Nonprofit & Government Times Q1 2020

Additional Revenue Sources for Nonprofits MAGDALENA M. CZERNIAWSKI, CPA, MBA TAX PARTNER, NONPROFIT, GOVERNMENT & HEALTHCARE GROUP

B y definition, nonprofit organizations focus on supporting their mission instead of benefiting shareholders. Many nonprofits are supported by providing services to various individuals for which they receive reimbursement by the government. However, reduced government funding has led nonprofit organizations to look for alter- native revenue sources. In this challenging environment, it is imperative that nonprofit executives think outside the box about how to raise funds from various sources. This does not come naturally to most nonprofit executives, but it can be a big differentiator.

ENGAGED BOARD OF DIRECTORS

Let’s start with the core of the nonprofit—its Board of Directors. An engaged Board is important for a non- profit organization. A high level of engagement from the Board will not only help the nonprofit remain focused on its mission, but also facilitate its growth. Attracting good Board members can be a challenge, but nonprofits, like for-profit businesses, need to focus on networking and finding followers. Engaged Board members can provide their time and resources and find other potential donors who can do the same. How can a nonprofit attract such Board members? A clear mission statement is key. Every employee of a nonprofit should be able to articulate its mission, which should be clear and concise and resonate with others. If the nonprofit’s mission is well defined, then potential

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