Time To Break Rule #1 — Nonprofits Should Raise Most Of Their Dollars From Donations
When I say “nonprofit,” do you think “charity?” What do these words mean and how do you conceptualize them? With today’s myth-busting missive, I’m targeting our preconceived notions about how nonprofits fuel their business models.
According to the Brookings Institute, what you might think about nonprofits is probably way wrong. It may be surprising to learn that just 13% of revenue for nonprofits comes from private contributions, including all the ways you’ve probably supported a nonprofit – coins dropped in collection bins, gifts made at special events and your cousin Larry’s crowdfunding campaign. etc. Fully 70% of all revenue to nonprofits is derived from fees charged in exchange for goods and services.