So, we know that everyone wants to make money for their mission. How we do that is varied, and most of us depend on the grinding funding cycle to support our current work. But what happens when you want to grow your client base or expand a program?
Government funding is uncertain at best, especially given the major shifts in priorities of the current administration, and it comes with very specific restrictions and required outcomes. Private funding is increasingly competitive, saturated with so many needs and organizations vying for the same dollars. With Mission Capital as your guide, we encourage you to push your organization’s boundaries to discover new ways to make money for your mission.
Earned revenue … we know, we know. You’ve heard it before. But it presents a compelling opportunity for an organization to capitalize on something it already does or could do well to diversify its funding, bringing greater stability and financial security. Not to mention, it exposes your work to a new client/customer base, giving them new way to support your mission. So, what does earned revenue actually entail?
In the nonprofit sector, earned revenue means making products available or providing services to organizations or individuals, who, in return, pay a price that covers some, all, or more than the costs of these products or services. Wow, that is a mouthful!
In Austin, there are quite a few examples of organizations with earned revenue streams including, Goodwill of Central Texas, Hand to Hold, Catholic Charities of Central Texas, among many others. These organizations have taken a product, program or service that has monetary value, and offered it to the broader marketplace of potential clients, customers and buyers.
While the concept has gained much attention in recent years, many nonprofits, such as the ones listed above, have had earned revenue streams in their traditional funding models for a while now. But what about nonprofits who haven’t yet dipped a toe into the earned income waters?
The process of getting from idea to a final product or service can be challenging. An initial concept may seem ready to “take to market”, but not survive external market forces such as competition and pricing. We’ve found that sometimes just a few adjustments will improve your prospective offering’s alignment with this “sweet spot,” and allow the project to get off to market with a new and improved plan.
Our research and firsthand experience working through the earned revenue process has us excited about the many nonprofits who can increase financial stability through this form of revenue diversification. Now, we’re looking to pass this knowledge and expertise on to you!
Mission Capital has developed a model to assist organizations at every stage in the earned revenue process, from initial education on earned revenue to evaluating a current project to ensure it’s providing the financial value originally anticipated.
Wondering if your organization is ready to explore the risks and rewards of earned revenue? Take a quick self-assessment. If you have a great idea and aren’t sure where to take it, join us for the first-ever Revenue Generator, a three-session course designed to guide your organization through the process of building out, testing and refining your potential earned revenue opportunity. This could be your chance to make money for your mission!