As economic conditions change, nonprofit sustainability remains an important top

Question

As economic conditions change, nonprofit sustainability remains an important topic of discussion. Fees for services are an important source of revenue for many nonprofits. Private donations from individuals and corporations are another important source of revenue for nonprofits, although these can be impacted by the health of the overall economy, often decreasing when funds are most needed. Federal and local governments provide grant- and contract-based funding to nonprofit organizations that can change depending on administrative priorities. Based on changes in economic and political conditions, provide suggestions for nonprofits to remain viable in various economic and political situations.

Explanation / Answer

The nonprofit organizations often face the challenges of sustainability in changing economic and political scenario. There are some suggestions that can help these organizations to bring sustainability in their operations. The first suggestion is to focus upon the broader view of mobilization of resources of different types, rather going for the monetary funding only. In an economic downturn, people may not fund the organization, but the skilled (but unemployed) people can spend few hours with individuals and train them to become employable in their respective domain. Even corporate can provide volunteers to work with the non-profits and it is of huge worth, rather giving them a particular amount of funds. The second suggestion is to work on a revenue model that will generate revenue by some productive activity, rather totally depending upon the funding from the third parties. For example, a non-profit, can collect waste paper from offices (free of cost), can go for the recycling (free of cost in lieu making monetary support) and making artistic paper bags being sold at marketable places. Here, the use of space will also be at a nominal cost or free of cost as a part of contribution to the community development work being done by the non-profit organization. It will generate revenue while other similar art and craft can be sold that will decouple the organization from the outside funding.
The third suggestion is to add value to the existing products that can be sold at value added prices that generates revenue for the organization. It will bring sustainability to the non-profit organization.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.