Revenue Generation




Social Innovation requires the generation of revenue in order to be sustainable. The most popular sources of funding include: 


*Donations - Soliciting wealthy individual donors, small donors, online donors 
*Grants – Foundation grants, government grants/outsourcing  
*Special events - Annual fundraisers, races, charity events, etc. 
*Selling a Product/Service – Fees from beneficiaries (charge for services)
*Endowments – Universities, nonprofits 
*Patient Capital – Loans from “patient” capitalists who are willing to wait until the organization can return the investment capital and does not expect high levels or rates of return on the investment capital. As the financial market for capital is expanded to include social ventures, access to capital will help social ventures flourish.
*Unconventional Funding Sources – Traditional social ventures find unconventional funding sources to launch their venture. Often called “bootstrapping”, the organization will “bootstrap” resources including running the organization from a home, church or community organization, partnerships with a community chest/funder to manage operations until the 501C(3) status is approved, utilizing other people’s resources, etc. 

 

Utilizing business strategies will make NGOs scalable by becoming profitable. In order for a great idea to be sustainable, it needs consistent funding. 

 

References: 

The Algernon Sydney Sullivan Foundation. (n.d.). Social Entrepreneurship Program. IV Sustainable Social Venture Model 


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