Nonprofit is a Tax Status, NOT a Business Model
Is your organization a nonprofit?
If so, that means you have a mission to serve a constituency, educate them, advocate for them and provide opportunities for connections, community and commerce.
However, being a nonprofit doesn’t mean that you shouldn’t earn a profit.
One of the most important measures of your viability, value and relevance to your members is whether or not they will pay annual dues, event registration fees, as well as the other a-la-carte services you offer.
Achieving a healthy profit allows you to reinvest so you can be the most important relationship in your members’ professional lives.
More profit means you can hire the best people, provide great employee benefits and attract the best business partners.
And of course, a strong bottom line allows you to better achieve your mission and subsidize initiatives that support your industry and your members.
A few of the most progressive nonprofits I know have hired a Chief Revenue Officer (CRO). These CROs have corporate experience in marketing and business development and have built their careers by maximizing revenue and profit for their organizations.
Remember, “Profit is what happens when you do everything else right.” —Yvon Chouinard