Aside from donations how do charities make money? What percentage of their revenues come from donations (on average) versus other revenue streams?
-
-
Answer:
-Contracted work: e.g., state contracts for mental health services are often given to nonprofits -Profit centers: e.g., the museum gift shop turns a profit, which subsidizes the cost of museum exhibits -Government earmarks: these may be considered donations, depending on your point of view -Admissions costs: buying tickets to the ballet brings revenue into the organization -Educational opportunities: some nonprofits offer classes that fulfill the mission of expanding interest in their topic, and also charge -Consulting: nonprofits can offer expert advice to businesses, other nonprofits, or government -Marketing partnerships: businesses will often sponsor nonprofit activities in order to be associated with them. While these are accounted for as donations for tax purposes, the structure of the deals, sales process, and stewardship of these relationships is very different from pure donations.
Jamie Beckland at Quora Visit the source
Other answers
Adding to Jamie's answer... -Events (banquets, festivals, walkathons, shows, etc.) A not-for-profit has every revenue-generating opportunity available to it that a for-profit business has. Some would even make the case that a good not-for-profit should be run with the same tight principles and efficiency that make for-profit businesses successful. The only financial difference in a for-profit vs. a not-for-profit is what happens to the profit. For-profits get taxed. Not-for-profits don't, because the idea is that they will take that money and turn it around for charitable purposes that help others, rather than profit owners/shareholders. It can actually be more helpful to think of them in terms of taxed vs. not-taxed organizations.
Michael Poythress
Another way to think of nonprofits is that the profits cannot be paid to board members or shareholders (there are not shareholders). Instead all money made must be put back into the work of the organization. As other people have said, it depends on the nonprofit as to how they earn money outside of donations. But one example is the NFL - which believe it or not is a registered nonprofit. In theory an organization is freed from paying taxes because they provide a service that the government would have to provide otherwise. But the NFL example makes it clear that this is not always the case. I doubt the government would feel a need to create major league sporting activities.
Saundra Schimmelpfennig
Related Q & A:
- How Does Flipkart Make Money?Best solution by Quora
- How can I make money through the Internet?Best solution by Yahoo! Answers
- How do you make money from blogs?Best solution by Yahoo! Answers
- How does Yahoo! make money?Best solution by Yahoo! Answers
- How can I make money online?Best solution by Yahoo! Answers
Just Added Q & A:
- How many active mobile subscribers are there in China?Best solution by Quora
- How to find the right vacation?Best solution by bookit.com
- How To Make Your Own Primer?Best solution by thekrazycouponlady.com
- How do you get the domain & range?Best solution by ChaCha
- How do you open pop up blockers?Best solution by Yahoo! Answers
For every problem there is a solution! Proved by Solucija.
-
Got an issue and looking for advice?
-
Ask Solucija to search every corner of the Web for help.
-
Get workable solutions and helpful tips in a moment.
Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.