It’s Time for the Public to Understand Nonprofit Business Models

The public remains largely uneducated about the variables of various nonprofit business models, and it is our job to make sure that problem does not persist. Looking at organizations through the lens of their numbers requires understanding what they do and how their work is supported. Each line of revenue has its own transaction costs, and each program type has its own cost requirements. Some nonprofits have a great deal of unrestricted monies, and others have almost none. Because of the diversity of organizational types in the sector, managing these various models can get very complicated.

Here’s a good read about the different types of business models that exist in the Nonprofit industry and how to identify which one is yours.