This document discusses the financial structure and funding models for non-profits. It proposes that a Christian website would use the "Member Motivator" funding model, relying predominantly on individual donations from members who value being connected through the site's religious activities. While the Christian website is still being developed, the document outlines key factors to consider like revenue sources, expenses, cost per user, and reviews metrics to evaluate program effectiveness and financial sustainability once operations begin.

1. A Christian Website

2. The financial structure of non-profits
contains four core components ( source-Non Profit
Finance Fund)
REVENUE MIX
COST OF EFFECTIVE
PROGRAMS
INFRASTRUCTURE AND
EXPENSES
CAPITAL STRUCTURE
Mission/Business
Model

3. Understanding Non-Profit Model
 The term Non-Profit can be misleading, as profitability
ensures that not-for-profit organisations (NFPOs)
achieve their objectives through adequate financial
support.
 For Non-Profit, the Beneficiaries are not paying
customers thus there is a distinction between
customer and funder.
 Thus the term “funding model’ is used to describe the
Non Profit business model framework.

4. NON Profit Framework –
Distinction between customer and
Donor.
A
Christian
Website
Beneficiaries
Funders
Grants
Donors

5. Revenue Mix – Funding Models
 A Christian website will have one or two dominant
sources of revenue supplemented by two or more
secondary sources. As more Revenue sources will be
difficult to manage effectively , keeping in mind that
each new revenue stream requires different
infrastructure, expertise and relationship to be
maintained with the funder. (Source Non _profit Fund)

6. Ten Non-profit Funding Models
(Source- Stanford Social Innovation Review)
 As per the study conducted by Stanford Social Innovation
review on Funding for Non-Profits, ten models identified
are summarised below according to the dominant donor.
 Funding Models, Heartfelt Connector, Beneficiary Builder,
and Member Motivator are funded by individual
donations.
 The funding model Big Bettor is funded largely by a single
person or few individuals or foundations.
 The funding models Public Provider, Policy Innovator, and
Beneficiary Broker are funded largely by the government.
 The Final Fund models, Market Maker and Local
Nationalizer have a mix of funders.

7. The Funding Model selected for
A Christian Website – Member
Motivator Model
 The Member Motivator Model – “donate money because
the issue is integral to their everyday life and is something
from which they draw a collective benefit. Non profits using
the Member Motivator funding model do not create the
rationale for group activity, but instead connect with
members (and donors) by offering or supporting the
activities that they already seek. These organizations are
often involved in religion” (Source- Stanford Social Innovation Review –
Ten Non profit Funding Models, 2009)

8. Revenue Mix Contd.
Key Questions to review for Funding are:( Source-Non Profit Fund)
1. What will be the dominant source of revenue for A Christian Website? Possible
Organisations identified as major donors are World organisation of churches, Major
Christian Orgs, International Ministries due to “inherent advocacy” in Christian causes.
2. What is the likelihood of the availability and stability of the Donor source changing?
By developing relationships with the major Donors (Customer relationship
management/Retention programs), we can only minimise this risk but remains a
possibility.
3. What will be other types of revenue that can be developed further without increasing
resources or additional cost? Advertisement revenue generated with Christian based
complementary products and services.
4. What is the strategy for Revenue Growth and If required to create a new revenue type,
would the Christian Website have the adequate capital and resources to invest in order
to build a new funding source? Our strategy for Revenue Growth is to develop a
deeper working relationship with our major Donors, and Key Partners. In the long
term, we are confident that these partnerships will produce other platforms that
would open other funding opportunities as well.

9. Average Revenue per User (APRU)
 This is the metric used for internet and other
communication companies OR simply per unit
revenue. Total Revenue (per month)/no of units per
month.
Monthly Revenue (Y2)= $57,000
No of Units (Estimated)=15,000
APRU= $3.8

10. COST MODEL – A Christian Website
Infrastructure and Expenses
 What are the largest expense types? These points to
the Administrative and Back office Processes of the
organization. Our Christian website will be utilizing
volunteers and only the core functions will have initial
financial investments.
 • What are the possible alternatives to deliver similar
results? We are looking into outsourcing options
which could be more cost effective.

11. COST EFFECTIVE PROGRAMS
(Source Non Profit Fund)
 Direct costs related to the programme plus other
support costs related to delivery, such as technology,
communications etc. are all part of effective
programme costing.
 Has the Christian Website reviewed the cost of core
programs? Does this translate to a “per unit” cost? Yes
 For programs that require subsidy, Are programme
effectiveness reviewed by the Team Lead? This is will
be validated in live operations, based on the metrics
inherent in our industry segment (faith based), aside
from the general market analytics of the web industry.

12. COST PER UNIT
 Total Monthly cost (Yr 2) = $18,200
 No of Users (estimate)=15,000
Cost per unit= $1.21

13. Summary
 A Christian website is still under formation and at
present we are finalising on the content and services of
the site. A clearer Cost/Revenue model will be derived
once this process is complete.