source of income for non profit making organisation
Nonprofit organization Non-profits are not driven by generating profit, but they must produce enough income to pursue their social duties. Non-profits are able to raise money in four different ways. This includes income from donations from private donors or organizations, government funding, income from their sales or services, and income from investments. [4] Each NPO is unique in which source of income works best for them. With an increase in NPO’s within the last decade, organizations have adopted competitive advantages to create revenue for themselves to remain financially stable. Donations from private individuals or organizations can change each year and government grants have diminished. With changes in funding from year to year, NPO’s become efficient in one of the four ways to gain revenue. Trying to use multiple forms of creating revenue can increase an NPO’s costs and they can lose money.