Having diverse sources of revenue minimizes risk and maximizes autonomy for a nonprofit.

Question

Quizplus · Accepted Answer

Nonprofits that rely on one source of revenue, such as a single grant, are at higher risk if that funding source were to fall through. Diversifying revenue streams through a mix of donations, grants, partnerships, and earned income sources can help mitigate this risk and give the organization more control over its financial stability.

Having Diverse Sources of Revenue Minimizes Risk and Maximizes Autonomy