Earned Income: Diversified Funding Beyond Grants
We were fortunate to have Ericka Harney (@ErickaHarney) join us on #grantchat as a guest this week to discuss Earned Income for nonprofits. For more on Earned Income for Nonprofits, check out Ericka’s 2 Part Series on SmartEGrants Part 1 – Is Earned Income Right for Your Nonprofit? and Part 2 “What are the Tax Implications of Earned Income for Nonprofits?” for more specifics to consider if you are working with a nonprofit organization considering pursuing an earned income opportunity.
Let’s start with some of the basics, what exactly is earned income? Here is how members of the #grantchat community and our guest define earned income:
What are some of the advantages of considering earned income to diversify a nonprofit’s revenue stream? Here is what the #grantchat community had to say:
On the flip side, what might be some of the disadvantages of considering earned income to diversify a nonprofit’s revenue stream? Here are some of the concerns that the #grantchat community shared:
Why are Nonprofits Choosing to Diversify Funding?
Nonprofit organizations are increasingly looking for funds that still meet their mission but are more stable than annual campaigns and grant funding. One method of fund generation that has become increasingly popular over the past decade is earned income. Earned income comes in many forms and by many names, such as social enterprise, cottage industry, venturing, business spin-offs, enterprise endeavors and many more. Undertaking an earned income effort isn’t something that happens overnight and is not without it’s challenges, but it can certainly be a worthwhile effort if successful.
We are taking the chat live on this Friday with Ericka. You can subscribe now to hangout with the Grantchat team and Ericka or join us live using this link.
Do you have other resources related to or examples of successful nonprofit earned income projects/businesses? We’d love to hear! Please share links with us via the comments section of the website or via social media using the #grantchat hashtag.