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Leadership Studies

For your initial post, address the following:

What are the advantages and disadvantages of different revenue sources?
What are the risks if an organization has one major funder?
What is the impact of restricted revenue on nonprofit organizations?
What are the primary revenue sources for the organization you selected for your course project?
What percentage of revenue is restricted for your chosen organization?
Support your post with sources and cite them according to current APA guidelines. Be sure to critically evaluate the concepts and related literature. Address any pro and con arguments.

Response Guidelines
Read the posts of your peers and respond to at least one, either by refuting all or part of the position taken, or by adding to it. Suggest challenges that may result from the revenue sources and restrictions for the learner’s organization. As you did in your initial post, use your research to support your claims and be sure to cite your sources according to APA guidelines.

Learning Components
This activity will help you achieve the following learning components:

Describe common components of revenue portfolios of nonprofit organizations.
Evaluate factors contributing to stability and risk in the revenue portfolios of nonprofit organizations.
Revenue Sources
INTRODUCTION
This unit focuses on the revenue sources of nonprofit organizations. As we know from the information in Unit 1, nonprofit organizations are often unique in terms of revenue streams. Whereas government agencies derive most of their revenue from taxes, and corporations get most of their revenue from sales and investments, nonprofits often derive a great deal of revenue from donations. Many of these donations are restricted in nature, which further limits the ability of nonprofit organizations to use this revenue as they might choose. While governments often generate restricted revenue as well, the proportion of restricted revenue tends to be much larger for nonprofit organizations than for their governmental counterparts.

Readings
In your Budgeting and Financial Management for Nonprofit Organizations textbook, read the following:

Chapter 9, “Understanding Revenues,” pages 187–205.
Use the Capella University Library to read the following:

Carroll, D. A., & Stater, K. J. [2009]. Revenue diversification in nonprofit organizations: Does it lead to financial stability? Journal of Public Administration Research and Theory, 19[4], 947–966.
Foster, W. L., Kim, P., & Christiansen, B. [2009]. Ten nonprofit funding models. Stanford Social Innovation Review, 7[2], 32–39.
Use the Internet to read the following:

Singh, S., & Mofokeng, M-A. [2014]. An analysis of what makes a non profit organisation sustainable: Specific reference to revenue diversification [PDF]. Interdisciplinary Journal on Contemporary Research in Business, 6[2], 393–424. Retrieved from http://journal-archieves37.webs.com/393-424jun14.pdf
Moritz, B. [2014]. 10 funding models for non-profits. Retrieved from https://newhorizonsfoundation.com/our-staff/11-site-content/foundation-news/47-10-funding-models-for-non-profits
Optional Readings
You may find some of the following readings of interest as you explore the content in this unit. These readings are optional and are not required. Use the Capella University Library to access them.

Kearns, K. P., Bell, D., Deem, B., & McShane, L. [2014]. How nonprofit leaders evaluate funding sources: An exploratory study of nonprofit leaders. Nonprofit and Voluntary Sector Quarterly, 43[1], 121–143.
Mayer, W. J., Wang, H. C., Egginton, J. F., & Flint, H. S. [2014]. The impact of revenue diversification on expected revenue and volatility for nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 43[2], 374–392.
Neumayr, M., Schneider, U., & Meyer, M. [2015]. Public funding and its impact on nonprofit advocacy. Nonprofit and Voluntary Sector Quarterly, 44[2], 297–318.
Learning Components
This activity will help you achieve the following learning components:

Describe common components of revenue portfolios of nonprofit organizations.
Evaluate factors contributing to stability and risk in the revenue portfolios of nonprofit organizations.

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