Financial and Strategic Management for Nonprofit Organizations, Fourth Edition

Chapter 9 Entrepreneurial Revenues Generated by Mission

For a nonprofit, words such as charitable, eleemosynary, and benevolent may define a mission, but “economic” defines the organization. It needs cash to produce a good or service to accomplish its mission, to create a social value, and to do this it needs to finance its operation. Without money, a mission is most likely a meaningless promise. One source of money is to earn it. Is this possible—how, and when? What are the determinative questions? These appear at the end of this chapter.

Thus, even the most charitable of nonprofits find themselves in need of some cash. Business activities are a source of cash which is unrestricted in its use. That is, unlike gifts and contributions that can ...