 Can You Make Money with Your Mission? What Your Board Needs to Know Board member Sue raised her hand to ask "If this is successful, is it okay for us to make a profit? After all, we are a 'nonprofit.'" In this post-recession world, nonprofits continue to seek ways to increase money to create their missions. One option is to expand earned income or mission income, that is, income earned while doing mission. In this climate nonprofits that never before considered mission income are reexamining their opportunities. Others who dabbled in mission income are now placing it front and center. Here are ten fundamentals for you, as a board member, to consider as you explore mission income opportunities for your nonprofit. 1. Is it okay for nonprofits to make a profit? Yes! It is both okay and advisable to make a profit. It's "no fun" to end the year in the red. The Maine Association of Nonprofits states it best: "What distinguishes nonprofits is not whether they can make a profit, but what happens to profits. Nonprofits are prohibited from distributing profits in the same way for-profit corporations can. All revenue must be earmarked for the organization's mission." Good news: when you make a profit, you must use it to create more mission. 2. Is mission income a common source of nonprofit income? Yes, in fact mission income is the largest source of nonprofit revenue. This surprises many people until they consider entities like theaters, hospitals, colleges, and counseling services and their fees. Mission income totals just under $650 billion per year (Nonprofit Quarterly). 3. What is your organization's current relationship with mission income? Many nonprofits earn mission income. If yours does, you will want to learn about the sources. What percentage of the income you receive covers the cost of providing the service? Learning about your current sources will help you to make informed decisions. Other questions to ask include: Has the organization earned mission income in the past? What were the experiences? How were they successful? Can it be traced to marketing efforts, the product offered, and repeatable circumstances? In short, what strengths do the organization and staff have around mission income? 4. What are the benefits of mission income? Besides money, mission income offers opportunities for increased sustainability, new ways to involve the community, enhanced brand identity, cause education, greater control, and, with a good consumable product, an opportunity to continually reengage the community. A major benefit of mission income . . . Read the rest of the article here... More Income Related Resources Karen Eber Davis Consulting helps nonprofits identify exemplary ideas (yours, mine, or ours) that propel nonprofits to the next level. We can help you select mission income ideas and create and implement practical proven strategies to make them a reality. See the following resources for help exploring additional income and fundraising opportunities: Can Your Organization Obtain More Income? The 7 Sources
Want Money? Karen's Basic Toolkit for The New Year
And these, audio downloads, Money-tastic #2: Nonprofit Income Opportunities and Money-tastic #3: Creative Revenue Streams for Your Nonprofit.
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