Lesson 2: Earned Revenue Funded
Earned Revenue Funded is the second lesson in the series of 5 seminars on the 5 most common Nonprofit Business Models. It is fitting that earned income be the first of these since fee for services dominates the nonprofit revenue landscape at more than a trillion dollars annually.
This lesson from the Nonprofit Financial Commons is designed to help you consider what the earned
income business model requires in terms of leadership, oversight, processes, capitalization, and
infrastructure. It will address common mistakes and complications as well as tools and resources.
You will learn from an all-star cast of presenters and moderators in this lesson as we review
factors that appear to lead to either success or failure in nonprofit earned-income ventures. In
addition, we will review what goes into responsible business planning and risk containment and
how to approach capitalization.
Earned Revenue Funded is the second course in the series of seminars on the 5 most common nonprofit business models. It is fitting that earned income be the first of these since fee for services dominates the nonprofit revenue landscape at more than a trillion dollars annually.
You will learn:
- To recognize types of earned income efforts among nonprofits;
- What is related and unrelated business income, and why it matters beyond tax implications;
- How to approach the mitigation of risk;
- What levels and types of infrastructure are needed; and
- Where capital for such efforts might come from.
- To understand the extra infrastructure required for subsidized fee for service activity.
Managing Partner, BDO FMA
Moderator, Nonprofit Financial Commons
Managing Partner, Sea Change Capital Partners
Executive Director, Hope Builders
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Research: The Scale of Mission-Embeddedness as a Nonprofit Revenue Classification Tool: Different Earned Revenue Types, Different Performance Effects Revenue Embeddedness and Competing Institutional Logics: How Nonprofit Leaders Connect Earned Revenue to Mission and Organizational Identity PDF
Does a More Diversified Revenue Structure Lead to Greater Financial Capacity and Less Vulnerability in Nonprofit Organizations? A Bibliometric and Meta-Analysis Collective Social Entrepreneurship: Collaboratively Shaping Social Good Earned Income and American Museums: The Perils of Privatization PDF