Beyond high-level, broad-strokes data, there’s little information available about patterns in funding for nonprofit organizations. As a result, philanthropists and nonprofit leaders have little choice but to make assumptions about funding. One common assumption: Having a variety of sources makes for a healthier organization. And a preliminary study of a small number of youth-services and environmental-advocacy organizations suggests this assumption may be true to some extent but it doesn't paint the complete picture. The research found clear differences in the typical funding mix of organizations depending on their size. Patterns such as these could provide important guideposts for nonprofits that want to build robust economic models.
April 2, 2007
In Search of Sustainable Nonprofit Funding
One common assumption nonprofit leaders and philanthropist make about funding is that having a variety of sources makes for a healthier organization. The study of a small number of youth-services and environmental-advocacy organizations suggests this assumption may be true to some extent, but it doesn't paint the complete picture.
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William Foster is a partner in Bridgespan’s Boston office and the firm’s managing partner. He is an active thought leader on issues of philanthropy and social change.
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