Brother Can You Spare a Dime…. The Future of Nonprofit Fundraising

The charity model has changed. For nonprofits to continue to do the work they do, it’s time they reconsider their habits and their structures. With the arrival of crowdfunding, shared economies and micro-giving like Kiva the traditional approach to funding charitable work is fading. Asking for a dime is not sustainable. Providing measurable and more predictable income streams, no matter how those steams are structured, is.

My work in the private sector motivated me to re-examine how we create systems of change for social good and how we financially support those systems. I looked at three financial models that supported progressive, mission-driven work but did not involve soliciting donations.

(1) Earned Income: A nonprofit which merchandises or sells product.

A nonprofit organization is a mission-driven organization which receives a tax-free designation from the IRS for helping others/the planet/animals. This means that a nonprofit company can generate earned revenue and not pay taxes on that revenue only if that revenue is directly in line with the nonprofit’s mission. For example, Aid for Artisans sells the handiworks of its members to museum gift stores and those sales help alleviate the economic challenges the artisans face living in poor communities. More well known, our…