerusalem on March 18, 2012. …

Presentation Notes from a workshop given at the Amuta21c Conference in Jerusalem on March 18, 2012.

These slides are primarily intended for the workshop participants. More developed intended for a general audience are/will be posted on my Slideshare channel.

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  • 1. Strategies for Analyzing & Implementing Revenue-Generating Activities In a Nonprofit Organization Shuey Fogel @ Amuta21c Conference Jerusalem, Israel March 18, 2012The Nonprofit Banker nonprofitbanker.com
  • 2. Greetings & Salutations • Shuey Fogel – Who am I? • Former Nonprofit Professional turned Banking Specialist • Wear two hatsThe Nonprofit Banker nonprofitbanker.com
  • 3. Greetings & Salutations • Director, Banking Solutions for Nonprofits at a Bank in Israel • Work with local and international charities operating in Israel • Develop the Products, Services & Added Value we offer our nonprofitsThe Nonprofit Banker nonprofitbanker.com
  • 4. Greetings & Salutations • The Nonprofit Banker • Personal project active on the web, Twitter and Facebook • Write, post and link to articles on tips, tools, trends, and regulations affecting Israel’s (Global) nonprofit sector.The Nonprofit Banker nonprofitbanker.com
  • 5. Overview • Three Building Blocks to Successfully Strategize Revenue-Generating Activities for a Nonprofit 1. Nonprofit Business Model Statement 2. Impact vs. Profitability Matrix 3. Discovering Your Funding ModelThe Nonprofit Banker nonprofitbanker.com
  • 6. Overview Why the Recent Demand? Don’t Get Blinded by the Hype Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 7. Overview • Purpose of this presentation • Jump start the strategizing process • OR Educated reasons to refuse • Conversation starts and ends with • Accountant • LawyerThe Nonprofit Banker nonprofitbanker.com
  • 8. Overview • These slides are class notes mainly intended for the workshop participants • More developed slides intended for a general audience will also be posted to SlideshareThe Nonprofit Banker nonprofitbanker.com
  • 9. Why the Recent Demand? Don’t Get Blinded by the Hype Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 10. Why the Recent Demand? • Economy • Nonprofits themselves • Funders • “New” Funder • Donors that are looking to “invest” • Notion of “Philanthropic Equity” • Socially Minded For-Profits • Double-Bottom LineThe Nonprofit Banker nonprofitbanker.com
  • 11. Why the Recent Demand? Don’t Get Blinded by the Hype Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 12. Don’t Get Blinded by the Hype • Nothing can substitute philanthropy (NPQ) • Donors are different than customers • Connected to the product or the cause? • Charities & Double Bottom-Line have existed for decades • SSIR study • Fee-for-Service alone or earned-income ventures separate/distinct from charity were not models of the BIG nonprofits (budget of $50 mil or more)The Nonprofit Banker nonprofitbanker.com
  • 13. Why the Recent Demand? Don’t Get Blinded by the Hype Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 14. Revenue – Define Terms • Related Business Income • Enhance and complement your mission • Unrelated Business Income • Within or External (Daughter Company) • Again, speak to lawyer/accountant on regulatory implicationsThe Nonprofit Banker nonprofitbanker.com
  • 15. Revenue – Define Terms • Two Ways of Looking at Revenue 1. Fee-for-Service vs. Product 2. Cost Recovery vs. Earned IncomeThe Nonprofit Banker nonprofitbanker.com
  • 16. Revenue – Define Terms • Fee-for-Service vs. Product • Fee-for Service • Target audience • Beneficiaries • Evangelists • Possible limits on rates, however… • Voluntary donations • Symbolic gesturesThe Nonprofit Banker nonprofitbanker.com
  • 17. Revenue – Define Terms • Fee-for-Service vs. Product • Product • Seems easier but not • Keys to Success • Enthusiastic volunteers • Outstanding products • Superb coordinationThe Nonprofit Banker nonprofitbanker.com
  • 18. Revenue – Define Terms • Cost Recovery vs. Earned Income • Cost Recovery • Linked to programs • When program ends, so does related cost and recovery • Earned Income • Inherently rooted in the operations • Earned Income or Social Enterprise?The Nonprofit Banker nonprofitbanker.com
  • 19. Revenue – Define Terms • How to know if it is a Social Enterprise? • Is it operated like a business? • Strategically created for economic value • Revenue set as independent goal • Staffed by business professionalsThe Nonprofit Banker nonprofitbanker.com
