Developing and sustaining a sound model for revenue is essential for the long-term health of your nonprofit. But it can’t just be focused on the sources of revenue. It must also consider the impact on the costs of pursuing that revenue. Those costs include staff time as well as out-of-pocket expenses.
And don’t forget the opportunity costs. For example, if you’re staff is engaged on any single revenue source, it can’t be paying attention to other, perhaps more vital sources of revenue.
Nonprofit Revenue Model Defined
Mark Fulop in his post Seven Principles for Building a Nonprofit Revenue Model” gives the following definition:
“Creating a revenue model is the process of thinking about the potential universe of funding accessible to your organization and making strategic decisions about preserving