The Moseley family had much to celebrate this Christmas thanks to a local nonprofit, The Butterfly Foundation coming Together for Colorado. Eleven-year-old Mateo’s is excited about his special delivery, a new bed and new beds for his other 4 siblings. He had been sleeping on the floor after flooding in their apartment forced them out into a hotel for 6 weeks. But thankfully the Butterfly Foundation stepped in to help this family of seven.
Over the years the demand of fundraising has been increasing exponentially. From natural disasters resulting from climate change and global warming to immigration and refugee crisis and war victims around the world to health and educational crisis in the counter, the demand for charitable funds has been rising consistently in the United States. Unfortunately, the fiscal tightness of the government budgets is making it difficult for the government to meet the demand and needs of the public goods. This is due to the consistent negative balance of payments and budget deficits. The government can set aside lesser funds for public funding. As a result, the pressures of charitable funds have been primarily shifted onto the nonprofit entities.
Implementing and switching towards Revenue Performance Management is very tricky, especially when it comes to non profit entities. Like profit maximizing corporate firms, nonprofit entities generate revenues too. These revenues are either in the form of donations or revenues generated from supporting communities. However, it is complicated to use revenues as performance management tool.
When a nonprofit entity is established, like any other organization it has a mission. However, unlike other organizations all income of nonprofit entities is not necessarily directly from mission related activities. There might be a number of support businesses that a nonprofit entity might be running. The revenue generated from those support businesses is incorporated in the nonprofit entities at large to scale up the organization, however, many of these support businesses might not be directly linked to the mission of the organization.