Tuesday, December 15, 2009

Regionality and diverse revenue streams point to the future

Nieman Labs have just released a report looking at journalism nonprofits and asking whether the model can be sustainable.

It suggests that those focusing on regionality and with more diverse revenue steams stand a better chance of survival

Jim Barnett,as part of his graduate studies in nonprofit management at George Washington University believes he has discovered what may be two critical distinctions in a range of examples

First, the six nonprofits that served geographically defined communities — whether they be cities, states or regions — generally did a better job of diversifying their revenue sources than did those that attempted to speak to a national audience.
and secondly

there appeared to be some correlation between bigger budgets and greater diversity in revenues sources. This pattern suggested to me that there is a happy dynamic at work here — a virtuous cycle in which diversity of revenue helps create institutional heft that in turn attracts additional philanthropy in the form of major individual gifts and foundation grants.

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