Revenue Strategies

1. Revenue Strategies Steve Zimmerman, CPA, MBASpectrum Nonprofit Services Client Logo @SpectrumSteve

5. Matrix Map Process

6. Our Conversation Today • Where does revenue come from? • Analyzing your revenue mix • Finding the “right revenue” • Using the Revenue Map to strengthen your revenue strategy • Understanding who benefits • Considering capacity for different revenue streams

7. Pursuing Sustainability Market Analysis Intended Impact Mission Impact Assess-ment Matrix Map True Costs Determine Profitability Revenue Alloc. Revenue Strategies

8. SHOW ME THE MONEY!

9. Where does your revenue come from?

10. Nonprofits enjoy 2 types of revenue

11. Revenue Types and Sources Total Revenue

12. Nonprofit Sources of Revenuewithout college tuition, hospital revenue

13. What is your revenue composition? • How has it changed over time?

14. An example: • Revenue Composition

15. “Diversification is subject to the laws of diminishing returns” – Clara Miller Streams vs. Sources

16. How do we find the “Right Revenue?”

17. Reliability

18. Flexibility

19. Flexibility • Surplus Generating

20. 2 • Feasibility

21. 2 • Feasibility • Relationships • Infrastructure

22. Characteristics of the “Right Revenue” Reliability Flexibility Feasibility

23. Analyze Your Revenue Streams • Revenue Strategy • What is your revenue composition and characteristics? • Are your revenue streams changing? • Where are your strengths? Where is there pressure?

24. The Revenue Map Process

25. Understanding Your Current Revenue Mix • To analyze revenue composition, list each revenue stream as a percentage of total revenue:

26. The Revenue Map Process

27. Example • Rate each revenue stream on flexibility and reliability, on a scale of 1 to 4:

28. The Revenue Map Process

29. The Revenue Map • To analyze revenue characteristics, each revenue stream is plotted by flexibility and reliability • Circle size represents percentage of total revenue

31. Strategic Inquiries • What is our revenue composition and characteristics? How is it changing? • Which streams are driving impact or generating unrestricted support? What are our strengths?

32. The Revenue Map Process

33. Rate Your Revenue Streams • Rate each revenue stream on flexibility and reliability, on a scale of 1 to 4:

34. The Revenue Map Process

35. Homework By February 14th: • Submit your revenue source ratings to tampa@spectrumnonprofit.com

37. Strengthening Your Revenue Strategy • Revenue Strategy • What are strategies to strengthen your revenue mix?

39. Strengthening Your Revenue Strategy • Shift from Programs to Impact

40. Strengthening Your Revenue Strategy • Who Values or Benefits From Your Impact?

41. Strengthening Your Revenue Strategy • Who Values or Benefits From Your Impact? How do revenue streams connect?

42. Strengthening Your Revenue Strategy

43. Who Benefits? • Considering our intended impact, who values or benefits from our impact? • What is the revenue stream connection? What revenue streams make sense based on who benefits?

44. Considering Capacity

45. Philanthropy: What It Takes to Succeed • Organizations invest in fundraising capacity. • Staff and volunteers act as organizational ambassadors. • Fund development and philanthropy are valued across the organization. • Development director is a key planning and strategy leader.

46. Philanthropy: What It Takes to Succeed • Time is set aside to build authentic relationships with donors. • Engaging communications involve and retain donors. • Feedback is tracked on what messages resonate with donors for continuous improvement.

47. Government: Compliance, Reporting, & Advocacy

48. Corporate Sponsorship: Business Case for Impact

49. Earned Revenue: Bottom Line

50. Considering Capacity • Which Stream is Your Organization Positioned to Win At?