  • 20. Revenue – Define Terms • How to know if it is a Social Enterprise? • Ex: Elephants • National Zoo in Washington D.C. • Sells dung in gift shop as organic fertilizer called “Zoo Doo” • No product line • No goals • The more sold, the merrier = Earned IncomeThe Nonprofit Banker nonprofitbanker.com
  • 21. Revenue – Define Terms • How to know if it is a Social Enterprise? • Ex: Elephants • Zoo in Bangkok, Thailand • Uses dung to make paper products • Imports dung from other zoos to meet quota and increase product line = Social EnterpriseThe Nonprofit Banker nonprofitbanker.com
  • 22. Why the Recent Demand? Don’t Get Blinded by the Hype Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 23. Strategies for Analyzing & Implementing Revenue-Generating Activities In Nonprofit Organizations Building Blocks for Increasing Revenue through Building Upon Your Organization’s Strengths while Simultaneously Promoting a Unified MessageThe Nonprofit Banker nonprofitbanker.com
  • 24. BUILDING BLOCKS• Nonprofit Business Model Statement• Impact vs. Profitability Matrix• Finding Your Funding ModelThe Nonprofit Banker nonprofitbanker.com
  • 25. NP Business Model StatementThe Nonprofit Banker nonprofitbanker.com
  • 26. NP Business Model Statement Must consider financial viability and mission impact together!The Nonprofit Banker nonprofitbanker.com
  • 27. NP Business Model Statement • Internal document • Describes what fuels the economic engine of the organization • More than listing all the types of funding • Strategy for financial sustainability • Reference point/guide for the organizations focus and strategiesThe Nonprofit Banker nonprofitbanker.com
  • 28. NP Business Model Statement • When Creating the Building Blocks • Nonprofit Business Model Statement is last of the 3 pieces to be created • Once Building Blocks are Established • Nonprofit Business Model Statement is the first point of reference • Business Models changes over timeThe Nonprofit Banker nonprofitbanker.com
  • 29. NP Business Model Statement • Ex: (Blue Avocado) • Food Bank: "We obtain donated food from businesses (85%) and individuals (15%), sorted and distributed largely by volunteers, and financially supported by individual donors and the community foundation." • Affordable Housing: "We build affordable housing for low-income people where government and developer fees are available."The Nonprofit Banker nonprofitbanker.com
  • 30. NP Business Model Statement • Ex: (Blue Avocado) • Same Mission but Dif Business Models • "Our mission is to develop and implement evaluation tools that help nonprofits identify, understand, and increase their impact.“ • Organization A: "Foundations contract with us to conduct evaluations with their grantees.“ • Organization B: "We develop and promote evaluation tools and processes that are affordable -- and therefore can be purchased directly by nonprofits."The Nonprofit Banker nonprofitbanker.com
  • 31. BUILDING BLOCKS• Nonprofit Business Model Statement• Impact vs. Profitability Matrix• Finding Your Funding ModelThe Nonprofit Banker nonprofitbanker.com
  • 32. Impact vs. Profitability Matrix • Analysis of current programs • With an eye on revenue • Focus on what you’re already doing • Enhance the mission • Clarity • Feasibility • How can our activities fit together and leverage each other?The Nonprofit Banker nonprofitbanker.com
  • 33. Impact vs. Profitability Matrix • Dual-Bottom Line Strategy • Mission (external) • Financial (internal)The Nonprofit Banker nonprofitbanker.com
  • 34. Impact vs. Profitability Matrix MATRIX MAP HIGH IMPACT HIGH PROFITABILITY IMPACT LOW IMPACT LOW PROFITABILITY PROFITABILITYThe Nonprofit Banker nonprofitbanker.com
  • 35. Impact vs. Profitability Matrix IDEAL SITUATION - MATRIX MAP HIGH IMPACT HIGH PROFITABILITY 25% 50% 0% 25% IMPACT LOW IMPACT LOW PROFITABILITY PROFITABILITYThe Nonprofit Banker nonprofitbanker.com
  • 36. Impact vs. Profitability Matrix Blue AvocadoThe Nonprofit Banker nonprofitbanker.com
  • 37. Impact vs. Profitability Matrix • Examples of Successful Impact? • Alignment with Core Mission • Excellence in Execution • Scale and Volume • Filling an Important Gap • Community Building • Leverage • Chart ItThe Nonprofit Banker nonprofitbanker.com
  • 38. Impact vs. Profitability Matrix • Ex: Charting Successful Impact Core ExcellenceFilling an Community Mission in Important Building Execution Gap Program 1 4 4 3 1 12 Program 2 3 4 2 2 11 Program 3 2 4 4 3 13The Nonprofit Banker nonprofitbanker.com
  • 39. Impact vs. Profitability Matrix • Determine Profitability • Revenue • Restricted & Unrestricted Separately? • Expenses • Include full costs • Program Costs • Shared Costs • Administration CostsThe Nonprofit Banker nonprofitbanker.com
