In each of the following cases, what was the asset that the organization leveraged to create a source of earned income? Was that asset something it had, something it did, something it knew, or some combination of these?
- The Guthrie Theater and the Children’s Theater Company in Minneapolis had a collection of costumes. They created a business to rent the costumes to schools, theaters, companies, and individuals across the country at reasonable rates.
- Nation’s Capital Child and Family Development operated a large kitchen to provide food for its 25 sites. It created a business to cater food to other child care and elder care providers and to offer technical support to other organizations in the operation of their kitchens.
- The nonprofit Dakota Area Resources and Transportation for Seniors (DARTS) maintained its own fleet of vehicles, which it used to provide transportation to seniors. It began a business offering maintenance service to other nonprofits that owned their own vehicles.
Source: Examples are drawn from the Yale School of Management/Goldman Sachs Foundation Partnership’s National Business Plan Competition, 2002 – 2005.
*Separate response needed for this question/Do not put on same paper or mixed with first response.
his module explores the subject of nonprofits’ earned income – that is, efforts to generate revenue through activities other than traditional philanthropy. It also considers principles involved in securing government support.
Module Assignment: Read, Luksetich, W., (2008). Nonprofit and Voluntary Sector Quarterly, 37: 434
Answer the following questions
- List and discuss two of the reasons governments prefer to subsidize nonprofits rather than provide services.
- What effect has the increase in government grants had on nonprofit organizations? Is there a relationship between government grants/contracts on the rate of growth of nonprofits? Why or why not?
- Does the number of nonprofits in a state and their fundraising efforts have any impact on the amount of government grants? Why or why not?