September 2, 2004 | Read Time: 1 minute
Generating and Sustaining Nonprofit Earned Income: A Guide to Successful Enterprise Strategies
edited by Sharon M. Oster, Cynthia W. Massarsky, and Samantha L. Beinhacker
Many nonprofit groups have developed innovative ways to earn money, write Sharon M. Oster, Cynthia W. Massarsky, and Samantha L. Beinhacker, all of the Yale School of Management-The Goldman Sachs Foundation Partnership on Nonprofit Ventures, in Englewood Cliffs, N.J. For example, they describe two theater companies that developed a costume-rental company and a community-development organization planning to start a manufacturing operation that employs disabled workers. However, the editors of this collection of essays caution that small businesses experience a high rate of failure and that nonprofit groups need to understand the practical steps involved in expanding their scope from serving needy people to meeting customer demands. These essays offer guidance on developing a business plan, raising capital, and managing commercial ventures.
In his introduction, Bill Bradley, the former U.S. senator who now serves as an adviser to McKinsey & Company’s Nonprofit Practice, argues that nonprofit groups spend too much money soliciting donations and should try to reduce fund-raising costs and explore other ways to earn revenue. At the same time, Mr. Bradley says that commercial ventures can put a charity’s social goals and reputation at risk. Another essay discusses how to safeguard an organization’s mission while planning a money-making project.
The book also covers developing leadership skills, pricing and evaluating products and services, setting revenue goals, and dealing with legal and tax concerns.
Publisher: Jossey-Bass, 989 Market Street, San Francisco, Calif. 94103-1741; (317) 572-3986 or (800) 956-7739; fax (317) 572-4002; http://www.josseybass.com; 352 pages; $45; I.S.B.N. 0-7879-7238-X.
