Nonprofit business models
by Paula Anderson
As media changes, more news organizations are choosing nonprofit business models. A nonprofit organization is not owned by anyone. The founder of the organization will develop a board who is responsible for the organization’s goals, mission and purpose. The board appoints or selects a chief executive officer and/or president to manage the day-to-day operations of the organization.
After the formation of the board, bylaws and articles of incorporation are developed. Nonprofit entities normally apply for a 501 c (3) status with the Internal Revenue Service (IRS). The mission statement for the organization drives the purpose and focus of the organization.
While a nonprofit structure can serve to help others, there has to be a revenue model for the organization to sustain. Corporate donations, sponsorships, memberships and fundraising events are ways to generate revenue.
All of these are ways to support the ‘double’ bottom line. Just like a for-profit business, a nonprofit entity requires the same elements. A business plan or model, marketing strategy, public relations, financial planning and media relations.
To learn more about establishing a nonprofit organization, contact Momentum Nonprofit Partners at Momentum Nonprofit Partners.