Get to Know the Income of Non-Profit Organization, Learn, and Evaluate it!. So you know what the income of non-profit organization? As we know, a non-profit organization works to support an issue or matter for social purposes that are not commercial, there is no element of looking for profit (monetary) in attracting public attention.
In general, the community believes that a non-profit organization already has a source of funds to be used to finance its activities. Many non-profit organizations only get one type of income, namely grants from nonprofit donor organizations. This risks an organizational paralysis if the activity grant has been used. Therefore, other sources of income for non-profit organizations are carried out to support the sustainability of the organization in carrying out its activities.
Then what kind of income can a non-profit organization use?
Income from program activities
A non-profit organization is not recommended to seek income from the activities carried out, it can show that the organization is operating commercially. Organizational income can be sourced from organizational activities by taking into account a number of basic things, such as:
- Expansion of community services
- Awards for performance by non-profit organizations
Income from donations
Donations represent the income of the non-profit organization that is obtained without having to present a remuneration/product as a pure gift of goodwill from the giver (donor). Donations can be given regularly or only once, which is done through fundraising activities, for example through philanthropic activities.
Philanthropy is a philanthropic activity by providing assistance from individuals, organizations, and companies. This philanthropic activity has two functions, namely as a fundraiser through activities that generate awareness of philanthropy from the community and as beneficiaries of the funds, namely the management of donations so that they are effective and provide benefits.
Income from grants
Giving grants is very specific starting from the donor organization, type of activity, implementation to the context of the activities carried out. Such as making proposals, details of activities, and details of funds needed. Usually the amount of funds provided is greater than the type of donations/donations.
Interest income and other investment returns
Represents income derived from an organization’s capital or assets which depends on the amount of the total investment value. In general, non-profit organizations are not allowed to make investments with high risk because the funds invested should not be reduced and must increase in amount. So that non-profit organizations must be more careful/conservative in calculating the risks and benefits of investing.
Income from membership fees
In a community or non-profit organization with several members usually requires members to make contributions. The amount of contribution is adjusted by mutual agreement or can also be voluntary. The difficulty with membership fee-based income is that of its members. Individual contributions are difficult to collect if they are individual compared to professional or corporate membership.
Income from commercial businesses
Direct income can be obtained by a non-profit organization through commercial ventures by forming a special unit in dealing with or owning shares/ownership of commercial business entities. Important to know is the separation of the management of commercial units from the nonprofit program. So that commercial activities can run without the involvement of non-profit organizations in daily operations. This separation is important to avoid confusion about the use of a non-profit organization’s resources.
By knowing the revenue sources of this non-profit organization. We can learn and evaluate the amount of income of non-profit organizations that we manage. And, see opportunities to get income from other sources.