Apr 17, 2019, 11:50 AM
(from Nonprofit Quarterly) The decision to pursue additional revenue streams is a vital strategy question for many nonprofit organizations, including independent schools. A growing body of research points to the potential pros and cons of revenue diversification. Pros can include greater flexibility in weathering economic and other shifts, and in hedging against uncertainty; greater freedom for an organization to call its own shots than restricted revenue streams allow; and the potential for greater embeddedness within the community. Cons often include greater risk and complexity involving evaluating costs versus benefits; "crowding out" of private donations from individuals who see their support obligations differently; and increased administrative costs in management systems.
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