Income Generation Models for NGOs (PDF)

Sustainability is one of the biggest issues, if not THE biggest, facing the non-profit sector today. Non-profits are fast looking at new models where they can generate their own revenue and reduce donor dependency. And donors are
increasingly expecting non-profits to have sustainability strategies in place.

Talking about applying about business ideas, generating income and profit margins tends to provoke a reaction amongst many NPOs. Over the years, I've heard the following comments:
? It is wrong to make a profit
? Making a profit means stealing from beneficiaries or donors
? Our organization will lose its soul or essence if it makes a profit.
? Making a profit is for businesses not NPOs
? It will distract us from our mission (aka ?mission drift')
? We will lose our NPO status
? We don't have business skills to make a profit
? Our donors don't want us to make a profit
? The type of work we do does not allow us to make a profit (e.g. our
beneficiaries are poor).
On the positive side, there has been increased acceptance of these ideas since I started promoting them in 1996.

The term ?Sustainability' is a misnomer that has become jargon, and jargon leads to fuzzy thinking.
? Organizations are always at risk.
? It is impossible to predict the future with certainty. Big changes (e.g. ?Arab spring', global financial crisis, Marikana miners' strike) are frequently
unexpected.
? Instead of using terms such as ?sustainability', it is better to be more precise
in our language. We should instead discuss how enterprises can improve
their strategic position, and generate the income and profits required to
increase their social impact and reduce their financial risk.