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Assessing business model
Our organization used to be a central hub for state grants that were passed on to our member organizations. That was a significant part of our annual revenue. When the state changed that so that each org must manage their own, my organization never assessed the business model to determine whether it was sustainable without this earned income.
I now find myself, as the ED here for 3 years. struggling to find a model that would work for us. We are small – me and one employee – and we support 34 member organizations with a variety of services – technical support, centralized database, group liability insurance, education but also advocacy and nonprofit management topics like governance, internal controls, etc.
How does an org determine what model will work given the current economic environment and our capacity?
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1 Reply
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Hi Kristin – Thanks so much for posting here. If you haven’t already, I’d encourage you to access our current resources that include key considerations for each of the nonprofit business models (linked here): https://nonprofitfinancials.org/courses/five-non-profit-business-models-series/
As it relates to your question, determining what model will work given the current economic environment and your org’s capacity (and how to make any necessary changes to your current model) depends on a lot of factors including your access to flexible liquidity and reserves, your core mission, the expertise and structure of your staff, your current systems and infrastructure, your other revenue sources and your social capital and relationships. After taking a look at the linked materials, and if it’s helpful, feel free to reach out to me and I’d be happy to jump on a quick call to discuss further: dbritto@cultivarconsulting.com
nonprofitfinancials.org
The 5 Nonprofit Business Models Revealed - Nonprofit Financial Commons
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