Can Nonprofits charge for their services? | Fundraising Strategy

Fundraising is one of the top challenges nonprofits face - so is it possible for nonprofits to charge for their services to generate sustainable revenue? Yep! Here's how. #fundraising #nonprofits #nonprofitorganization
If you are starting a nonprofit, fundraising for a nonprofit, or KNOW someone who is trying to start or fundraise for a nonprofit, I hope this helps!
FOUNDER TO FULL-TIME: Check out my trainings and blog on starting a nonprofit or social enterprise at foundertofulltime.com/
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// CHAPTERS
00:00 Welcome!
01:15 What is earned income?
02:25 Consideration #1
04:25 Consideration #2
05:06 Fee for Service
06:02 Memberships
06:40 Tuition
07:16 Professional Services
07:46 Product Sales
08:37 Licensing
09:41 Event Tickets
10:26 Facility Fees
11:15 Publications
// MORE ABOUT ME
Hi! I’m Amber, a nonprofit founder, Executive Director, and public speaker on social impact, changemaking, nonprofits, leadership, and more.
Join my newsletter to receive updates and resources for changemakers and nonprofit leaders: tinyurl.com/nonprofitsandchan...
FOUNDER TO FULL-TIME ACADEMY: Want some training and guidance on starting a nonprofit (and potentially even working for that nonprofit full-time someday?)? Check out my online training courses at my Nonprofit Founder to Full-Time Academy! foundertofulltime.com/
Want me to come speak at your business, college, school, or event? Check out my site: ambermelaniesmith.com/
On Facebook? Talk to me and other change makers about social change, nonprofits, social enterprise, leadership and more in my Facebook group, Change the World or Bust: / changetheworldorbust
I'm also on Twitter: / ambermelsmith

[@AmberMelanieSmith]

Join my newsletter to receive updates and resources for changemakers and nonprofit leaders: tinyurl.com/nonprofitsandchangemakers

[@J.ScottLane]

These are great ideas - it seems so obvious when you talk about them but I'm sure people haven't thought about most of your eight ideas. I love the way you cite specific examples for each of the concepts. Your contributions to the non-profit space are so appreciated.

[@AmberMelanieSmith]

:) Thank you, very kind!

[@Shemeher202]

This is awesome info!

[@AmberMelanieSmith]

Glad it was helpful!

[@benjaminmcfarlane3807]

Thanks for this

[@AmberMelanieSmith]

Hope it helps!

[@jonc8179]

So glad I found your videos!

[@AmberMelanieSmith]

Welcome to the channel! :)

[@alisagreen3162]

Great video! Thank you!

[@AmberMelanieSmith]

Hope it was helpful!

[@pusonnamyiri]

Excellent. Thank you for your generous sharing. Very helpful tips.

[@AmberMelanieSmith]

Glad it was helpful!

[@etranhyeeadjouastephanieko9836]

Wonderful ❤❤

[@AmberMelanieSmith]

Thanks for watching!

[@BTMUDZ]

Really helpful, thank you so much....

[@AmberMelanieSmith]

You're welcome!

[@youbemoreconfident8359]

Very helpful tips. Thank you for the insight.

[@AmberMelanieSmith]

Glad it was helpful!

[@user-ll7hq4dd3u]

Hi,this is from INDIA .. keep it up mam

[@AmberMelanieSmith]

Thank you!

[@xoxox.skinnychef]

What about merch with your logo and mission statement?

[@AmberMelanieSmith]

That by itself would probably not meet the criteria and would probably count as unrelated business income.

[@NathanAponte]

What if the T-shirts your selling through the non-profit has the non-profit’s name and logo on it?

[@AmberMelanieSmith]

There was a similar comment here so I'll say this - A t-shirt by itself (though it funds the nonprofit) doesn't contribute to an animal being rescued. Pet supplies (equipping the pet owner so they are less likely to return the pet) does. In the case of a nonprofit's logo being on the shirt, still no - then selling them is like a marketing campaign (vs a program campaign). It has to be tied to the program being delivered directly.

[@NathanAponte]

@@AmberMelanieSmith we’ll have to give our T-shirts away for free then

[@AmberMelanieSmith]

@@NathanAponte You are still allowed to sell t-shirts and make SOME unrelated business income, it just can't be a significant amount / portion of your overall revenue :)

[@kileengil]

if you are giving an earned income receipt what should the information say? can people write it off?

[@AmberMelanieSmith]

Earned Income is typically someone buying a product or service (just like they would in a store), so because they receive something in return, it is not tax deductible. The receipt should note that the only part that would be tax deductible is if the person chose to donate extra money above and beyond the cost of the item/service (then, the excess would be a donation).

[@seansuccessjones]

I have a non-profit, I setup all of my automations and systems for it, could I offer this as a service to other non-profits to do the same for them as a charge for this service?

[@AmberMelanieSmith]

I don't see why not, if nonprofits want that service. :)

[@seansuccessjones]

@@AmberMelanieSmithThank you

[@cjplay2]

Consideration #1 - Example for selling T-Shirts. What if the shirts had your logo and basically "advertised" your rescue? If you sold them at cost, it wouldn't be revenue.

[@AmberMelanieSmith]

Sure, if you just want to do marketing that way there wouldn't be a net profit.

[@taylorw]

But if the income from the pet t-shirts funds the activities of the non-profit, even hiring or training staff, or funding an event, how is that “unrelated?”

[@AmberMelanieSmith]

It's confusing, I know. The actual item or service has to literally be a thing that furthers the mission. A t-shirt by itself (though it funds the nonprofit) doesn't contribute to an animal being rescued. Pet supplies (equipping the pet owner so they are less likely to return the pet) does. Make sense?

[@taylorw]

@@AmberMelanieSmith not really 😄 but duly recorded! Thanks Amber.

[@AmberMelanieSmith]

@@taylorw Heh - if it helps, think of it backwards. You can charge money for the programs you offer. Program fees = related business income.

[@danielcitizenman5510]

Awesome, your late in the day today!

[@AmberMelanieSmith]

Ha ha yep! A little behind, but not forgotten! :)

[@NathanAponte]

What if you’re NOT a 501 c 3?

[@AmberMelanieSmith]

Many of these strategies apply to for-profit businesses too (if that's what you mean). If you are talking about doing these things as a nonprofit, then for these revenue streams to be tax exempt, you need to get your 501c3.

[@NathanAponte]

@@AmberMelanieSmith we are a domesticated non-profit but not a 501 c 3

[@NancyMalambo-uq1vk]

I have a group called touching lives with tashy it generates its fands through its members the problem is not every member manage to contribute...I really need help to make this happen

[@AmberMelanieSmith]

Maybe start with a list of your top challenges! I hope some of my videos are helpful to you :)