The document discusses the recent demand for nonprofits to generate revenue through their own activities. It identifies three key reasons for this demand: 1) A weakened economy has led to decreased donations. 2) Modern donors expect financial viability and sustainability similar to for-profit investments. 3) The rise of hybrid for-profit/nonprofit business models has influenced expectations. While revenue generation is important, nonprofits must not lose sight of their core missions and methods. Part two will discuss a successful strategic approach.

1. Strategies for
Analyzing & Implementing
Revenue-Generating
Activities in Nonprofits
Part 1: Understanding the
Recent Demand
Shuey Fogel
The Nonprofit Banker
@nonprofitbanker

2. In the past few
years, nonprofits
have been hearing
a lot of the following

3. There is a
New Age
Dawning in
Philanthropy
Photo Credit: “Sunrise on Phu Chi Fa” by Tom Bkk

4. Our Funding Models
Are Broken
Photo Credit: “Collapsed House” by JHF

5. those that fail
to understand
this and adapt
will cease
to exist
Photo Credit: “Tombstone” by A.M. Kuchling

6. Why the Recent
Demand for Nonprofits
to Create Revenue-
Generating Activities?

7. #1 The Economy
increase in unemployment
+
bleak forecast
=
decrease in donations
=
need to diversify

8. Charities
do not want to rely
exclusively on donations.
Photo Credit: “Collecting Money” by Mwiththeat

9. Donors
do not want to be the sole
source of revenue.
want to support what they
feel is a financially viable
organization.
Photo from “Meet the Investor” panel from recent Amuta21c conference for Israeli charities & nonprofit professionals, www.amuta21c.com

10. #2 The “New” Funder
Self-made wealth.
Seeks philanthropic
opportunities that allow
for personal involvement
& not just a cash infusion.
Photo Credit: ”Money and Magnifying Glass” by Images_of_Money

11. This Modern Donor
pursues sustainability.
uses similar investment
strategies to finance
nonprofit & for-profit
ventures.
Photo Credit: ”Money and Magnifying Glass” by Images_of_Money

12. This Modern Donor
uses phrases, such as…
…Return On Investment
…Venture Philanthropy
…Philanthropic Equity
…Double-Bottom Line
Photo Credit: ”Dictionary Definition: Work” by Jaboney

13. #3 Hybrid For-Profits
Legal structures that
allow for socially-minded
business entities.
Photo Credit: “Red and Blue Liquids Inside Graduated Test Tubes” by Horia Varlan

14. Investors
believe it is possible to
pursue a double-bottom
line: impact & profitability

15. Someone
Even Told Me
“I don’t even know why
people start charities
anymore. Any cause
can be opened up as a
business.”
Photo Credit: ”Stock Exchange” by Travel Aficionado

16. the demand for revenue-
generating activities
doesn’t require nonprofits
to abandon proven funding
models & methodology!
Photo Credit: ”Stop Sign” by LadyBeames

17. Don’t Get
Blinded
By the Nothing can
Hype! substitute
philanthropy.
Donors are different
than customers.

18. And don’t forget:
• Charities have always
pursued a double-bottom
line.
• SSIR Study: Fee-for-
Service alone is not a
funding model of any
USA “big” nonprofit.

19. Nevertheless, the
potential for
enhancing financial
stability through
earned income is too
substantial to ignore.

20. When Implementing
Revenue-Generating
Activities
Create a strategy that
compliments the vision &
mission of your charity
In short, see Part 2
Photo Credit: ”Construction Vehicle” by Roberto Verzo

21. Why do you think charities are
being pushed to create
revenue-generating activities?
/nonprofitbanker
@nonprofitbanker
#nprevenue
Stay Tuned for The 3 Components to
Part Two! a Successful Strategy