  • 40. Impact vs. Profitability Matrix 25% 50% 25% Blue AvocadoThe Nonprofit Banker nonprofitbanker.com
  • 41. Impact vs. Profitability Matrix • Chart it again • Identify Activities & Analyze Impact $$ Effort Type Action Program 1 High Low High Heart ??? Program 2 Medium High Medium Money ??? Tree Program 3 Low Medium Low Stop Sign ??? but GrowingThe Nonprofit Banker nonprofitbanker.com
  • 42. Impact vs. Profitability Matrix • STOP SIGNS… • Low Impact, Low Profitability • Instead of • Trying to improve it (again) • Ignoring it • Spin it off to another organization • Close itThe Nonprofit Banker nonprofitbanker.com
  • 43. Impact vs. Profitability Matrix • STARS… • High Impact, High Profitability • Pay attention • Increase organization involvement • Invest time and money • Grow itThe Nonprofit Banker nonprofitbanker.com
  • 44. Impact vs. Profitability Matrix • HEARTS… • High Impact, Low Profitability • Instead of • Closing it • Making it a “Sacred Cow” • Keep & Celebrate it • Most importantly • Contain Costs & Increase ProfitabilityThe Nonprofit Banker nonprofitbanker.com
  • 45. Impact vs. Profitability Matrix • MONEY TREES… • Low Impact, High Profitability • Instead of • Giving it second class status • Keeping it separate from programs • Increase profitability • Scale or efficiency • Increase impactThe Nonprofit Banker nonprofitbanker.com
  • 46. BUILDING BLOCKS• Nonprofit Business Model Statement• Impact vs. Profitability Matrix• Finding Your Funding ModelThe Nonprofit Banker nonprofitbanker.com
  • 47. Discover Your Funding Model • You’re not unique as you think • SSIR study revealed 10 dif. Models • Successful orgs had 1 (maybe 2) • Models are all-encompassing • Branding • Programs • Fundraising EffortsThe Nonprofit Banker nonprofitbanker.com
  • 48. Discover Your Funding Model • Focus on Related Business Income • Enhance and complement your mission • Build upon existing expertise & programming • Clarity is King (SSIR) • “One of the most liberating and clarifying things we’ve done to date.” • “Taking ‘maybe’ out of the process has already boosted our bottom line.”The Nonprofit Banker nonprofitbanker.com
  • 49. Discover Your Funding Model • Three Parameters to Define Fundraising Models 1. Source of Funds • Individuals • Corporation • Foundation • Government – Types of Decision Makers – Motivation of Decision MakersThe Nonprofit Banker nonprofitbanker.com
  • 50. Discover Your Funding Model • Funding Models • Essentially, who is your donor base? • Examples • Many Individual Donors • Government • CorporationsThe Nonprofit Banker nonprofitbanker.com
  • 51. Discover Your Funding Model • Funding Model - Many Individual Donors 1. Causes 2. Beneficiaries 3. MembershipThe Nonprofit Banker nonprofitbanker.com
  • 52. Discover Your Funding Model • Many Individual Donors – Causes • Create ways for people to connect • Popular with environment, international, and medical research areas • Inherent appeals to Volunteers • To get involved • To run their own fundraising eventsThe Nonprofit Banker nonprofitbanker.com
  • 53. Discover Your Funding Model • Many Individual Donors – Causes • Ex: Revenue-Generating Activities • Sell items that promote your cause • T-Shirts / Chatchkies / Bling / Swag for Volunteers • Tool kits • TrainingThe Nonprofit Banker nonprofitbanker.com
  • 54. Discover Your Funding Model • Many Individual Donors – Beneficiaries • Reimbursed for services to the Beneficiary • ALSO rely on donations from people who’ve benefited in the past • Motivated because they believe that the benefit they received changed their lifeThe Nonprofit Banker nonprofitbanker.com
  • 55. Discover Your Funding Model • Many Individual Donors – Beneficiaries • Examples • Two Best: Hospitals and Universities • Pastoral Care, Financial Management, MentoringThe Nonprofit Banker nonprofitbanker.com
  • 56. Discover Your Funding Model • Many Individual Donors – Beneficiaries • Ex: Revenue-Generating Activities • More Careful, More Sensitive • Create ways for beneficiaries to express gratitude • Execute mission in different venues • Ex: See TishkofetThe Nonprofit Banker nonprofitbanker.com
  • 57. Discover Your Funding Model • Many Individual Donors – Membership • Issue is integral to their every day life • Don’t need to create the rationale • Just offer or support activities that members already seekThe Nonprofit Banker nonprofitbanker.com
