Chapter 6Determining Profitability

After navigating through the subjective, and for some uncomfortable, conversations about mission impact, profitability seemingly provides an oasis of objective data. But as accountants will tell you, by the time you’re done with allocating all the costs and revenue streams to specific business lines, objectivity is an illusion. Not to worry. In this chapter, we walk you step-by-step through how to determine the profitability of your programs (figure 6.1).

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Figure 6.1 The Matrix Map Process: Determining Profitability

Profitability is essential for nonprofits to be financially viable and sustainable, yet ...

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