  • 58. Discover Your Funding Model • Many Individual Donors – Membership • Ex: Revenue-Generating Activities • Lectures • Events • Periodicals (e-newsletter, magazine) • Swag for member prideThe Nonprofit Banker nonprofitbanker.com
  • 59. Discover Your Funding Model • Government 1. Government Outsourcing 2. Policy Innovator 3. BrokersThe Nonprofit Banker nonprofitbanker.com
  • 60. Discover Your Funding Model Government 1. Outsourcing • Gov has defined & allocated funding 2. Policy Innovator • Novel models to address social issues • Not 100% compatible w/ existing funding 3. Brokers • Beneficiaries can choose the suppliers • Ex: Kupat CholimThe Nonprofit Banker nonprofitbanker.com
  • 61. Discover Your Funding Model • Government 1. Brokers • Beneficiaries are free to choose the supplierThe Nonprofit Banker nonprofitbanker.com
  • 62. Discover Your Funding Model • Government • Ex: Revenue-Generating Activities • Individual Donor revenue streams • Offer services to other sectors • Get more contracts • Make organizational more desirable • Increase added-value • Increase expertise in subject areaThe Nonprofit Banker nonprofitbanker.com
  • 63. Discover Your Funding Model • Corporate Funding • Two Types 1. Corporate Philanthropy • Treat like Individual Donor 2. In-kind Donations • Willing to donate to prevent waste • Cash should still be an important piece of the equationThe Nonprofit Banker nonprofitbanker.com
  • 64. Discover Your Funding Model • Corporate Funding • Ex: Revenue-Generating Activities • Individual Donor revenue streams • Appeal to corporate culture • Sell advertising • Preferred suppliers bookThe Nonprofit Banker nonprofitbanker.com
  • 65. Why the Recent Demand? Revenue – Keep in Mind (Disclaimer) Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 66. Take-homes • Don’t get blinded by the hype • Don’t lose confidence in what is already working • However, understand the donor’s viewpoint • How will your org relate to revenue? • Is revenue an unexpected bonus or crucial to your survival? • Products, fee-for-service or both?The Nonprofit Banker nonprofitbanker.com
  • 67. Take-homes • NP Business Model Statement • Works in tandem with Mission Statement • Reference point for any potential revenue generating activity • Build on your strengths and expertiseThe Nonprofit Banker nonprofitbanker.com
  • 68. Take-homes • Impact vs. Profitability Matrix • Analyze current programs to see what quadrant can be strengthened • First monetize existing programs before creating new ones • No shortcuts to creating “uni-voice” programmingThe Nonprofit Banker nonprofitbanker.com
  • 69. Take-homes • Discovering Your Funding Model • You’re not so unique, build on the work of others • Understand your donor • Create revenue streams that appeal to your donors’ and constituents’ needs/wantsThe Nonprofit Banker nonprofitbanker.com
  • 70. Why the Recent Demand? Revenue – Keep in Mind (Disclaimer) Revenue – Define Terms 3 BUILDING BLOCKS Take-homes ConsiderationsThe Nonprofit Banker nonprofitbanker.com
  • 71. Considerations • Weigh revenue potential against associated costs • Costs - Investments in Four Areas 1. Programs 2. Personnel 3. IT (software, hardware, database etc.) 4. CommunicationsThe Nonprofit Banker nonprofitbanker.com
  • 72. Considerations • When investing in these areas • Don’t spread to thin, Stay focused • Avoid mission creep • Communication includes: • Promotion of business activities • Branding: internal & external perceptionThe Nonprofit Banker nonprofitbanker.com
  • 73. Things to Consider • Start-up costs • Scalability • If and how will our mission change to meet the new business demands? • Market research • The Competition • Is it being done already?The Nonprofit Banker nonprofitbanker.com
  • 74. Bibliography • Stanford Social Innovation Review (SSIR) • 10 Nonprofit Funding Models • Finding Your Funding Model • The Imp. of Earned Income in a Funding Model • While not used in this presentation, this last article is a short read & recommended. • Blue Avocado • Nonprofit Business Model StatementsThe Nonprofit Banker nonprofitbanker.com
  • 75. Reminder • These slides are class notes mainly intended for the workshop participants • More developed slides intended for a general audience will also be posted to SlideshareThe Nonprofit Banker nonprofitbanker.com
  • 76. Thank You Shuey Fogel - The Nonprofit BankerFor questions, speaking engagements or toarrange a free consultation for your amutah: nonprofitbanker@gmail.com LinkedIn: /nonprofitbanker Facebook: /nonprofitbanker Twitter: @nonprofitbankerThe Nonprofit Banker nonprofitbanker.com

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